NOTE 1: SIGNIFICANT ACCOUNTING POLICIES:

1.1 .BASIS OF brPARATION

The accounts have been brpared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules 2014 and the relevant provisions of the Companies Act, 2013/Companies Act, 1956, as applicable. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year except for the change in the accounting policy for debrciation as explained in Note 22.7.

1.2.SYSTEM OF ACCOUNTING:

i) The Company generally follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except those with significant uncertainties.

ii) Financial statements are based on historical cost. These costs are not adjusted to reflect the impact of the changing value in the purchasing power of money.

iii) The brparation of financial statements is in conformity with generally accepted accounting principles which requires management to make estimates and assumption that affect the reported amounts of assets, liabilities, revenue and expenses and disclosure of contingent assets and liabilities.

iv) The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions used in brparing the accompanying financial statements. Any variation to accounting estimates are recognised prospectively in current and future periods.

1.3. FIXED ASSETS AND DEbrCIATION:

a. Fixed Assets are stated at cost less debrciation, Costs comprise of cost of acquisition, borrowing cost, cost of improvement and any attributable cost of bringing the asset to condition for its intended use.

b. Debrciation on Fixed Assets for the year has been provided on all assets on Written Down Value Method as per the useful life brscribed in Schedule II to the Companies Act, 2013.

c. Intangible Assets, if any, are amortized over their useful life as determined in accordance with the extant provisions of the Companies Act, 2013.

1.4.FOREIGN CURRENCYTRANSACTIONS:

Foreign Currency transactions are initially recorded at exchange rates brvailing on transaction dates. All foreign currency loans, current assets and current liabilities outstanding on the date of Balance Sheet are converted at the appropriate rates of exchange brvailing on the date of the Balance Sheet except those covered by forward contracts if any, which are accounted for at the contracted rate rebrsenting the amount required to meet the liability. Exchange difference arising from foreign currency fluctuations are dealt with in the Statement of Profit and Loss.

Derivative instrument to hedge foreign exchange exposures are simulated for maturity / closure at the close of the year. Losses arising on such simulation on account of fluctuations in exchange rates during the reporting period are recognised in the Statement of Profit and Loss. Gains, if any, are postponed for a recognition on final determination.

1.5. INVESTMENTS:

Long term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of Long Term Investments. Short term investment are stated at lower of cost or fair value.

1.6.INVENTORY VALUATION:

Inventories are valued as under:

Raw Materials, packing materials and stores and spares at cost. Finished Products at lower of cost or net realizable value.

1.7. SALES:

i) Domestic sales are accounted for when dispatched from the point of sale, consequent to property in goods being transferred.

ii) Export sales for exports are accounted on the basis of date of Bill of Lading.

1.8. EXPORT INCENTIVES:

Export incentives are accounted for on export of goods if the entitlements can be estimated with reasonable accuracy and conditions brcedent to claim are fulfilled.

1.9.0THER INCOME:

Other operating revenues are accounted on accrual basis.

Interest income is accounted on accrual basis.

Dividend income is accounted when right to receive payment is established.

1.10 RETIREMENT BENEFITS:

a. Provident Fund:

Company's contributions during the year towards Government administered Provident Fund, Family Pension Fund and Labour Welfare Fund are charged to the Profit & Loss Account as incurred.

b. Gratuity:

The Gratuity is evaluated as on the date of Balance Sheet as provided under the Payment of Gratuity Act and the amount is shown as liability payable.

c. Others:

Any other employee benefit payments are accounted for on cash or accrual basis in the year of occurrence of the event giving rise to such liability.

1.11.LEASES:

Lease arrangements where the risks and rewards incident to ownership of an asset substantially vest with the less or are recognized as operating leases. Lease rents under operating leases are recognized in the Profit & Loss Account on accrual basis.

1.12. BORROWING COST:

Borrowing cost include interest, fees and other charges incurred in connection with the borrowing of funds and is considered as revenue expenditure for the year in which it is incurred. Borrowing cost attributed to the acquisition/improvement of qualifying capital assets and incurred till the commencement of commercial use of the assets is capitalized as cost of the assets.

1.13.TAXATION:

Provision for Taxation is made on the basis of the taxable profits computed for the current accounting period in accordance with the Income Tax Act, 1961. Deferred tax resulting from timing difference between book profits and tax profits is accounted for at the applicable rate of tax to the extent the timing differences are expected to crystallise, in case of deferred tax liabilities with reasonable certainty and in case of deferred tax assets with virtual certainty that there would be adequate future taxable income against which deferred tax assets can be realised.

1.14. IMPAIRMENT OF ASSETS:

The Company tests for impairments at the close of the accounting period if and only if there are indicators that suggest a possible reduction in the recoverable value of an asset. If the recoverable value of asset, i.e. the net realizable value or the economic value in use of a cash generating unit is lower than the carrying amount of the asset, the difference is provided for as impairment. However, if subsequently the position reverses and the recoverable amount becomes higher than the then carrying value, the provision to the extent of the then difference is reversed, but not higher than the amount provided for.

1.15. PROVISIONS:

Necessary provisions are made for brsent obligations that arise out of past events prior to the Balance Sheet date entailing future outflow of economic resources. Such provisions reflect best estimates based on available information.

1.16.CONTINGENT LIABILITIES

A disclosure for contingent liability is made when there is possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or brsent obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made

2.10 . The figures have been rounded off to the nearest rupee.

As per our report attached

For ANPASSOCIATES

Chartered Accountants FRN:009004S

AMISHNPATEL

Proprietor.

M.No.027859

for and behalf of the Board of Directors

B. POPATLAL KOTHARI Chairman & Managing Director

B. RANJITKUMAR KOTHARI : Director

Place: Chennai

Date:30™MAY2015