22ND ANNUAL REPORT

OF

GANGOTRI CEMENT LTD.

FOR THE YEAR

2012 2013

M/S GANGOTRI CEMENT LIMITED, RAIPUR Regd. Off. :- Village & Post : Kharora, Distt : Raipur (C.G.)

DIRECTORS REPORT TO MEMBERS

Dear Members

Your Directors have pleasure in presenting the 22ND Annual Report on the business and operation of the Company together with audited statement of accounts for the period ending 31st March 2013.

1. FINANCIAL RESULTS : (RS. IN LACS)

YEAR ENDED 31-03-2013 31-03-2012

Sales / Misc. Receipt 257.05 124.67

Profit Before Interest & Depreciation 11.21 7.64

Interest 0.40 0.41

Denreciation 7.24 7.16 0.71 0.06

Taxes Deferred Tax 3.06 -2.41

Profit before tax 3.56 0.08

2. DIVIDEND:

Company is going to expand its business and for this purpose, there is an augmentation of working capital. Hence, your directors' do not recommend the dividend for the year ended 31st March 2013.

3. No material changes and commitment occurred since the conclusion of the financial year.

4. PERSONNEL:

Since there was no employee who was drawing more than Rs.60.00 Lacs per annum, if employed through out the year, or Rs.500000/- per month if employed for the part of the year, the required information under sub-section (2A) of section 217 of the companies Act, 1956 read with companies (particulars of the employees) rules 1974 as amended is not given.

5. CONSERVATION OF ENERGY & TECHNICAL ABSORPTION:

In accordance with the requirements of section 217 (i) (e) of the companies Act, 1956 read with the companies (disclosure of particulars in report of Board of Directors) rules 1988, regarding conservation of energy, please refer enclosed Form-A (Rule — 2). R&D efforts were not made towards technology absorption and no foreign exchange outgo and inflow included during the year.

6. DEPOSITS:

Company has not accepted any deposits from public which is covered with in the meaning of section 58-A & 58-AA of companies Act.

7. DIRECTORS

Directors declared that no directors are disqualified from being appointed as Director of the Company under Clause-g of sub-section-1 of Section 274 of The Companies Act, 1956.

8. DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the requirement Under Section 217(2AA) of the Companies Act, 1956, with respect to Directors Responsibility Statement, it is hereby confirmed:-

i. That in the preparation of the account for the financial year ended on 31st March' 2013, the applicable accounting standards have been followed and there were no material departures.

ii. That the Directors have selected such accounting policies and applied them consistently and made judgment and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company for the year under review;

iii. That the Directors have taken proper a sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

iv. That the Directors have prepared the accounts for the financial year ended 31st March' 2013 on a going concern basis.

9. AUDITORS

M/s Sunil Johri & Associates, Raipur, the present auditor of the company would retire at the conclusion of forthcoming annual general meeting and being eligible offer themselves for reappointment, share holders are requested to reappoint and fix their remuneration.

10. AUDITORS OBSERVATION:

Remarks made by the auditors in their report on the accounts examined by them are self-explanatory.

11. ACKNOWLEDGEMENT

Your directors wish to place on record their sincere appreciation to the devoted service rendered by employees of the company. Your directors also acknowledge with gratitude the co-operation and assistance extended by bankers and all persons who have directly and indirectly contributed to the success of the company. Your directors also acknowledge the trust and confidence you have reposed in the company.

PLACE : RAIPUR (C.G.)

- 0 C 4 0 /

,,,, --!:\<, Y AND ON BEHALF OF THE BOARD.

kA1PUR : ---\

e_s,(— ,te__.,2J-"& DATED : 30/08/2013

(CHAIRMAN)

CA Sunil Johri & Associates Chartered Accountants

INDEPENDENT AUDITOR'S REPORT

To The Members of M/S GANGOTRI CEMENT LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of M/S GANGOTRI CEMENT

LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial

statements.

Branches : M-2,703, Riddhi Garden,

Filmcity Road,Goregaon (E) Mumbai- 40063

Tele : 022 — 61434550, Mob : +918898739149

109,1 st floor Wallfort Ozone, Fafadih Chowk,

Raipur (C.G.) — 492001 Tele : 0771 — 4065304

Head Office: Usha Bhawan, 3/27, Professor

Colony, Civil Lines, Bhopal (M.P.) — 462002 Mob : +919893121888

email : iohri62@rediffmail.com, casumitbaneriee(&,gmail.com Contd. ...2.

-\ 2 \-

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis

for our audit opinion.

Opinion In our opinion, subject to note given below, and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,

2013;

b) in the case of the Profit and Loss Account, of the Profit for the year ended on that date;

and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) order, 2003 including companies (Auditors Report) (Amendment) order 2004 issued by the Central Government of India in terms of Sub-section (4A) of section 227 of the companies Act, 1956, we enclose in the Annexure a Statement on the matters specified in paragraphs 4 & 5 of the said order.

2. As required by section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit.

b. In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books

c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d. In our opinion, subject to point no. 3 given below the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211of the companies Act, 1956.

e. On the basis of written representations received from all the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f. Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

Contd

-\ 3 \-

3. Attention of the members is drawn to the following Notes:-

a. Note No.34 of Notes on financial Micro / Small / Medium Enterprises.

b. Note No.33 of Notes on financial which could not quantify .

statements regarding certain disclosure relating to

statements regarding gratuity calculation. Effect of

PLACE: RAIPUR DATED:30/08/2013

For, SUNIL JOHRI & ASSOCIATES CHARTERED ACCOUNTANTS

FIRM REG. NO. 005960C

(SU JOHRI) PARTNER

Membership No.7465

ANNEXURE TO THE AUDITORS'S REPORT REFERRED TO IN PARAGRAPH (1) OF OUR REPORT OF EVEN DATE

TO THE MEMBERS OF

M/S GANGOTRI CEMENT LTD.

