Exhibit 1

DRL Limited
Balance Sheet as on …
Particulars 31.03.2012 31.03.2013
EQUITY AND LIABILITIES
Shareholders’ funds
Share capital (170,000 shares of 5 each) 850
Reserves and surplus
Share Premium 1850
General Reserves 1800
Balance in Profit and Loss Account 4200 7850 8700

Non current liabilities

Long term Loans from banks (12%) 3000
8% bonds
10%, Debentures 5000 8000

Current liabilities
Accounts payables 4650
Commission payable to directors 200
Dividend payable 325
Interest accrued but not due (debentures) 125
Interest accrued but not due (bonds)
Factory Wages payable 800
Provision for tax (2011-12) 2200
Provision for tax (2012-13) 8300
Total 25000
ASSETS
Non-Current Assets
Fixed Assets
Machinery 4000
Accumulated Depreciation 800 3200
Building (Factory) 6000
Accumulated Depreciation 1200 4800
Building (HO)
Accumulated Depreciation
Vehicle (Honda City Car used by Directors) 800
Accumulated Depreciation 160 640
Land
Patents (relating to manufacturing) 600
Accumulated amortization 300 300 8940

Other Non-current assets

Capital work-in-progress 535
Investments in subsidiaries 250
Investment in non-subsidiary companies 150

Current assets
Inventories
- Raw Materials 1700
- Work-in-progress 2600
- Finished goods 3350 7650
Accounts receivables 2200
- Provision for doubtful debts 110 2090
Cash and bank balances 460
Advance income tax (2011-12) 2500
Advance income tax (2012-13)
Prepaid wages
Advance excise duty 325
Prepaid Rent (head office) 300
Prepaid insurance (factory) 600 13925

Preliminary expenses not written off 1200

Total 25000
 Income Statement for the year ending 31.3.2013
Particulars Details Amount
Gross Turnover 72250
Excise Duty (gst) pass through trans 1650
Net Turnover 70600
Other Revenues
Dividend income 20
Profit on sale of investments in non-subsidiary cos 30
Commission received 450 500
Total Revenues 71100
Cost of Goods Sold
Raw Material Consumed
Opening Stock of R. M. 1700
Add: Purchase of P. M. 24000
Less: Abnormal Loss 260
Less: Closing Stock of R. M. 2400
Raw Material Consumed 23040
Add: Conversion Costs
Power & Fuel 1600
Wages & Salaries (manufacturing) 3000
Depreciation - Machinery 400
Depreciation - Factory building 1200
Amortization - Patents 150
Insurance (Factory) 2100
Total Conversion Costs 8450

Add: Opening Stock of Work-in-progress 2600

Less: Closing Stock of Work-in-progress 1800
Cost of Goods Manufactured 32290

Add: Opening stock of Finished Goods 3350

Add: Direct purchase of Finished Goods 16000
Less: Closing Stock of Finished Goods -4200
Cost of Goods Sold 47440

Less: Selling and Distribution Expenses

Selling & Advertisement 1800
Cash discount 350
Provision for doubtful debts 230

Less: Interest and Finance Charges

Interest on Debentures 500
Interest on bank loan 360
Interest on bonds 10
Bank charges 50

Less: General and Administrative Expenses

Depreciation - Head office building 5
Depreciation - Vehicles 40
Abnormal loss of inventory 260
Loss on sale of Car 100
Directors - Salary 1800
Directors- Commission 500
Rent 4200
Write off of Preliminary expenses 200
Total Expenses 7105
Profit before tax 57845
Less: Income Tax 13255
Current year 2400
Previous year 100 2500
Profit after tax 10755
Add: Balance of P & L b/f from Previous year
Amount available for appropriations
APPROPRIATIONS
General Reserve
Dividend
Balance carried to Balance Sheet
 Cash Flow Statement for the year ending 31.03.2013
Particulars Detail Amount
Cash from Operating Activities
Profit before tax 57,845
Add: Non-Cash Expenses
Depreciation - Machinery
Depreciation - Factory building
Amortization - Patents
Provision for doubtful debts
Depreciation - Head office building
Depreciation - Vehicles
Write off of Preliminary expenses 0

Adj: Item belonging to other heads

Dividend income
Profit on sale of investments in non-subsidiary cos
Interest on Debentures
Interest on bank loan
Interest on bonds
Loss on sale of Car
-
CFO before working capital changes 57,845
Adjustment for changes in Working Capital
Accounts payables
Commission payable to directors
Factory wages
Inventory - Raw Materials
Inventory - WIP
Inventory - Finished Goods
Accounts Receivable
Advance excise duty
Prepaid Rent (head office)
Prepaid insurance (factory) -

Income Tax Paid -

Income Tax Refund
Cash flow from Operating Activities 57,845

Cash from Investing Activities

Sale of Vehicle
Sale of investment in non-subsidiary companies
Investment in subsidiary companies
Dividend received
Capital work-in-progress
Cash flow from Investing Activities 0

Cash from Financing Activities

Proceeds from issue of shares
Share issue expenses
Dividend paid
Interest paid on debentures
Interest paid on bank loans
Cash used in Financing Activities 0
Total cash flow during the year 57845
Opening balance of cash and cash equivalent 460
Closing balance of cash and cash equivalent 58305