C. A. PM. KATHARIYA SHAH & KATHARIYA Com LLB (Gen| FCA CHARTERED ACCOUNTANT C.A. HEMANT S. MAHAVAR EE ee Room No 6. Kermani Building. 4th Floor Com. FCA, 27 Sir B MM. Road. Fort, Mumba: . 409 007 GA RONAGGNZDHARNIDHARKA Ph 6631 5862 Fax. 2285 6615 2672 8603 BCom. ACA Mobile $8210 34665 / 99872 49694 / 705 C.A. PRATIK M. CHOUDHARY E-mail office@shahkathaniya com Com AGA Wed www shahkathariya com Independent Auditor's Report ‘To the Members of LASA SUPERGENERICS LIMITED, Report on the Financial Statements |. We have aucited the accompanying financial statements of Lasa Supergenerics Limited (“the Company”), which comprise the Balance Shest as at 31 March 2016, the Statement of Profit and Loss, the Cash Flow Staiement for the year then ended and 2 summary of the significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements 2, The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Aci, 2013 (“the Act”) with respect to the preperation and presentation of these financial statemenis, that give a true and fair view of the financial position, financial performance and cash flows of the Company ia accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules. 2014 (as amended). This responsibility also includes maintenance of adequate accounting records in azcordance with the Provisions of the Act; safeguarding the asscls of the Company; preventing and detecting frauds and ‘her irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent, and design, implementation and maintenance of adequate internal financial controls, Uhat were operating effectively for ensuring the accuracy and ‘completeness of the secounting records, relevant to the preparation and presentation of the financial statements that give a true ard fair view and ave free from material misstatement, ‘whether due to fraud or error. Audi 1's Responsibility 3. Our responsibility is to express an opinion on these financial statements based on our audit 4, We have taken into account the provisions of the Act, the cecounting and auditing standards and matiers which are required w be Included in the audit report under the provisions of the ‘Act and the Rules made thereunder. 5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that wo comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial Siatements are free from material misstatement 6. An audit involves performing procedures to obtain audit evidence about the amounts and the 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 fiaud or error. In making those risk assessments, the auditor considers intemal financial controls relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedutes that are appropriate in the circumstances. An audit also includes evalueting the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements,7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements, Opinion 8. In our epinion and to the best of our information and acvording to the explanations given to 4s, the aforesaid financial statements give the information required by the Act in the menner 0 required and give a true and fair view in conformity with the accounting, principles generally accepted in India, of the state of affairs of the Company as at 31 March 2016, iis ail PALL and its eash flows for the year ended on that dat, Report on Other Legal and Regulatory Requirements 9. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the “Annexure Ta statement on the matters specified in paragraphs 3 and 4 of the Order. 10. As required by Section 14313) of the Act, we report that: We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit b. In our opinion, proper books of account as required by law have been kept by the ‘Company so far as it appears from our examination of those books; ‘©, The balance sheet, the statement of Profit and loss and the cash flow statements comply dealt with by this report are in agreement with the books of account; 4d. In our opinion, the aforessid financial siatements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Aczounis) Rules, 2014; ©. On the basis of the written representations received from the directors as at 31 March 2016 and taken on record by the Board of Directors, aone of the directors is disqualified 1s at 31 March 2016 from being appointed as @ director in terms of Section 164(2) of the Acts £. