Accounting Policies of Bloom Dekor Ltd. Company

Mar 31, 2024

1. DISCLOSURE OF ACCOUNTING POLICIES

1.1. CORPORATE INFORMATION:

BLOOM DEKOR LIMITED (under CIRP), having CIN: L20220GJ1992PLC017341 is a public company domiciled in
India and incorporated under the provision of Companies Act, 1956. Its shares are listed on Bombay Stock Exchange
in India. The Company is engaged in manufacturing and selling of laminated sheets and Doors. The company caters
to both domestic and international markets.

As per the Order of Hon''ble National Company Law Tribunal (NCLT) Ahmedabad Bench dated 11th October, 2023
in CP(IB)/127/AHM/2020 which has admitted the Corporate Debtor (''the Company'') into Corporate Insolvency
Resolution Process (CIRP) under section 9(5)(i) of the Insolvency and Bankruptcy Code and appointed Ms. Vineeta
Maheshwari Insolvency Resolution Professional (IRP) and thereafter she was confirmed as Resolution Professional
in the meeting of Committee of Creditors. The Powers of the Board of Directors of the company are suspended and
officers and managers of the Corporate Debtors ("the Company") shall report to the Insolvency Resolution
Professional (IRP) as per the provisions of the Insolvency and Bankruptcy Code, 2016. Accordingly, the Insolvency
Resolution Professional (IRP) is running the CIRP and is looking after the affairs of the Company along with its
management.

1.2. BASIS OF PREPARATION OF FINANCIAL STATEMENT:

1.2.1. Basis of preparation and compliance with Ind AS

These Standalone Financial Statements are prepared in accordance with Indian Accounting Standard (Ind AS)
under historical cost convention on accrual basis. The Ind AS are prescribed under section 133 of the Act, read with
Rule 3 of the Companies (Indian Accounting Standard) Rules 2015 & relevant amendment rules issued thereafter.

Accounting policies have been consistently applied except where a newly issued Accounting Standard is initially
adopted or revision to an existing Accounting Standard requires a change in accounting policy hitherto in use.

1.2.2. Basis of measurement

The Financial Statements have been prepared on the historical cost convention on accrual basis except for certain
financial instruments that are measured at fair values at the end of each reporting period, as explained in the
accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and
cash equivalents. The Company has identified twelve months as its operating cycle. Accordingly, all assets and
liabilities have been classified as current or non-current as per the Company''s operating cycle and other criteria set
out in Ind AS 1 - ''Presentation of Financial Statements'' and Schedule III to the Companies Act, 2013.

Accounting policies have been consistently applied consistently to all the periods presented in the financial
statements.

The financial statements are presented in Indian Rupees in lakhs (''INR Rs in lakhs). Where changes are made in
presentation, the comparative figures of the previous year are regrouped and re-arranged accordingly.

1.3. USE OF ESTIMATES:

The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the financial statements and the results of operations during the
reporting year end. Although these estimates are based upon management''s best knowledge of current events
and actions, actual results could differ from these estimates.

1.4. RECENT ACCOUNTING PRONOUNCEMENTS:

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing Standards. There
is no such notification which have been applicable from April 1st, 2024.

MATERIAL ACCOUNTING POLICIES:

The Company has applied following accounting policies to all periods presented in the Ind AS Financial
Statement.

1.5. PROPERTY, PLANT AND EQUIPMENT:

i) Property, Plant and Equipment are stated at original cost (net of tax/ duty credit availed) less accumulated
depreciation and impairment losses. Cost includes cost of acquisition, construction and installation, taxes, duties,
freight, other incidental expenses related to the acquisition, and pre-operative expenses including attributable
borrowing costs incurred during pre-operational period.

ii) Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the company and the
cost of the item can be measured reliably. The carrying amount of any component as a separate as-set is
derecognized when replaced. All other repairs and maintenance are charged to profit and loss during the
reporting period in which they are incurred.

iii) Assets which are not ready for their intended use on reporting date are carried as capital work-in-progress at
cost, comprising direct cost and related incidental expenses.

iv) Property, Plant and Equipment are depreciated and/ or amortized on as per the Straight-line method on the basis
of their useful lives as notified in Schedule II to the Companies Act, 2013. The assets'' residual values and useful
lives are reviewed, and adjusted if ap-propriate, at the end of each reporting period.

v) Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period
when the assets are ready for use.

vi) An asset''s carrying amount is written down immediately on discontinuation to its recoverable amount if the
asset''s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are
determined by comparing proceeds with carrying amount. These are included in Profit/ Loss on Sale and
Discard of Property, Plant and Equipment.

vii) Useful lives of the Property, Plant and Equipment as notified in Schedule II to the Companies Act, 2013 are as
follows:

viii) At each balance sheet date, the Company reviews the carrying amount of property, plant and equipment to
determine whether there is any indication of impairment loss. If any such indication exists, the recoverable
amount of the assets is estimated in order to determine the extent of impairment loss. The recoverable amount is
higher of the net selling price and the value in use, determined by discounting the estimated future cash flows
expected from the continuing use of the asset to their present value.

ix) Cost is reduced by accumulated depreciation and impairment and amount representing assets discarded or held
for disposal.

1.6. INTANGIBLE ASSETS:

i) Intangible assets acquired by payment e.g. Computer Software are disclosed at cost less amortization on a
straight-line basis over its estimated useful life.

ii) Intangible assets are carried at cost, net of accumulated amortization and impairment loss, if any.

iii) Intangible assets are amortized on straight-line method as follows:

Computer Software - 5 years

iv) At each balance sheet date, the Company reviews the carrying amount of intangible assets to determine whether
there is any indication of impairment loss. If any such indication exists, the recover-able amount of the assets is
estimated in order to determine the ex-tent of impairment loss. The recoverable amount is higher of the net selling
price and the value in use, determined by discounting the estimated future cash flows expected from the
continuing use of the asset to their present value.

1.7. REVENUE RECOGNITION:

i) Revenue comprises of all economic benefits that arise in the ordinary course of activities of the Company which
result in increase in Equity, other than increases relating to contributions from equity participants. Revenue is
recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.

ii) Sale of Goods: Revenue from sales of goods is recognized on transfer of significant risks and rewards of
ownership to the cus-tomers. Revenue shown in the Statement of Profit and Loss ex-cludes, returns, trade
discounts, cash discounts, Goods and Ser-vice tax.

iii) Services: Revenue from Services are recognized as and when the services are rendered.

iv) Interest: Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applica-ble.

v) Export Benefits are accounted on accrual basis.

1.8. EMPLOYEE BENEFITS:

i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit
and Loss of the year in which the related service is rendered.

ii) Post-Employment and Retirement benefits in the form of Gratuity are considered as defined benefit obligations
and is provided for on the basis of third-party actuarial valuation, using the projected unit credit method, as at
the date of the Balance Sheet. Every Employee who has completed five years or more of service is entitled to
Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972.

iii) The present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows by reference to market yields at the end of reporting period on government bonds that have terms
approximating to the terms of the related obligation.

iv) Employee benefits in the form of Provident Fund is considered as defined contribution plan and the contributions
to Employees'' Prov-ident Fund Organization established under The Employees'' Provi-dent Fund and
Miscellaneous Provisions Act 1952 is charged to the Statement of Profit and Loss of the year when the
contributions to the respective funds are due. The Company pays provident fund contributions to publicly
administered provident funds as per local regulations. The Company has no further payment obligations once
the contributions have been paid.

