1.  SYSTEM OF ACCOUNTING:-
 
 a) The financial statements have been prepared under the historical
 cost convention in accordance with the generally accepted accounting
 principles and the provisions of the Companies Act, 1956, as adopted
 consistently by the com- pany, except for certain fixed assets which
 have been revalued.
 
 b) The Company generally follows mercantile system of accounting and
 recognizes significant items of income and ex- penditure on accrual
 basis.
 
 c) Benefit on account of entitlements to import duty free material
 under the Duty Entitlement Passbook scheme & other Export Incentives
 are accounted for on Cash basis.
 
 2.  FIXED ASSETS :
 
 Fixed Assets are stated at cost inclusive of incidental and/or
 installation expenses. They are stated at revalued amount being fair
 market value on the basis of valuation made by approved valuer. Surplus
 on account of revaluation is credited to the revaluation reserve
 account.
 
 3.  DEPRECIATION :
 
 Depreciation on the assets has been provided on straight line method at
 the rates prescribed under Schedule XIV to the Companies Act, 1956.
 
 4.  INVENTORIES :
 
 There is no inventories of raw materials, goods in transit, consumable
 stores, furnace oil and lubricants. Inventories of Finished Goods is
 valued at cost or market value whichever is lower. There is no closing
 stock of Finished Goods as at 31.03.2012.
 
 5.  INVESTMENTS :
 
 Valuation of long term (non-current) quoted investment are stated at
 cost less provision, if any, for permanent diminution in value.
 Unquoted long term (non-current) investment are valued at cost. Current
 Investment are valued at cost as per consistent practice of the
 Company.
 
 6.  FOREIGN EXCHANGE TRANSACTION:
 
 a) Foreign Exchange transactions are converted into Indian Rupees at
 the rate of exchange prevailing on the date of transaction. Exchange
 rate difference is charged to Statement of Profit & Loss on final
 payment of the liability. Unsettled transaction at the close of the
 year are considered taking into account the exchange rate prevailing at
 the year end and diff. is charged to Statement of Profit & Loss.
 
 b) Variation due to fluctuation in exchange rate as on the date of
 Balance Sheet, the increase / decrease is accounted in respect of
 Investment and Advance to foreign company is accounted for in the
 Foreign Currency Transaction Reserve.
 
 7.  EMPLOYEE BENEFITS :
 
 Gratuity paid to employee retrenched charged to Statement of Profit &
 Loss. Other payment made to employee on retrenchment of employees
 charged to Statement of Profit & Loss on payment basis.
 
 8.  TAXATION :
 
 Deffered tax liability of Rs.3,55,955/- has been created as per
 Accounting Standard 22 Accounting of Tax on I ncome issued by
 ICAI on timing difference as follow.