A. SIGNIFICANT ACCOUNTING POLICY

Basis of Accounting:

The accounts of the company are brpared under the historical cost convention and in accordance with the applicable accounting standards except where otherwise stated. For recognition of Income & Expenditure generally Mercantile system of accounting is followed.

Revenue Recognition:

"Sales are exclusive of duty, packing and forwording charges and sales tax, Revenue from sales of goods are recognised upon passage of title to customer which generally coincides with their delivery."

Use of Estimates:

The brsentation of Financial Statements in conformity with generally accepted accounting principles required management to make estimates & assumption that affects the reported amount of assets & liabilities on the date of the financial statements and reported amount of revenue and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known/ materialise.

Fixed Assets:

Fixed Assets are shown at cost less debrciation.

Debrciation:

"Consequent to the enactment of the companies Act 2013 and its applicability for accounting period commencing on or after April 2014, the company reviewed its method of providing for debrciation on its tangible fixed assets and also reassessed the useful lives of such assets. According the method of providing debrciation has been changed from Written down value method to the straight line method to debrciate all class of tangible assets/'

Foreign Currency Transaction:

i) Monetary assets and liabilities related to foreign currency transactions and outstanding at the close of the year are exbrssed in Indian Rupees at the rate of exchange brvailing on the date of Balance Sheet.

ii) Transactions in foreign currency are recorded in the books of accounts in Indian Rupees at the rate of exchange brvailing on the date of transaction.

2. OTHER NOTES

1. Additional information pursuant to schedule VI to the Companies Act,1956 is given to the extent applicable to the company.

2. In the opinion of Board of Directors the provision for debrciation and all known liabilities are adequate and are not in excess of the amounts considered reasonably necessary."

3. Balance of some of the trade receivables, trade paybles, loans and advances are subject to confirmation.

4. The liability of VAT and set off have been accounted for on the basis of working brpared by the company.

5. In accordance with the requirement for disclosure of amounts due to SSI units, as per "Micro, Small and Medium Enterprises Development Act,2006" the company has not complied the list of its sundry creditors who satisfy this criterion.

6. With regards to the Term Loans taken from Shamrao Vithal Co-op Bank Ltd., the bank itself debits the installment amounts periodically. And thus delay in Payment of installment is only due to the bank debiting the installments amount late and not due to company's lag.

7. Previous year's figures are regrouped & rearranged wherever necessary.