I. a. The company has maintained proper records to show its full particulars including quantitative details and situation of fixed assets. b. We are informed that the Fixed Assets were physically verified at reasonable intervals during the year. No serious discrepanancies were noticed on such verification. c. The Company has not disposed off any fixed assets of the Company during the year under audit.

II. a. As explained to us, the inventory of the company has been physically verified during the year by the management on quarterly basis. In our opinion the frequency of verification is reasonable. b. The procedure of physical verification of Inventory followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business. c. The Company is maintaining proper records of Inventory and no material discrepancies were noticed on physical verification of inventory as compared to books records.

III. a. The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the Registers maintained U/S 301 of the Companies Act 1956 (1 of 1956). b. As reported in clause III a, Sub-clause b, c, d are not applicable to company. e. The Company has taken loans, secured or unsecured from companies, firms or other parties covered in the Registers maintained U/S 301 of the Companies Act 1956 (1 of 1956). Total Number of parties are 6 and amount involved (maximum amount involved) during the years Rs193.57 Lakhs. During the year company has taken 157.00 Lacs and year-end balance was Rs. 135.78 lacs.

f. In our opinion the rate of interest and other terms and conditions on which loans have been taken from the other parties listed in the register maintained under section 301, of the companies act, 1956 are not, prima facie prejudicial to the interest of the company.

g. In our opinion and according to the information and explanation a given to us, in respect of paying principal and interest amount of unsecured loan the terms of repayment have not been stipulated therefore we have not made any comments

IV. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and nature of its business, with regard to purchase of inventory and fixed assets and for sale of goods. During the course of our audit no major weaknesses has been noticed in the internal controls.

V. (a) In our opinion and according to the information and explanations given to us, there are transactions that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 and have been duly entered.

(b) In our opinion and according to the information and explanations given to us, the transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

VI. In our opinion and according to the information and explanations given to us the company has not accepted any deposits from public within the meaning of section 58 A & 58 AA of the Companies Act 1956.

VII. In our opinion, the company has an adequate internal audit system commensurate with its size and nature of its business.

VIII. We have broadly reviewed the books of accounts maintained by the company, in respect of products where pursuant to the rules made by the Central Government, about the maintenance of cost records has been prescribed under section 209 (1) (d) of the Companies Act 1956. We are in the opinion, that prima facie the prescribed books of accounts and records are not applicable to the company.

IX. a. The company is regular in depositing undisputed statutory dues including provident fund, income tax, sales tax, excise duty, service tax, cess and other statutory dues with the appropriate authorities. According to information and explanation given to us, there is no undisputed arrear statutory dues as on last day of the financial year for a period of more than 6 months from the date they become payable.

b. Company has not any disputed amount hence this clause is not applicable to company.

X. The Company which have been registered for a period not less than five years and its accumulated losses at the end of the financial year is less than 50% of net worth of company. Company has not incurred cash losses during the financial year and immediately preceding financial year.

XI. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of the dues to a financial institution, banks.

XII. According to the records of the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

XIII. The provision of special statute applicable to Chit Fund, Nidhi / Mutual benefit fund / Societies is not applicable to the company.

XIV. As per records of the company and the information and explanation given to us by the management, company is not dealing or trading in shares, securities and debentures and other investments.

XV According to the records of the company and according to the information and explanations given to us the Company has not given any guarantee for loans taken by others from banks or financial institutions.

XVI The Company has enjoying Loan Facility from HDFC Bank. The Company has used the above loans for the purpose for which these are obtained.

XVII.According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long term investment by the Company.

XVIII As per the records of the company and according to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the registered maintained under section 301 of the Act.

XIX The Company has not issued debentures; hence question of creation of securities does not arise.

XX. During the period covered by our audit report, the company has not raised any money by public issue.

XXI. To the best of our knowledge and belief and according to the information and explanation given to us, there is no fraud on or by the Company has been noticed during our audit or reported during the period.

for, SUNIL JOHRI & ASSOCIATES CHARTERED ACCOUNTANTS,

FIRM REGN. NO.05960C Place : Raipur

Dated : 30/08/2013 (S L JOH

PARTNER M.NO.074654

SIGNIFICANT ACCOUNTING POLICIES & NOTES ON FINANCIAL STATEMENTS THE NOTES FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS

AS PER OUR REPORT OF EVEN DATE. FOR, SUNIL JO I AND ASSOCIATES

CHARTE ACCOUN

FIRM NO.

S OH PA - ER

M.NO.074654 RAIPUR 30/08/2013

1 TO 35

FOR, GANGOTRI C NT LIMITED

DIRE RECTOR

GANGOTRI CEMENT LIMITED BALANCE SHEET AS ON 31-03-2013

Particulars NOTE NO. AS AT

31 ni 2014 AS AT

31.93.2912

I. EQUITY AND LIABILITIES

(1) Shareholder's Funds (a) Share Capital 1 32383240.00 32383240.00

(b) Reserves and Surplus 2 (4273346.02) (4323541.99)

(2) Non -Current Liabilities (a) Long-Term Borrowings 3 13609164.62 10120139.36

(3) Current Liabilities (b) Trade Payables 4 3472941.08 1929959.58

(c) Other Current Liabilities 5 3411026.45 2054438.05 48603026.13 42164235.00 TOTAL- EQUITY AND LIABILITIES

