(1). SIGNIFICANT ACCOUNTING POLICIES

a) Basis of brparation of Financial Statements:

The financial statements have been brpared under the historical cost convention in accordance with the generally accepted accounting principle and the provisions of the Companies Act, 2013.

b) Fixed Assets and Debrciation:

Fixed assets are stated at cost of acquisition less accumulated debrciation. The costs of Fixed Assets are inclusive of freight, duties (net of Cenvat) and other incidental expenses incurred during construction period.

Debrciation on Fixed assets is provided on WDV method in accordance with the rates and in the manner specified in schedule II of the Companies Act, 2013.

During the year, the Company has adopted estimated useful life of fixed assets as stipulated by Schedule II to the Companies Act, 2013. Accordingly, debrciation of Rs. 10.92 lacs on account of assets whose useful life is already exhausted on April 01,2014 has been adjusted against General Reserve.

c) Impairment of Assets

An asset is impaired if there are sufficient indication that the carrying cost would exceed the recoverable amount of cash generating assets. In that event an impairment loss so computed is recognized in the account in the relevant year.

d) Investments:

Long Term Investments are stated at cost. Provision is made for diminution, other than temporary, in the value of such investment.

e) Inventories;

Raw materials are valued at cost less Cenvat claimed on it and stores and spare parts are valued at cost. Finished Goods are valued at cost added with the excise duties on clearance payable or net realizable value whichever is lower. Work in Process in supply contracts with installation is calculated on cost or net realizable value whichever is lower. The cost is determined on FIFO basis. Scrap is valued at estimated realizable value.

f) Revenue Recognition;

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Sales are net of Sales Tax and Discount but inclusive of excise duty.

g) Foreign Currency Transactions:

Foreign currency transactions are accounted at the exchange rates brvailing on the date of transaction. The profit or loss on account of exchange fluctuation (on revenue transactions) is charged to the Profit & Loss A/a,

h) Provisions and Contingent Liabilities:

Provisions in respect of brsent obligations arising out of past events are recognized when reliable estimates can be made of the amount of obligation. The contingent liabilities are disclosed byway of notes on accounts forming part of Balance Sheet. 26(2). Employee Benefits: Short term benefits

i. Short term employee benefits are recognized as an expense at the undiscounted amount in the profit & loss account of the year in which the related service is rendered.

ii. Post employment benefits

Gratuity and leave encashment which are defined benefits are accrued based on the actuarial valuation as at Balance sheet date by an independent actuary. The Company has opted for a Group Gratuity cum life Insurance Scheme of the Life Insurance Corporation of India for part of the employees and the contribution is charged to the profit and loss account each year. For other than funded plan, the expense is recognized, as calculated on the basis of brsent value of the amount payable as determined by the actuarial valuation. The liability recognized in the balance sheet is the brsent value of the defined benefit obligation less the fair value of funded plans. All actuary gain and losses are charged to the profit and loss account.

2(3). Contingent liabilities not provided for:

a) Sales Tax Authorities have raised demand for Rs. 12.75 Lac ( Previous year Rs. 12.75 lac) for various assessment years and the matters are pending with Appellate Authorities and High Court. As per opinion, the appeals are likely to be decided in favour of the Company.

b) The Excise Department has raised a demand of Rs. 1.52 lac against Service Tax on Transaction charges and the matters are pending with the appellate authorities. As per opinion, the appeals are likely to be decided in the favour of the Company (Previous Year: Rs. 1.52 Lac).

c) The company has given counter guarantee to the bankers against guarantees issued by Banks on behalf of the company amounting to Rs. 588.67 Lacs (Previous Year: Rs. 524.00 Lac). The liability may arise in case of failure in supply of material or malfunctioning of products supplied by the Company.-

As per our report of even date annexed

For ANDROS & Co.

Chartered Accountants

For and on Behalf of the Board of Directors

Sd/-M. P. Rungta

Chairman and Managing Director

Sd/-Tarun Megotia

Executive Director

Sd/- BRIJ BHUSHAN GARG

Partner

Membership No. 084865

Sd/-, Pooja Juneja

Company Secretary

Place : New Delhi,

Date ;’ 28th May 2015