1.9. VALUATION OF INVENTORIES:

i) The cost of inventories has been computed to include all cost of purchases, cost of conversion and other related
costs incurred in bringing the inventories to their present location and condition. The costs of Raw Materials,
Stores and spare parts etc., consumed consist of purchase price including duties and taxes (other than those
subsequently recoverable by the enterprise from the taxing authorities), freight inwards and other expenditure
directly attributable to the procurement.

ii) Stock of Raw Materials are valued at cost and of those in transit and at port related to these items are valued at
cost to date. Goods and materials in transit are valued at actual cost incurred up to the date of balance sheet.
Material and supplies held for use in the production of inventories are not written down if the finished products
in which they will be used are expected to be sold at or above cost.

iii) Stock of Stores and spare parts, Packing Material, Power & Fuel and Folders are valued at cost; and of those in
transits and at port related to these items are valued at cost.

iv) Goods-in-process is valued at lower of cost or net realizable value.

v) Stock of Finished goods is valued at lower of cost or net realizable value.

vi) Stock-in-trade is valued at lower of cost or net realizable value.

1.10. CASH FLOW STATEMENT:

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions

of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from

regular revenue generating, financing and investing activities of the Company is segregated.

Cash and cash equivalents in the balance sheet comprise cash at bank, cash/Cheques in hand and short-term

investments with an original maturity of three months or less.

1.11. FINANCIAL ASSETS:

i) The Company classifies its financial assets as those to be measured subsequently at fair value (either through
other comprehensive income, or through profit or loss), and those to be measured at amortized cost.

ii) Trade receivables represent receivables for goods sold by the Company up to the end of the financial year. The
amounts are generally unsecured and are usually received as per the terms of payment agreed with the
customers. The amounts are presented as current assets where receivable is due within12 months from the
reporting date.

iii) Trade receivables are impaired using the lifetime expected credit loss model under simplified approach. The
Company uses a matrix to determine the impairment loss allowance based on its historically observed default
rates over expected life of trade receivables and is adjusted for forward looking estimates. At every reporting
date, the impairment loss allowance is determined and updated and the same is deducted from Trade
Receivables with corresponding charge/credit to Profit and Loss.

iv) A financial asset is derecognized only when the Company has transferred the rights to receive cash flows from
the financial asset, or when it has transferred substantially all the risks and rewards of the asset, or when it has
transferred the control of the asset.

1.12. FINANCIAL LIABILITIES:

i) Borrowings are removed from balance sheet when the obligation specified in the contract is discharged, cancelled
or expired.

ii) Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement
of the liability for at least 12 months after the reporting period.

iii) Trade Payables represent liabilities for goods and services provided to the Company up to the end of the financial
year. The amounts are unsecured and are usually paid as per the terms of payment agreed with the vendors. The
amounts are presented as current liabilities unless payment is not due within 12 months after the reporting
period. They are recognized initially and subsequently measured at amortized cost.

iv) Financial assets and Financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis,
to realize the assets and settle the liabilities simultaneously.

1.13. FAIR VALUE MEASUREMENT:

i) Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset
or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The
principal or the most advantageous market must be accessible by the Company.

ii) The fair value of an asset or liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

iii) A fair value measurement of a non- financial asset takes into ac-count a market participant''s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.

iv) The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

v) The assets and liabilities which has been measured at fair value is Derivatives.

1.14. FOREIGN CURRENCY TRANSACTIONS:

i) Foreign currency transactions are recorded on initial recognition in the functional currency, using the exchange
rate at the date of the transaction. At each balance sheet date, foreign currency monetary items are reported using
the closing exchange rate. Exchange differences that arise on settlement of monetary items or on reporting at each
balance sheet date of the Company''s monetary items at the closing rate are recognized as income or expenses in
the period in which they arise.

ii) Non-monetary items which are carried at historical cost denominated in foreign currency are reported using the
exchange rate at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are
translated using the exchange rate at the date when the fair value is determined.

1.15. BORROWING COSTS:

i) Borrowing costs are interest and other costs (including exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with
the borrowing of funds.

ii) General and specific borrowing costs that are directly attributable to the acquisition or construction of qualifying
assets are capitalized as part of the cost of such assets during the period of time that is required to complete and
prepare the asset for its intended use. A qualifying asset is one that takes necessarily substantial period of time
to get ready for its intended use.

iii) All other borrowing costs are expensed in the period in which they are incurred.

1.16. ACCOUNTING FOR TAXES ON INCOME:

i) Tax expenses comprise of current tax and deferred tax including applicable surcharge and cess.

ii) Current Income tax is computed using the tax effect accounting method, where taxes are accrued in the same
period in which the related revenue and expenses arise. A provision is made for in-come tax annually, based on
the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is
estimated that a liability due to disallowances or other matters is probable.

iii) Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the
reporting date. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets
are recognized for all deductible temporary differences; the carry for-ward of unused tax credits and any unused
tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profits against which
the deductible temporary differences, and the carry forward unused tax credits and unused tax losses can be
utilized.

iv) The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is
no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to
be utilized. Unrecognized deferred tax as-sets are reassessed at each reporting date and are recognized to the
extent that it is become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to ap-ply in the year when the
asset is realized or the liability is settled, based on the tax rates and tax laws that have been enacted or
substantively enacted at the reporting date.

v) Deferred tax is recognized in the statement of profit and loss, except to the extent that it relates to items
recognized in other comprehensive income. As such, deferred tax is also recognized in other comprehensive
income.

vi) Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the Deferred Tax Assets and Deferred Tax Liabilities relate to taxes
on income levied by same governing taxation laws.

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Mar 31, 2016

Corporate Information

Bloom Dekor Limited, having CIN: L20210GJ1992PLC017341 is a public company domiciled in India and incorporated under the provision of Companies Act, 1956. Its shares are listed on Bombay Stock Exchange in India. The Company is engaged in manufacturing and selling of laminated sheets and Doors. The company caters to both domestic and international markets.

