1. SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF FINANCIAL STATEMENTS SIGNIFICANT ACCOUNTING POLICIES :

a) BASIS OF ACCOUNTING

The financial accounts are brpared under the historical cost convention and accounted on accrual basis and in accordance with Accounting Principles generally accepted in India and comply with the Accounting Standards notified by the Central Government of India, under the Companies (Accounting Standards) Rules 2006 and relevant provisions of the Companies Act, 2013

b) USE OF ESTIMATES

The brparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions that affect the reported amounts, assets and liabilities and the disclosure relating to contingent assets and liabilities as on the date of financial statements and the reported amount of revenues and expenses during the reporting year. The management believes that the estimates used in the brparation of financial statements are prudent and reasonable. The actual results could differ from these estimates.

c) PROVISIONS AND CONTINGENCIES

Provisions : Provisions are recognized when there is a brsent obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the brsent obligation at the balance sheet date and are not discounted to their brsent value.

Contingent Liabilities : Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a brsent obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

d) INVENTORIES

Raw materials including components, Finished goods, Work in process, Stock in trade (Traded Goods), materials in transit, packing materials and stores & spares have been valued at lower of cost and estimated net realiseable value. Cost is computed under the FIFO method. Excise duty payable on manufactured finished goods held in the factory is included in the value of closing stock wherever applicable.

e) DEbrCIATION

Debrciation is charged on the fixed assets except land at the rates provided in Part "C" of Schedule II of the Companies Act, 2013 as under :

(i) under straight line method on imported Body maker and Bag openers, other projects under plant and machinery on assets relating to 3D Project (I Line), 3U Unit (New Line), Wind Mills and Solar Plant and on intangible assets.

(ii) under written down value method on all the other tangible assets, having regard to the expected useful life and residual value commencing from the date the asset is available for use.

Assets individually costing Rs.5,000/- or less is fully debrciated.

f) REVENUE RECOGNITION

(i) Sales exclude discounts,sales tax recoveries and include excise duty.

(ii) Interest is recognised on time basis determined by the amount outstanding and the rate(s) applicable.

g) FIXED ASSETS

Fixed assets are stated at cost less debrciation except land which is stated at cost. Cost comprises purchase price and attributable costs (including financing costs).

h) FOREIGN CURRENCY TRANSLATION

Net gain or loss on conversion at year end of monetary assets and liabilities other than transactions relating to fixed assets is recognised in the Statement of Profit and Loss. In respect of liabilities incurred in foreign currencies for acquisition of fixed assets, variations in exchange rates at the time of repayment of loan in stalments are adjusted to the cost of fixed assets.

i) EMPLOYEE BENEFITS

1) Short term employee benefits are recognised as expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

2) Post employment and other long term employee benefits are recognised as expense in the statement of profit and loss of the year in which the employee has rendered services.

i) Employees Provident Fund, Employees State Insurance and Superannuation are defined contribution plans.The contributions under these plans are charged to revenue.

ii) a) Gratuity is a defined benefit plan funded with the L.I.C. and HDFC Life. The contributions actuarially  assessed by the L.I.C. and paid under the plan are charged to revenue.

b) Actuarial gains and losses are credited / charged to revenue.

iii) In respect of those not covered by L.I.C. and HDFC Life schemes necessary provision has been made as applicable.

iv) Future liability on leave encashment to employees has been provided as per company's policy.

3) Termination benefits : Payments made under employees 'Early Seperation Scheme' are charged to the statement of Profit and loss.

j) EARNINGS PER SHARE

The company's share capital consists only of Equity Shares. The basic and diluted earnings per share are calculated and disclosed.

k) ACCOUNTING FOR TAXES ON INCOME

Tax expense for the current year comprises of current tax and deferred tax. Current tax is recognised based on assessable income computed in accordance with the Income Tax Act, 1961, and at the brvailing rates. Deferred tax liability is recognized for all timing differences. The deferred tax asset on temporary difference is recognized subject to consideration of prudence.

Deferred tax asset and liabilities are measured at the tax rates that have been enacted or substantively enacted at the balance sheet date.

l) RELATED PARTY DISCLOSURES have been made as per Accounting Standard 18

m) RESEARCH AND DEVELOPMENT

Revenue expenditure on Research and Development is charged to Profit and Loss Account as and when incurred. Expenditure on assets acquired are capitalised.

n) INTANGIBLE ASSETS

Intangible assets are disclosed in the accounts separately and amortised over their useful life.

o) IMPAIRMENT OF ASSETS

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the recoverable amount is estimated. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the statement of profit and loss to the extent the carrying amount exceeds the recoverable amount

1. There being no indication of impairment of assets determined by the Company, no loss has been recognised on impairment of assets.

2. Effective from 01.04.2014 debrciation on tangible fixed assets has been provided as per the 'Useful life' specified in Part C of Schedule II of the Companies Act, 2013. The carrying amount as on 01.04.2014 is accordingly debrciated over the remaining useful life. Due to this change, the impact on debrciation for the Year ended 31st March, 2015 is higher by Rs.49.93 lakhs. The carrying value of Rs.180.58 Lakhs relating to assets whose useful life is nil as on 31st March 2014 has been adjusted against the opening of retained earnings in terms of Schedule - II of the Act.

3. Figures have been given in lakhs of rupee's . Figures for the brvious year (including those within brackets) have been regrouped wherever necessary to conform to those of the current year.

N. RAMESH RAJAN  

Chairman

P. DWARAKNATH REDDY  

Managing Director

R.P. KHAITAN  

Joint Managing Director

As per our Report attached

for  P. SRINIVASAN & Co.

Chartered Accountants

M. SANKARA REDDY  

Chief Financial Officer

J. SRINIVASAN  

Secretary

P. SRINIVASAN

Partner

Place : Chennai

Date : 22nd May, 2015