NOTES FORMING PART OF THE FINANCIAL STATEMENTS AS AT 31st MARCH, 2015

Note 1 COOMPANY INFORMATION

The company is based in Ahmedabad and is primarily involved in trading and manufacturing of pharmaceutical products.

Note 2 SIGNIFICANT ACCOUNTING POLICIES adopted by the Company in the brparation and brsentation of the Accounts: -

(a) BASIS OF brPARATION OF FINANCIAL STATEMENT

The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year.

(b) USE OF ESTIMATES

The brparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in brparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/ materialize.

(c) INVENTORIES

i) Inventories are valued at lower of cost (FIFO Basis) or Net Realisable value.

ii) Cost of inventories have been computed to include all costs of purchases, cost of conversion and other costs incurred in bringing the inventories to their brsent location and condition.

(d) CASH AND CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

(e) CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

(f) PRIOR PERIOD AND EXCEPTIONAL ITEMS

(i) All identifiable items of Income and Expenditure pertaining to prior period are accounted through "Prior Period Expense Account".

(ii) Exceptional items are generally non-recurring items of income/profit and expenses/loss within profit and loss from

Ordinary activities, which are of such nature or incident at these disclosures is relevant to explain the performance of the Company for the year.

(g) DEbrCIATION

i) Debrciation on Fixed Assets is provided on Written down method at rates and in the manner specified in Schedule III to the Companies Act, 2013 read with the relevant circulars issued by the Department of Company Affairs.

ii) Debrciation on Assets acquired during the year is provided on pro-rata basis with reference to the date of addition.

iii) Individual assets costing less than Rs.5000 are fully debrciated in the year of purchase.

iv) Intangible assets are amortized in span of 10 years.

(h) REVENUE RECOGNITION

i) Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales inclusive of Excise duty but exclude Vat and CST.

ii) Income from services rendered is accounted for when the work is performed.

iii) Interest revenues are recognized on time proportion basis taking into account the amount outstanding and the rate

(i) FIXED ASSETS

i) Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated debrciation.

ii) Expenditure on accounts of modification/alteration in plant and machinery, which increases the future benefit from the existing asset beyond its brvious assessed standard of performance, is capitalized.

(j) FOREIGN CURRENCY TRANSACTIONS

i) There is no Foreign Currency Transaction during the year.

(k) INVESTMENTS

i) Long-term Investments are stated at cost. Provision for diminution in the value of long-term Investments is made only if such a decline is other than temporary in the opinion of the management.

ii) Current investment are carried at the lower of cost and quoted/fair value, computed category wise.

(l) EMPLOYEE BENEFITS

i) Provident Fund and Pension Fund: Contribution to provident and pension fund maintained with the Provident fund authorities is charged to Profit & Loss account on accrual basis.

ii) Gratuity: Gratuity liability as on 31st March, 2015 has not been determined by the actuarial valuation and so that such liability has not been provided for in these accounts the gratuity expenses debited to profit & loss account as and when paid to employees at the time of resignation.

iii) Leave Encashment: The Company has policy to make payment of unutilised leaves every year as per rules of the applicable Act.

iv) Other Employee Benefits: Other Employee Benefits such as bonus etc. are accounted for on accrual basis.

(m) BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

(n) SEGMENT ACCOUNTING

Accounting Standard Interbrtation (ASI) 20 Dated 14th February, 2004 issued by the Accounting Standards Board of the Institute Chartered Accountants of India, on AS 17, Segment Reporting clarifies that in case, by applying the definitions of "business segment" and "geographical segment" given in AS 17, it is concluded that there is neither more than one business segment nor more than one geographical segment. Segment information as per AS 17 is not required to be disclosed.

(o) RELATED PARTY TRANSACTIONS

Disclosure of transactions with Related Parties, as required by Accounting Standard 18 "Related Party disclosures" has been set out in a separate note forming part of this schedule. Related Parties as defined under clause 3 of the Accounting Standard 18 has been identified on the basis of rebrsentation made by key managerial personnel and information available with the Company.