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2" to this report; & With respect to the other maters to be included in the Auditor's Repor. ia accordance with Rule 11 ofthe Companies (Ault and Auditors) Rules, 2014, in our opinion and tothe best of ‘ar information and according tothe explanations given to us i. the Company does rot have any pending litigations which would impact its financial Position; li, The Company cid not have any long-term contracts including derivative contracts for Which there were any material foreseeable losses; and ‘There were ne amounts which were requlied to be wransferred 10 the Investor Education and Protection Fund by the Company. For Shah & Kathariya Chartered Accountants Firm’s Registration No 115171W VO eau) er Pec M Katha Partner ‘Membership No 031315 Phace: Mambt Date: 16 Moy, 2016Annexure—1 to the Auditors Report The annexure referred to in independent auditors report to the members of the Company on the financial statements for the year ended 31 March 2016. We report that: 0 @) wo i) ‘The Company does not have any fixed assets. Accordingly, the provisions of clause 3(I)(a),3(i)(b) and 3(i)(0) of the Order are not applicable to the Company. ‘The Company does not have any inventory. Accordingly, the provisions of clause 3(ii) of the Order are not applicable to the Company. ‘The Company has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships (LLPs) or other parties covered in the register maintained under Section 189 of the Act Accordingly, the provisions of clauses 3(jii)(2), 3(HI)(B) and 3(H)(C) OF the Order are not applicable to the Company. In oar opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including eatities in which they are interested and in respect of loans and advances given, investments made and, guarantees, and sccurities given have beea complied with by the company. In our opinion, the Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Accepiance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(¥) of the Order are not applicable to the Company. We have broadly reviewed the books of account maintained by the Company pursuant to the rules mace by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to the manufacture or service of Agro Products, and ate of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same. (vii) @) Undisputed statutory dues including provident fund, employees" state insurance, income-tax, sales-tax, iy w wealthetax, service tax, duty of custom, duty of excise, volue added tax, cess and other material statutory ducs have generally been segularly deposited with the appropriate authorities. ‘According to the information and explanations given 10 us, no undisputed amounts payable in respect of provident fund, employees’ state insurance, Income-tax, wealthax, service lax, sales-tax, duty of custom, uty of excise, value added tax, cess and other material statutory dues were outstanding, atthe year end, for a period of more than six months from the date they became payable. (b) According to the information and explanations given to us, there are no dues of income tax, salestan, wealth ax, service tax, customs duly, excise duly, value added tax and cess which have not been deposited on account of any dispute Based on our audit provedures performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders or government. Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management and ‘on an overall examination of the balance sheet, we report that monies raised by way term loans were applied for the purposes for which those were raised Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud on or by the officers and employees of the Company has been noticed or reported during the year.wi ai) (xiv) ow) (si) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and acvording to the information and explanations given by the management, we report that the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013. In our opinion, the Company is not a Nidhi company. Therefore, the provisions of clause 3(a1) of the order are not applicable to the Company and hence not commented upon. Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards. Based on our audit procedures performed for the purpose of reporting the true and fait view of the financial statements and according to the information and explanations given by the management, the Company has complied with provisions of section 42 of the Companies Act, 2013 in respect of the Preferential allotment of shares during the year. Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that the amounts raised, have been used for the purposes for which the funds were raised. Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, the Company has not entered into any non-cash transactions with direstors or persons connected with him. According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company. For Shah & Kathariya Chartered Accourtants| Firm’s Registration No.: 115171W. \U auto Hy Pec PM Kathariya Pariner Membership No.: 031315 Place: Mumbai Date: 16" May, 2016Annexure —2 to the Auditors Report ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF LASA SUPERGENERICS LIMITED Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) Tothe Members of Lasa supergenerics Limited We were engaged to audit the internal financial controls over financial reporting of Lasa Supergenerics Limited (the Company”) as of March 31, 2016, in conjunction with our audit ofthe financial statements ofthe Company forthe year ended oa that date Management's Responsibility for Internal Financkal Controls The company’s management is responsible for establishing and