Note - 1: SIGNIFICANT ACCOUNTING POLICIES:

a) Basis of Accounting :

The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention and on the basis of a going concern, on accrual basis and those with significant uncertainty unless otherwise stated. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Account) Rules 2014 and the relevant provisions of Company Act, 2013. These accounting policies have been consistently applied.

b) Use of Estimates :

The preparation of financial statements in conformity with India GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about the assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in the future periods.

c) Revenue Recognition :

Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

i) Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Accordingly, domestic sales are accounted on dispatch of products to customers and Export sales are accounted on the receipt of bill of lading and on the basis of custom rate or on negotiation of document with the bankers as per the foreign exchange rates prevailing on the date of negotiation. Sales are disclosed net of the value added tax, discounts on sales and sales returns, as applicable.

ii) Interest income is recognized on a time proportion basis taking into account the amount outstanding, the rate of interest as applicable and on the basis of debit notes issued by the company for delayed payments by customers.

iii) The company accounts for pro forma credits, refunds of duty of customs or excise, or refunds of sales tax in the year of admission of such claims by the concerned authorities. Benefits in respect of Export Licenses are recognized on application. Export benefits are accounted for as other operating income in the year of export based eligibility and when there is no uncertainty on receiving the same.

d) Expenditures :

i) Purchases:

Purchase of Raw Materials and Stores are accounted net of receivable Cenvat and VAT.

ii) Expenses:

Expenses are accounted on accrual basis and net of Service tax paid on various expenses.

e) Tangible Assets :

i) Tangible Fixed Assets acquired by the Company are reported at acquisition value, net of accumulated impairment losses, if any (excluding freehold land). The cost of purchase price and borrowing costs if capitalization criteria are met, the cost of replacing part of the fixed assets and directly attributable cost of bringing the assets to its working condition for the intended use.

ii) Cost of Assets not ready for intended use, as on the balance sheet date, is shown as capital work in progress. Advances given towards acquisition of fixed assets outstanding at each balance sheet date are disclosed as Creditors for Expenses. Where the construction or development of any such assets requiring a substantial period of time to set up for its intended use, is funded by borrowing if any, the corresponding borrowing cost are capitalized up to the date when the asset is ready for its intended use.

f) Inventories :

i) Finished Goods are valued at lower of cost or net realizable value. Cost includes material, labour and direct overheads and proportion of manufacturing overheads based on normal operating capacity. Further scrap of finished goods is valued at Net Realizable Value.

ii) Stock in process is valued at cost.

iii) Raw Material, packing Material, Stores & Fire wood/Lignite, Folders are valued at cost inclusive of freight & incidental expenses. Cost is net of Modvat credit and input VAT.

iv) Stock lying at C & F Agent is valued at cost plus excise, packing, freight and octroi, if any.

g) Foreign Currency Transaction :

Foreign currency transactions are accounted at exchange rates prevailing on the date of the transactions take place or that approximates the actual rate on the date of transactions. The transactions denominated in foreign currencies, which are not settled up to the date of balance sheet, are translated into rupees at the exchange rate prevailing on the date of balance sheet.

Any gains or losses on account of exchange difference either on settlement or on translation is recognized in the statement of Profit and Loss except in cases where they relate to the acquisition of qualifying fixed assets covered under AS-16, in which case they are adjusted to the carrying cost of such assets.

Transactions in the foreign currency which are covered by forward contracts are accounted for at the contracted rate; the difference between the forward rate and the exchange rate at the date of transaction is recognized in the statement of profit & loss over the life of the contract.

h) VAT, CST, Excise duty & Service tax :

VAT, CST, excise duty & Service Tax payable and Cenvat receivable are accounted on the basis of returns submitted. Additional liabilities if any on assessment/ audit objections shall be provided/ paid as and when the assessment is completed.

i) Employee Benefits:

a) Short Term Employee Benefits

All Employees benefits falling due wholly within twelve months of rendering the services are classified as short term employees'' benefits. The benefits like salary wages short term compensated absences & performance incentives are recognized in the period in which the employee renders the related services.

b) Post employment benefits

The Provident fund Scheme managed by Employees'' Provident Fund Act 1952 managed by Government of Gujarat , Employees'' Gratuity Fund Scheme managed by LIC are the company''s defined benefit plans. Wherever applicable, the present value of obligation under such defined benefit plans is determined based on actuarial valuation using the projected unit credit method which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to built up financial obligation.

The obligation is measured at the present value of estimated cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan is based on the market yields on Government Bonds as at Balance sheet date having maturity periods approximating to the term of related obligations. Actuarial Gains and loss are recognized immediately in the profit and loss account. In case of funded plans the fair value of plan assets is reduced from the gross obligations under the defined benefit plans to recognize the obligation on net basis.

Gain or loss on the curtailment or settlement of any defined benefit plans recognized when the curtailment or settlement occurs. Past service cost is recognized as expense on straight line basis over the average period until the benefit becomes vested.

i. Provident Fund and Employee''s Deposit Linked Insurance (EDLI) are defined contribution scheme and the contributions are charged to statement of profit & loss of the year when the contribution to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

ii. Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation done using projected unit credit method.

iii. Actuarial gain and losses are recognized in the statement of Profit & Loss.

iv. The provision for leave encashment has been made as per the rules and regulations of the company, j) Prior Period Items :

Significant items of income and expenditure, which are relating to prior accounting period, are accounted in the statement of Profit and loss, under the head prior year adjustments and the expenditure & income which are not material pertaining to prior period, are shown under the respective heads of accounts in the statement of Profit & Loss. k) Depreciation :

(i) Tangible- Owned assets:

Depreciation on the fixed assets is provided based on the useful life prescribed in Schedule II of the Companies Act, 2013, on straight-line method. Further, the depreciation on Plant and Machinery of Laminate division is provided on three shifts basis. Depreciation for assets purchased / sold during a period is proportionately charged.

(ii) Intangible Assets:

Depreciation on the intangible assets like computer software is provided based on the useful life prescribed in Schedule II of the Companies Act, 2013, on straight-line method.

(iii) Capital work in progress:

Cost of Assets not ready for intended use as on balance sheet date is shown as Capital work in progress. Advance given towards acquisition of fixed assets outstanding at each balance sheet date are disclosed as long term loans and advances. Where construction or development of any such assets requiring a substantial period of time to set up for its intended use is funded by borrowing if any, the corresponding borrowing cost are capitalized up to the date when the asset is ready for its intended use. l) Events Occurring after balance Sheet Date :

Events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts where material except a raid u/s 67 of the Gujarat Commercial Tax conducted after the balance sheet but before adoption of account, however its order along with demand if any is not served till date of signing Account. In lieu thereof its impact on revenue can''t be ascertained hence can''t be recognized.

m) Borrowing Costs :

Borrowing Costs including Foreign Exchange Fluctuation for qualifying assets incurred in relation to the acquisition, construction of assets are capitalized as a part of the cost of such assets up to the date when such assets are ready for its intended use. Other Borrowing costs including interest, pre payment charges, and finance charges in respect of assets acquired on hire purchase are charged as an expense in the year in which these are incurred. n) Taxation :

In view of loss, during the current period the provision for Tax on income in accordance with the provision of the Income tax Act, 1961 is not required to be made.

