(i)     Basis of Accounting
 
 These Financial statements have been drawn up using the historical cost
 convention adopting the accrual basis.
 
 (ii) Use of Estimates
 
 The preparation of financial statement in accordance with the generally
 accepted accounting principals requires the management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities as of the date of financial statements and the reported
 amount of expenses of the year. Actual results could differ from these
 estimates, any revision to such accounting estimates is recognized in
 the accounting period in which such revision takes place.
 
 (iii) Fixed Assets & Depreciation
 
 (a) Fixed Assets are stated at their original cost less depreciation.
 Cost includes inward freight, duties, taxes and expenses incidental to
 acquisition and Installation.
 
 (b) Depreciation on Fixed Assets is provided on W.D.V. method at the
 rates and in the manner prescribed in Schedule XIV of the Companies
 Act, 1956.
 
 (c) Depreciation on additions to and disposals of Fixed Assets during
 the period has been provided on pro-rata basis according to the period
 such asset was used during the year.
 
 (iv) Inventories
 
 Inventories have been valued at lower of cost or market value except
 scrap, which is valued at realizable value.
 
 (v) Sales
 
 Sales comprises of sale of Goods and Services, net of trade discount
 and returns, if any. Revenue is recognized on dispatch of the product
 to the customers. Sales and Job Work receipts/credits are exclusive of
 excise duty and Sales Tax/VAT.
 
 (vi) Taxation
 
 (a) Provision for Income Tax has been made at the current tax rates
 based on assessable income or on the basis of Section 115 JB of Income
 Tax Act, 1961 (Minimum Alternate Tax) Which ever is higher.
 
 (b) Deferred Tax is recognised, subject to the consideration of
 prudence, on timing differences, being the difference between taxable
 income and accounting income that originate in one period and are
 capable of reversal in one or more subsequent years.
 
 (vii) Excise Duty
 
 The Company has been acknowledging liabilities for excise duty in
 respect of materials lying in factory/bounded premises, as and when
 these are cleared/ debonded.
 
 (viii) Retirement Benefits
 
 The company has not made Provisions in respect of liabilities towards
 leave encashment and Gratuity. It is accounted for as and when paid as
 it is not ascertainable for the time being.