maintaining internal financial controls based on the interal contol over financial reporting criteria established by the Company considering the essential componcts of internal centrol stated in the Guidanee Note on Audit of Internal Financial Controls Over Financial Reporting ised by the Institue of Chartered Accouniants of Inda (ICAL), These responsibilities include the design, implementation and maintenance of adcquste ternal financial contol lat were operating effecively Tor ensuring the orderly and efficient conduct of it business, including adherence tothe Company’s polices the safeguarding of is assets. the prevention snd detection of frauds and emors, the aceuracy and completeness ofthe accounting records, and the timely preparation «of refable financial information, as required under the Companies Act, 2013, Auditor's Responsibility Our responsibilty is to express an opinion on the Company's internal financial contras over financial reporting based ‘on our audit. We conducted our aucit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls ard, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to oblain reasonable assurance about whether adequate internal financial controls ever financial reporting was establi ‘maintained and if such controls opersted effectively in all material respects. (Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and ther operating effectiveness. Our audit of internal financial controls over financial reporting inchided obtaining an understanding of intermal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of intemal control ‘based on the assessed risk. The procedures sclected depend on the auditor's judgement, Including the assessment ofthe risks of material misstalement of the financial staiements, whether due (0 freud or error. ‘We believe that the audit evidence we have obtained is sufficient and aprropriate to provide a basis for our audit ‘opinion on the internal financial controls sysiem over financial reporting, Meaning of Internal Financial Controls Over Financial Reporting ‘A company's intemal financial control over financial repertng is a process designed to provide reasonable assurance regarding the relibility of financial reporting and the preparation of financial statements for external purposes in faccardance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly refleet the transactions and dispositions of the assess of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial saiements in accordance with ‘generally accepted accounting principles. and that receipts and expenditures of the company are being made oaly in Aecerdance with authorisations of management and dirsetors of the company: and (3) provide reasonable assurance regarding prevention of timely deteciion of unauthorised acquisition, use, or disposition of the company’s assets that Could have a material effect on the financil statements.Inberent Limit ions of Internal Financial Controls Over Financial Reporting Because of the Inherent limitations of intemal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error ot fraud may occur end not be detected. Also, projections of any evaluation of the internal financial contrals over financial reporting to future Periods are subject to the risk that the internal financial control over financial reporting may become inadequate because ‘of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion In out opinion, the Company hss, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial contro's over financial reporting were opevating effectively as at March 31, 2016, based on the internal contol over financial reporting criteria established by the Company considering the essential components of intemal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial ‘Reporting issued by the Insitute of Chartered Accountants of India. For Shah & Kathari ‘Chartered Accountants Firm’s Registration No 115171W JL extant) a p reepatnanarsa Partner Memberihip No: 031315 Place: Mumbai Date: 16" May, 2016LASA SUPERGENERICS LIMITED BALANCE SHEET AS ON 31 MARCH, 2016 (Rupees in Lakhs, except for share d: ‘otherwise stated) Particulars Note No As at 31st Mar, 2016 /EQUITY AND LIABILITIES |Sharcholders' Funds [Share Capital Non Current Liabilities ILong-term borrowings |Current Liabilities lOther current liabilities TOTAL, |ASSETS. [Non Current Assets JOther Non Current Assets [Current Assets ICash and € +h Equivalents [TOTAL significant Accounting Poticies [Notes on Financial Statements 1 35.09 35.09 5.00, 5.00 40.09 For Shah & Kathatiya For Lasa Supergenerics Limited Chartered Accountants Firm Registration No. 115171W | eign Aw ee CAP M Kathaiy Pastner Pravin Herlekar M.No. 031315, \S)DIN- 00525610 Place : Mumbai Date : 16 May, 2016 Wek Wirector) DIN- 01587154LASA SUPERGENERICS LIMITED STATEMENT OF PROFIT AND LOSS FOR YEAR THE ENDED 3ist MARCH, 2016 [Particulars ‘Year ended 3ist Mar, 2016 INCOME IRevenue from Operation [Total Revenue EXPENDITURE Cost of Material