Deferred tax is recognized on timing differences between the income accounted in the financial statements and the taxable income for the year, and quantified using the tax rates and loss enacted or subsequently enacted as on the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonably certain/ virtual certainty that the sufficient future taxable income will available against which such deferred tax assets can be realized. At each Balance Sheet date, the carrying amount of deferred tax assets is reviewed to reassure realization.

o) Deferred Tax Asset as on March 31, 2016 Comprises of the following:

The deferred tax liabilities for the year ended on March 31, 2016 is recognized for the profit & loss account comprising of tax effect of timing difference as under.

p) Provisions & Contingencies :

A provisions are recognized when the Company has a present legal or constructive obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimates required to settle the obligation at Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. A Contingent liabilities is a possible obligation that arise from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A Contingent Liabilities also arise in extremely rare cases where there is a liability that cannot be recognized because it cannot be measure reliably. Contingent liabilities are not recognized but disclosed in notes to the Financial Statements in case if obligation is disputed and the possibility of an outflow of resources is remote. Contingent assets are not recognizes until the realization of Income is virtually certain as per views of the management.

q) Segment Reporting :

The Company is primarily engaged in business of furnishing and construction material belongs to same product group, which is governed by the same set of risks and returns. Hence, there is only one primary segment. The said treatment is in accordance with the principal enunciated in Accounting Standard (AS-17) on Segment Reporting.

r) Impairment :

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/ external factor. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is, greater of asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value.

s) Earnings Per Share :

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

For the purpose of calculating diluted EPS, the net profit attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

t) Investments :

Long term investments are carried at cost. As there was no diminution other than temporary in the value of the investments no provision for diminution for the same is required to be recognized. There is no Current Investment as at the balance Sheet date. Hence, no comment for its valuation is offered.

u) Deferred Revenue Expenditure: Nil

v) Cash flow statement :

Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities reported using indirect method. Under the Indirect method the Net profit is adjusted for the effects of:

a) Transactions of a non cash nature

b) Any deferrals or accruals of past and future operating cash receipt or payment and

c) Items of income or expense associated with investing or financing cash flows.

Cash and cash equivalents (Including Bank balances) are reflected as such in cash flow statement.

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Mar 31, 2015

A) Basis of Accounting :

The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention and on the basis of a going concern, on accrual basis except Retirement benefits and those w'th significant uncertainty unless otherw'se stated. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act, 2013 read together w'th paragraph 7 of the Companies (Account) Rules 2014. These accounting policies have been consistently applied.

b) Use of Estimates :

The preparation of financial statements in conformity w'th India GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about the assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in the future periods.

c) Revenue Recognition :

Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

i) Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Accordingly, domestic sales are accounted on dispatch of products to customers and Export sales are accounted on the receipt of bill of lading and on the basis of custom rate or on negotiation of document w'th the bankers as per the foreign exchange rates prevailing on the date of negotiation. Sales are disclosed net of the value added tax, discounts on sales and sales returns, as applicable.

ii) Interest income is recognized on a time proportion basis taking into account the amount outstanding, the rate of interest as applicable and on the basis of debit notes issued by the company for delayed payments by customers.

iii) The company accounts for pro forma credits, refunds of duty of customs or excise, or refunds of sales tax in the year of admission of such claims by the concerned authorities. Benefits in respect of Export Licenses are recognized on application. Export benefits are accounted for as other operating income in the year of export based eligibility and when there is no uncertainty on receiving the same

d) Expenditures :

i) Purchases:

Purchase of Raw Materials and Stores are accounted net of receivable Cenvat and VAT.

ii) Expenses:

Expenses are accounted on accrual basis and net of Service tax paid on various expenses.

e) Tangible Assets :

i) Tangible Fixed Assets acquired by the Company are reported at acquisition value, net of accumulated impairment losses, if any (excluding freehold land). The cost of purchase price and borrowing costs if capitalization criteria are met, the cost of replacing part of the fixed assets and directly attributable cost of bringing the assets to its working condition for the intended use.

ii) Cost of Assets not ready for intended use, as on the balance sheet date, is shown as capital work in progress. Advances given towards acquisition of fixed assets outstanding at each balance sheet date are disclosed as Creditors for Expenses. Where the construction or development of any such assets requiring a substantial period of time to set up for its intended use, is funded by borrowing if any, the corresponding borrowing cost are capitalized up to the date when the asset is ready for its intended use.

f) Inventories:

i) Finished Goods are valued at lower of cost or net realizable value. Cost includes material, labour and direct overheads and proportion of manufacturing overheads based on normal operating capacity. Further scrap of finished goods is valued at Net Realizable Value.

ii) Stock in process is valued at cost.

iii) Raw Material, packing Material, Stores & Fire wood/Lignite, Folders are valued at cost inclusive of freight & incidental expenses. Cost is arrived at on FIFO basis and is net of modvat credit and input VAT.

iv) Stock lying at C & F Agent is valued at cost plus excise, packing, freight and octroi, if any.

g) Foreign Currency Transaction :

Foreign currency transactions are accounted at exchange rates prevailing on the date of the transactions take place or that approximates the actual rate on the date of transactions. The transactions denominated in foreign currencies, which are not settled up to the date of balance sheet, are translated into rupees at the exchange rate prevailing on the date of balance sheet.

Any gains or losses on account of exchange difference either on settlement or on translation is recognized in the statement of Profit and Loss except in cases where they relate to the acquisition of qualifying fixed assets covered under AS-16, in which case they are adjusted to the carrying cost of such assets.

Transactions in the foreign currency which are covered by forward contracts are accounted for at the contracted rate; the difference between the forward rate and the exchange rate at the date of transaction is recognized in the statement of profit & loss over the life of the contract.

h) VAT, CST, Excise duty & Service tax:

VAT, CST, excise duty & Service Tax payable and Cenvat receivable are accounted on the basis of returns submitted. Additional liabilities if any on assessment/ audit objections shall be provided/ paid as and when the assessment is completed.

i) Employee Benefits:

i) Provident Fund and Employee's Deposit Linked Insurance (EDLI) are defined contribution scheme and the contributions are charged to statement of profit & loss of the year when the contribution to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

ii) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation done using projected unit credit method.

iii) Actuarial gain and losses are recognized in the statement of Profit & Loss.

As per views of the management Leave encashment provision is not required on account of companies own Leave rules, hence Leave encashment to employees are not provided and shall be accounted as and when paid, if any.

j) Prior Period Items :

Significant items of income and expenditure, which are relating to prior accounting period, are accounted in the statement of Profit and loss, under the head prior year adjustments and the expenditure & income which are not material pertaining to prior period, are shown under the respective heads of accounts in the statement of Profit & Loss.

k) Depreciation on Fixed assets :

Till the year ended on 31st March 2014, schedule XIV to Companies Act 1956 prescribed requirements concerning depredation of fixed assets. From the current year, Schedule XIV has been replaced by Schedule II to the Companies Act 2013. The applicability of Schedule II has resulted in the following changes related to deprecation of fixed assets:

a. Useful Lives/ Depredation Rates

Considering the applicability of Schedule II, the management has adopted the useful lives and residual values of all its fixed assets as provided under Schedule II. The management believes that prescribed useful life under the schedule fairly reflects its estimates of the useful lives and residual values of fixed assets. Due to adoption of the useful life prescribed, the charge in respect of depredation for the current year for the assets is higher by Rs. 1,04,74,202/-

b. Components Accounting

The company has adopted Schedule II to the Companies Act, 2013 for deprecation purposes from 1st April, 2014. The company was previously not identifying components of fixed assets separately for depreciation purposes. Rather, a single useful life /deprecation rate was used to depredate each item of fixed assets. Due to application of Schedule II to the Companies Act, 2013, the company has changed the manner of deprecation for its fixed Assets.

