SIGNIFICANT ACCOUNTING POLICIES & NOTES ON ACCOUNTS

A. SIGNIFICANT ACCOUNTING POLICIES:

1. ACCOUNTING CONVENTIONS:

The financial statements have been brpared to comply in all material respects with the notified accounting standards by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 2013. The financial statements have been brpared under the historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the brvious year.

2. USE OF ESTIMATES

The brparation of financial statements in conformity with generally accepted accounting brsentation of financial statements requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and discloser of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and action, actual results could defer from these estimates.

3. FIXED ASSETS

i) Fixed assets are stated at cost less accumulated debrciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working conditions for its intended use.

4. RECOGNIZATION OF INCOME & EXPENDITURE:

a. Sales revenue is recognized when goods are cleared from Company's brmises and is inclusive of excise duties, wherever applicable.

b. Export sales are recognized at the time of shipment of products to customer and are inclusive of incentives and exchange fluctuation of export.

c. Income, expenditure and incentives / benefits are accounted for on accrual basis.

d. Claim & refunds due from government authorities and parties though receivable/ refundable are not recognized in the accounts if the amount there of is not ascertainable. These are accounted for as admitted in favor of the company.

5. DEbrCIATION:

Debrciation on fixed assets is provided on straight line method at the rates and in the manner brscribed in schedule II to the Companies Act, 2013.

6. IMPAIRMENT

The carrying amounts of assets are reviewed at each balance sheet if there is any indication of impairment based on internal / external factor. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their brsent value at the weighted average cost of capital.

7. INVENTORIES:

Inventories are valued at cost and net realizable value whichever is lower. In the case of work in progress valuation is based on raw material cost and overhead. Net realizable value is the estimated current procurement price in the ordinary course of the business.

8. BORROWING COSTS:

Interest and other costs in connection with the borrowing of the funds to the extent related / attributable to the acquisition / construction of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use and other borrowing costs are charged to profit and Loss account.

9. FOREIGN CURRENCY TRANSACTIONS:

Foreign currency transactions are accounted at exchange rates brvailing on the date of the transaction. All foreign currency assets and liabilities if any at the Balance Sheet date are translated into rupees at the applicable exchange rates brvailing at that date. All exchange difference is dealt with in the profit and loss account except those relating to acquisition of fixed assets which are adjusted in the cost of the fixed assets.

10. REVENUE RECOGNISATION OF INCOME AND EXPENDITURE:

All incomes and expenses are recognized on accrual basis except in respect of claim receivable that are accounted when admitted.

11. RETIREMENT BENEFITS:

Company Contribution to Provident Fund and Superannuation fund are charged to Profit & loss Account.

12. PROVISION FOR BAD & DOUBTFUL DEBTS:

Provision is made in accounts for bad and doubtful debts/advances which in the opinion of the management is considered irrecoverable.

B. NOTES TO THE ACCOUNTS

1. NATURE OF OPERATIONS:

The Company was engaged in manufacturing of capital goods machineries used in manufacturing of Portland Cement, mineral grinding machineries etc. Previously the Company was also manufacturing refractory Cement but the manufacturing activities were closed due to high cost and not having regular demand. The Company is now exploring the possibilities for investing in related new business activities.

2. The balances grouped under sundry debtors, creditors and advances are still under reconciliation and confirmation from respective parties awaited. The final adjustment if any shall be made only after reconciliation.

3. The stock of raw material, semi-finished goods and stores are as per inventory brpared, valued and certified by the management.

4. In the opinion of the management current assets and advances if realized in the ordinary course of business have value of realization at least of the amount at which they are stated in the Balance Sheet.

5. Debrciation on fixed assets has been recalculated during the year based on useful life of the assets as specified in schedule II of the companies Act, 2013. Carrying amount of the assets have either been debrciated over remaining useful of the assets or have been charged to Profit & Loss Account for the year, where remaining useful life of the assets is nil, after retaining their residual value.

6. As per the information available with the company there are no small scale industrial undertaking to whom the Company owed any sum as at 31s, March 2015 and there is no balances outstanding for more than 30 days as at 31st, March, 2015.

7. The Company has decided to pay remuneration of Rs. 6,00,000/- P.A. to whole-time director which is subject to the approval of shareholders in General meeting.

8. Sundry debtors include Rs. NIL (Maximum balance outstanding any time during the year was Rs.NIL) from the firm and companies in which directors are interested.

9. Income Taxes

A tax expense comprises current, deferred and fringe benefit tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax. Deferred income tax reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred Tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. If the Company has carry forwarded unabsorbed debrciation or carry forwarded tax losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

Due to uncertainty of income, deferred Tax has not been accounted for as the Company has huge accumulated business losses.

10. Previous year figures have been regrouped wherever necessary so as to correspond with those of the current year.

11. Segment information for the year ended 31.03.15

As the company has been operating in a single segment of business i.e. engineering goods, segment wise reporting in terms of AS-17 is not required to be given.

For C. L. OSTWAL & CO.

Chartered Accountants

SD/- Ashish Ostwal

Partner

M. No. 405273

For & Behalf of SABOO BROTHERS LIMITED

SD/- MUKESH SANGVI Director (DIN:00255527)

SD/- ARUN AGRAWAL Whole Time Director (DIN: 03258275)

Date : 30th May, 2015

Place : UDAIPUR