Consumed [Changes in inventories of Finished Goods, Work in progress land Stock in Trade [Employee Benefits Expense Finance Costs Depreciation and Amortization Expense Other Expenses [Total Expenditure Profit Before tax |1'ax Expenses Previous year adjustments |Current Tax [Deferred Tax |Profit for the period |Earnings per equity share (in Rs.) Basic & Diluted Face Value of Equity Shares (ia Rs) significant Accounting Policies [Notes on Financial Statements For Shah & Kathariya For Lasa Supergeneries Limited Chartered Accountants Firm Registration No. 115171W VO eutace CAPM relat Partner M.No. 031315, Place : Mumbai Date: 16 may,2916 x Wirector) Pravin Herlekar Kah Herlekar (Director)Lasa Supergenerics Limited ‘Notes Forming Part OF The Financial Statements For Year Ended 315¢ March, 2016 Note No, [Panieutaes ‘Ra at Sst Mae, 2016 2|SHARE CAPITAL. No. of Share “Amouat | AUTHORISED CAPITAL icity Shares Ws.10/- each TsumaoNo 3300.00 Hssues, Subscribed and Paid wp: quit Sbares of Re 10/- each, Ply paidup 50,000 5.00 Sap00-60 50 The Mavements of Share capital eset out below Authorised No. of Shae Amount Authorised Shase Capital atthe beginning of the Year Tocteased during the year 35,000,000 5500.00, Authorised Shure Capital at the ead ofthe year 35,000,000 3.500.00 Issued, Subs Ac the Beginning of the Year : Atthe Bad ofthe Year 50,000 5.00 50,000 5.0 shed and Paid up capital ‘Teams / Rights auached to Equity Shares ‘he Company has oa cntted to ane vote per share. The eompaay declares and pass dividende in Indian Amounts in. The dividend lass of equity shares having a pur value of 10/- per share. Fach holder of equity shares ie proposed by the Board of Directors i subject tothe approval ofthe shareholders inthe ensuing annual general meeting [During she year ended Stet March 2016, ao divideod is declared by Board of Directors Tm the event of liquidation ofthe company, the holders of ext shate willbe entitled to receive remaining assets of the company, aftr distribution of preferential amounts The ditbation willbe in proportion to the number af exity shates held by the shareholders SHARE HOLDING IN EXCESS OF 5% No. of Sha Amount 50,000 5.00 ‘Total aLasa Supergencrics Limited Notes For Parc Of The Financial Statements For Year Ended 318t March, 2016 Nowe No, Periculaes ‘As at 31st Mar, 2014 3 BORROWINGS Unsecured Borrowings Insereomporite Loan sss ‘TOTAL UNSECURED BORROWINGS 35.00 4 OTHER CURRENT LIABILITIES Starry Listes 005 Total 0.05, 5 OTHER NON CURRENT ASSETS Peiminery Exp Not WJof® 3509 Toul 35.09 se) 6 CASH AND BANK BALANCES (Cash and Cash Haguivalente Balance with Banks 500 on hava 500 7 Related pary Transactions Pray Relationship [Ookar Specany Cheneals ied oki Company Common Con Ea [Nacwre of Transaction Name Si March 2006 1 Loana and Advancis Pabale/(Recievable) during de ye [Omkar Specialy Chemicals Limited [Opening Bahce [am [Given During the period ‘an Received Daring the year 35.04) EST) [ctosingWalance For Shah & Kathaciya CCharcred Accountants Fiem Registration No, 151717 (aus moaoat ees ; 7 MNe 0s Pee: ana Dans tea 26 sel - 00525610 Pavia Hedlokar and on behalf of the Boatd of Disectors a (Direbios) DIN- 01587154LASA SUPERGENERICS LIMITED SIGNIFICANT ACCOUNTING POLICIES 1, BASIS OF PREPARATION OF FINANCIAL STATEMENTS “The financial statements ate peepared tnder the historical east convention in accordance with the generally accepted accounting principles in India, the provisions of the companies Act, 2013 and the applicable accounting standacds. The company follows mercantile system of accounting and reoo,mizes income and expenditure on accrual basis. 2, USE OF ESTIMATES ‘The preparation of financial stitementscequiees estimates and assumprions that affect rhe reported amount of Assets and Liabilities on the dite ofthe financial statements and the reposted amount of Reventes and Expenses dosing the reporting pesiod. Difference between the actual results and the estimates are recoygized inthe pecoa ia which the same are known /materalize. 3. FIXED ASSETS 1. Fixed Assets ane stated at cost of acquisition or construction (net of CENVAT/VAT credit availed) less accumulated depreciation/amortization and impairment loss, if any. Cost included all dizece and indicect costs relating to the acquisition and Javtallation of fixed assets interest on borrowed funds, if any, used to finace/consteuction of fixed assets ceady for commercial use Leasehold lind is amortized over the pesiod of lease 2 Cost comprises of purchase price and any atrutable cost of binging the asset to its working conulition fo its intended use 4. FOREIGN CURRENCY TRANSACTIONS/ TRANSLATION Dung the porting period ao foreign cusreney transaction occucted 5. INVENTORIES 1. Raw Maedial “The company is valuing Raw material, packing material and stores stock by aking costs of purchase consist, including duties and taxes (other than those subsequeney secoverable by the enterprise from the taxing authorities), freight inwacds and conhes