II. ASSETS

(1) Non-Current Assets (a) Fixed Assets

(i) Tangible assets 6 6905984.48 7590114.08

(ii) Capital work-in-progress 5477019.27 1739575.00

(b) Non-current investments 7 3450000.00 4450000.00

(c) Long term loans and advances 8 2591827.60 2521032.60

(d) Deffered Tax Assets 9 1447309.00 1753321.00

(e) Other Non-Current Assets 10 2724253.98 4173879.04

(2) Current Assets (a) Inventories 11 20176807.33 12690354.80

(b) Trade Receivables 12 1501592.00 4448109.50

(c) Cash and Bank Balances 13 2665356.90 2275115.92

(d) Short Term Loans and Advances 14 85844.00 293032.55

(d) Other current assets TOTAL- ASSETS

15 1577031.57 229700.51 48603026.13 42164235.00

AS PER OUR REPORT OF EVEN DATE. FOR, SUNIL JOHRI AND ASSOCIATES

CHARTE 'ACCOUNTANT

FIRM 0.005 SU • HRI PART R

M.NO.074654 RAIPUR 30/08/2013

FOR, GANGOTRI CEMENT TED

C

•

DIREC1(QR 1 ECTOR 1/4-)

ic

RAIPUR w I 30/08/2013

Statement of Profit and Loss for the year ended 31st March' 2013

AS AT 11352030.00

0.00

AS AT 22858607.00

0.00 11352030.00

1115878.00 22858607.00

2846116.05 12467908.00 25704723.05

7812467.66 0.00

427000.00 41304.91

715531.75 3463678.83

18814061.47 0.00

624000.00 40043.28

724364.60 5146045.73

12459983.15 25348515.08

Particulars I. Revenue from operations (Gross) Less : - Excise Duty

II. Other Income III.Total Revenue (I + II )

IV. Expenses: Cost of materials consumed Changes in inventories of finished goods Empoyee benefit expenses Financial Cost Depreciation Other Expenses Total Expenses

7924.85 0.00 0.00

356207.97 0.00 0.00

7924.85 356207.97

0.00 0.00

(240785.00)

NOTE NO. 16

17

18 19 20 21 6 22

70795 70795

V. Profit before exceptional items and tax (III - VI. Extraorindary item VII. Prior Period Expenses Items VIII. Profit before tax (V - VI)

IX. Tax expense: (1) Current tax

Less :- MAT Credit (2) Deferred Tax Liabilities

0.00 306012.00

306012.00 (240785.00)

(VIII-IX) X. Profit(Loss) for the year XI. Transfer to Profit & Loss A/c.

50195.97 50195.97

248709.85 248709.85

XII. Earning per equity share of Rs.10 Each Basic & Diluted

Weighted average no. of equity share outstanding

23 0.08

3238324.00

0.02

3238324.00

SIGNIFICANT ACCOUNTING POLICIES & NOTES ON FINANCIAL STATEMENTS THE NOTES FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS

1 TO 35

•

GANGOTRI CEMENT LIMITED

CASH FLOW STATEMENT FOR THE PERIOD FROM 01.04.12 TO 31.03.13

(Amount in Rs Year 2012-13

(Amount in Lacs) Year 2011-12

A) Cash Flow From Operating Activities :- 1. Net Profit/(Loss) before Taxes and Exceptional Items 356207.97 7924.85

Adjustments for:- Depreciation 724364.60 715531.75

Interest Charged to P & L A/c 134116.00 133878.00

(Profit)/Loss on sale of Investment 0.00 0.00

(Profit)/Loss on sale of Fixed assets (net) 0.00 0.00

Other Non Cash Charges Preliminary Expenses written off 72370.00 72370.00

2.Operating Profit before Working Capital Changes 1287058.57 929704.60

Adjustments for:- Trade & other Receivable 3112835.05 3614175.16

Inventories (7486452.53) (11200543.42)

Trade Payables & other Liabilities 2899569.90 2518381.86

Cash generated from Operations (186989.01) (4138281.80)

Direct Taxes Paid 0.00 0.00

Net Cash from Operating Activity (A) (186989.01) (4138281.80)

B) Cash Flow From Investing Activities :- Purchase of Fixed Assets (40235.00) (201490.00) Sale of Fixed Assets 0.00 0.00

Decrease / (increase) in Capital Work in Progress (3737444.27) (1739575.00)

Payment for Misc . Assets 0.00 0.00

Misc. Expenses Capitalised 0.00

Purchase of Investment 0.00

Dividend Received 0.00 0.00

Sale of Investment 1000000.00 0.00

Net Cash from Investing Activity (B) (2777679.27) (1941065.00)

C) Cash Flow From Financing Activities :- Proceeds from Unsecured Loans ( Net) 3572650.00 7900000.00 Proceed from Bank Borrowing (Net) (83624.74) (74540.82) Monies received towards Share Capital & application 0.00 0.00 Monies received towards Share Premium 0.00 0.00

Interest Paid (134116.00) (133878.00) Proposed dividend paid 0.00 0.00 Corporate Dividend Tax Paid on Equity dividend 0.00 0.00

Net Cash From Financing Activities (C) 3354909.26 7691581.18

D) Net Increase / (Decrease) in Cash & Cash Equivalents ( (A)+(B)+( C ) ) 390240.98 1612234.38 E) Cash and Cash Equivalent at beginning of the Year 2275115.92 662881.54

F) Cash and Cash Equivalent at end of the Year (D+E) 2665356.90 2275115.92

NOTE:- 1. The above cash flow Statement has been prepared under the "Indirect Method" as set out in accounting Standard (AS)-3 2. Previous Year figures have been regrouped / recast wherever necessary. AS PER OUR REPORT OF EVEN DATE For GA IMITED

FOR, SUNIL JOHRI AND CHARTERIFD ACCOU

FIRM RE 005 SUNIL JOHRI

PARTNER M.N0.074654

COMPANY SECRETARY & COMPLIANCE OFFICER

RAIPUR

RAIPUR

30/08/2013

30/0812013

*information provided by company and relied by auditor

The Reconciliation of the no. of shares outstanding is said below:-

Particulars

Eauitv Shares of Rs 10 paid up at the beainnina of the year Eauitv Shares of Rs 5 paid up at the beainnina of the year Add:- Shares Issued durina the year Equity Shares at the end of the year

NOTE-2 RESERVE AND SURPLUS SECURITIES PREMIUM Opening Balance Add:- During the year Outstanding at the end of the year

PROFIT AND LOSS A/C Opening Balance Add:- Transfer from P& L Account Add:- MAT Credit Brought in

