i.  System of Accounting :
 
 The Financial Statements are prepared under the historical cost
 convention and accrual concept.
 
 ii.  Sales :
 
 Sales are invoiced on delivery of goods to the customers. Invoiced
 value of sales including excise duty and VAT.
 
 iii.  Fixed Assets and Depreciation :
 
 All fixed Assets are stated at cost inclusive of all installation
 expenses incurred relating to acquisition. Depreciation is provided on
 straight line method at the rates specified in Schedule XIV of the
 Companies Act,1956. Depreciation is charged on pro rata basis on
 additions to Assets taken into account the date of additions.
 
 iv.  Foreign Currency Transactions :
 
 Transactions in foreign currencies are accounted at the exchange rate
 prevailing on the date of transaction. Gains / losses arising out of
 fluctuation in the exchange rates are recognized in Profit and Loss
 Account in the period in which they arise.
 
 v Inventories :
 
 Stock-in-Trade is valued at cost or net realizable value whichever is
 lower.
 
 vi.  Taxes on Income :
 
 Taxes on Income have been provided as the amount of tax payable in
 respect of taxable income for the period. Deferred Tax has been
 provided on the timing difference between taxable income and accounting
 income subject to consideration of prudence.
 
 vii.  Investment :
 
 Investments are stated at cost.