(p) LEASES

The Company's significant leasing arrangements are in respect of operating leases for office brmises, stores & godown. The leasing arrangements ranging between 11 months and five years are generally, and are usually Renewable by mutual consent on agreed terms. The aggregate lease rentals payable are charged as rent including lease rentals.

(q) EARNING PER SHARE

The Company reports basic and diluted earnings per share (EPS) in accordance with the Accounting Standard 20 brscribed under The Companies Accounting Standards Rules, 2006. The Basic EPS has been computed by dividing the income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year. The Diluted EPS has been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding at the end of the year.

(r) TAXES ON INCOME

i) Deferred Taxation

In accordance with the Accounting Standard 22 - Accounting for Taxes on Income, brscribed under The Companies Accounting Standards Rules, 2006, the deferred tax for timing differences between the book and tax profits for the year is accounted for by using the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet Date.

Deferred tax assets arising from timing differences are recognised to the extent there is virtual certainty that the assets can be realized in future.

Net outstanding balance in Deferred Tax account is recognized as deferred tax liability/asset. The deferred tax account is used solely for reversing timing difference as and when crystallized.

ii) Current Taxation

Provision for taxation has been made in accordance with the income tax laws brvailing for the relevant assessment years.

(s) IMPAIRMENT OF FIXED ASSETS

The carrying amount of assets, other than inventories, is reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated. The impairment loss is recognized whenever the carrying amount of an asset or its cash generation unit exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in the uses, which is determined, based on the estimated future cash flow discounted to their brsent values. All impairment losses are recognized in the profit and loss account.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount and is recognized in the profit and loss account.

(t) PROVISION, CONTINGENT LIABILITIES AND CONTIGENT ASSETS

Provisions involving substantial degree of estimation in measurements are recognised 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 recognised but are disclosed in notes. Contingent assets are neither recognised nor disclosed in the financial statements.

(u) ACCOUNTING OF CLAIMS

i) Claims received are accounted at the time of received return goods and damaged and expiry goods.

ii) Claims raised by Government authorities regarding taxes and duties, which are disputed by the Company, are accounted based on legality of each claim. Adjustments, if any, are made in the year in which disputes are finally settled.

(v) EXPORT INCENTIVES

Though other Accounting Standards also apply to the Company by virtue of the Companies Accounting Standards Rules, 2006, no disclosure for the same is being made as the Company has not done any transaction to which said accounting standards apply.

NOTE 28 OTHER DISCLOSURES

(a) Sundry Creditors, Receivables, Loans and Advances and liabilities etc. for which confirmations are yet to be received. Provision for doubtful debts, if any, in respect of above and the consequential adjustments, arising out of reconciliation will be made at the appropriate time.

(b) In the opinion of the Management and to the best of their knowledge and belief the value under the head of Current and

Non Current Assets (other than fixed assets and non current investments) are approximately of the value stated, if realized in ordinary course of business, except unless stated otherwise. The provision for all the known liabilities is adequate and not in excess of amount considered reasonably necessary.

(c) Disclosure as required by Accounting Standard 19, "Leases" issued by the Institute of Chartered Accountants of India are given below:

(d) The Company's significant leasing arrangements are in respect of office and factory brmises. The aggregate lease rental payable is charged to Profit and Loss Account as Rent in Schedule 5.

e) The Leasing arrangements, which are cancelable at any time between 11 months to 5 years and usually Renewable by mutual consent on mutually agreeable terms.

f) Prior period adjustments include: Nil

(g) Balance Confirmations/ Statements for some of the inactive Bank Accounts have not been received. Request of the same have been placed with the bank and consequential adjustment if any on account of the same will be made as and when the statements are received.

(h) Provision for likely sales returns, date expiry and damaged products are debited to profit & loss account as and when actual returns/claims received by the Company.

(i) Previous years figures regrouped, rearranged whenever it necessary.