I. SIGNIFICANT ACCOUNTING POLICIES

a) Basis of brparation of financial statements

The financial statements of the company have been brpared on accrual basis under the historical cost convention in accordance with the generally accepted accounting principles in India (Indian GAAP) to comply with the Accounting Standards notified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

b) Use of Estimates

The brsentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognised in the period in which the results are known/materialized.

c) Fixed Assets :

Fixed assets are stated at historical cost including directly attributable costs of bringing the assets to their working condition and are net of credit under the CENVAT/VAT scheme where applicable.

Fixed assets under construction is categorised as capital work-in-progress. Pre-operative expenditure during construction/trial run of new project net of sales during trial runs and income earned by way of interest for temporary parking of funds earmarked for construction of an asset, are separated from normal revenue heads and allocated to the appropriate assets head under construction and shown as capital work-in-progress and allocated on an appropriate basis to fixed assets on commissioning.

d) Debrciation :

Debrciation is provided on fixed assets on the written down value method in based on useful life of the assets specified in Schedule II of the Companies Act, 2013.

e) Leases

Operating Leases : Rental are expensed with reference to lease terms and other considerations. The Company has taken commercial / residential brmises under cancelabe operating leases. The lease agreements are usually renewable by mutual consent on mututally agreeable terms. The expenses in respect of operating leases are accounted for in Other Expenses under Note-20 of the Balance Sheet.

f) Revenue Recognition :

Sales of products are recognised when the products are shipped and are stated inclusive of excise duty but net of sales tax, trade discounts and sales returns.

Revenue is recognised when no significant uncertainties exist in relation to the amount of eventual receipt.

The Company generally follows mercantile system of accounting and all income and expenditure items having a material bearing on the financial statements are recognised on accrual basis.

g) Foreign Currency Transactions :

(i) Foreign currency transactions are recorded at the exchange rate brvailing on the date of the transaction. (ii) Gains/losses arising out of fluctuation in the exchange rates are recognised in the period in which they arise.

(iii) Monetary assets and liabilities denominated in foreign currnecy are translated at the relevant rates of exchange brvailing at the year end and the resultant gain or loss is recognized in the Statement of Profit and Loss, except in the case of gain where significant uncertainties exist in relation to the actual realisation.

(iv) Premium / discount on forward exchange contracts (including options), which are not intended for trading or speculation purposes, are amortised over the period of the contract. There are no outstanding forward exchange contracts (including options) as at the Balance Sheet date.

(v) Any profit or loss arising on canellation or settlement of forward exchange contracts (including options) is recognised as income or expense of the year.

h) Excise Duty

Excise Duty is accounted for as and when paid on the clearance of the goods from the factory.

i) Employees' Retirement and Other Benefits

Company's contribution to provident and other funds is accounted for on accrual basis and charged to Profit and Loss Account. Provident Fund is accrued on monthly basis and is deposited with the "Statutory Provident Fund". The Company's contribution is charged to the Statement of Profit and Loss Account.

Provision for unutilised leave benefits is made on accrual basis. Liability for leave encashment benefit is accounted for on the assumption that such benefits are payable to all employees at the end of accounting year.

Gratuity liability is provided for on the basis of acturial valuation. Acturial gains and losses are recognised in full in the Profit and Loss Account for the period in which they occur.

j) Borrowing Costs

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets prior to commencement of commercial production are capitalised as a 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.

k) Miscellaneous Expenditure (to the extent not written off or adjusted)

Mines Development Expenses shall be amortised over a period of five years from the year of the commencement of commercial production.

l) Events occurring after Balance Sheet date :

Significant events occurring after the Balance Sheet date have been considered in the brparation of financial statements

m) Taxes on Income

Provision for Current tax has been determined as per provisions of the Income Tax Act, 1961.

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Minimum Alternate Tax (MAT) credit is recognised as an assets only when and to the extent there is convincing evidence that the Company will pay normal Income Tax during the specified period. In the year in which MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of statement of profit and loss and shown as MAT Credit entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the extent it is not reasonable certain that the Company will pay normal income tax during the specified period.

n) Impairment of Fixed Assets

At the end of each year, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit and Loss Account in the year in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

o) Contingent Liabilities and Provisions

The Company makes a provision when there is a brsent obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of the obligation can be made.

