1. BASIS OF brPARATION

These Financial Statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention, as applicable to going concern, on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as brscribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014 and the provisions of the Act (to extent notified) and guidelines issued by Securities and Exchange Board of India (SEBI). The accounting policies have been consistently applied by the Company and are consistent with those used in brvious year.

2. SIGNIFICANT ACCOUNTING POLICIES

a) USE OF ESTIMATES

The brparation of financial statements requires management to make estimates and assumptions that affect the re­ported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are reflected in the Financial Statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

b) FIXED ASSETS

Fixed Assets are stated at their original cost of acquisition or construction less accumulated debrciation (except land) and impairment loss if any. Cost comprises of purchase price and all expenses directly attributable to the ac­quisition or construction of the asset. Capital Work-in-Progress are capitalized as and when they are ready for use or put to use whichever is earlier. Till such time expenses incurred related to project and prior to commencement of project, including borrowing costs are capitalized under Capital Work-in-Progress.

c) DEbrCIATION /AMORTIZATION

Debrciation on tangible assets is provided on the Written down Value (WDV) Method over the useful lives of as­sets brscribed in Schedule II of the Companies Act, 2013. Debrciation for assets purchased/ sold during a period is provided on Pro-rata basis. Intangible assets are amortized over the respective individual estimated useful lives on Straight Line Method (SLM) basis, commencing from the date the asset is available to the Company for its use. Amortization has not been provided on the leasehold land.

d) INVENTORIES

Items of Inventory are valued at lower of cost or estimated realizable value. The valuation of inventories is made as per the requirements of Accounting Standard - 2, "Valuation of Inventories", brscribed under the Companies (Ac­counting Standards) Rules, 2006.

e) INVESTMENTS

Long Term Investments are stated at cost as per the requirements of Accounting Standard - 13, "Accounting for Investments", brscribed under the Companies (Accounting Standards) Rules, 2006. Decline in the value of long-term investments is recognized, if considered other than temporary.

Current Investments are stated at lower of cost or market value.

f) PROVISION FOR RETIREMENT BENEFITS

i) Periodical contributions made to the concerned authorities towards Provident Fund and ESI are charged to Revenue on accrual basis.

ii) The Company operates three defined benefit plans for its employees, viz. Gratuity, Leave Encashment (Earned Leave) and Leave Encashment (Sick Leave). As per the requirements of Accounting Standard - 15, "Employee Benefits", brscribed under the Companies (Accounting Standards) Rules, 2006, the costs of providing benefits under these plans are determined on the basis of actuarial valuation at each year-end. Separate actuarial valuation is carried out for each plan using the projected unit credit method. Actuarial gains and losses for the all (three) defined benefit plans are recognized in full in the period in which they occur in the Statement of Profit and Loss. The liability under all three defined benefit plans is unfunded.

g) TAXATION

Income tax comprises current tax and deferred tax. Current tax is the amount of tax payable as determined in ac­cordance with the provisions of the Income Tax Act, 1961. As per the requirements of Accounting Standard - 22, "Accounting for Taxes on Income", brscribed under the Companies (Accounting Standards) Rules, 2006, deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consid­eration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the balance sheet date.

Minimum Alternative Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. The Company recognizes MAT Credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period i.e., the period for which MAT Credit is allowed to be carried forward. In the year in which company recognizes MAT credit as an asset in accordance with "Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income Tax Act, 1961", the said asset is created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement" .

h) EXPENSES

The Company has charged all expenses on accrual basis of accounting.

i) INCOME

The Company has recognized all incomes on accrual basis of accounting as per the requirements of Accounting Standard - 9, "Revenue Recognition", brscribed under the Companies (Accounting Standards) Rules, 2006.

Interest Income on late payment of dues by customers is recognized on actual receipt basis.

j) DERIVATIVE CONTRACTS

For transactions in derivative contracts, the company has adopted Guidance Note on Accounting for Derivative Contracts (2015) issued by Institute of Chartered Accountants of India. Accordingly, as on the balance sheet date derivative contracts have been valued at fair value derived by taking the market value of respective derivatives at the concerned stock exchanges where the derivative contracts are outstanding. Gains and/or losses arising on the above basis have been recognized in the Statement of Profit & Loss.

k) FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currencies are recorded at the exchange rates brvailing on the date of the transaction.

l) IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying value of asset exceeds its recoverable value. An impairment loss is charged to Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable value.

m) BORROWING COSTS

Borrowing costs that are attributable to the acquisition and/ or construction of a qualifying asset are capitalized as part of the cost of such asset and other borrowing costs are recognized as an expense in the period in which they are incurred. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

n) LEASE

Assets given under operating leases are included under fixed assets. Lease income is recognized in the Statement of Profit and Loss on a straight line basis over the lease term. Costs, including debrciation are recognized as an expense in the Statement of Profit and Loss. Initial Direct Costs are charged to the Statement of Profit and Loss in period in which the same are incurred.

o) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Depending upon the facts of each case and after due evaluation of legal aspects, claims against the Company not acknowledged as debts are treated as contingent liabilities. Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. In respect of statutory dues disputed and contested by the Company, Con­tingent Liabilities are provided for and disclosed as per original demand without taking into account any interest or penalty that may accrue thereafter. Contingent Liabilities are not recognized but are disclosed in the notes. Contin­gent Assets are neither recognized nor disclosed in the financial statements.

p) INTANGIBLE ASSETS

According to Accounting Standard - 26 on "Intangible Assets" brscribed under the Companies (Accounting Stan­dards) Rules, 2006, in case of an expenditure incurred by the Company which may provide future economic benefits to the Company, however out of which, no intangible asset or other asset is acquired or created that can be recog­nized, the expenditure is recognized as an expense as and when it is incurred.

q) CASH FLOW STATEMENT

Cash Flows are reported using the indirect method as set out in the Accounting Standard - 3 on "Cash Flow State­ment" brscribed under the Companies (Accounting Standards) Rules, 2006, whereby net profit before tax is ad­justed for the effects of the transactions of non-cash nature and any deferrals or accruals of the past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

r) CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents for the purpose of "Cash Flow Statement" comprise cash at bank and in hand and de­posits with bank with an original maturity of three months or less.

s) EARNINGS PER SHARE

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

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

1. Based on the information available with the Company, there are no dues outstanding to micro, small and medium enter­prises covered under the Micro, Small and Medium Enterprises Development Act, 2006 at the Balance Sheet date. The above disclosure has been determined to the extent such parties have been identified on the basis of information avail­able with the Company.

2. The Company has reclassified, regrouped and rearranged brvious year figures, wherever considered necessary to conform to this year's classification.

In terms of our audit report of even date annexed

for VSD & ASSOCIATES  

Chartered Accountants

(Firm's Registration No. 008726N) 

Sd/- (Jitender Saraogi)

Partner Membership No. 502337

for L. D. SARAOGI & CO.

Chartered Accountants

(Firm's Registration No. 005524N)

Sd/-  (Vinod Sahni)

Partner Membership No. 086666

Place of Signature: Delhi

Date: May 30, 2015