NOTE NO : 1

NOTES FORMING PART OF FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES: a) Income:

i The Accounts have been brpared under the historical cost convention and on accrual system based on the principle of going concern.

ii Income on Inter Corporate Deposits is accounted for on time accrual basis.

b. Expenditure:

It is the policy of the Company to provide for all expenses on accrual basis.

c. Debrciation:

The tangible assets including Leased out assets are debrciated on straight-line method at the rates and in the manner brscribed in schedule II of the Companies Act, 2013. The debrciation on revalued amount of fixed assets is provided as aforesaid over the residual useful life of the respective assets.

The Company debrciates it fixed assets on Straight Line Method over the useful life in the manner brscribed in Schedule II of the Companies Act, 2013.

d. Taxation:

i) Provision for Income Tax for the year is made on the basis of taxable income for the year as determined as per the provisions of the Income Tax Act, 1961.

ii) Deferred Income Tax is accounted for by computing the tax effect on timing differences, which arise during the year and is capable of reversal in the subsequent periods.

iii) Deferred tax assets relating to unabsorbed debrciation / business losses / losses under the head 'Capital Gains' are recognised and carried forward to the extent there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Other deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

e. Fixed Assets:

i) Tangible Fixed assets are valued at cost less debrciation. Assets, which have been revalued, are stated at revalued cost less debrciation.

ii) Capital work in progress - All direct expenses incurred for acquiring and erecting of fixed assets including interest on borrowed funds are shown under capital work in progress.

f. Impairment of Assets

If the carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the brsent value of estimated future cash flows.

g. Investments:

Long term investments are carried at cost. Provision for diminution, if any, in the value of each long term investment is made to recognize a decline, other than of a temporary nature.

Current investments in the nature of shares and debentures held for sale in the ordinary course of business are disclosed as stock in trade. Current investments are stated at lower of cost or net realisable value.

h. Inventories:

Inventories held by the Company are valued at cost or net realisable value whichever is lower.

i Foreign Currency Transaction:

The transactions in foreign currency are accounted at exchange rate brvailing on the date of transaction.

Money items denominated in foreign currency outstanding at the year end are translated at the year end exchange rate and the unrealised exchange gain or loss is recognized in the profit and loss account.

j Employee Benefits:

i) The Company has covered its gratuity liabilities with Life Insurance Corporation of India. Any amount payable to the employee in the year of separation in excess of amount received from LIC is charged off to revenue. Wherever applicable the brsent value of the obligation under such defined benefit plan is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the brsent value of the estimated future cash flows. The discount rates used for determining the brsent value of the obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet dates, having the maturity periods approximating to the terms of related obligations.

Actuarial gains and losses are recognised immediately in the profit and loss account.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plan to recognise the obligations on the net basis.

Gains or losses on the curtailments or settlement of any defined benefit plan are recognised when the curtailment or settlement occurs. Past service cost is recognised as expense on a straight line basis over the average period until the benefits become vested.

ii) The Company has made necessary provisions as per actuarial valuation for leave encashment and other retirement benefits wherever required as per Accounting Standard 15 under Companies ( Accounting Standards) Rules

2 Estimated amount of contracts remaining to be executed on capital account not provided for [Net of Advances] Rs. Nil [Previous Year Rs. Nil]

3 Based on Information of status of suppliers to the extent received by the company there are no Small Scale Industrial undertakings included in Sundry Creditors to whom the payments are outstanding for a period more than 45 days. Further the company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the micro, Small and Medium Enterprises Development Act, 2006) claiming their status as micro, small or medium enterprises. Consequently the amount paid/payable to these parties during the year is

Nil.

4 There are no amounts due and outstanding to be credited to Investors, Education and Protection fund as at 31.03.2016

5 The Gross Block of Fixed assets at Textile Processing House includes Rs.1111.17 lakh [Previous Year - Rs.1111.17 lakh] on account of revaluation of such assets carried out as of 1st March 2000.

Consequently the additional debrciation of Rs.9.28 lakh [Previous year t 9.28 lakh] provided in the Statement of Profit & Loss has been recouped by withdrawing an identical amount from Revaluation Reserve and credited to Statement Profit & Loss.

6 In respect of balances of Sundry Creditors / Debtors, Loans and advances, Banks and Unsecured Loans/ICD, confirmations which were not received by the Company in few cases have been accepted and taken as certified by the Director of the Company. In the opinion of management the balances as appearing in the books are fully payable/realizable, as the case may be, in the normal course of business.

7Previous year figures have been recast and restated wherever necessary

Signatures to Notes 1 to 27 to the Balance Sheet as at 31.03.2016 and Statement of Profit & Loss for the year ended 31.03.2016

As per our report of even date attached

For and on behalf of the Board

For U. B. SURA & CO.

CHARTERED ACCOUNTANTS

FR NO. 110620W

U. B. SURA

(PROPRIETOR)

MEMBERSHIP NO. 32026

FOR SHYAM C.AGRAWAL & CO.

CHARTERED ACCOUNTANTS

FR NO. 110243W

D.G.Siraj -DIN : 00025543 Chairman

SHYAM C AGRAWAL (PROPRIETOR)

MEMBERSHIP NO.31774

N.V.Siraj -DIN:00021986 Managing Director

S.Srinivasan Company Secretary

Navneet K. Pandya Chief Financial Officer

Place : Mumbai

Dated : 25th May 2016