NOTES ANNEXED TO AND FORMING PART OF FINANCIAL STATEMENTS AS AT 31st MARCH, 2015

Note No. 1 : SIGNIFICANT ACCOUNTING POLICIES

i. Basis of Preparation of Financial Statements

The financial statements are brpared and brsented under the historical cost convention on accrual basis of accounting in accordance with the generally accepted accounting principles in India ("GAAP"), applicable Accounting Standards issued by The Institute of Chartered Accountants of India and under the historical cost convention, on accrual basis.

ii. Revenue Recognition :

Revenue is being recognized in accordance with the Guidance Note on Accrual Basis of Accounting issued by The Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the realization of income same is not accounted for till such time the uncertainty is resolved.

iii. Treatment of Expenses :

All expenses are accounted for on accrual basis.

iv. Fixed Assets:

Fixed Assets are stated at historical cost, less debrciation. Costs of fixed assets include taxes, duties, freight and other expense incidental and related there to the construction, acquisition, and installation of respective assets.

v. Inventories :

Stock-in-trade is valued at cost or market price whichever is lower.

vi. Debrciation / Amortization :

Debrciation on fixed assets has been provided on WDV method on prorate basis over the useful life brscribed in schedule II to the Companies Act, 2013 after considering salvage value of five percent of original cost. The Company has considered useful life of assets same as brscribed under the Companies Act, 2013.

Debrciation upto 31.03.2014 was provided on WDV method on prorate basis at the rates brscribed in schedule XIV to the Companies Act, 1956.

Due to transition from schedule XIV to schedule II, debrciation on assets existing as on 31.03.2014, has been provided in such a way so that assets should be debrciated after considering salvage value of five percent of original cost of the assets over a useful life of assets as brscribed under schedule II of the companies Act, 2013.

Assets of which useful life has already been expired but debrciation charged till brvious financial year was less than 95% of original cost of the assets, difference of 95% of Original Cost and debrciation charged till last year, has been charged to profit and loss account as debrciation.

Assets on which debrciation has already been charged above of 95% of Original Cost of the assets till brvious financial year and written down value of the assets is less than 5% of Original Cost, salvage value has been considered remaining WDV as on first day of current financial year.

vii. Taxes on Income :

a. Provision for current tax has been made as per the provisions of Income Tax Act, 1961.

b. Deferred tax has been recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

viii. Earning Per Share :

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

ix. Investments :

Long term investments are carried at cost. However, provision is made for diminution in value (if any), other than temporary, on an individual basis.

x. Accounting for Provisions, Contingent Liabilities and Contingent Assets :

Provisions are recognized in terms of Accounting Standard 29 - Provisions, Contingent Liabilities and Contingent Assets (AS-29), notified by the Companies (Accounting Standards) Rules, 2006, when there is a brsent legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company, or where any brsent obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for. Contingent Assets are not recognized in the financial statements.

xi. In the opinion of the Board of Directors and to the best of their knowledge and belief the realizable value of Current Assets, Loans and Advances in ordinary course of business is not less than the value stated in the Balance Sheet.

xii. Due to Small Scale Undertakings exceeding Rs. 1.00 lac overdue for more than 30 days- Nil

As per our separate report of even date

For SUDHIR AGARWAL & ASSOCIATES

CHARTERED ACCOUNTANTS

F.R.N.-509930C 

CA AMIT KUMAR

(PARTNER)

M.NO.518735 

Place:New Delhi

Date:30.05.2015