[A] SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF ACCOUNTS

1) Basis of Accounting:

These financial statements have been brpared under historical cost convention from books of accounts maintained on an accrual basis (unless otherwise stated hereinafter) in conformity with accounting principles generally accepted in India and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act 2013 The accounting policies applied by the company are consistent with those used in brvious year.

2) Use of Estimates :

The brsentation of financial statements require Judgments, estimates and disclosure of contingent liabilities, assumptions to be made that affect the reported amount of Assets and Liabilities, disclosure of Contingent Liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known /materialized.

3) Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction, net of recoverable taxes, including incidental expenses related to acquisition and installation and financing costs till the commencement of commercial production and adjustments arising from exchange rate variation relating to borrowings attributable to fixed assets, less accumulated debrciation and impairment loss.

4) Debrciation:

i. Debrciation on Fixed Assets other than specified plant and machineries is provided on Straight line Method the basis of useful life of asset in manner brscribed in Schedule II to the Companies Act, 2013 and on Specified Plant and Machineries debrciation is provided on the basis of Useful Life of the asset as determined by Government approved Valuer's report.

ii. Debrciation on additions to the assets and the assets sold, discarded or disposed off, during the year is provided on pro-rata basis with reference to the date of acquisition / installation or date of sale/ disposal.

5) Inventories:

Items of inventories of Raw Material, Finished goods, Spares and Stores, Packing Material & Fuel are valued at lower of cost or net realizable value except waste which is valued at estimated net realizable value. Cost of inventories comprise of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective brsent location and condition.

6) Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

7) Investments:

Long Term Investments are carried at cost less provision for permanent diminution, if any, in value of such investments.

8) Employees Retirement Benefits:

Short term employee benefits (which are payable within 12 months after the end of the year in which the employees render service) are measured at cost other than leave encashment payable within 12 months from the end of the year.

Long term employee benefits (which are payable after the end of 12 months from the end of the year in which the employees render service) and post employment benefits (benefits which are payable after completion of employment) are measured on a discounted basis by the Projected Unit Credit method on the basis of Actuarial Valuation.

Contributions to provident fund a defined contribution plan are made in accordance with the statute. The cost of providing leave encashment and gratuity defined benefit plans are measured Using Actuarial Valuation on the basis of Projected Unit Credit Method.

9) Excise duty and Cenvat Credit:

Excise Duty payable on finished goods (Except Finished Goods lying in stocks) are accounted for on clearance of goods. Cenvat credit on Capital goods and Inputs are accounted for on the date of actual receipt of the same, respectively.

10) Foreign Currency Transactions:

(a) Initial recognition:

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency of the date of the transaction.

(b) Conversion:

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate of the date of the transaction; and non-monetary items which are carried of fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

(c) Exchange differences:

Exchange difference arising on the settlement of monetary items or on reporting Company's monetary items of rates different from those of which they were initially recorded during the year, or reported in brvious financial statements, are recognized as income or as expenses in the year in which they arise.

(d) Forward Exchange Contracts not intended for trading:

The brmium or discount arising of the inception of forward exchange contracts is amortised as an expense or income over the life of the contract. Exchange differences on such contracts are recognized in the Statement of Profit and Loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year.

11) Revenue Recognition:

Income and Expenditure are recognized and accounted on Accrual Basis.

(1) Revenue from Sale of goods is recognized on delivery of the goods, when all significant contractual obligations have been satisfied, the property in the goods is transferred for a price, significant risks and rewards of ownership are transferred to customers and no effective ownership is retained.

(2) Revenue in respect of insurance/other claims etc, is recognized only when it is reasonably certain that the ultimate collection will be made.

(3) Export Incentives in respect of exports made is accounted for when the right to receive is established.

(4) Dividend income is recognized when the right to receive is established.

(5) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.

(6) Interest received on delayed payment is accounted on receipt basis.

12) Earnings per Share:

The earnings considered in ascertaining the Company's EPS comprises the net profit(loss) after tax (and include the post tax effect of any extra ordinary item). The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders by the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

13) Taxation:

(a) Direct Taxes :

Tax expense for the year, comprising Current Tax and Deferred Tax are included in determining the net profit for the year.

A provision is made for the current tax based on tax liability computed in accordance with relevant tax rates and tax laws. A provision is made for deferred tax for all timing differences arising between taxable income and accounting income at currently enacted tax rates.

Deferred tax assets are recognised only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

(b) Indirect Taxes:

The liabilities are provided or considered as contingent depending upon the merit of each case and/or receiving the actual demand from the department.

1) The Cash Flow statement is brpared by the "Indirect method" set out in Accounting Standard 3 on "Cash Flow Statement " and brsents the cash flows by operating , investing and financing activities of the Company. Cash and cash Equivalent brsented in the cash flow statement consist of cash on hand and demand deposits with banks.

2) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the company has a brsent obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. A contingent liability is disclosed when the company has a possible obligation where it is probable that no outflow of resources will be required to settle it. Contingent assets are neither recognized nor disclosed.

3) Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable Value. An impairment loss is charged to the statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in earlier accounting period is reversed if there has been a change in the estimate of recoverable amount.

4. Previous year's figures have been regrouped / re-stated / reclassified wherever necessary. Figures in brackets relate to the brvious year unless otherwise stated. Previous year figures in notes forming part of accounts are recalculated to bring the figures in line with relevance in the matter.

As per our report of even date attached herewith

For Mahendra N. Shah & Co.

Chartered Accountants

FRN: 105775W

For and on behalf of the Board

Chirag M. Shah  

Partner M.No: 45706

R.S. Patel Chairman

Pathik Shah Director

Krunal Shah C.F.O.

Place :- Ahmedabad

Date :- 03/08/2015