Now, the company identifies and determines separate useful life for each major component of fixed assets, if they have useful life that is materially different from that of remaining assets. The company has used transitional provisions of Schedule II to adjust the impact of component accounting arising on its first application.

c. Depredation on Assets Costing Less than 5000/-

Till the year ended 31st March, 2014, to comply with the requirements of Schedule XIV of Companies Act, 1956, the company was charging 100% depredation on assets costing less than Rs. 5000/- in the year of purchase. However, Schedule II to the Companies Act,2013 applicable from the current year, does not recognize such practice. Hence to comply with the requirement of Schedule II to Companies Act, 2013 the company has changed its accounting policy for depredations of assets costing less than Rs. 5000/-. As per the revised policy, the company is depredating such assets over their useful life as defined under schedule II. The revised accounting policy has been applied prospectively from accounting periods commendng on or after 1st April, 2014.

Depredation on the fixed assets is provided at the rates and in the manner spedfied in Schedule II of the Companies Act, 2013, on straight-line method. Further, the depredation on Plant and Machinery of Laminate division is provided on three shifts basis.

l) Events Occurring after balance Sheet Date:

Events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts where material.

m) Borrowing Costs :

Borrowing Costs including Foreign Exchange Fluctuation for qualifying assets incurred in relation to the acquisition, construction of assets are capitalized as a part of the cost of such assets up to the date when such assets are ready for its intended use. Other Borrowing costs are charged as an expense in the year in which these are incurred.

n) Taxation :

The current charge for income taxes (MAT) is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax is measured on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only to the extent that there is reasonably certain/ virtual certainty that the sufficient future taxable income will available against which such deferred tax assets can be realized. At each Balance Sheet date, the carrying amount of deferred tax assets is reviewed to reassure realization.

Deferred Tax Asset as on 31/03/2015 Comprises of the following:

The deferred tax liabilities for the year ended on 31.3.2015 is recognized for the profit & loss account comprising of tax effect of timing difference as under.

o) Provisions & Contingencies:

A provisions are recognized when the Company has a present legal or constructive obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimates required to settle the obligation at Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. A Contingent liabilities is a possible obligation that arise from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A Contingent Liabilities also arise in extremely rare cases where there is a liability that cannot be recognized because it cannot be measure reliably. Contingent liabilities are not recognized but disclosed in notes to the Financial Statements in case if obligation is disputed and the possibility of an outflow of resources is remote. Contingent assets are not recognizes until the realization of Income is virtually certain as per views of the management.

p) Segment Reporting:

The Company is primarily engaged in business of furnishing and construction material, which is governed by the same set of risks and returns. Hence, there is only one primary segment. The said treatment is in accordance with the principal enunciated in Accounting Standard (AS-17) on Segment Reporting.

q) Impairment :

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/ external factor. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is, greater of asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value.

r) Earnings Per Share

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

For the purpose of calculating diluted EPS, the net profit attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

s) Investments

Long term investments are carried at cost. As there was no diminution other than temporary in the value of the investments no provision for diminution for the same is required to be recognized. There is no Current Investment as at the balance Sheet date. Hence, no comment for its valuation is offered.

t) Deferred Revenue Expenditure : Nil

---

Mar 31, 2014

A) Basis of Accounting :

The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention and on the basis of a going concern, on accrual basis except Telephone expenses, Retirement benefits and those with significant uncertainty unless otherwise stated. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India ("ICAI") and the provisions of the Companies Act, 1956./ relevant enacted provisions of the Companies Act, 2013 to the extent applicable. These accounting policies have been consistently applied.

b) Use of Estimates :

The preparation of financial statements in conformity with India GAAP requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about the assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

c) Revenue Recognition :

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

i) Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. Accordingly, domestic sales are accounted on dispatch of products to customers and Export sales are accounted on the receipt of bill of lading and on the basis of custom rate or on negotiation of document with the bankers as per the foreign exchange rates prevailing on the date of negotiation. Sales are disclosed net of value added tax, discounts on sales and sales returns, as applicable.

ii) Interest income is recognised on a time proportion basis taking into account the amount outstanding, the rate of interest as applicable and on the basis of debit notes issued by the company for delayed payments by customers.

d) Expenditures :

i) Purchases:

Purchase of Raw Materials and Stores are accounted net of receivable Cenvat and VAT.

ii) Expenses :

Expenses are accounted on accrual basis and net of Service tax paid on various expenses.

e) Tangible Assets:

i) Tangible Fixed Assets acquired by the Company are reported at acquisition value, with deductions for accumulated depreciation [other than "freehold land" where no depreciation is charged] and impairment losses, if any. The acquisition value includes the purchase price (excluding refundable taxes), and expenses directly attributable to assets to bring it to the factory and in the working condition for its intended use.

ii) Cost of Assets not ready for intended use, as on the balance sheet date, is shown as capital work in progress. Advances given towards acquisition of fixed assets outstanding at each balance sheet date are disclosed as Long Term Loans & Advances. Where the construction or development of any such assets requiring a substantial period of time to set up for its intended use, is funded by borrowings if any, the corresponding borrowing cost are capitalized upto the date when the asset is ready for its intended use.

f) Inventories:

a) Finished Goods are valued at lower of cost or net realisable value. Cost includes material, labour and direct overheads and proportion of manufacturing overheads based on normal operating capacity.

b) Stock in process is valued at cost.

c) Raw Material, Packing Material, Stores & Fire wood/Lignite are valued at cost inclusive of freight & incidental expenses. Cost is arrived at on FIFO Basis and is net of modvat credit and input VAT.

d) Stock lying at C & F Agent is valued at cost plus excise, packing, freight and octroi, if any.

g) Foreign Currency Transactions:

The transactions denominated in foreign currencies, which are not settled up to the date of balance sheet, are translated into rupees at the exchange rate prevailing on the date of the balance sheet.

Any gains or losses on account of exchange difference either on settlement or on translation is recognized in the statement of Profit and Loss except in cases where they relate to the acquisition of qualifying fixed assets covered under AS - 16, in which case they are adjusted to the carrying cost of such assets.

Transactions in the foreign currency which are covered by forward contracts are accounted for at the contracted rate; the difference between the forward rate and the exchange rate at the date of transaction is recognized in the statement of profit & loss over the life of the contract.

h) VAT, CST, Excise duty & Service Tax:

VAT, CST, excise duty & Service Tax payable and Cenvat receivable are accounted on the basis of returns submitted. Additional liabilities if any on assessment/audit objections shall be provided /paid as and when the assessment is completed.

i) Employee Benefits:

a) Provident Fund and Employee''s Deposit Linked Insurance(EDLI) are defined contribution scheme and the contributions are charged to statement of profit & loss of the year when the contribution to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

b) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation done using projected unit credit method.

c) Actuarial gain and losses are recognized in statement of Profit & Loss.

