SCHEDULE FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2015 NOTE - 'V' : NOTES FORMING PART OF THE FINANCIAL STATEMENTS :-

1. COMPANY 'S OVERVIEW :-

Ahmedabad Steelcraft Limited ('The Company') was incorporated on 14-07-1972 vide Certificate of Incorporation No. L27109GJ1972PLC011500 under the Companies Act, 1956. The Company is engaged in the business of Trading and Export of Steel Windows and Door Sections.

2. SYSTEM OF ACCOUNTING AND brPARATION OF FINANCIAL STATEMENTS :-

a) The financial statements have been brpared in accordance with the Generally Accepted Accounting Principles (GAAP) to comply with the applicable mandatory Accounting Standards read with Revised Schedule VI and the relevant provisions of the Companies Act, 2013. The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of financial statements are consistent with those followed in the brvious year, except wherever specified.

b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

c) The Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

d) Benefit on account of entitlements to import duty free material under the "Focus Market Scheme" & other Export Incentives are accounted for on Cash basis.

3. INVENTORIES:

There is no inventory of goods at the end of the year.

4. CASH AND CASH EQUIVALENTS :

Cash and cash equivalent comprises of cash on hand and balance with Central Bank of India Cash Credit Hypothecation account, Central Bank of India Group Gratuity account, Central Bank of India (Mumbai) account, HDFC Bank Ltd Current account, HDFC Bank Ltd EPC account, account and State Bank of India Bank (Odhav) account as on 31/03/2015.

5. DEbrCIATION :

Debrciation on tangible assets is provided on the straight-line method over the useful lives of assets in accordance with Schedule II of the Companies Act, 2013

6. FIXED ASSETS :

Fixed Assets are stated at cost inclusive of incidental and/or installation expenses like freight, duties, levies and any directly attributable cost of bringing the assets to their working condition for intended use less accumulated debrciation.

7. REVENUE RECOGNITION

• Revenue from sale of goods is recognized on transfer of significant risks and rewards of ownership in the goods to the buyer which is generally at the time of dispatch to the customer. Sales are recorded net of returns (if any), trade discounts, rebates, other pricing discounts, vat / sales tax.

• Interest on Investments / loans is recognized on a time proportion basis.

• Dividend Income on Investments is recognized when right to receive the payment is established.

8. FOREIGN EXCHANGE TRANSACTION:

a) Foreign Exchange transactions are converted into Indian Rupees at the rate of exchange brvailing on the date of transaction. Exchange rate difference is charged to Statement of Profit & Loss on Settlement of transactions during the year. Unsettled transactions at the close of the year are considered taking into account the exchange rate brvailing at the year end and difference is charged to Statement of Profit & Loss.

b) The investment made in foreign Company Light work LLC in the form of investment in shares and loans and advances made is considered as Non-Integral operations. The loan has been translated at closing rate of foreign exchange and the resulted exchange difference is transfer to and accumulated in a foreign currency translation Reserve account. The exchange difference on repayment of loan is accounted for and transfer from foreign currency translation account to profit and loss account.

9. EMPLOYEE BENEFITS:

Gratuity paid to employee retrenched and other payments made to employee on retrenchment are charged to Statement of Profit & Loss on payment basis.

10. INVESTMENTS :

• Valuations of long term (non-current) quoted and unquoted investments are stated at cost less provision, if any, for permanent diminution in value. Current Investments are valued at cost as per consistent practice of the Company.

During the year ending on 31-12-2014 light works LLC has incurred losses and net worth of the Company is negative and there is less possibility of future profit from the operation, hence management is of opinion that there is permanent diminution in the value of Investment in light works LLC. The Long Term (Non Current) unquoted investment in shares of light works LLC is shown as Nominal Value at Re 1 each and provision is made for permanent diminution in value of Investment in accordance with the Accounting Standard-13.

11. PROVISION FOR TAXATION :

Tax expenses comprises of current tax and deferred tax:-

(i) CURRENT TAX:-

No Provision for taxation has been made as there is no tax liability in accordance with the direct tax laws brvailing for the relevant assessment years.

(ii) DEFERREDTAX

Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax Assets of Rs. 4,32,565/- has been created as per Accounting Standard 22 "Accounting of Tax on Income" issued by ICAI on timing difference as follow:-Debrciation Provided in the Books Rs. 32,25,659

Debrciation allowable as per I.T. Act. Rs. 18,25,773

Timing Difference Rs. 13,99,886

12. EARNINGS PER SHARE

Basic earnings per share are computed using the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive. Earning per share (EPS), is calculate as under :

13. RELATED PARTY TRANSACTIONS:-

Disclosure of transactions with Related Parties ,as required by Accounting Standard 18-" Related Party Disclosures" as specified in the Companies (Accounting Standard) Rules 2006 (as amended) has been set out in a separate statement annexed to this note. Related parties as defined under clause 3 of the Accounting Standard 18 have been identified on the basis of rebrsentation made by the management and information available with the Company.

14. GENERAL NOTES:

1. As regards the other Accounting Standards, they are statutorily applicable to our Company i.e Ahmedabad Steelcraft Limited but as there are no transactions inviting those Accounting Standards, no specific disclosures on the same are made.

2. Previous year's figures have been regrouped / rearranged wherever necessary to make them comparable with current year figures.

3. Figures have been rounded off to the nearest Rupee for the purpose of brsentation.

4. Debtors and Creditors balances appearing in the balance sheet are subject to confirmation of respective parties.

5. Since there are no purchases from S.S.I. Units, there are no outstanding creditors of S.S.I. Units.

FOR, DHIREN SHAH & CO.

CHARTERED ACCOUNTANTS.

FIRM REG.NO. 114633W

(DHIREN SHAH)

PARTNER

MEMB.NO. 035824

PLACE : AHMEDABAD

DATE : 28-05-2015

FOR, AHMEDABAD STEELCRAFT LTD

ASHOK C. GANDHI (DIN:00022507) CHAIRMAN

ANAND V. SHAH (DIN:00017452)

DARSHAN A. JHAVERI (DIN:00489773) MANAGING DIRECTORS

PLACE : AHMEDABAD

DATE : 28-05-2015