1. Corporate Information

Roxy Exports limited ("the Company') is a public company domiciled in India and incorporated under the provisions of the Companies Act. 1956. The Company is engaged in the business of manufacturing/' trading of bicycles part.

2. Basis of Preparation

The financial statements have been brpared to comply in accordance with generally Accepted accounting principles in India (Indian GAAP). The Company has brpared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act. 2013. the financial statements have been brpared on a going concern basis under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and arc consistent with those used in the brvious year. The significant accounting policies are as follows:

a) Use of Estimates

The brparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b) Fixed Assets

Fixed assets are stated at cost, net of accumulated debrciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use.

c) Debrciation

Debrciation is provided as per schedule II of New companies’ act 2013.

Debrciation has been provided as per useful lives of various assets as specified in annexure A of schedule II of companies Act after retaining residual value of 5% of gross value of asset. An amount of Rs. 93003/- has been transferred to reserves on account of excess debrciation charged as per the new provisions of Companies Act 2013.

d) Inventories

Raw materials, components, stores and spares are valued at lower of cost and net realizable value. However. materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost of raw materials, components and stores and spares is determined on FIFO basis.

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

C) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sales of products- Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer and is stated net of trade discounts, returns and Sales Tax / Value Added lax (VAT) but includes Excise Duty. The Company collects sales taxes and value added taxes on behalf of the government and. therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from revenue. Excise duty deducted from revenue (gross) is the amount that is included in the revenue (gross) and not the entire amount of liability arising during the year.

Other Income: Other income includes amount of Rs. 81.09 lacs on account of write back of trading liabilities of brvious years. Details of trading liability along with reasons for write back are as tinder:

On account of defective goods- 64.06 lacs

On account of forfeiture of advance money for non fulfillment of obligation - Rs. 17.06 lacs

Interest income - Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

0 Borrowing Costs

There is no borrowing from any Bank/F.l's. .

g) Foreign Currency Transactions

There is no foreign exchange transaction during the year.

h) Retirement and other Employee benefits

Gratuity'. The company has not made any provision for gratuity due to nil liability on a/c of gratuity..

Provident Fund: Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the provident funds.

Employees State /Insurance : Contribution to FSI Fund is made in accordance with the provisions of the FSI Act and is charged to Profit & Loss account.

i) Income taxes

Provision for current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act 1961 enacted in India and tax laws brvailing in the respective tax jurisdictions where the company operates.

J) Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

Current investments arc carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

k) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting brference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue, bonus element in a rights issue to existing shareholders, share split, and reverse share split (consolidation of shares), if any.

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

1) Administrative Expenses:

Admin. Expenses include fees paid to Ahmadabad stock exchange Limited for Rs. 1.29 lacs as annual fees pertaining from years from 1997-98 to 2014-15 and to Bombay Stock exchange Limited of Rs. 5.62 lacs for initial listing fees.

m) Cash & cash equivalent

Cash and cash equivalents in the cash How statement comprise cash at bank and on hand and short-term investments with an original maturity of three months or less.

n) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a brsent obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation.

A contingent liability also arises in extremely rare cases where there is a liability that cannot he recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

The company has estimated its contingent liabilities in respect of show cause notices' demand received from government authorities and other in respect of the following:

Income tax demand contested by Company:

There was a search by Income Tax department on the company brmises on 07.OS. 1992. The income tax eases are pending before Settlement Commission for A.Y 1990-91 to 1993-94.