As per views of the management Leave encashment provision is not required on account of companies own Leave rules, hence Leave encashment to employees are not provided and shall be accounted as and when paid, if any.

j) Prior Period items:

Significant items of income and expenditure, which are relating to prior accounting period, are accounted in the statement of Profit and Loss, under the head prior year adjustments and the expenditure & income which are not material pertaining to prior period, are shown under the respective heads of accounts in the statement of Profit & Loss.

k) Depreciation:

Depreciation on the fixed assets is provided at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, on straight-line method. The depreciation on Plant and Machinery is provided on three shifts basis.

l) Events Occurring after Balance Sheet Date:

Events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts where material.

m) Borrowing Costs :

Borrowing Costs including Foreign Exchange Fluctuation for qualifying assets incurred in relation to the acquisition, construction of assets are capitalized as a part of the cost of such assets up to the date when such assets are ready for its intended use. Other Borrowing costs are charged as an expense in the year in which these are incurred.

n) Taxation :

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax is measured on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. At each Balance Sheet date, the carrying amount of deferred tax assets is reviewed to reassure realization.

o) Provisions & Contingencies :

A provisions are recognized when the Company has a present legal or constructive obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Contingent liabilities are not recognised but disclosed in notes to the Financial Statements in case if obligation is disputed and the possibility of an outflow of resources is remote. Contingent assets are not recognised until the realisation of Income is virtually certain as per views of the management.

p) Segment Reporting :

The Company is primarily engaged in business of furnishing and construction material, which is governed by the same set of risk and returns. Hence, there is only one primary segment. The said treatment is in accordance with the principal enunciated in Accounting Standard (AS-17) on Segment Reporting.

q) Impairment :

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factor. An impairment loss is recognised whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount is, greater of asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value.

---

Mar 31, 2013

A) Basis of Accounting:

The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP”) under the historical cost convention and on the basis of a going concern, on accrual basis except Telephone expenses, Retirement benefits and those with significant uncertainty unless otherwise stated. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India ("ICAI”) and the provisions of the Companies Act, 1956. These accounting policies have been consistently applied.

b) Use of Estimates

The preparation of financial statements in conformity with India GAAP requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management`s best knowledge of current events and actions, uncertainty about the assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

c) Fixed Assets:

The Fixed Assets are stated at the cost of acquisition including inward freight, duties & taxes and other incidental expenses less refundable duties, taxes and depreciation.

Borrowing costs attributable to acquisition / construction of fixed assets, if any, are capitalized as per the policy in note (l) below.

d) Inventories:

a) Finished Goods are valued at lower of cost or net realisable value. Cost includes material, labour and direct overheads and proportion of manufacturing overheads based on normal operating capacity.

b) Stock in process is valued at cost.

c) Raw Material, Packing Material, Stores & Fire wood/Lignite are valued at cost inclusive of freight & incidental expenses. Cost is arrived at on FIFO Basis and is net of modvat credit and input VAT.

d) Stock lying at C & F Agent is valued at cost plus excise, packing, freight and octroi, if any.

e) Foreign Currency Transactions:

The transactions in foreign currencies, which are not settled up to the date of balance sheet, are translated into rupees at the exchange rate prevailing on the date of the balance sheet.

Any gains or losses on account of exchange difference either on settlement or on translation is recognized in the statement of Profit and Loss except in cases where they relate to the acquisition of qualifying fixed assets covered under AS - 16, in which case they are adjusted to the carrying cost of such assets.

f) VAT, CST, Excise duty & Service Tax:

VAT, CST, excise duty & Service Tax payable and Cenvat receivable are accounted on the basis of returns submitted. Additional liabilities if any on assessment/audit objections shall be provided /paid as and when the assessment is completed.

This year the provision is made for the excise duty on closing stock of finished goods lying in bonded warehouse at factory as on 31.03.13.

g) Retirement Benefits:

a) Provident Fund and Employee`s Deposit Linked Insurance(EDLI) are defined contribution scheme and the contributions are charged to statement of profit & loss of the year when the contribution to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

b) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation done using projected unit credit method.

c) Actuarial gain and losses are recognized in statement of Profit & Loss.

As per views of the management Leave encashment provision is not required on account of companies own Leave rules, hence Leave encashment to employees are not provided and shall be accounted as and when paid, if any.

h) Sales & Purchases:

i) Domestic Sale:

Sales are recognized on dispatch of goods by the company. Sales are net of goods returned.

ii) Export Sales:

Export sale is recognized on receipt of bill of lading and is accounted on the basis of custom rate or on negotiation of document with the bankers as per the foreign exchange rates prevailing on the date of negotiation and are net of goods return.

iii) Purchases:

Purchase of Raw Materials and Stores are accounted net of receivable Cenvat and VAT.

iv) Expenses :

Expenses are accounted net of Service tax paid on various expenses.

v) Prior Period items:

Significant items of income and expenditure, which are relating to prior accounting period, are accounted in the statement of Profit and Loss, under the head prior year adjustments and the expenditure & income which are not material pertaining to prior period, are shown under the respective heads of accounts in the statement of Profit & Loss.

j) Depreciation:

Depreciation on the fixed assets is provided at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, on straight-line method. The depreciation on Plant and Machinery is provided on three shifts basis.

k) Events Occurring after Balance Sheet Date:

Events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts where material.

l) Borrowing Costs:

Borrowing Costs including Foreign Exchange Fluctuation for qualifying assets incurred in relation to the acquisition, construction of assets are capitalized as a part of the cost of such assets up to the date when such assets are put to use. Other Borrowing costs are charged as an expense in the year in which these are incurred.

m) Taxation:

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing difference that result between the profit offered for income tax and the profits as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

n) Contingent Liabilities and Assets :

Contingent liability is recognised and provided for when the company has present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligations and of which a reliable estimate can be made. Contingent liability is disclosed in notes to the accounts in case if obligation is disputed and the possibility of an outflow of resources is remote. Contingent assets are not recognised until the realisation of Income is virtually certain as per views of the management.

o) Segment Reporting :

The Company is primarily engaged in business of furnishing and construction material, which is governed by the same set of risk and returns. Hence, there is only one primary segment. The said treatment is in accordance with the principal enunciated in Accounting Standard (AS-17) on Segment Reporting.

p) Impairment :

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factor. An impairment loss is recognised whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount is, greater of asset`s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value.

---

Mar 31, 2012

A) Basis of Accounting:

The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention and on the basis of a going concern, on accrual basis except Telephone expenses, Retirement benefits and those with significant uncertainty unless otherwise stated. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India ("ICAI") and the provisions of the Companies Act, 1956. These accounting policies have been consistently applied.

b) Use of Estimates

The preparation of financial statements in conformity with India GAAP requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about the assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

c) Fixed Assets:

The Fixed Assets are stated at the cost of acquisition including inward freight, duties & taxes and other incidental expenses less refundable duties, taxes and depreciation.

