1. Significant accounting policies

a) Accounting Convention

The accompanying financial statements has been brpared as a going concern and in accordance with historical cost convention and on accrual basis using Generally Accepted Accounting Principles, Accounting Standards notified under Section 133 of the Companies Act, 2013 and relevant provisions thereof.

b) Fixed Assets

Tangible assets are stated at cost less accumulated debrciation and net of impairment, if any. Pre-operation expenses including trial run expenses (net of revenue) are capitalized. Borrowing costs during the period of construction is added to the cost of eligible tangible assets. Major improvements in production facilities are capitalized.

Intangible assets are stated at cost less accumulated amortization and net of impairments, if any.

Intangible assets having finite useful lives are amortized on a straight-line basis over their estimated useful lives.

c) Debrciation

Debrciation on tangible assets, after retaining residual value at 5% of original cost, is provided on straight line method over the useful life of assets estimated by the Management. Debrciation for assets created / sold / disposed off during a period is proportionately charged. Intangible assets are amortized over their estimated useful lives using straight line method.

Buildings / Civil Construction : 5 to 30 years

Computers / Networks : 6 years

Electrical Installations (except motors / plants) : 10 years

Furniture, Fixtures, Fittings : 10 years

Motor Vehicles : 8 to 10 years

Office Equipment (other than computers) : 5 years

Plant and Machineries (including cryogenic vessels) : 25 years

Improvements to Plant and Machineries with pluriannual effect 5 years

1 Useful lives of assets are estimated based on internal assessment and technical evaluation. The Management believes that the useful lives as given above best rebrsents the period over which the Management expects to use these assets. Hence, the useful lives for these assets are different from the useful lives as brscribed under Part C of the Schedule II of Companies Act, 2013.

Debrciation and amortization methods, useful lives and residual values are reviewed at periodical intervals.

d) Investments

Investments are stated at cost.

e) Inventories

i) Raw Material and Trading Goods are valued at cost.

ii) Finished Goods are valued at lower of cost or net relisable value.

iii) Stores and spares are valued at cost using the weighted average cost formula.

iv) Quoted shares and securities are valued at lower of cost or market value.

f) Foreign Currency Transactions

Transactions in foreign currency are recorded at the rate of exchange brvailing on the date of transaction. Year-end balance of foreign currency monetary item is translated at the year-end rates. Exchange differences arising on settlement of monetary items or on reporting of monetary items at rates different from those at which they were initially recorded during the period or reported in brvious financial statements are recognized as income or expense in the period in which they arise. The Company has elected to account for exchange differences arising on reporting of long-term foreign currency monetary items in accordance with Companies (Accounting Standards) Amendment Rules, 2009 pertaining to Accounting Standard 11 (AS-11) notified by Government of India on 31st March, 2009 (as amended on

29th December, 2011). Accordingly, the effect of exchange differences on foreign currency loans of the Company is accounted by transfer to "Foreign Currency Monetary Item Translation Difference Account" to be amortized over the balance period of the long-term monetary items.

g) Retirement Benefit

The accrued liability for gratuity payable to employees (eligible under Company's gratuity policy) has been calculated on the basis of actuarial valuation and provision is carried after adjusting deposits with group gratuity funds in force, if any. In respect of Provident Fund, the contribution is paid to the fund administered by the Government and is charged to revenue.

h) Borrowing Cost

Interest and other cost in connection with the borrowing of the fund to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use and other borrowing costs are charged to Profit and Loss Account.

i) Revenue Recognition

Revenue from the sale of products is recognized on transfer of significant risks and rewards of ownership to customer.

j) Provisions

A provision is recognized when there is 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. Provisions are not discounted to its brsent value and are determined based on best judgment required to settle the obligation at the balance sheet date. The estimate and associated assumptions are reviewed at each balance sheet date and adjusted to current estimates.

k) Deferred Tax

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantially by the balance sheet date.

In the event of unabsorbed debrciation and carry forward of losses, deferred tax assets are recognized only to the extent that there is virtual certainty that future taxable income will be available to realize such assets.

29th December, 2011). Accordingly, the effect of exchange differences on foreign currency loans of the Company is accounted by transfer to "Foreign Currency Monetary Item Translation Difference Account" to be amortized over the balance period of the long-term monetary items.

g) Retirement Benefit

The accrued liability for gratuity payable to employees (eligible under Company's gratuity policy) has been calculated on the basis of actuarial valuation and provision is carried after adjusting deposits with group gratuity funds in force, if any. In respect of Provident Fund, the contribution is paid to the fund administered by the Government and is charged to revenue.

h) Borrowing Cost

Interest and other cost in connection with the borrowing of the fund to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use and other borrowing costs are charged to Profit and Loss Account.

i) Revenue Recognition

Revenue from the sale of products is recognized on transfer of significant risks and rewards of ownership to customer.

j) Provisions

A provision is recognized when there is 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. Provisions are not discounted to its brsent value and are determined based on best judgment required to settle the obligation at the balance sheet date. The estimate and associated assumptions are reviewed at each balance sheet date and adjusted to current estimates.

k) Deferred Tax

Deferred tax expense or benefit is recognized on timing differences being the difference between taxable incomes and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantially by the balance sheet date.

In the event of unabsorbed debrciation and carry forward of losses, deferred tax assets are recognized only to the extent that there is virtual certainty that future taxable income will be available to realize such assets.

2 There is no undisclosed item of Income or Expenditure which exceeds 1% of the Revenue from operations or Rs. 100000, whichever is higher.

3 Wherever information has been received from the suppliers of their being small scale units, no amount exceeding rupees one lac is due to them for a period exceeding thirty days.

4 . A supplier has brfered a claim against the company for about Rs. 35 Million for non-acceptance of delivery which has been disputed by the company. Additionally, the company has filed a suit for damages against the supplier for failure to meet contractual obligations. The matters are pending at various stages before the courts.

5. Valuation of Shares & Securities at Note 10 above contains some shares which are valued at cost in view of suspension of trading of such shares on recognized stock exchange.

6. In view of inability to assess future taxable income, the extent of deferred tax assets which may be adjusted in subsequent years is not ascertainable with virtual certainty at this stage and accordingly in keeping with Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the same has not been recognized in these accounts on prudent basis.

7. Previous year's figures are re-grouped and re-arranged, wherever necessary.

In terms of my Report of even date annexed herewith

For A. K. Kumar & Co.

Chartered Accountants

 (Firm Regn. No. 308013E)

Anjan Kumar

Proprietor (M. No. 013166)

On behalf of the Board of Directors

NORIO SHIBUYA Managing Director

PRIYANKA JAISWAL Company Secretary

PADAM KUMAR AGARWALA Whole Time Director

K. SRINIVAS PRASAD Chief Financial Officer

9/15, Fern Road Kolkata - 700 019

Dated : 24th day of May, 2016