(4273346.02) (4273346.02)

0\

--a-e-re-s

TOTAL

As at 31st March' 2013

No. of Shares

3141148.00 194352.00

0.00 3335500.00

As at 31st March' 2012

No. of Shares

3141148.00 194352.00

0.00 3335500.00

0.00 0.00 0.00

(4323541.99) 50195.97

0.00

0.00 0.00 0.00

(4572251.84) 248709.85

0.00

(4323541.99) (4323541.99)

NOTE ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2013

MD did 151 MS dl .1151

March' 2013 March' 2012

NOTE-1

37500000 37500000 AUTHORISED SHARE CAPITAL 3750000 EQUITY SHARES OF 10 EACH

ISSUED,SHARE CAPITAL 3335500 EQUITY SHARES OF Rs.10/- EACH ( P.Y. 3335500)

SUBSCRIBED AND PAID UP SHARE CAPITAL 2013 2012

3141148 EQUITY SHARES OF Rs.10/- EACH 31411480 31411480

194352 EQITY SHARE OF RS 5/ EACH 971760 971760

37500000.00 37500000.00

3335500.00 3335500.00

3335500.00 3335500.00

32383240.00 32383240.00

32383240.00 32383240.00

The Company has only one class of equity shares having a face value of Rs.10 Each.Each shareholder is eligibl

vote per share.

Details of Shares held by shareholders holding more than 5% of the aggregate shares in the company:-

NAME OF SHAREHOLDER

Sharrm

As at 31st March' 2013 As at 31st March' 2012

No. of OA No. of Shares 1 %

beltina service private limited * 594770 17.83 594770 17.83 Convevvor

NOTE ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2013

Mb CM 101.

March' 2013

Mb OR IDL

March' 2012

NOTE-3 LONG TERM BORROWINGS :- SECURED CAR LOAN FROM HDFC BANK LIMITED

115139.36 115139.36

31514.62 31514.62

rrowings Nature of Security and Terms of Repayment for Long Term Secured Bo Car Loan from HDFC BANK LIMITED The amount will be repaid in EMI of Rs. 8724 pm within 60 months, Starts from San' ncl intarats rata is

Car Loan amounting to Rs. 1.15 Lacs ( Marc 31'2011: Rs.1.89) is secured by hypothecation of Car

LONG TERM BORROWINGS :-UNSECURED LOAN FROM RELATED PARTIES :-FROM DIRECTORS DIPESH SHETH PARAG SHAH

RELATIVE OF DIRECTORS PRATAP N SHAH RASHILA P SHAH SETH STEEL PROCESSOR DAMYANTI SETH

4062650.00 2190000.00

5325000.00 1500000.00 500000.00

0.00

710000.00 690000.00

3705000.00 1500000.00 500000.00

2900000.00

13577650.00 I 10005000.00 13609164 62 10120139 36

TOTAL

NOTE-4 TRADE PAYABLES* CREDITOR FOR RAW MATERIAL 2981369.08

CREDITOR FOR EXPENSES & SERVICES 491572.00

TOTAL 3472941.08

Information as required to be furnished as per section 22 of Micro, Small and Medium Enterprises Development Act,2006 (MSMED Act) for the year ended 31st March 2013 is not furnished.This Information cannot be furnished as the company could not get

relevant information from the parties.

NOTE-5 OTHER CURRENT LIABILITIES CURRENT MATURITIES OF LONG TERM BORROWINGS 104688.00

PAYABLES 1146950.45

ADVANCE FROM CUSTOMERS 1933200.00

DUTIES AND LIABILITIES 226188.00

TOTAL 3411026.45

1467629.08 462330.50

1929959.58

104688.00 725345.00

1224405.05 0.00

2054438.05

NOTE-6 FIXED ASSETS

(i) TANGIBLE ASSETS GROSS BLOCK LESS: DEPRECIATION NET BLOCK

TOTAL

(ii) CAPITAL WORK IN PROGRESS TOTAL

NOTE -7 NON CURRENT INVESTMENT UNQUOTED INVESTMENT (NON TRADE) SPECIAL BLAST LIMITED 86250 EQUITY SHARE OF RS 10 EACH

16515251.51 9609267.03 6905984.48 6905984.48

16475016.51 8884902.43 7590114.08 7590114.08

5477019.27 1739575.00

5477019.27 1739575.00 AS at 41SI

March' 2013 AS at sist

March' 2012

3450000.00 4450000.00

3450000.00 I 4450000.00

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Cs1 0) 0 0 0 0 0 0 o o y- r) 0) t0 o o o oo o ui o ci o o ca U) 0 CO 0 0) 00 0 0 CO 0) co o o

00 0 U) iS 0

Cl CO 0 iet0

LO C71 IC) CO CO Ul N ;7)

00 N- Cr) e- CO

NA

ME

OF

AS

SE

TS

LAB

EQ

UIP

ME

NT

O

O z

NOTE- 8 LONG TERM LOANS & ADVANCES

DEPOSITS ( CONSIDERED GOOD)

