YKM INDUSTRIES LIMITED  

Note-1:- Significant Accounting Policies

1.1Basis for brparation of Financial Statements:

These Financial Statements are brpared in accordance with Indian Generally Accepted Accounting Principles(GAAP) under the historical cost convention on the accrual basis in compliance with the mandatory accounting standards as brscribed under Setion 133 of the Companies Act,2013 ('theAct') read with Rule 7 of the Companies (Accounts) Rules 2014, the provisions of the companies Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistantly applied except where newly issued accounting standards is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.2Use of Estimates:

The brparation of financial statements in conformity with generally accepted accounting policies requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's knowledge of current events and actions, actual results could differ from those estimates. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

1.3Retirement Benefits to Employees:

The Company does not have any employee and hence liability towards retirement benefit does not arise.

1.4Investments:

Long Term Investments are stated at cost unless there is a permanent fall in the value. Provision for diminution is made to recognise a decline other than temporary in the value of Long Term Investments.

1.5Deferred Tax:

Tax expense comprises of deferred tax. Deferred tax resulting from timing difference between book profit and tax profit for the year is accounted based on the rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. However deferred tax assets arising from timing difference are recognised to the extent of reasonable certainity about its realisability in future.

Note:

1.Electronic copy of the Annual Report for 2015 and Notice of the Annual General Meeting along with Attendance Slip and Proxy Form is being sent to all the members whose email address is registered with the Company / Depositary Participant unless any member has requested for a hard copy of the same. Shareholders receiving electronic copy and attending the Annual General Meeting can print copy of this Attendance Slip.

2.Physical copy of the Annual Report for 2015 and Notice of the Annual General Meeting along with Attendance Slip and Proxy Form is sent in the permitted mode(s) to all members whose email ids are not registered with the Company or have requested for a hard copy.