Notes forming part of the Financial Statements as at and for the year ended 31st March, 2015

Note 1. Notes on Accounts

1.1 Significant Accounting Policies

A Fixed Assets are stated at cost of acquisition/ construction less accumulated debrciation. The cost includes all the br-operative expenses and the financing cost of borrowings related to the br production period. In case of revaluation of assets cost of acquisition is substituted by appropriate value in terms of valuation by competent professional.

B Pursuant to requirement of Schedule II of the Companies Act, 2013 (the Act), Company has revised the useful and residual life of assets and debrciation rates as brscribed under the Schedule II of the Act w.e.f. 1st April, 2014. In case of fixed assets where the residual useful life was nil as at 01-04-2014, the Company has adjusted the net written down values aggregating to Rs. 12,94,848 from retained earnings. Further, due to applicability of Schedule II of the Act during the year, the debrciation for the year is lower by Rs. 1,81,690/-.

C Foreign Currency Transactions:

i Export Sales- At the rates as on the date of negotiation or collection ,where export bills are negotiated after the close of the year, then at the year end rate when not covered by forward contract.

ii Expenditure- At the rates as on the date of transaction, receivables, creditors and outstanding liabilities are translated at the rate as at the close of the year, or at forward contract rate, wherever applicable.

iii Foreign Currency Loans for acquiring Fixed Assets and outstanding at the close of the Financial Year - At the contracted /brvailing rate of exchange, at the close of the year. The gain or loss due to decrease/increase in rupee liability due to fluctuations in rates of exchange is adjusted to the cost of the assets acquired through these loans. The debrciation on such increase/decrease in value of assets is provided for prospectively on residual life of the assets.

D Investments are stated at cost.

E Stock of Raw Material, spare parts and work in process are valued at cost.Finished goods are valued at lower of direct cost or net realisable value.

F Expenditure During Construction Period :

Expenditure incurred on projects during implementation is capitalised and apportioned to various assets on commissioning of the project.

G Preliminary, Capital Issue and Deferred Revenue Expenses :Preliminary, capital issue expenditure are written off in 10 years from the year of commercial production.

H Retirement Benefit :

Gratuity:- Provision for gratuity is made on the basis of actual accrued liability if any.

1.2  Due to non availability of reliable information regarding SSI status of suppliers/ sundry creditors, information regarding outstanding toward them can not be ascertained. However the amount is not likely to be significant.

1.3 The accounting of deferred tax in terms of "Accounting Standard ( AS22) on " Accounting for Taxes on Income" results in deferred Tax Assets. However in view of sickness of the company there is no certainity of realization of such assets in a reasonable period of time, hence the same has not been accounted for.

1.4. In view of paucity of funds no salary were paid to any of the Director for the financial year, however in view of directors confirmations not to avail any remuneration, no provision for liability is required.

As per our report of even date attached,

For N. BHANDARI & CO.

Chartered Accountants

Firm Reg. No: 03185C

Sd/-(N. Bhandari)

Partner M.No. 71710

For and on behalf of the Board of Directors

Sd/- Bhagwan Singh

(Whole-Time Director) DIN : 02305246

Sd/- Rajdeep Ghiya

(Director) DIN : 00082495

Sd/- CS Nidhi Khandelwal

(Company Secretary & Compliance Officer)

Place : Jaipur

Date: May 29, 2015