OTHER MAT CREDIT AVAILABLE

500611.60

1884844.00 206372.00

2591827.60

500611.60

1884844.00 135577.00

2521032.60

NOTE-9 DEFFERED TAX ASSEST DEFFERED TAX ASSESTS ON ACCOUNT OF UNABSORBDED DEPALOSS

AND DISALLOWANCES UNDER INCOME TAX ACT

DEFFERED TAX LAIBILITY ON ACCOUNT OF DEPRECIATION AND REVERSAL OF ASSE1

1447309.00 1753321.00

NOTE- 10 OTHER NON-CURRENT ASSETS PRELIMNARY AND OTHER EXPENSES

ADVANCE TO SUPPLIERS ADVANCE FOR RAW MATERIAL GRASIM CEMENT LTD. LARSEN & TOUBRO

DEBTORS OVER 12 MONTHS:- GYANDEEP ASSOCAITES GROMORE PROJECTS

TOTAL

12690354.80 0.00

12690354.80

NOTE-11 INVENTORIES RAW MATERIALS FINSIHED GOODS

20176807.33 0.00

20176807.33

•

2827669.00

1380360.00

3045493.00

1292172.00

2269739.04

24752.00 28032.94

401730.00 0.00

2724253.98

2342109.04

0.00 0.00

401730.00 1430040.00

4173879.04

NOTE- 16.1 REVENUE FROM OPERATIONS SALES OF PRODUCTS MANUFACTURING GOOD SALES 1. CEMENT SALES

SALE OF MANUFACTURED GOODS TOT F AA

14630355.00

11352030.00

14630355.00 11352030.00

NOTE- 12 TRADE RECEIVABLES OVER SIX MONTHS UNSECURED, CONSIDERED GOOD LESS THAN SIX MONTHS UNSECURED, CONSIDERED GOOD

As at 31st M r b,(141

95404.00

1406188.00

1501592.00

As at 31st March' 2012

3064509.50

1383600.00

4448109.50

NOTE- 13 A. CASH AND CASH EQUIVALENTS CASH IN HAND BALANCES WITH BANKS IN CURRENT ACCOUNT

NOTE-14 SHORT TERM LOANS AND ADVANCES LOANS & ADVANCES PREPAID EXPENSES BALANCES WITH GOVT. AUTHORITIES

115168.77 2550188.13

2665356.90

0.00 85844.00

0.00

1537068.77 738047.15

2275115.92

400.00 41859.00

250773.55

85844.00 293032.55

NOTE-15 OTHER CURRENT ASSETS ADVANCE FOR EXPENSES ADVANCE TO SUPPLIER ( MATERIAL) DEPOSITS WITH GOVERNMENT

530808.00 892422.57 153801.00

0.00 119341.51 110359.00

1577031.57 229700.51

NOTE- 16 REVENUE FROM OPERATIONS :-SALES OF PRODUCTS MANUFACTURING SALES TRADING SALES

14630355.00 8228252.00

22858607.00

11352030.00 0.00

11352030.00

•

20176807.33 I 12690354.80 18814061.47 7812467.66

ACCRETION / DECRETION OF FINISHED 0.00 0.00

NOTE ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2013

As at 31st March' 2013

As at 31st March' 9012

TRADED GOODS

CLINKER SALE 5% TRADED GOODS TOTAL

8228252.00 0.00

8228252.00 0.00

NOTE -17 OTHER INCOME INTERETS ON IT REFUND INTEREST RECD. ON LOANS AND OTHER PROFIT ON SALES OF SHARES COMMISSSION TRANSPORTATION NC

0.00 134116.00

0.00 0.00

2712000.05

0.00 133878.00

0.00 982000.00

0.00

2846116.05 1115878.00

NOTE-18 COST OF MATERIALS CONSUMED

OEPNING STOCK PURCHASE & INCIDENTAL EXPENSES & OTHERS COST OF TRADING PURCCHASE

LESS: CLOSING STOCK MATERIALS CONSUMED

IMPORTED AND INDIGENOUS MATERIALS CONSUMED IMPORTED INDIGENOUS

DETAILS OF MATERIALS CONSUMED

CLYNKER \GYPSUM SLAG BAGS \PACKING MATERIAL \GRINDING BALLS\CONSUMABLE STORE

12690354.80 1489811.38

26300514.00 19013011.08

0.00 0.00 38990868.80 20502822.46

18814061.47 0.00

7812467.66 18814061.47 I 7812467.66

14496807.13 3043983.50 1273270.84

5236933.81 1594173.33 981360.52

18814061.47 7812467.66

NOTE - 19 CHANGE IN FINISHED GOODS OPENING STOCK FINISHED GOODS CLOSING STOCK FINISHED GOODS

0.00 0.00

0.00

0.00

•

3463678.83 5146045.73 TOTAL OTHER EXPENSES

NOTE 22.1 PAYMENT TO AUDITORS COMPANY AUDIT FEES TAX AUDIT FEES SERVICE TAX

22500 22500

15000 15000

2781 4635

40281.00 42135.00

•

NOTE ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2013 As at 31st

March' 2012

NOTE -20 EMPLOYEE BENEFIT SALARY

As at 31st March' 2013

427000.00 427000.00

624000.00 624000.00

NOTE -21 FINANCIAL COSTS BANK & COMMISSION CHARGES INTEREST ON CAR LOAN INTEREST ON INCOME TAX INTEREST ON VAT INTEREST ON ENTRY TAX INTEREST ON CST INTEREST ON ELECTRICITY CHARGES

10302.02 21063.26

0.00 0.00

1638.00 0.00

7040.00 40043.28

4058.87 30147.18

1211.00 4410.86 1197.00 280.00

0.00 41304.91

NOTE - 22 OTHER EXPENSES MANUFACTURING EXPENSES ELECTRICITY CHARGES TRANSPORATION CHARGES (CLINKER) WAGES ENTRY TAX

2741924.73 739459.00 301989.00 206173.00

3989545.73

1647827.00 799850.50 224185.00 261625.00

2933487.50

ADMINISTRATIVE & SELLING EXPENSES PAYMENT TO AUDTIROS CONSUMABLE STORES CONVEYANCE EMPLOYER CONT. TO GRATUITY FUND LABORATORY EXPENSES LISTING FEES POSTAGE PRELIMINARY EXPENSES W/OFF PRINTING & STATIONERY PROFESSIONAL TAX PROFESSIONLA FEES REPAIR & MAINTENANCE TELEPHONE EXP. DISCOUNT CAR INSURANCE BIS FEES FY 12-13 FREIGHT CHARGES MISC BAL WRITTEN OFF SHARE TRANSFER REGISTRAR ELECTRICITY CHARGES (OFFICE) LEGAL FEES

42135.00 39574.88 25670.00 26125.00

5595.00 11030.00 9750.00

72370.00 14600.00 2500.00

35000.00 80519.54

3600.00 102000.00

9995.00 41859.00

0.00 7867.91

0.00 0.00 0.00

530191.33

40281.00 0.00

22700.00 25643.00

0.00 11236.00 12160.00 72370.00 23682.00

0.00 0.00

217476.00 0.00 0.00 0.00

41859.00 389093.00

0.00 30000.00

240000.00 30000.00

1156500.00

NOTE DETAILS

6901.08 6901.08 102257.00

NOTE-4 DETAILS:- TRADE PAYABLES DETAILS :- CREDITORS FOR RAW MATERIAL ACC Limited Lemco Industrial Pvt. Ltd.