Borrowing costs attributable to acquisition / construction of fixed assets, if any, are capitalized as per the policy in note (l) below.

d) Inventories:

a) Finished Goods are valued at lower of cost or net realisable value. Cost includes material, labour and direct overheads and proportion of manufacturing overheads based on normal operating capacity.

b) Stock in process is valued at cost.

c) Raw Material, Packing Material, Stores & Fire wood/Lignite are valued at cost inclusive of freight & incidental expenses. Cost is arrived at on FIFO Basis and is net of modvat credit and input VAT.

d) Stock lying at C & F Agent is valued at cost plus excise, packing, freight and octroi, if any.

e) Foreign Currency Transactions:

The transactions in foreign currencies, which are not settled up to the date of balance sheet, are translated into rupees at the exchange rate prevailing on the date of the balance sheet.

Any gains or losses on account of exchange difference either on settlement or on translation is recognized in the statement of Profit and Loss except in cases where they relate to the acquisition of qualifying fixed assets covered under AS - 16, in which case they are adjusted to the carrying cost of such assets.

f) VAT, CST, Excise duty & Service Tax:

VAT, CST, excise duty & Service Tax payable and Cenvat receivable are accounted on the basis of returns submitted. Additional liabilities if any on assessment/audit objections shall be provided /paid as and when the assessment is completed.

This year the provision is made for the excise duty on closing stock of finished goods lying in bonded warehouse at factory as on 31.03.12.

g) Retirement Benefits:

a) Provident Fund and Employee's Deposit Linked Insurance(EDLI) are defined contribution scheme and the contributions are charged to statement of profit & loss of the year when the contribution to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

b) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation done using projected unit credit method.

c) Actuarial gain and losses are recognized in statement of Profit & Loss.

As per views of the management Leave encashment provision is not required on account of companies own Leave rules, hence Leave encashment to employees are not provided and shall be accounted as and when paid, if any.

h) Sales & Purchases:

i) Domestic Sale:

Sales are recognized on dispatch of goods by the company. Sales are net of goods returned.

ii) Export Sales:

Export sale is recognized on receipt of bill of lading and is accounted on the basis of custom rate or on negotiation of document with the bankers as per the foreign exchange rates prevailing on the date of negotiation and are net of goods return.

iii) Purchases:

Purchase of Raw Materials and Stores are accounted net of receivable Cenvat and VAT.

iv) Expenses :

Expenses are accounted net of Service tax paid on various expenses.

v) Prior Period items:

Significant items of income and expenditure, which are relating to prior accounting period, are accounted in the statement of Profit and Loss, under the head prior year adjustments and the expenditure & income which are not material pertaining to prior period, are shown under the respective heads of accounts in the statement of Profit & Loss.

j) Depreciation:

Depreciation on the fixed assets is provided at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, on straight-line method. The depreciation on Plant and Machinery is provided on three shifts basis. k) Events Occurring after Balance Sheet Date:

Events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts where material.

l) Borrowing Costs:

Borrowing Costs including Foreign Exchange Fluctuation for qualifying assets incurred in relation to the acquisition, construction of assets are capitalized as a part of the cost of such assets up to the date when such assets are put to use. Other Borrowing costs are charged as an expense in the year in which these are incurred.

m) Taxation:

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing difference that result between the profit offered for income tax and the profits as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

n) Contingent Liabilities and Assets :

Contingent liability is recognised and provided for when the company has present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligations and of which a reliable estimate can be made. Contingent liability is disclosed in notes to the accounts in case if obligation is disputed and the possibility of an outflow of resources is remote. Contingent assets are not recognised until the realisation of Income is virtually certain as per views of the management.

o) Segment Reporting :

The Company is primarily engaged in business of furnishing and construction material, which is governed by the same set of risk and returns. Hence, there is only one primary segment. The said treatment is in accordance with the principal enunciated in Accounting Standard (AS-17) on Segment Reporting.

p) Impairment :

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal/external factor. An impairment loss is recognised whenever the carrying amount of an asset exceed its recoverable amount. The recoverable amount is, greater of asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value.

---

Mar 31, 2011

1. Basis of Accounting:

The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention and on the basis of a going concern, on accrual basis except Telephone expenses, Retirement benefits and those with significant uncertainty unless otherwise stated. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India ("ICAI") and the provisions of the Companies Act, 1956. These accounting policies have been consistently applied.

2. Use of Estimates

The preparation of financial statements in conformity with general accepted Accounting Standards requires Management to make estimates and assumption that affect the reported amounts of assets and liabilities at the date of financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Actual results could differ from those estimates.

3. Fixed Assets:

The Fixed Assets are stated at the cost of acquisition including inward freight, duties & taxes and other incidental expenses less refundable duties, taxes and depreciation.

Borrowing costs attributable to acquisition / construction of fixed assets, if any, are capitalized as per the policy in note (13) below.

4. Inventories:

a) Finished Goods are valued at lower of cost or net realisable value. Cost includes material, labour and direct overheads and proportion of manufacturing overheads based on normal operating capacity.

b) Stock in process is valued at cost.

c) Raw Material, Packing Material, Stores & Fire wood/Lignite are valued at cost inclusive of freight & incidental expenses. Cost is arrived at on FIFO Basis and is net of modvat credit and input VAT.

d) Stock lying at C & F Agent is valued at cost plus excise, packing, freight and octroi, if any.

5. Foreign Currency Transactions:

The transactions in foreign currencies, which are not settled up to the date of balance sheet, are translated into rupees at the exchange rate prevailing on the date of the balance sheet.

Any gains or losses on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss Account except in cases where they relate to the acquisition of qualifying fixed assets covered under AS - 16, in which case they are adjusted to the carrying cost of such assets.

6. VAT, CST, Excise duty & Service Tax:

VAT, CST, excise duty & Service Tax payable and Cenvat receivable are accounted on the basis of returns submitted. Additional liabilities if any on assessment/audit objections shall be provided /paid as and when the assessment is completed.

This year the provision is made for the excise duty on closing stock of finished goods lying in bonded warehouse at factory as on 31.03.11. Earlier, Excise duty on closing stock of finished goods lying in bonded warehouse at factory was provided only on removal of goods from the factory. This change has no effect on the profit or loss of the year.

7. Retirement Benefits:

a) Provident Fund and Employee's Deposit Linked Insurance(EDLI) are defined contribution scheme and the contributions are charged to profit & loss account of the year when the contribution to the respective funds are due. There are no other obligations other than the contribution payable to the

b) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation done using projected unit credit method.

c) Actuarial gain and losses are recognized in Profit & Loss account.

As per views of the management Leave encashment provision is not required on account of companies own Leave rules, hence Leave encashment to employees are not provided and shall be accounted as and when paid, if any.

8. Sales & Purchases:

a) Domestic Sale:

Sales are recognized on dispatch of goods by the company. Sales are net of goods returned.

b) Export Sales:

Export sale is recognized on receipt of bill of lading and is accounted on the basis of custom rate or on negotiation of document with the bankers as per the foreign exchange rates prevailing on the date of negotiation and are net of goods return.

c) Purchases:

Purchase of Raw Materials and Stores are accounted net of receivable Cenvat and VAT.

d) Expenses :

Expenses are accounted net of Service tax paid on various expenses.

