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) 850 852
Reserves and surplus
Share Premium 1850 2038
General Reserves 1800 2130
Balance in Profit and Loss Account 4200 7850 8700 14199 18367 19219

Non current liabilities

Long term Loans from banks (12%) 3000 3000
8% bonds 500
10%, Debentures 5000 8000 5000 8500

Current liabilities
Accounts payables 4650 6150
Commission payable to directors 200 100
Dividend payable 325 426
Interest accrued but not due (debentures) 125 125
Interest accrued but not due (bonds) 10
Factory Wages payable 800 0
Provision for tax (2011-12) 2200
Provision for tax (2012-13) 8300 2400 9211
Total 25000 36930
ASSETS
Non-Current Assets
Fixed Assets
Machinery 4000 4000
Accumulated Depreciation 800 3200 1200 2800
Building (Factory) 6000 6000
Accumulated Depreciation 1200 4800 2400 3600
Building (HO) 200
Accumulated Depreciation 5 195
Vehicle (Honda City Car used by Directors) 800 0
Accumulated Depreciation 160 640 0 0
Land 500
Patents (relating to manufacturing) 600 600
Accumulated amortization 300 300 8940 450 150 7245

Other Non-current assets

Capital work-in-progress 535 555
Investments in subsidiaries 250 400
Investment in non-subsidiary companies 150 0

Current assets
Inventories
- Raw Materials 1700 2400
- Work-in-progress 2600 1800
- Finished goods 3350 7650 4200 8400
Accounts receivables 2200 1800
- Provision for doubtful debts 110 2090 90 1710
Cash and bank balances 460 Operating
Advance income tax (2011-12) 2500
Advance income tax (2012-13) 2650
Prepaid wages 400
Advance excise duty 325 275
Prepaid Rent (head office) 300 400
Prepaid insurance (factory) 600 13925 300 14135

Preliminary expenses not written off 1200 1000

Total 25000 23335
 Income Statement for the year ending 31.3.2013
Particulars Details Amount
Gross Turnover 72250
Excise Duty -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 2380

Less: Interest and Finance Charges

Interest on Debentures 500
Interest on bank loan 360
Interest on bonds 10
Bank charges 50 920

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 7105
Total Expenses 57845
Profit before tax 13255
Less: Income Tax
Current year 2400
Previous year 100 2500
Profit after tax 10755
Add: Balance of P & L b/f from Previous year 4200
Amount available for appropriations 14955
APPROPRIATIONS
General Reserve 330
Dividend 426 756
Balance carried to Balance Sheet 14199
 Cash Flow Statement for the year ending 31.03.2013
Particulars Detail Amount
Cash from Operating Activities
Profit before tax 13,255
Add: Non-Cash Expenses
Depreciation - Machinery 400
Depreciation - Factory building 1200
Amortization - Patents 150
Provision for doubtful debts 230
Depreciation - Head office building 5
Depreciation - Vehicles 40
Write off of Preliminary expenses 200 2225

Adj: Item belonging to other heads

Dividend income -20
Profit on sale of investments in non-subsidiary cos -30
Interest on Debentures 500
Interest on bank loan 360
Interest on bonds 10
Loss on sale of Car 100
920
CFO before working capital changes 16,400
Adjustment for changes in Working Capital
Accounts payables 1,500
Commission payable to directors -100
Factory wages -1,200
Inventory - Raw Materials -700
Inventory - WIP 800
Inventory - Finished Goods -850
Accounts Receivable 150
Advance excise duty 50
Prepaid Rent (head office) -100
Prepaid insurance (factory) 300 -150

Income Tax Paid -2,650

Income Tax Refund 200
Cash flow from Operating Activities 13,800

Cash from Investing Activities

Sale of Vehicle 500
Sale of investment in non-subsidiary companies 180
Investment in subsidiary companies -150
Dividend received 20
Capital work-in-progress -220
Cash flow from Investing Activities 330

Cash from Financing Activities

Proceeds from issue of shares 200
Share issue expenses -10
Dividend paid -325
Interest paid on debentures -500
Interest paid on bank loans -360
Cash used in Financing Activities -995
Total cash flow during the year 13135
Opening balance of cash and cash equivalent 460
Closing balance of cash and cash equivalent 13595