0.00 200748.00

MAHAVIR TRADERS 0.00

381529.00 Radha Krishan Enterprises

0.00 764261.00

Ram Ram Trading Co,. 2393280.00 779.00

Sasco Steel Pvt. Ltd. 0.00

11154.00 Zenish Enterprises

0.00

GANPATI ENTERPRISES 248520.00 0.00

INDUSCO PLAST 107183.00 0.00

VERSHA STEELS 225485.00 0.00

TOTAL 2981369.08 1467629.08

CREDITORS FOR EXPENSES & OTHERS

SUNIL JOHRI & ASSOCIATES, RAIPUR 78389.00 83108.00

DURGA CARRIER 0.00 360375.50

LUBE SERVICES 40850.00 18847.00

AGRAWAL TRANSPORT 342663.00 0.00

KAPIL MINING RESOURCE PVT LTD. 14670.00 0.00

BHARTI PARIMAL JAIN & CO. 15000.00 0.00

TOTAL 491572.00 462330.50

AS AT AS AT

NOTE-5 DETAILS 31.03.2013 31.03.2012

OTHER CURRENT LIABILITIES CURRENT MATURITIES OF LONG TERM DEBTS CAR LOAN FROM HDFC LIMITED 104688.00 104688.00

TOTAL ....._ 104688.00 104688.00

•

2385455.60 2385455.60

2385455.60 2385455.60 TOTAL LONG TERM LOANS & ADVANCES

PAYABLES

I US HAYI3ALL V/11 r/1 ADLC

AUDIT FEES PAYABLE PROFESSIONAL PAYABLE GRATUITY PAYABLE ELECTRICITY PAYABLE ENTRY TAX PAYABLE SALARY PAYABLE INCOME TAX PAYABLE

ADVANCE FROM CUSTOMERS

PATIL TRADERS UNNATI ENTERPRISES PRABHAV CONSTRUCTION COMPANY PRIVATE LTD PRABHAV CONTRUCTION A/C GROWMORE PROJECTS

DUTIES AND LIABILITIES

SERVICE TAX

NOTE-8-DETAILS LONG TERM LOANS & ADVANCES

DEPOSITS & OTHER CSEB INCOME TAX RECEIVABLE INCOME TAX RECEIVABLE CSEB DEPOSIT OTHER DEPOSIT CYLENDER DEPOSIT SALES TAX DEPOSIT

0.00 8286.00

CU,I,V00.40

38385.00 0.00

99018.00 619090.00

9873.00 0.00

77332.00

38385.00 0.00

73375.00 469520.00 109242.00 20000.00

6537.00

0.00 8286.00

u.uu

TOTAL 1146950.45 725345.00

0.00

0.00

791480.00 856960.00 284760.00

29200.00

403725.05

791480.00 0.00 0.00

TOTAL 1933200.00 1224405.05

226188.00 0.00

138697.60 112688.00 24120.00

211196.00 4910.00 3000.00 6000.00

138697.60 112688.00 24120.00

211196.00 4910.00 3000.00 6000.00

500611.60 500611.60 TOTAL DEPOSITS

1000000.00

750000.00 20000.00

114844.00

1000000.00 0.00

20000.00 114844.00

750000.00

1884844.00 1884844.00

OTHER ADVANCES

ADOPT VENTURE GEE GEE INDUSTRIES LARSON AND TUBRO LIMITED

SPECIAL BLAST LIMITED TIMEX BOND INDUSTRIES PVT LTD

0.00 250773.55

NOTE-11 - DETAILS INVENTORY (AS VALUED AND CERTIFIED BY MANAGEMENT

1. RAW MATERIAL CLYNKER \GYPSUM \SLAG

BAGS \PACKING MATERIAL \GRINDING BALLS \CONSUMABLES

RAW MATERIAL TOTAL

5. FINISHED GOODS CEMENT FINISHED GOODS TOTAL

TOTAL INVENTORY

NOTE-12 - DETAILS TRADE RECEIVABLES OVER SIX MONTHS UNSECURED. CONSIDERED GOOD MITTAL SUPPLY AGENCY PRABHAV CONSTRUCTION VIVEK TRADERS GROMORE CONSTRUCTION

OVER SIX MONTHS TRADE RECEIVABLES TOTAL

LESS THAN SIX MONTHS

18966651.93 11347150.56

1210155.40 1343204.24

20176807.33 12690354.80

0.00 I 0.00 0.00 I 0.00

20176807.33 I 12690354.80

0.00 50549.50

0.00 2228560.00

95404.00 0.00

0.00 785400.00

95404.00 3064509.50

GROMORE CONSTRUCTION ARHAM INCORPORATION

LESS THAN SIX MONTHS -TOTAL

TRADE RECEIVABLES TOTAL NOTE-13 - DETAILS CASH AND CASH EQUIVALENTS BALANCES WITH BANKS STATE BANK OF INDORE JANKALYAN SAHKARI BANK LIMITED HDFC BANK LIMITED UNION BANK OF INDIA , CC HDFC BANK OD NC