9. Prior Period items:

Significant items of income and expenditure, which are relating to prior accounting period, are accounted in the Profit and Loss account, under the head prior year adjustments and the expenditure & income which are not material pertaining to prior period, are shown under the respective heads of accounts in the Profit & Loss Account.

10. Depreciation:

Depreciation on the fixed assets is provided at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, on straight-line method. The depreciation on Plant and Machinery is provided on three shifts basis.

11. Events Occurring after Balance Sheet Date:

Events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts where material.

12. Borrowing Costs:

Borrowing Costs including Foreign Exchange Fluctuation for qualifying assets incurred in relation to the acquisition, construction of assets are capitalized as a part of the cost of such assets up to the date when such assets are put to use. Other Borrowing costs are charged as an expense in the year in which these are incurred.

13. Taxation:

The current charge for income taxes is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing difference that result between the profit offered for income tax and the profits as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

14. Contingent Liabilities and Assets :

Contingent liability is recognised and provided for when the company has present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligations and of which a reliable estimate can be made. Contingent liability is disclosed in notes to the accounts in case if obligation is disputed and the possibility of an outflow of resources is remote. Contingent assets are not recognised until the realisation of Income is virtually certain as per views of the management.

15. Segment Reporting:

The Company is primarily engaged in business of furnishing and construction material, which is governed by the same set of risk and returns. Hence, there is only one primary segment. The said treatment is in accordance with the principal enunciated in Accounting Standard (AS-17) on Segment Reporting.

16. Impairment:

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment base on internal/external factor. An impairment loss is recognised whenever the carrying amount of an asset exceed it recoverable amount. The recoverable amount is, grater of asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value.

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Mar 31, 2010

1. Basis of Accounting:

The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention and on the basis of a going concern, on accrual basis except Telephone expenses, Retirement benefits and those with significant uncertainty unless otherwise stated. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India ("ICAI") and the provisions of the Companies Act, 1956. These accounting policies have been consistently applied.

2. Use of Estimates

The preparation of financial statements in conformity with general accepted Accounting Standards requires Management to make estimates and assumption that affect the reported amounts of assets and liabilities at the date of financial statements and the results of operations during the reporting period end. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from these estimates. Actual results could differ from those estimates.

3. Fixed Assets:

The Fixed Assets are stated at the cost of acquisition including inward freight, duties & taxes and other incidental expenses less refundable duties, taxes and depreciation.

Borrowing costs attributable to acquisition / construction of fixed assets, if any, are capitalized as per the policy in note (13) below.

4. Inventories:

a) Finished Goods are valued at lower of cost or net realisable value. Cost includes material, labour and direct overheads and proportion of manufacturing overheads based on normal operating capacity.

b) Stock in process is valued at cost.

c) Raw Material, Packing Material, Stores & Fire wood/Lignite are valued at cost inclusive of freight & incidental expenses. Cost is arrived at on FIFO Basis and is net of modvat credit and input VAT.

d) Stock lying at C 8. F Agent is valued at cost plus excise, packing, freight and octroi, if any.

5. Foreign Currency Transactions:

The transactions in foreign currencies, which are not settled up to the date of balance sheet, are translated into rupees at the exchange rate prevailing on the date of the balance sheet.

Any gains or losses on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss Account except in cases where they relate to the acquisition of qualifying fixed assets covered under AS - 16, in which case they are adjusted to the carrying cost of such assets.

6. Excise & Custom Duty:

a) Excise duty liability accruing on manufacture is accounted for as and when the liability for payment arises under the Central Excise Act, 1944. Excise duty on finished goods lying in the factory premises and in the bonded warehouses is not accrued and not accounted.

a) Custom duty on goods lying in bonded warehouse/port is accounted at the time of payment on removal of goods from the bonded warehouse/port.

These accounting policies have no impact on profit of the company.

7. VAT, Excise duty & Service Tax:

VAT, excise duty & Service Tax payable and modvat receivable are accounted on the basis of return submitted. Additional liabilities if any on assessment/audit objections shall be provided /paid as and when the assessment is completed.

8. Retirement Benefits:

a) Provident Fund and Employees Deposit Linked Insurance(EDLI) are defined contribution scheme and the contributions are charged to profit & loss account of the year when the contribution to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

b) Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation done using projected unit credit method.

c) Actuarial gain and losses are recognized in Profit & Loss account.

As per views of the management Leave encashment provision is not required on account of companies own Leave rules, hence Leave encashment to employees are not provided and shall be accounted as and when paid, if any.

9. Sales & Purchases:

a) Domestic Sale:

Sales are recognized on dispatch of goods by the company. Sale includes excise duties, and are net of goods returned and CST/VAT.

b) Export Sales:

Export sale is recognized on receipt of bill of lading and is accounted on negotiation of document with the bankers as per the foreign exchange rates prevailing on the date of negotiation.

c) Purchases:

Purchase of Raw Materials and Stores are accounted net of receivable modvat and VAT.

d) Expenses :

Expenses are accounted net of Service tax paid on various expenses. Whereas, earlier it was accounted gross(inclusive of service tax paid) and credit of service tax paid was shown in other income. This change has no effect on profit / Loss of the year.

10. Prior Period items:

Significant items of income and expenditure, which are relating to prior accounting period, are accounted in the Profit and Loss account, under the head prior year adjustments and the expenditure & income which are not material pertaining to prior period, are shown under the respective heads of accounts in the Profit & Loss Account.

11. Depreciation:

Depreciation on the fixed assets is provided at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, on straight-line method. The depreciation on Plant and Machinery is provided on three shifts basis.

12. Events Occurring after Balance Sheet Date:

Events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts where material.

13. Borrowing Costs:

Borrowing Costs including Foreign Exchange Fluctuation for qualifying assets incurred in relation to the acquisition, construction of assets are capitalized as a part of the cost of such assets up to the date when such assets are put to use. Other Borrowing costs are charged as an expense in the year in which these are incurred.

14. Taxation:

The current chargefor income taxes is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing difference that result between the profit offered for income tax and the profits as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

15. Contingent Liabilities and Assets :

Contingent liability is recognised and provided for when the company has present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligations and of which a reliable estimate can be made. Contingent liability is disclosed in notes to the accounts in case if obligation is disputed and the possibility of an outflow of resources is remote. Contingent assets are not recognised until the realisation of Income is virtually certain as per views of the management.

16. Segment Reporting :

The Company is primarily engaged in business of furnishing and construction material, which is governed by the same set of risk and returns. Hence, there is only one primary segment. The said treatment is in accordance with the principal enunciated in Accounting Standard (AS-17) on Segment Reporting.

17. Impairment:

The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment base on internal/external factor. An impairment loss is recongnised whenever the carrying amount of an asset exceed it recoverable amount. The recoverable amount is, grater of assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value.