expenditure citectly attributable to the acquisition, Trade discounts, rebates, duty dzawbacks, finance cost and othe similar items ace dedcted in determining value of the stock of Raw materials, In determining the cost che Fics In First Out (FIFO) method is used. the purchase price 2. Finished Goods and Work in process Finished Goods and Work in process are valued at cost or net realizable value, whichever is lower. The cost is determined by reducing ‘rom the sales value of inventory the appropriare percentage of gross margin depending on the stage of completion 6, REVENUE RECOGNITION 1 Revenue feom sale of goods is eeogpized when the significant kisks and eewaeds in eespect of ownership of products are transerced by the company 2 Revenue feom product sale is stated net of senans, sales tax/‘VAT andl applicable rade discounts and allowances 3. Interest income is recognized on time accrual basis, 7. INVESTMENTS 1. Tavestments tht are realy reabsable and inteaded to be held for not more than one year fom the date of investment are clasiied 4s current investments All othe investments are clasifed as long tem investments 2 Cuctent investments aze carted at the lower of cost and seaisable valu, determined on an individual investment basis. 3. Long-term investments ace catred at cost less any othersthan-temporary diminution in value, determined separately in cespect of eich category of investment, 8, DEPRECIATION/AMORTIZATION Depreciation on all fixed assets is provided as pee che provisions of Companies Act, 2013 on Stesight Line Method. Depreciation is ‘aleuated on pro-eata base from month of installation dl de month ofthe assets are sold/ disposed off Coxt of leisehold land is amoxtized over the period of ease9, EMPLOYEE BENEFITS: 1. Shoe Team Employee Benefis All short erm employee benefits such a salaries, wages, bonus, special awards, medical benefits which fall due within nwelve months of the period in which the employee venders the related services which entitles him to avail such benefits and non-sccumlating compensated absences are ceciynized on an undisconnted basis chacged tothe profi and lost aeconne 2 Provision for Granity is made and provided on actuarial valuation basis Other zetizerent benefits ace accosted 25 per company’s policy 10, TAXES ON INCOME Income Taxes are accounted for ia accosdance with Accounting Standaed 22 (A\ ‘comprises of Current Tax and Deferved Tax 2) “Accounting foe Taxes on Tncome””. Tax expense 1. Casrent ‘Taxis determined as the amovant of tx payable in respect of taxable inceme for the yess 2 Deferred tax assets and labilites ace recognized foe the faruse tax consequences attebutzble ro Timiag, Differences, berween the taxable income and accounting income, that originate in one period and ate capable of zeversal in one or moze pesids. Defected rae assets are recognised only to the extent there is ceasonable certainty that the assets can be vealzed inthe futuse, however wher there is ‘unabsorbed depreciation ox caary forward loss under taxation laws, deferred tax assets are recognised only if dere isa vietual estinty of sealisation of such asset, Deferred tax assets are ceviewed as at eaeh balance sheet date and weiten down or weites-up to reflect the amount thats reasonably / wttually certain (asthe case may be) to be sealised.” 11, PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions involving substantial degree of estimation in measucemen! ate ecognized when there a present obligation as «result of past events and it is probable thar there wil be an outflow of resources. Contingent labiites are aot recognized but are disclosed in the Notes to Accounts. Contingent Assets are acithee recognized noe disclosed in the financial statements 12, BORROWING CosT Borrowing cor atzibutable to acquisitions and construction of capital goods are capitalized a a pac of cost of such assets up to the date when such assets are seady for its intended use and all other borrowing costs are changed th penfit & loss Account. 13, IMPAIRMENT OF ASSETS. "The Company assesses at exch Balance Sheet date whether there i any indication that an asset may be impaiced. TF any such indication exists, the Company estimates the recoverable amount ofthe asset. If such recoverable ammount ofthe asset or the recoverable amouat of the cish generating unit to which the asset belongs i less than its caerying amount, the cascying amount is reduced 10 its recoverable amount. The reduction is treated as an impaizment loss and is recognized in the Peofit and Loss account. If at the Balance Sheet date ‘there isan indication that if « previously assessed impairment loss no longer exists, the eecoverable amoat is reassessed and the aset is selected atthe ecowerable amount M4, SECURITY PREMIUM ACCOUNT. Any expensed incurred for ming of funds feom securities ace adjusted against security premium account 18, CHANGES IN ACCOUNTING POLICIES "Thece are no changes in the aecounting policies dung the eepocted period