SCHEDULE 24

NOTES TO THE ACCOUNTS

(A) SIGNIFICANT OF ACCOUNTING POLICIES

1. SYSTEM OF ACCOUNTING

A) The Company follows mercantile system of

accounting and recognizes Income and Expenditure on accrual basis except in respect of interest income on Non Performing Assets which is reckoned on realization basis as per the norms set by the Reserve Bank of India.

B) Financial statements are based on historical cost. These costs are not adjusted to reflect the impact of the changing value of purchase power of money.

C) Accounting policies, not specifically referred to otherwise, are consistent and in consonance with generally a c c e p t e d a c c o un t i n g principles followed by the company.

2. USE OF ESTIMATE

The brsentation of the financial statements in conformity with the generally accepted accounting p r i n c i p l e s r e qui r e s t h e Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions a r e b a s e d o n t h e Management's evaluation of r e l e v a n t f a c t s a n d circumstances as on the date of the financial statements. The actual outcome may diverge from these stimates.

3. FIXED ASSETS

Fixed assets are stated at cost less debrciation. Debrciation has been prov'ded on the straight line method and at the rates and in the manner specified in Schedule II of the Companies Act, 2013.

4. INVESTMENT

I) The Investments in quoted equity shares have been treated as l on g term investment. Accordingly, these investment have been valued at cost.

L o n g t e r m u n qu o t e d investment in companies have been valued at cost excep t in resp ect of companies which have been in loss and their going concern status is doubtful w i t h d e t e r i o r a t e d inancial position.

Also Long term unquoted investments in shares of co -operative banks or

Government Securities have been valued at cost:

II) Investment cost include the brokerage and other related expenses. Profit / Loss on sale of investment are taken into account at the time of sale of investment.

5. INVENTORIES

Inventories are valued at cost (on FIFO basis) or at realisable value which ever is less.

6. DEbrCIATION

Debrciation has been provided on the straight line method and at the rates and in the manner specified in Schedule XIV of the Companies Act, 2013.

7. PRIOR PERIOD EXPENSES / INCOME

Th e Company follows the practice of making adjustments through "Expenses / Income under / over provided in brvious year in respect of all material transactions pertaining to the p er i od p ri or to cu r ren t accounting year, if any.

8. INCOME FROM INVESTMENT

Income from investments, where appropriate are taken into revenue in full on declaration or receipt and tax deducted at source thereon is treated as advance tax.

9. TREATMENT OF CONTINGENT LIABILITES

Contingent liabilities are disclosed by way of note to the accounts, if any.

10. ACCOUNTING FOR TAXES ON INCOME

Income tax expenses comprises current tax (i.e. amount of tax for the year determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year)

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realised in future; however,

where there is unabsorbed debrciation or carried forward business loss under taxation laws, d efe rr ed ta x a s se ts a r e recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets / liabilities are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably /virtually certain (as the case may be ) to be realised.

The company offsets assets and liabilities rebrsenting current tax and deferred tax where it has a legally enforceable right to set off the recognised amounts and it intends to settle those assets and liabilities on a net basis.

11. BORROWING COSTS

The company has charged the entire borrowing costs to the Profit & Loss Account there being no qualifying asset with the company.

12. The company does not have any intangible assets

13. IMPAIRMENT OF ASSETS

Impairment is ascertained at each balance sheet date in respect of Cash Gen eratin g Un its. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable value. The recoverable amount is the greater of the net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their brsent value based on an appropriate discount factor.

14. EMPLOYEE BENEFITS:

1. Short Term Employee benefits have been accounted for either as an expenses as a charge to Profit & Loss Account or as a liability if unpaid.

2. Post Employment Benefits:

a. Defined Contributions Plans: The company has no liability t o w a r d s a n y d e fi n e d contributions plans.

b. Defined Benefit Plans: The Com p a n y a ccou n ts for expen diture on defined benefits plans on actual payment basis. It is the view of the management that, due to a small number of workers the liability of the company under defined benefit plans (i.e. gratuity) is not material considerin g the brsent composition of the work force and its volume of business. The company has no liability towards retirement benefits as on 31.03.2015.

(B) NOTES FORMING PART OF THE ACCOUNTS

1. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of the business, the provision for all known liabilities is adequate and no in excess of the amount considered reasonably necessary.

2. Contingent Liabilities not provided for : Nil. (Previous Year :NIL)

3. There is no liability in respect of retirement benefits as on 31.03.2015.

7. Figures of the brvious year have been regrouped rearranged and recast wherever necessary, to make them comparable with the figures or the current year.

11. Segment Information

The company has identified three reportable segments viz. trading in cloth, investments and finance. Segments have been identified and reported taking into account nature of products and services , the differing risks and returns and the internal business reporting system. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting .

a. Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment, revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "unallocable"

b. Segment assets and segment liabilities rebrsent assets and liabilities to respective segments, investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "unallocable".

c. Other Segment include business segments which are not reportable which consists of sale of other assets.

12. Based on the information available with the company, no creditors have been identified as "supplier" within the meaning of "Micro, Small and Medium Enterprises Development (MSMED) Act, 2006."