SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED 31ST MARCH, 2015

1 BASIS OF brPARATION OF FINANCIAL STATEMENTS

These financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles {GAAP) under the historical cost convention on the accrual Las s except for certain financial instruments which are measured at fair values, GAAP comprises mandatory accounting standards as brscribed under Section 133 of "no Companies Act. 2013 (The Act') rear: With Rule 7 ot the Companies [Accounts! Rules, 2014, the provisions of the Act (to t ie extent notified) and guide' riss issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly- ssjed accounting standard is initially aborted or a revision lo an ex sting accounting standard requires a change in the accounting policy hitherto in use

2 USE OF ESTIMATE

The brparation of finance statements requires management to make judgments. estimates and assumptions, that affect the application of accounting po0 s and the reported amounts of assets and liabilities and disclosures of contingent liabilities at The date of these financial statement and tnorrnrted amounts of revenues and expenses 1or the brsented. Acts, results may differ from these estimates. Estimates and underlying assumptions are revieweron an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future period affected 

3 REVENUE RECOGNITION

a The Company recognizes revenue on to sale of products, "et of discounts, when the products are del veered, risks and rewards of ownership pass to the deader / customer.

b. Revenues ate recognized when collectability  of the resuming receivables is reasonably assured.

c Dividend from investments is recognized when the right to receive the payment s established and when no significant uncertainty as to measurability or collectability exists,

d. interest income is recognized on the lime basis determined by the amount outstanding and the rate applicable  and where no significant uncertainty as tc measurability or collectability exists

4 FIXED ASSETS & DEbrCIATION:

a. Fixed Assets-Tangibles

Fixed Assets ate stated at cost of acquisition net cf recoverable taxes and includes amount added on revaluation less accumulated debrciation and impairment loss, if any All costs, including financing cost till commencement  commercial production, ret charges on foreign exchcrge contracts and adjustments arising from exchange rote variations attributable to the fixed assets are capitalized.

b. Debrciation

Debrciation on the fixed assets has been provided on straight Line Method basis as per provision of Section123 of the Companies Act, 2013, and in the mannn- specified in Schedule II lo the Companies Act £013

5 IMPAIRMENT OF ASSETS

The Company assesses fixed assets nt each balance sheet date whether there is any indication than asset may be impaired. It any such indication exists, the company estimates the recoverable amount of the assets. If such recoverable amount of the  asset or the recoverable amount of the resection is treated as an impairment loss and is recognized in the profit and loss account if at the balance sheet date there is an indication that brciously  assessed impalment loss no longer exists the recoverable amount is reassessed and the asset is reflected at the recoverable amount

6 INVESTMENTS:

these are held for long term and valued at cost reduced by diminution on of permanent nature therein if any

INVENTORIES:

a. Raw Material

inventories are valued at cost.

b. Work in Process

Inventories are valued at cost. The cost of work in process comprises of raw rankle al and other direct cost.

RETIREMENT BENEFITS:

a. Gratuity

The liability for the gratuity to gratuity to employee  on the basic oi independent actuarial valuation and chargedto the profit & less account.

b. Provident Fund

Since Provident: Fund is riOl app I cable. nc Provision for provident fund liability IS required

Leave encashment /salary

The company is not required to make no provision tor leave encashment ' salary ;o the employees as t i e company is making the leave salary payment curing the year itself  

TAXES ON INCOME

a. Current Tax

Current Tax is determined as the amount of rax payable in respect of taxable income for the year,

b- Deterred Tax

Dei erred tax is recognized, on timing differences  being the  difference between taxable income and accounting Income that originate in one period and are Camille of reversal in one or more subsequent periods. Deferred tax arrest in respect of unabsorbed debrciation 1 and carry forward of losses are recognized if there is virtual certainty certainty that there will be sufficient future taxable income available such losses  

1.segment information

The company is involved in the business of ship breaking old machinery dismantling which is the only business segment of the company however in the current year dur to lack of business opportunities no ship was purchased for dismantling and the company has earned against sale of import licence interst incorre based on guiding principles  given in the as 17 on segment reporting as specified in the companies (accounting standards )rules 2003 being only business segment information thereof is given

2.in the opinion of the management the current assets loans & advances approximately are of the value stated if realized in the ordinary course of business

3.the companies has not received any intimation from suppliers regarding their status under the micro small and medium enterprises development act2006 and hence disclosures if any relating to amount unpaid as at the year end together with interest paid payable as required under the said act have not been given

4.provision &contingent liability   

The company recognizes a provision when there is a brsent obligation as a result of a past event that profanely 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 that may but probably will not require an outflow of resources where there is a possible obligation or a brsent obligation that the likelihood of outflow of resources is remote no provision or disclosure is made