Significant Accounting Policies to Financial Statements

1 Significant Accounting Policies

a) Basis of brparation of Financial Statements:

The Financial Statements of the Company are brpared in accordance with the generally accepted accounting principles (GAAP) in India.

The Financial statements have been brpared on accrual basis and under historical cost convention except for certain tangible fixed assets which are carried at revalued amounts. The Financial statements are brsented in Indian rupees rounded off to the nearest rupees in lacs.

GAAP comprises applicable Accounting Standards specified under section 133 of the Companies Act,2013, read with Rule 7 of the Companies (Accounts) Rules, 2014, other pronouncements of the Institute of Chartered Accountants of India, relevant applicable provisions of the Companies Act, 1956 and Companies Act, 2013 to the extent applicable and the applicable guidelines issued by the Securities and Exchange Board of India.

Accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted a revision to an existing Accounting Standard requires a change in the accounting policy hitherto in use.

All Assets and Liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. The company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

b) Use of Estimates:

The brparation of the Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenditure during the period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialized.

c) Revenue Recognition:

i) Revenue from Sale of Goods is recognized upon passage of title to the customers.

ii) Gross Sales is inclusive of Excise Duty and exclusive of Sales Tax/Vat, rebate etc.

iii) Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

iv) All other income are accounted for on accrual basis.

d) Expenses:

All the expenses are accounted for on accrual basis.

e) Fixed Assets:

i) All fixed assets are stated at cost less accumulated debrciation and impairment, if any. Cost, net of cenvat, include acquisition price, duties, taxes, incidental expenses, erection expenses and interest etc. up to the date the asset is ready for its intended use.

ii) Intangible Assets expected to provide future enduring economic benefits are stated at cost less amortization and impairment, if any. Cost comprises purchase price and directly attributable expenditure on making the asset ready for its intended use.

iii) Capital Work-in-Progress comprises the cost of fixed assets that are not yet ready for their

intended use at the reporting date.

f) Debrciation and Amortisation:

i) Debrciation on Tangible Assets is provided on Straight Line basis so as to charge the cost of

the assets less its residual value over the useful lives of the assets as brscribed under Part C of

Schedule II of the Companies Act, 2013

ii) Residual Value has been considered as 5% of the cost of the assets.

iii) Debrciation on fixed assets added/disposed off during the year is provided on pro-rata basis with reference to the date of addition/ disposal.

iv) Computer Software (Acquired) are amortised over a period of five years. Amortisation is done on straight line basis.

g) Foreign Currency Transactions:

i) Transactions in foreign currency are initially recorded at the exchange rate at which the transaction is carried out.

ii) Monetary assets and liabilities related to foreign currency transactions remaining outstanding at the year end are translated at the year end rate.

iii) Any income or expense on account of exchange difference either on settlement or on translation at the year end is recognized in the Statement of Profit and Loss.

h) Inventories:

i) Inventories (Other than Scrap) are valued at lower of cost and net realisable value, after providing for obsolescence, if any. Cost of inventory comprises of purchase price, cost of conversion and other cost incurred in bringing the Inventories to their respective brsent location and condition.

The cost of Inventories is computed on weighted average basis except for Raw Materials and Components which is computed on FIFO basis.

ii) Scrap are valued at Net Realisable Value.

i) Employee Benefits:

i) Short-term employee benefits based on expected obligation on undiscounted basis are recognized as expenses in the Statement of Profit and Loss for the period in which the related service is rendered.

ii) Post employment and other long-term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the brsent value of the amount payable determined using actuarial valuations. Actuarial gains and losses in respect of post employment and other long-term employee benefits are recognized in the Statement of Profit and Loss.

j) Taxes on Income:

Tax expense comprises both current and deferred taxes. Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred income tax reflects 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 substantially enacted at the Balance Sheet date. Deferred tax assets (including unrecognized deferred tax assets of earlier years) are recognized only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

k) Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalized for the period until the asset is ready for its intended use. A qualifying asset is one that necessarily takes Annual Report a substantial period of time to get ready for its intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred. No borrowing costs were eligible for capitalisation during the year.

l) Insurance Claims:

Insurance claims are accounted for on the basis claims admitted/expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

m) Impairment of Assets:

Wherever events or changes in circumstances indicate that the carrying amount of fixed assets may be impaired, the Company subjects such assets to a test of recoverability, based on discounted cash flows expected from use or disposal thereof. If the assets are impaired, the Company recognizes an impairment loss as the excess of the carrying amount over the recoverable amount. After impairment, debrciation is provided on the revised carrying amount of the respective asset over its remaining useful life. A brviously recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying amount after reversal is not increased beyond the carrying amount that would have brvailed by charging usual debrciation if there was no impairment.

n) Provisions, Contingent liabilities and Contingent Assets:

Provisions are recognized in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered probable.

Contingent Liabilities are shown by way of Notes to the Accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Re-imbursement expected in respect of expenditure to settle a provision is recognised only when it is virtually certain that the re-imbursement will be received.

Contingent Assets are neither recognized nor disclosed in the Financial Statements.

o) Earnings per share:

Basic earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extra ordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of any extra ordinary items, if any) by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are determined independently for each period brsented.

p) Cash flow statement:

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

q) Cash and Cash Equivalents:

Cash and Cash equivalents include cash in hand, cheques in hand, balance with bank on current accounts and short term, highly liquid Investments with an original maturity of three months or less and which carry insignificant risk of changes in value.

Notes to Accounts

2 Other Disclosures

2. The amount due to Micro and Small Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information available with the Company.

3. Segment Reporting

The business of the company falls under a single segment i.e. "Writing Instruments and Stationeries" therefore the disclosure requirements as per Accounting Standard 17 "Segment Reporting" are not applicable to the Company.

8. Disclosure under clause 32 of the Listing Agreement:

There are no transactions which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

15. Figures in brackets rebrsent figures for the brvious year.The brvious year's figures have been reworked,regrouped,rearranged and reclassified wherever necessary as required by Schedule III of the Companies Act, 2013. Amounts and other disclosures for the brceeding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

This is the Balance Sheet referred to in our report of even date.

For G. P. Agrawal & Co.

Chartered Accountants

F.R No.302082E

 (CA. Ankita Agrawal)

Partner

Membership No.69560

For and on behalf of the Board

Deepak Jalan Managing Director DIN:00758600

Aloke Jalan Whole Time Director DIN:00758762

N. K. Dujari Chief Financial Officer & Company Secretary

Place of SignatureKolkata

Dated:The 22nd day of May, 2015