BALANCES WITH BANKS TOTAL NOTE-14 - DETAILS SHORT TERM LOANS AND ADVANCES LOANS AND ADVANCES SANJEEV SAHI

0.00 1406188.00

3000.00 12601.92

2391243.14 140242.70

3100.37 2550188.13

0.00

499800.00 883800.00

3000.00 12601.92

240847.03 481598.20

738047.15

400.00

1406188.00 1383600.00

1501592.00 I 4448109.50

400.00 0.00

PREPAID EXPENSES PREPAID BIS FEES 2013-14 BIS FEES

42922.00 42922.00 85844.00

0.00 41859.00 41859.00

VAT INPUT CREDIT 0.00 250773.55

NOTE-15 - DETAILS OTHER CURRENT ASETS ADVANCE FOR EXPENSES & SERVICES CHITRAGUPTA TRADING CO. 20808.00 0.00

KHANNA ENGINEERING 10000.00 0.00

D.S PULP AND PAPER MACHINERY 500000.00 0.00 530808.00 0.00

ADVANCES FOR RAW MATERIAL AMBUJA CEMENT LTD. 18057.00 0.00

AMBUJA CEMENT 0.00 26343.00

CENTURY CEMENT BAIKUNTH 186715.57 40213.57

GRASIM CEMENT LIMITED 0.00 24752.00

LARSON AND TUBRO LIMITED 0.00 28032.94

KIRTI 1NDUSTRIESN 0.00 0.00

INDSCO PLAST 0.00 0.00 UTTAM GALVA METALLICS 687650.00 0.00

892422.57 119341.51

DEPOSITS WITH GOVERNMENT TDS RECEIVABLE 123771.00 110359.00 MUMBAI VAT REGISTRATION (SECURITY DEPOSIT) 30030.00

153801.00 110359.00

229700.51 1577031.57

TOTAL OTHER CURRENT ASSESTS

NOTE-17 - DETAILS RAW MATERIAL CONSUMED

CLYNKER \GYPSUM OPENING STOCK 11289313.89 1402530.62 ADD: PURCHASE 20894567.00 15123717.08

32183880.89 16526247.70 LESS: CLOSING STOCK 17687073.76 11289313.89 CLYNKER \GYPSUM 14496807.13 5236933.81

SLAG OPENING STOCK 57836.67 0.00 ADD: PURCHASE 4265725.00 1652010.00

4323561.67 1652010.00

4323561.67 1652010.00 LESS: CLOSING STOCK 1279578.17 57836.67

SLAG 3043983.50 1594173.33

BAGS \PACKING MATERIAL \GRINDING BALLS \CONSUMABLE STORE OPENING STOCK 1343204.24 87280.76

ADD: PURCHASE 1140222.00 2237284.00

2483426.24 2324564.76

LESS: CLOSING STOCK 1210155.40 1343204.24 BAGS 1 PACKING MATERIAL 1273270.84 I 981360.52

TOTAL RAW MATERIAL CONSUMED 18814061.47 7812467.66

NOTE -18- DETAILS CHANGE IN FINISHED GOODS CLOSING STOCK (CEMENT 0.00 0.00 OPENING STOCK 0.00 0.00

0.00 0.00

GANGOTRI CEMENT LIMITED

NOTES ON FINANCIAL STATEMENT

23. Earning per share:

Particulars

Current Year Previous Year

Net Profit after tax 50195.97 248709.85 Weighted average number of Equity Share 3238324 3238324

Nominal Value per share 10.00 10.00

Basic and Diluted Earnings Per share 0.02 0.08

24. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

25. There is no claim against the company not acknowledged as debts.

26. Balance shown under the headings sundry creditors for Goods, expenses & others, sundry debtors, other current assets, banks and advances to suppliers are subject to confirmations. Necessary adjustment, if any will be made when the accounts are reconciled and settled.

27. In the opinion of the management there is no such events occurred after the date of Balance sheet that needs discloser in these accounts.

28. In the Opinion of the board of directors, the loans, advances and current assets have a value on realization in the ordinary course of business, at least equal to the amounts of which these are stated and that the provisions for the known liabilities are adequate and not in excess of the amount reasonably necessary.

29. Valuation & consumption of inventories has been taken as valued and certified by the management.

30 There were no employee at any time during the year drawing Rs.500000/- or more per month.

31. SEGMENT REPORTING

(a) Business Segment: - The Company has considered business segment as the primary segment to disclose. The company is engaged in the manufacture Portland / Slag Cement, which is the context of AS-17 issued by the Institute of Chartered Accountant of India, is considered the only business segment. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

(b) Geographical Segment: - The Company sells its products within India. The condition prevailing in India being Uniform No. Separate geographical segment disclosure is considered necessary.

32. Related party disclosures under accounting standard 18

i. Other related parties with whom transactions have taken place during the year

Subsidiaries - NIL

ii. Key management personnel Board of Directors

a. Shri K. C . S heth b. Shri Dipesh M. Sheth c. Shri Parag P Shah

iii. Relative of Key management personnel where transaction have been taken place.

a. Electra India b. Sheth Engineering works c. Sheth Steel Processors d. ABI outsourcing limited e. Parag Shah f. Pratap .N. Shah g. Rasila .P. Shah h. Damayanti Sheth

iv. Transaction with related parties referred to above in ordinary course of business. Rs in Lacs

Nature of Transaction Referred in 32 (ii) above

Referred in 32 (iii) above

Remuneration paid / salary -- -- Loan received 81.75 75.25 Loan Repaid 33.22 88.05 Outstanding 62.53 73.25

33. Details of Employee benefits as required by the Accounting Standard 15 "Employee Benefits" are given below:-

(a) Defined Contribution Plans: -

During the year the company has not employed more than 10 employees and therefore no Statutory Act Related employee are applicable. However company has not

recognized any amount for Defined Contribution in the profit & loss Accounts as the employee's are not permanent.

(b) Defined benefit plan: -

Provision of gratuity for the employee of Rs. 25643/- on the basis of the formula given in Annexure -1 of accounting policy point no.12 (b) of accounting Polices, only for that employee who have completed continuous five year service in the enterprises Above provision of gratuity is not accordance with AS-15.

