1.  Basis of Accounting;
 
 The Financial Statements are prepared under the historical cost
 convention on an accrual basis and in accordance with applicable
 Accounting Standards notifed by the Government of India / issued by the
 Institute of Chartered Accountants of India and the provisions of the
 Companies Act, 1956.
 
 2.  Use of Estimates;
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the result of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 3.  Fixed Assets and Depreciation;
 
 Fixed Assets are stated at cost, less accumulated depreciation. Cost
 comprises the purchase price and any attributable cost of bringing the
 asset to its working condition for its intended use. Financing costs
 relating to acquisition of fixed assets are also included to the extent
 they related to the period till such assets are ready to be put to use.
 
 Depreciation is provided on Straight Line Method as per the rates and
 in the manner prescribed in Schedule XIV to the Companies Act, 1956
 with reference to the month of acquisition / installation.
 
 4.  Investments;
 
 Long-term Investments are stated at cost. Provision for diminution is
 being made if necessary to recognize a decline, other than temporary in
 the value thereof.
 
 5.  Inventories;
 
 Inventories are valued as follows;
 
 i) Finished Goods : At Cost
 
 ii) Shares : At Cost
 
 6.  Revenue Recognition;
 
 Sale of Goods are accounted on delivery to customers. Sales is net of
 returns, discounts and Sales Tax / Value Added basis.
 
 7.  Miscellaneous Expenditure;
 
 Amalgamation expenses are written off 1/5 ever year
 
 8.  Employee benefits;
 
 a.  Gratuity & Leave Encashment;
 
 Provisions for Gratuity and Leave Encashment have been provided in the
 books of accounts as per the management estimates.
 
 b.  Provident fund;
 
 Eligible employees receive benefits from a provident fund, which is a
 defned contribution plan. An aggregate contribution along with interest
 thereon is paid at retirement, death, incapacitation or termination of
 employment. Both the employee and the company make monthly
 contributions to the Regional Provident Fund Commissioner equal to a
 specifed percentage of the covered employee''s salary.
 
 c.  Employee State Insurance Fund;
 
 Eligible employees receive benefits from employee state insurance
 scheme, which is a gross salary of less than Rs.15,000 per month are
 entitled to receive benefit under employee state insurance fund scheme.
 The employer makes contribution to the scheme at a predetermined rate
 (presently 4.75%) of employee''s gross salary. The Company has no
 further obligations under the plan beyond its monthly contributions.
 These contributions are made to fund administered and managed by the
 Government of India.
 
 9.  Provision for current and deferred tax;
 
 Provision for current tax is made on the basis of estimated taxable
 income and fringe benefits respectively for the current accounting
 period in accordance with the provisions of Income Tax Act, 1961.
 Deferred tax resulting from timing differences between taxable and
 accounting income is accounted for using the tax rates and laws that
 are enacted or substantively enacted as on the balance sheet date. The
 deferred tax liability is recognized and carried forward only to the
 extent that there is a virtual certainty that the liability will be
 realized in future.
 
 10.  Provisions, Contingent Liabilities and Contingent Assets;
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes. Contingent Assets are neither recognized nor disclosed in the
 financial statements.
 
 11.  Earnings per Share
 
 In determining earnings per share, the company considers the net Profit
 after tax expense. The number of shares used in computing basic
 earnings per share is the weighted average shares outstanding during
 the period.
 
 12.  Cash flow statement
 
 Cash flows are reported using the indirect method, whereby net 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, investing and
 fnancing activities of the company are segregated.
 
 13.  Foreign Exchange Transactions:
 
 Transactions in foreign currencies are translated at the exchange rates
 prevailing on dates of transactions on case of purchases of materials;
 sale of goods and services rendered the exchange gains/losses on
 settlements during the year, are treated as expenditure and transferred
 to Profit and loss account.