1. SIGNIFICANT ACCOUNTING POLICIES

(1)BASIS OF brPARATION OF FINANCIAL STATEMENTS

(i)The financial statements have been brpared in accordance with the applicable Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant disclosure requirements of the Companies Act, 2013 under historical cost convention and on the basis of going concern.

(ii)Accounting policies not specifically referred to otherwise are consistent and are in consonance with generally accepted accounting principles followed by the company.

(2)FIXED ASSETS

(I) Fixed Assets are stated at cost, net of credit availed in respect of any taxes, duties less accumulated debrciation. Cost comprises of the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Financing costs relating to acquisition of fixed assets which takes substantial period of time to get ready for intended use are also included to the extent they relate to the period up to such assets are ready for their intended use. Expenditure directly relating to construction/erection activity is capitalized. Indirect expenditure incurred during construction period is capitalized as part of the construction or is incidental thereto.

(ii) Land, Building and Plant & Machinery were revalued by an approved valuer on 31.03.1996.The resultant surplus was credited to Capital Reserve from which debrciation on revalued portion is being written off every year. This has no impact on profit for the year.

(3)DEbrCIATION

Debrciation on fixed assets has been provided on written down method, except in respect of Steam Turbine, Boiler House, ETP Plant Conveyers & Handling Equipments, Laboratory Equipments, Forklift Truck and Ruling Machine in whose case the life of the assets have been reassessed based on technical evaluation taking into account the different set of environment in which these assets are operating due to which debrciation is provided on the above assets on Straight Line Method over their useful life.

(4)REVENUE RECOGNITION

The Company follows mercantile system of accounting where all the Income and Expenditure items having material bearing on the financial statements are recognized on accrual basis.

(5)INVESTMENTS

The investments being long-term investments are valued at cost, after providing for any diminution in value, if such diminution is of a permanent nature.

(6)FOREIGN CURRENCY TRANSACTIONS

i)Foreign currency transactions are recorded on initial recognition at the rate brvailing on the date of the transactions.

ii)Foreign currency monetary items are reported using the closing rate. Exchange difference arising on the settlement of monetary items or on reporting the same at the closing rate as at the balance sheet date are recognized as income or expenses in the period in which they arise except in case of liabilities incurred for the purpose of acquiring the fixed assets from outside India in which case such exchange differences are adjusted in the carrying amount of fixed assets.

(7) INVENTORIES

The Company has valued its inventories on "cost or net realizable value whichever is lower" basis and is in compliance with the Accounting Standard (AS-2)" issued by the Institute of Chartered Accountants of India. Further, the valuation of inventory is inclusive of Excise Duty component wherever applicable as required u/s 145A of the Income Tax Act, 1961.

Cost for the purposes of inventory valuation is calculated as follows :

i)Raw Materials and other materials at weighted average cost.

ii)Store Spares and loose tools at Cost on FIFO basis.

iii)Work in process - Material Cost plus appropriate share of labour and overheads.

iv)Finished Goods - Cost is determined by taking material, labour and related factory overheads including debrciation and fixed production overheads which are apportioned on the basis of normal capacity

(8)EXCISE DUTY

Excise Duty has been accounted on the basis of payments made in respect of goods cleared, as also provision for goods lying in store room wherever applicable.

(9)SALES & STOCKS

Sales are recorded on the basis of dispatches till the last day of the year. Sales are accounted for inclusive of excise duty, trade tax & sales tax. Closing Stocks of finished goods and semi-finished goods are accounted for inclusive of Excise Duty.

(10)TAX ON INCOME

Current tax is determined in accordance with the provision of the Income Tax Act, 1961, as the amount of tax payable to the taxation authorities in respect of taxable income for the year.

Deferred Tax is recognized subject to consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods.

(11)BORROWING COST

Interest and other costs in connection with the borrowing of funds to the extent related / attributed to the acquisition / consumption of qualifying fixed assets are capitalized up to the date when such assets are ready for intended use and other borrowing costs are charged to Statement of Profit & Loss.

(12)PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving a substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not provided for and are disclosed separately by way of Notes to the Accounts. Contingent Assets are neither recognized nor disclosed in the Financial Statements.

(13)CASH FLOW

The Cash Flow Statement has been brpared under the "Indirect Method" as brscribed in the Accounting Standard -3 "Cash Flow Statement".

1.(a) Previous year figures have been reworked, rearranged regrouped and reclassified, wherever considered necessary.

(b) Figures have been rounded off to the nearest rupee.

2.In the opinion of the Board of Directors, Current Assets, Loans & Advances have a value of realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary.

3.Contingent Liability not provided for:

(I) In land Bank Guarantee given by Bank of Baroda for the Company amounting for t 16.75 Lacs and L/C amount t 78.91 Lacs outstanding as on 31.03.2015.

(ii) Estimated amounts of contracts remaining to be executed on capital account and not provided for Rs. NIL (Previous Year NIL).

4In compliance to the Accounting Standard-22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India (ICAI), Deferred Tax Asset of t 7,36,536/- (Previous Year t 14,28,360/- has been provided as at 31st March 2015 and the same has been charged to the Statement of Profit & Loss of the Company. This pertains to the timing difference in Debrciation on Assets as per books of accounts. The Deferred Tax Liability has been calculated by applying tax rate that have been enacted and applicable as on the Balance Sheet date. No liability has been computed in respect of difference considered to be of permanent nature

10. INTANGIBLE ASSETS

There are no intangible assets as on date of balance sheet.

Subject to our separate report of even date.

For AJAY SHREYA & COMPANY

CHARTERED ACCOUNTANTS

Registration No. 021423N

AJAY JAIN(Proprietor)   Membership No.:85354

Sandeep Jain(Managing Director)           

Anju Jain(Director)        

Anant Vats(Company Secretary)             

A.K. Dixit:  (Chief Financial Officer)

PLACE : New Delhi

DATED :30.05.2015