A disclosure is made for a contingent liability when there is a :

a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully within the control of the Company;

b) brsent obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation ;

c) brsent obligation, where a reliable estimate cannot be made.

p) Earning per share :

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

q) Cash Flow Statement :

The Cash flow statement is brpared under "Indirect method" as set out in Accounting Standard-3 on Cash Flow Statements, whereby Profit/ (Loss) Before Extraordinary Items and Tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

CORPORATE INFORMATION

Oriental Trimex Limited was incorporated as a Private Limited Company on 22nd April 1996 under the provisions of companies Act,1956. The Company was converted into Public Company on February 06, 2001. The Company is engaged in the business of trading and processing of marble and mining of granite. The Company's marble processing units are located at Greater Noida in national capital region, at Singur near Kolkata and Gumidipoondi near Chennai. All the processing facilities of the Company are fully integrated processing facilities equipped with state-of-the-art machineries namely Gangsaws, automatic Resin Lines with robotic feeds, imported from SEI, Italy, one of the pioneers and leaders in manufacturing machineries for the marble industry, imported automatic Line Polishers and imported Grinding Machines. Apart from three marble processing units, the Company has a small granite processing unit in the state of Orissa. The Company has three granite quarries in the state of Orissa at Rairangpur, Behrampur and Malkangiri which are under development.The Company has its own marketing outlets at New Delhi, Chennai, Kolkata, Greater Noida & Khushkhera apart from franchisees sbrad across India. Orienal Trimex Limited is one of the highly sbrad and expanded marble processing Company in India. The Company had gone public in 2007 and is listed with National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

 (B) Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for. - -

b) The Company is under obligation to export goods within a period of eight years form the date of issue of EPCG licences issued in terms of para 5.2 of Foreign Trader Policy 2009-2014. As on the date of Balance Sheet, the Company is under obligation to export goods wroth USD 9.70 lacs (brvious year USD 9.70 lacs) within the stipulated time as specified in the respective licenses. Out of the said amount, the Company has fulfilled the export obligatin of USD 1.12 lacs (brvious year 1.12 lacs) in respect of which application for export obligation discharge certificates (EODC) has been filed with the Director General Foreign Trade (DGFT) within the stipulated time.

III. OTHER NOTES ON ACCOUNTS

1) Letters of confirmation of balances appearing under the heads Trade Receivables, Advances Recoverable and Other Current Assets, Recalled Debts, Trade and Other Creditors, Customers at credit, have not been received till the date of balance sheet.

2) Taxes paid in advance under the head "SHORT TERM LOAN AND ADVANCES" consists of:-I) Rs. 2.01 lacs on account of interest received (brvious year Rs. 1.15 lacs)

3) Odissa Industrial Infrastructure Development Corporation vide their letter dated 20.11.2013 has cancelled the ownership of Plot No. 4, Somnathpur, Balasore, Odissa. The Management has already initiated efforts for revocation of the cancellation order.

4) Debrciation

As per Note 7 to Part C of Schedule II, from the date this Schedule comes into effect, the carrying amount of the asset as on that date (i.e. 1st April, 2014)

(a) shall be debrciated over the remaining useful life of the asset as per this Schedule;

(b) after retaining the residual value, may be recognized in the opening balance of retained earnings where the remaining useful life of an asset is nil.

However, the Company has not determined the remaining useful life of assets existing as at 31st March, 2014 as required under this Schedule and instead, has charged debrciation on the opening carrying amounts of assets at the rates calculated on the basis of useful life of assets as specified in Schedule II.

Consequently, the effect of changes in carrying amounts of assets on retained earnings is not reflected in the accounts.

5) No enterprises have been identified as a "Supplier" under the Micro, Small and Medium Enterprises Development Act, 2006. The aforesaid identification has been done on the basis of information, to the extent provided by the vendors to the Company. This has been relied upon by the Auditors.

6) Segment Information

The Company operates in single segment "flooring products segment" .

7) Figures of brvious year have been regrouped and reclassified wherever necessary to make them comparable.

8) During the year, the company has restarted mining operations in one of the mines in Orissa, inspite of social unrest and sporadic violence. Moreover, the management is intiating efforts to start operations in other mines also.

Economic Assumptions

The principal assumptions are the discout rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities & the salary growth rate takes account of inflation, seniority, promotion and other relevant factors on long term basis.

As per our report of even date.

For Ravish Agrawal & Associates

Chartered Accountants

RAVISH AGRAWAL F.C.A.,

 (Proprietor)

M. No. 094700

For and on behalf of the Board

Rajesh Punia DIN00010289 Managing Director

Savita Punia DIN00010311 Director

Om Prakash Sharma Chief Financial Officer

NEW DELHI

MAY 28, 2015