NOTES TO FINANCIAL STATEMENTS for the year ended31Stmarch,2015

NOTE 1 : SIGNIFICANT ACCOUNTING POLICIES :

(A) Nature of operations :

The main business of the Company is that of Trading in Commodities and Fabrics, Commission Agent and Investment.

(B) Basis of Preparation of Financial Statements

(I) System of Accounting

The Financial Statements are brpared under the historical cost convention on accrual basis of accounting, in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

(II) Use of Estimates

The Preparation of Financial Statements in conformity with Generally Accepted Accounting Principles ( GAAP ) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period.

(C) Revenue Recognition

i) Sales comprise sale of commodities and fabrics. Revenue from sale is recognized:

a) when all the significant risks and rewards of ownership are transferred to the buyer which coincides with delivery and are recorded net of expenses incurred in this behalf.

b) no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale.

ii) Income from Investments is taken into account when the same are sold and the certainty of transaction is confirmed.

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

iv) Dividend Income is recognized on receipt basis.

(D) Fixed Assets and Debrciation

All fixed assets are stated at cost, comprising of purchase price, duty, levies and direct attributable cost of bringing the assets to their working condition for the intended use. Debrciation on fixed asset is provided using the straight line method based on rates specified in Schedule II of the Companies Act, 2013.

(E) Investments

Long Term Investments are stated at cost. The company provides for diminution, other than temporary, in the value of long term investments. Current Investments, if any are valued at cost or fair market value whichever is lower.

(F) Retirement Benefits

Contribution of Provident Fund, Gratuity and Leave encashment benefits wherever applicable is being accounted on actual liability basis as and when arises. However, the above referred provisions are not applicable to the company as it does not fall within the purview of the same in the year under review.

(G) Inventories

Inventories are valued at cost arrived at FIFO basis or net realisable value whichever is lower.

(H) Earning Per Share

The Basic and Diluted Earning Per Share ("EPS") is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

(I) Provisions for Taxation

The expenses comprises of current tax( i.e. amount of tax for the period determined in accordance with the Income Tax Act, 1961) and deferred tax charges or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed debrciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realization.

(J) Provisions and Contingencies

i) Provision is recognized (for liabilities that can be measured by using a substantial degree of estimation) when:

a) The Company has a brsent obligation as a result of a past event.

b) A probable outflow of resources embodying economic benefits is expected to settle the obligation; and

c) The amount of the obligation can be reliably estimated.

ii) A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will require an outflow of resources. When there is possible obligation or a brsent obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

d) No shares are reserved for issue under options and contracts/ commitments for the sale of shares/disinvestment.

e) During the immediately brceding five years to current year as well as brvious year. The Company has :

not allotted any shares without payment being received in cash ; not allotted any shares as bonus shares; not bought back any shares.

2. Other Notes

(A) Dues to SMEs :

There are no dues to Micro and Small Enterprises, that are reportable under the Micro, Small and Medium Enterprises Development Act, 2006.

(B) Related Party Disclosure :

1. Relationship :

Key Management Personnel

a. Mr. Kuldeep Kumar Sethia, Managing Director

b. Ms. Varsha Khandelwal, Company Secretary and Compliance Officer

(C) The main business of the Company is Trading of Merchandise and Commission Agency. This is in context of Accounting Standard -17 on segment reporing notified by the Company(Accounting Standard) Rules 2006, is considered to constitute a single primary segment.

(D) At each Balance Sheet date an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account.

(E) The figures have been rounded off to nearest rupee.

(F) The figures of brvious year have been regrouped / recast wherever considered necessary to make them comparable with those of current year.

(G) Disclosure u/s 186(4) of the Companies Act, 2013 regarding Loans given, Investment made or Guarantees given or Securities provided :

Notes :

(i) All loans given to unrelated corporate entities/others at an interest ranging from 9% to 12%.

(ii) All loans are short term in nature.

(iii) All the loans are provided for business purpose of respective entities, repayable on demand with brpayment option to the borrower.

2. Investment made

There are no investments by the Company other than those stated under Note No. 6 in the Financial Statements.

3. Guarantees Given

There are no guarantees given during the year.

4. Securities Provided

There are no guarantees given during the year.

In Terms of our report of even date annexed

For and on behalf of Board of Directors

For J. GUPTA & CO.

Chartered Accountants

Firm Registration Number : 314010E

JAI NARAYAN GUPTA

Partner

Membership Number : 051428

KULDEEP KUMAR SETHIA

Chairman and Managing Director

MALI CHAND AGARWALA

Director

YASHWANT KUMAR GOYAL

Director

RAJESH SHAH

Director

SHWETA SETHIA

 Executive Director and CFO

VARSHA KHANDELWAL

Company Secretary

Place : Kolkata

Dated 30th Day of May, 2015