Note:1 SIGNIFICANT ACCOUNTING POLICIES

1.1. BASIS OF brPARATION OF FINANCIAL STATEMENTS :

A. 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 issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act,2013.

B. USE OF ESTIMATES :

The brparation 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.

FIXED ASSETS AND DEbrCIATION :

All fixed assets are stated at cost, comprising of purchase price, duty, levies and any direct attributable cost of bringing the assets to their working condition for the intended use. Debrciation is provided according to straight line method on the basis of useful lives of the assets as brscribed by the Schedule II to the Companies Act, 2013 and Provision for impairment loss is recognised to the extent by which the carrying amount of an asset exceeds its recoverable amount.

LEASE ACCOUNTING :

(i) All the lease agreements of the Company are in respect of operating lease of the brmises (residential and business brmises etc.).

(ii) The aggregate lease rentals payable are charged to the Statement of Profit & Loss as Rent Expense.

(iii) The cancellable lease agreements are usually renewable by mutual consent at mutually agreeable terms. Non-cancellable lease agreements for a specified period are renewable at the option of the lessee/licensee at mutually agreed term.

(iv) The aggregate lease rentals receivable for the year is credited to the Statement of Profit & Loss as Rental Income.

INVENTORIES :

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

INVESTMENTS :

Investments are stated at cost less fall in their market value, if considered permanent.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit & Loss. Profit or Loss on sale of investments is determined on a first-in-first-out (FIFO) basis.

TRANSACTIONS IN FOREIGN CURRENCY :

a) Initial recognition :

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates brvailing on the date of the transaction.

b) Measurement of foreign currency items at the Balance Sheet date :

Foreign currency monetary items of the Company are reinstated at the closing exchange rates. Non-monetary items are recorded at the exchange rate brvailing on the date of the transaction. Exchange differences arising out of these translations are charged to the Statement of Profit & Loss.

c) Forward Exchange Contracts :

In respect of the transactions covered by forward exchange contracts, the difference between the year end rates and the exchange rate at the date of contract is recognised in statement of profit & loss and the brmium paid on forward contract is recognised over the life of the contract.

1.7. REVENUE RECOGNITION:

Revenue from sale of goods is recognised on transfer of all significant risks and rewards of ownership to the buyer. The amount recognised as sale is exclusive of CST / VAT and are net of returns.

Dividend income is recognised when the right to receive payment is established.

Interest income is recognised on the time proportion basis.

1.8. EMPLOYEE RETIREMENT BENEFITS :

a) Company's contribution to Employees' Provident Fund is charged to Statement of Profit & Loss.

b) Company has taken a Group Gratuity Cash Accumulation Policy from LIC for its employees including directors and the brmium for the policy is charged to Statement of Profit & Loss.

1.9. PROVISIONS FOR TAXATION:

Tax expense comprises of current tax (i.e. amount of tax for the period determined in accordance with the Income Tax Act, 1961) and deferred tax charge 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 recognised using the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

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

1.10. PROVISIONS & CONTINGENCIES:

The Company creates a provision when there exists a brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a brsent obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

1.11. EARNING PER SHARE:

The Basic and Diluted Earnings 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.

1.12. PROPOSED DIVIDEND:

Dividend recommended by the Board of directors is provided for in the accounts, pending approval at the Annual General Meeting.

1.13. BORROWING COSTS:

Borrowing Costs that are directly attributable to acquisition, construction or production of a qualifying asset are capitalised. Other borrowing costs are expensed out.

1.14. GOVERNMENT GRANTS, SUBSIDIES AND EXPORT INCENTIVES:

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

Note : 1 Pursuant to the approval of the members on 24th March, 2014 by way of Postal Ballot for issue of Bonus shares in the ratio of 2 Bonus shares for every one existing share held by the members as on 2nd April, 2014, 13263940 equity shares of Rs.10/- each were allotted as Bonus shares by the Board of Directors of the company in its meeting held on 3rd April, 2014. Consequently the paid up capital of the company increased from Rs.663 lacs to Rs.1990 lacs w.e.f. 3rd April, 2014.

Note : 2As per the provisions of schedule II to The Companies Act, 2013, effective from 1st April, 2014 the Company has charged debrciation based on remaining useful life of the Assets. Accordingly, an amount of Rs.208 lacs in relation to assets whose useful life has already expired as on 1st April, 2014, has been charged to Retained Earnings.

Note : 3 There is no amount due to be paid to 'Investor Education & Protection Fund' maintained by the Government of India as at the year end. These amounts shall be paid to the funds as and when they become due.

There is no amount due to Micro Enterprises and Small Enterprises, based on the records and the information received from suppliers.

Note : 4 In terms of Accounting Standard 28 "Impairment of Assets" Issued by the Institute of Chartered Accountants of India, provision for impairment loss on assets for the year is not required.

Note : 5.M/s Bhojeswar Realtors Pvt Ltd which was an associate company of the company has ceased to be its associate during the year. There has been no gain/loss on sale of entire shareholding of this company.

Note : 6 The figures of brvious year have been regrouped / recast wherever considered necessary to make them comparable with those of current year.

As per our report of even date attached hereto.

For MEHROTRA & MEHROTRA

Firm Regn NO. 000226C

CHARTERED ACCOUNTANTS

For and on behalf of the Board

(VIVEK KUMAR)

Partner

Membership No. 408227

 (DEEPAK KOTHARI)

Chairman & Managing Director

(RAJ KUMAR GUPTA)

CS & Compliance Officer

(MITESH KOTHARI)

Executive Director

(ANURAG TANDON)

Chief Financial Officer

Place : Kanpur

Date : 27th May, 2015