C). Gratuity provision is not in accordance with AS-15

34. In respect of Micro / Small / Medium Enterprises Development Act, 2006, certain disclosure is required to made relating to Micro / Small / Medium Enterprises. The company could not get relevant information from its supplier about their coverage under the Act since the relevant information is not readily available, no disclosure have been made in the account. Hence disclosure, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said act have not been made

35. Significant accounting policies adopted by the Company are disclosed in the statement annexed to these financial statements as Annexure I.

FOR & ON BEHALF OF THE FOR, SUNIL JOHRI & ASSOCIATES BOARD E CHARTERED ACCOUNTANTS

( afd

FIRM REGN. NO.05960C

pev . I - \)•"(

- ,

(PARAG SHA SH SHETH) (S JOHRI) DIRECTOR I IRECTOR PARTNER

M.NO.074654

PLACE: RAIPUR DATED: 30/08/2013

Annexure -1 ACCOUNTING POLICIES:-

A. Basis of Preparation:-

The financial statement have been prepared under the historical cost conventional accrual basis of accounting, in conformity with accounting principles generally accepted in India requires management to make estimates and assumptions that affect the reported amounts of asset and liabilities and disclosures relating to contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. actual results could differ from these estimates. Differences between actual result and estimates are recognized in periods in which the results are known/materialized. or comply with the accounting standard referred to in Sec. 211 (3c) of the Companies Act, 1956.

Sales are recognized on passing of risks and rewards attached to the goods. Sales do not include value added tax(VAT) and central sales tax(CST).

Some of the more important Accounting policies which have been applied are summarized below :-

1. FIXED ASSETS : -

A. Fixed Assets are stated at cost of acquisition and valued at Historical cost. Related pre operational expenses form part of the value of assets capitalized less Depreciation.

B. Machinery Spares, received along with the plant or equipment and whose Use is expected to be irregular, are capitalized and depreciated over the Useful life of the related asset.

C. Directly identified expenses are being capitalized. All other allocable expenses during the period of construction for the project are being capitalized proportionately on the basis of the value of assets on date of production.

2. DEPRECIATION : -

i. Depreciation on depreciable assets has been provided in the books of accounts, as per the rates prescribed in schedule XIV of the companies Act, 1956 as per Straight Line Method.

ii Depreciation on additions to and deductions from fixed assets is being provided on pro-rata basis from /to the date of acquisition/disposal.

3. RECOGNITION OF INCOME AND EXPENDITURE :-

i. Mercantile method of accounting is employed unless otherwise specifically stated elsewhere in this schedule. However where the amount is immaterial / negligible and / or establishment of accrual / Determination of amount is not possible, no entries are made for the accruals.

ii. Interest on allotment/call/refund money is accounted for on cash basis

4. CONTIGENT LIABILITIES :- Contingent liability is generally not accounted for in the accounts. Liabilities in respect of show cause notices received are considered as contingent liabilities only when they are converted into demand and contested by the company.

5. INVENTORIES :

Stock of raw material, stores, finished goods, spares are valued at cost or net realizable value, and whichever is less. Net realizable value is calculated on the basis of average price of April i.e. to the year-end. The cost of inventories of Raw Material is computed ton average cost basis. Finished goods stocks are valued at the cost of raw material consumed and direct cost related to production excluding depreciation.

6. RESEARCH AND DEVELOPMENT EXPENDITURE :

Revenue expenditure is charged to the Profit & Loss A/c and capital expenditure is added to the costs of Fixed Assets in the year in which it is incurred and depreciation thereon is provided as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

7. BORROWING COST :

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

8. IMPAIRMENT OF ASSETS :

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is normally charged to Profit & Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

9. TAXES ON INCOME: -

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Differed tax is recognized subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent period.

10. INVESTMENT: -

Long term investments are carried out at cost less any other temporary diminution in value, determined on the specific identification basis.

Current investments are carried at the lower of cost and fair value.

Profit & Loss on sale of investment is determined on specific identification basis.

11. FOREIGN CURRENCY TRANSACTION: -

Transactions in foreign currency are recorded in Rupees by applying the exchange rate prevailing on the date of transaction. Transactions remaining unsettled are translated at the rate of exchange ruling at the end of the year. Exchange gain or loss arising on settlement, translation is recognized in the profit & loss a/c.

12. EMPLOYEE BENEFITS: -

a. Provident Fund is a defined contribution scheme and the contribution is charged to the Profit & Loss A/c of the year when the contributions to the Government Funds is due.

b. Gratuity Liability is defined benefit obligations and are provided for on the basis of following formula:- Last drawn Salary * 15/26 * No. of Completed year of Services The above calculation is done only for those employee who have completed continuous five year of services. However, the above calculation of Gratuity is not as per Actuary Valuation

c. Short Term Compensated absences are provided for based on estimates. Long Term compensated absences are provided for based on actuarial valuation.

c. Actuarial gains / losses are immediate taken to the profit & loss account and are not deferred.

13. ACCOUNTING FOR TAXES ON INCOME:-

Via) Current tax is determined as the tax payable in respect of taxable income for the year and is computed in accordance with relevant tax regulations.

(b)Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between taxable profit and the profit as per the financial statement. Deferred tax assets & liabilities are measured using the tax rates and the tax laws enacted or substantially enacted as on the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty for its realization.

(c)The taxable income of the company being lower than the book profits under the provision of the income tax act 1961. The company is liable to pay Minimum Alternate tax ( MAT) on its income.

(d) Considering the future profitability & taxable position in the subsequent years the company has recognized MAT Credit as an assets by crediting the provision for income tax.

14. CASH FLOW STATEMENT: -

The cash flow statement is prepared as per the Indirect method prescribed under "Accounting Standard — 3" Cash Flow Statement issued by the Institute of Chartered Accountants of India.

15. INTANGIBLE ASSETS: -

Cost incurred on intangible assets, resulting in future economic benefits are capitalized as intangible assets and amortized on equated basis over the estimated useful life of such assets.