SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation of Financial Statements

The financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprise mandatory accounting standards as brscribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014 and the provision of the Act (to the extent notified). Accounting policies have been consistently applied except where a newly issued Accounting Standard is initially adopted or a revision to an existing accounting standards requires a change in the accounting policy hitherto in use.

B Fixed Assets

Fixed Assets if any are stated at cost, net of CENVAT credit, if any, after reducing accumulated debrciation until the date of the Balance Sheet. Direct costs are capitalized until the assets are ready for use and include financing costs relating to any borrowing attributable to acquisition.

C Use of Estimates

The brparation of financial statements requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are materialised.

D Employee Benefits

The benefits like leave encashment and if any gratutiy are accounted for on cash basis. Provisions of Provident Fund is not applicable and hence no provision for PF is made.

E Borrowing Costs

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of cost of such assets. A Qualifying assets is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing cost are charged to Profit & Loss Account.

F Provision for Current and Deferred tax

i) Provision for Current Tax is made after taking into consideration benefits admissible under the provisions of Income Tax Act, 1961.

ii) Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

G Provision, Contingent Liabilities and Contingent Assets

Provision involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

H Earnings per share

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

I Cash and cash equivalent

Cash and cash equivalents for the purposes of financial statement comprise cash at bank and in hand.

1 Balances of Trade Payable and Loans & Advances are subject to confirmation & reconciliation if any.

2 Previous year figures have been recast / restated to confirm to the classification of the current period. Figures in bracket as given in notes to accounts relates to the brvious year.

3 Since the company has substantial carried forward losses and unabsorbed debrciation and also in the absence of virtual certainty of having taxable income in the near future, hence no Deferred Tax provision has been recognized as envisaged in AS -22 on Accounting Taxes on Income issued by The Institute of Chartered Accountants of India.

4 No Provision for taxes have been made inveiw of the current and carried forward losses.

5 No Debrciation is provided since commercial production is yet to commence.

As per our report of the even date

For & on behalf of the Board of Directors

Overseas Synthetics Limited

For Shah Mehta & Bakshi

Chartered Accountants

 (Kalpit Bhagat)

(Managing Director)

(Director)

(Company Secretary)

Partner

Place : Vadodara

Dated : 12th May, 2015