SIGNIFICANT ACCOUNTING POLICIES

i) Fixed Assets

(a) Fixed Assets are stated at cost, net of duties and taxes and includes incidental expenses and borrowing cost, less accumulated Debrciation and impairment Loss if any.

(b) Debrciation for the year has been provided on written down value method on the basis of useful lives specified in the Schedule-ll of the Companies Act. 2013 as against the amount of debrciation calculated on the basis of rates of debrciation in respect of various assets contained in Schedule XIV to the Companies Act. 1956. As a result of this change the debrciation charge for the year ended 31 03 2015 is lower by Rs 0 82 Lacs, and accordingly the Loss for the year is lesser by Rs 0 82 Lacs.

ii) Investments

Investments are carried at cost and provision is made in the accounts for diminution in the value of quoted investment

iii) Inventories Valuation

Raw materials, stores and spares and packing materials at cost, work in process at raw materials cost plus conversion cost depending on the stage of completion, finished goods at cost or net realisable value whichever is less and waste/damaged goods etc. at estimated realisable value.

iv) Employees Benefits

(a) Gratuity- Provision for liability in respect of gratuity is accounted for on the basis of an independent actuarial valuation The brsent value of defined benefit obligation as at the end of the year is determined using the projected Unit Credit method i.e each period of service rendered by the employee is considered to give rise to an additional unit of benefit entitlement, gradually building up the final obligation.

(b) Leave encashment - provision for Leave encashment is accounted and provided for at the end of the financial year

(c) Provident Fund- Liability is determined on the basis of contribution as required under the statutory rules and charged to profit and loss account.

v) Export Sales

The export sales are accounted for on CIF as well as on FOB basis in consonance with the nature of contract executed with the foreign buyers. Other sales are net of Vat

vi) Reorganization of Income & Expenditure

All incomes and expenditures are accounted for on accrued basis except insurance claims, which are being accounted for on receipt basis

vii) Contingent Liabilities

Contingent liabilities are disclosed by way of Notes to Balance Sheet Provision is made in the accounts in respect of liabilities which are acknowledged by the company and which have material effect on the position stated in the balance sheet

viii) Impairment of assets

At each balance sheet date, the company reviews the carrying amount of its fixed assets to determine whether there is any indication that the assets suffered any impairment loss If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment of loss Recoverable amount is higher of the assets net selling price and value in use In assessing value in use. estimated future cash flows expected from the continuing use of the assets and from its disposal are discounted to their brsent value using a brtax discount rate that reflects the current market assessment of time value of money and the risks specific to the assets

ix) Taxes on Income including Deferred Tax

Current tax is determined as the amount of tax payable in respect of income for the period. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between the taxable income and accounting income that originate in one year and are capable of reversal in one or more year Deferred tax assets are not recognized unless there is a sufficient assurance with respect to its reversal in future years

x) Foreign Currency transactions

Transaction denominated in foreign currency is recorded at the exchange rate brvailing al the date of transaction Exchange differences arising on settlement / conversion of foreign currency transaction are included in the profit and loss account

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

As per our report of even date

For NANDA & BHATIA

CHARTERED ACCOUNTANTS

Firm Registration No. 004342N  

(A. C. BHATIA)

Partner

M No 13791

(NAVNEET SAHARAN) (BHARAT BHUSHAN) (AAYUSH DHAWAN) (ASHWANI DHAWAN) (GIAN CHAND DHAWAN)

Director Managing Company Director Director Secretary & Compliance OHicer Director

Place Ludhiana

Date: 30 05 2015