(a) Basis of Accounting:
 
 The financial statement are Prepared in accordance with Indian
 Generally Accepted Accounting .
 
 Principles (GAAP) under the historical cost convention, on the
 accruals basis.
 
 (b) Use of Estimates
 
 The presentation of financial statements in confirmity with the
 generally accepted accounting principles - requires estimates and
 assumptions to be made that may affect the reported amount of assets
 and liabilities and disclosures relating to contingent liabilities as
 at the date of the financial statements and the reported amount of
 revenues and expenses during the reported period. Actual results could
 differ from those estimated.
 
 (c) Revenue Recognition:
 
 (i) Sale of goods:
 
 Reveune from the sale of goods is recognized when significant risks and
 rewards in respect of ownership of the goods are transferred to the
 customer, as per the terms of the respective Sales Order.
 
 Property Development business: The Company has decided to follow
 completed contract method of accounting for property development
 business.
 
 (ii) Interest
 
 Interest income is recognized on a time proportion basis taking into
 account the amount outstanding and the rate acceptable. .
 
 (iii) Dividend
 
 Dividend Income from investments are recognized when the right to
 receive payment established.
 
 (d) Fixed Assets
 
 Fixed Assets are stated at cost, iess cu.cumuiai all expenditure
 necessary to bring the assets to its working conditions for its
 intended use.
 
 (e) Depreciation and Amortization
 
 Depreciation is provided on the straight line method based as per the
 rate specified in Schedules XIV of the Companies Act, 1956 except for
 WTG, on useful lives of assets as estimated by the management.
 
 (f) Investments
 
 Long-term investments are carried at cost. However, Provision is made
 to recognize, other than temporary, in the value of long-term
 investments.
 
 Current Investments ar carried at lower of cost and fair values,
 determined on individual basis.
 
 (g) Inventories
 
 Inventories are at lower of cost and net realizable value.
 
 Stock of land is valued at lower of cost and net realizable value. Cost
 is determined on the weighted average basis, net realizable value is
 determined by management using technical estimates.
 
 (h) Borrowing Costs
 
 Borrowing lists that are directly attributable to the acquisition,
 construction or production of qualifying assets are capitalized as part
 of the cost of such assets. A qulity asset is one that necessarily
 takes substantial period of time to get readly for intended use. All
 other borrowing costs are changed to revenue.
 
 (i) Retirment and other employee benefits .
 
 The Company has adopted the policy to provide for the Liability for
 gratuity and leave encashment benefits on actuarial valuation. Though
 the report of Actuarial valuation for the current year has not been
 obtained and provision has not been made accordingly.
 
 (j) Provisions. Contingent liabilities and contingent Assets.
 
 A Provision is recognized when the Company has a Present obligation as
 a result of past events and it is probable that an out flow of
 resources will be required to settle the obligation, in respect of
 which are reliable  estimate can be made. Provisions are not
 discounted to their present value and are determined .based on estimate
 required to settle the obligation at the balance sheet date. These are
 reviewed at each balance sheet date and adjusted to reflect the current
 best estimates.  Contingent liabilities are disclosed by way of Notes to
 the account Contingent assets are not recognized.
 
 (k) Provision for current and deferred tax
 
 Provision for current income tax is made in accordance with the Income
 Tax Act.1961. Deferred tax liabilities and assets are recognized at
 substantively enacted tax rates, subject to the consideration of
 prudence, on timing difference, beina the difference between taxable
 income and accouonting income that original in  
 of reversal in one or more subsequently period.
 
 (I) Impairments
 
 Impairment loss is recognized wherever the carrying amount of an asset
 is in excess of its recoverable amount and the same is recognized as an
 expense in the statement of Profit and Loss and carrying amount of the
 asset is reduced to its recoverable amount.
 
 (m) Earning Per Share
 
 Basic earnings per Share are calculated by dividing the net profit for
 the period attributable to equity shareholders by the weighted average
 number of equity shares outstanding during the period. The weighted
 average number of equity shares outstanding during the period are
 adjusted for any bonus shares issued during the year and also after the
 balance sheet date but before the ate the financial statements are
 approved bythe Board of Directors.
 
 For the purpose of calculating diluted earnings per share, the net
 profit for period attributed to equity shareholders and the weight
 average number of share outstanding during the period adjusted for the
 effects of all dilaative potenial equity shares.
 
 The number of equity shares are potential dilative equity shares are
 adjusted for bonus as appropriate.
 
 (n) Share Issue Expenses
 
 Share issue expenses are redemption premium are adjusted against the
 Securities Premium Account as permissble under Section 78(2) of the
 Companies Act, 1956, to the extent balance is available for utilization
 in the Securities Premium Account. The balance of share issue expenses
 is carried as an asset and is amortised over a period of 5 years