1.  BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS
 
 The financial statements of the company have been prepared on accrual
 basis under the historical cost convention in accordance with the
 Generally Accepted Accounting Principles in India (Indian GAAP) to
 comply with the Accounting Standards notified under section 211 (3C) of
 the Companies Act, 1956 and the relevant provisions thereof.
 
 2.  USE OF ESTIMATES
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual results and estimates, if any, are recognized in the
 period in which the results are known/materialized.
 
 3.  REVENUE RECOGNITION
 
 i.  Sales Revenues are recognized when goods are invoiced and
 dispatched to customers, and are recorded inclusive of Excise Duty, but
 are net of Sales Returns, Trade Discounts and Sales Tax.
 
 ii.  Dividend Income is recognized when the company''s right to
 receive dividend is established. Interest Income is recognized on a
 time proportion basis based on the amount outstanding and the rate
 applicable.
 
 iii. Other Incomes are generally accounted on accrual basis as they are
 earned.
 
 4.  FIXED ASSETS
 
 Tangible and intangible fixed assets are stated at cost of acquisition
 (net of CENVAT, wherever applicable), less accumulated depreciation.
 Cost is inclusive of freight, duties, levies and any directly
 attributable cost of bringing the assets to their working condition for
 intended use. Direct costs are capitalized till the assets are ready to
 be put to use. Interest on borrowings, wherever applicable,
 attributable to new projects is capitalized and included in the cost of
 fixed assets as appropriate.
 
 5.  DEPRECIATION AND AMORTIZATION
 
 Depreciation in respect of Fixed Assets, is provided adopting Straight
 Line Method over the useful life of the Assets as estimated by the
 Management.
 
 Depreciation for assets purchased/sold during the period is
 proportionately charged.
 
 6.  INVENTORIES
 
 i.  Raw Materials are valued at cost comprising purchase price, freight
 and handling, non refundable taxes and duties and other directly
 attributable costs.
 
 ii.  Finished Products are valued at lower of cost and net realizable
 value.
 
 iii. Scrap & By Products are valued at net realizable value.
 
 iv.  Stores and Spares are valued at cost comprising of purchase price,
 freight and handling, non refundable taxes and duties and other
 directly attributable costs.
 
 7.  EMPLOYEE BENEFITS
 
 i.  Short Term Employee Benefits ; Benefits payable to employees within
 12 months of rendering services such as wages, salaries, bonus, paid
 annual leave, etc are classified as Short Term Employee Benefits and
 are recognized in the period in which the employee renders related
 services.
 
 ii.  Long Term/Post Employment/Termination Benefits:The Company has
 taken an Employees Group Gratuity of LIC for meeting out the liability
 of Gratuity. Premium paid is debited as and when due. Actuarial
 Valuation is also kept in view for determining the liabilities, if any.
 Leave Encashment, if any, is accounted for on accrual basis.
 
 iii. Provident Fund : On the basis of payments/contributions made to
 the concerned Provident Fund authorities.
 
 8.  INVESTMENTS
 
 Current investments are carried at lower of cost and quoted/fair value.
 Long Term Investments are stated at cost. Provision for diminution in
 the value of long-term investments is made only if such a decline is
 other than temporary.
 
 9.  CASH AND CASH EQUIVALENTS
 
 ''Cash'' comprises of cash on hand and demand deposits with Bank.
 ''Cash Equivalents'' are short term, highly liquid investment, that are
 readily convertible into known amounts of cash and which are subject to
 insignificant risk of changes in value.
 
 10.  EXPENDITURE
 
 Expenses are accounted on the accrual basis and provisions are made for
 all known losses and liabilities.
 
 11.  TAXATION
 
 Deferred Tax is recognized, subject to the consideration of prudence,
 in respect of deferred tax assets or liabilities, on timing
 differences, being the difference between taxable income and accounting
 income that originate in one period, and is reversible in one or more
 subsequent periods.
 
 Deferred tax assets are recognized only to the extent there is
 reasonable certainty that the assets can be realized in the future;
 however where there is unabsorbed depreciation or carry forward of
 losses, deferred tax assets are recognized only if there is a virtual
 certainty of realization of such assets and are reviewed for the
 appropriateness of their respective carrying values at each reporting
 date.
 
 Income Taxes are accrued in the same period the related revenue and
 expenses arise. A provision is made for income tax annually, based on
 the tax liability computed, after considering tax allowances and
 exemptions.  Provisions are recorded when it is estimated that a
 liability due to disallowances or other matters is probable. Minimum
 Alternate Tax (MAT) paid in accordance with the tax laws, which gives
 rise to future economic benefits in the form of tax credit against
 future income tax liability, is recognized as an asset in the Balance
 Sheet if there is convincing evidence that the company will pay normal
 tax in future and the resultant asset can be measured reliably.
 
 12.  IMPAIRMENT
 
 Whether events or changes in circumstances indicate that the carrying
 value of fixed assets may be impaired, the company subjects such assets
 to a test of recoverability, based on discounted cash flows expected
 from use or disposal of such assets. If the assets are impaired, the
 company recognizes an impairment loss as the difference between the
 carrying value and value in use.
 
 13.  BORROWING COSTS
 
 Borrowing costs that are attributable to the acquisition, construction
 of qualifying assets are capitalized as part of the cost of such assets
 till such time the asset is ready for its intended use or sale. A
 qualifying asset is an asset that necessarily takes a substantial
 period of time to get ready for its intended use. All other borrowing
 costs are recognized as an expense in the statement of profit and loss
 in the period in which they are incurred.
 
 14.  PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 A provision is recognized when the Company has a present obligation as
 a result of past events; it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made.
 
 Contingent Liability is disclosed in case of a present obligation
 arising from past events when it is not probable that an outflow of
 resources will be required to settle the obligation, or a present
 obligation when no reliable estimate is possible, or a possible
 obligation arising from past events where the probability of outflow of
 resources is remote.
 
 Contingent Assets are neither recognized nor disclosed.
 
 15.  EVENTS OCCURRING AFTER THE DATE OF BALANCE SHEET
 
 Material events occurring after date of Balance Sheet are taken into
 cognizance.
 
 16.  CASH FLOW STATEMENT
 
 Cash Flows are reported using the indirect method, whereby profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments. The Cash Flows from regular revenue generating; financing and
 investing activities of the company are segregated.
 
 17.  EARNING PER SHARE
 
 The company reports basic and diluted earnings per share in accordance
 with Accounting Standard (AS-20) - Earnings per Share. Basic earnings
 per equity share have been computed by dividing net profit after tax
 attributable to equity share holders by the weighted average numbers of
 equity shares outstanding during the year. Diluted earnings during the
 year adjusted for the effects of all dilutive potential equity shares
 per share is computed using the weighted average number of equity
 shares and dilutive potential equity shares outstanding during the
 year.
 
 18.  SEGMENT INFORMATION
 
 The company is engaged primarily in the business of Rigid PVC Pipes.
 The production facility is located at one place and the business is
 fully concentrated in India. As the basic of nature of these activities
 are governed by the same set of risks and returns, these have been
 grouped as a single business segment. Accordingly, segment reporting
 disclosure as envisaged in Accounting Standard (AS-17) Segment
 Reporting, issued by the Institute of Chartered Accountants of India,
 is not applicable to the Company.