(a) Basis of Accounting
 
 The Accounts are prepared under historical cost convention on a going
 concern basis and follows the mercantile system of accounting
 generally, except non accounting of Deferred Tax.
 
 (b) Fixed Assets
 
 All Fixed Assets are stated in the Balance sheet at cost The Company
 capitalized all direct cost relating to fixed assets acquisitions and
 installations.
 
 (c ) Depreciation
 
 (1) The Company provides depreciation on straight line method at the
 rates and manner provided in Schedule XTV of the Companies Act, 195
 
 (2) Lease hold land is not depreciated.
 
 (3) Depreciation on Dies & Tools and Vehicles not provided during the
 year to maintain NET BLOCK to the extent of 5% of GROSS BLOCK.
 
 (d) Inventories
 
 (1) Raw Material, Stores and Spares are valued at cost or net
 realizable value which ever is lower. The work in progress is valued at
 estimated cost.
 
 (2) Finished goods are valued at cost or net realizable value which
 ever is lower.
 
 (3) The cost of Imported Raw Material includes custom duties and other
 direct expenditures.
 
 (e) Revenue Recognition
 
 The Income and Expenditure are accounted on accrual basis, except
 dividend which is accounted for on receipt basis.
 
 (f) Sales
 
 Local Sales are inclusive of excise duty but exclusive of Sales Tax and
 Trade discount.
 
 (g) Foreign Currency Transaction
 
 Cost of imported raw material is converted to Indian Currency at the
 rate prevailing on the date of debiting such transaction by the Bank.
 
 (h) Employee Benefits
 
 i) Provident Fund/ESI
 
 Company''s contribution paid/payable during the year to provident fund
 and E.S.I.C. are charged to Profit & Loss Account. There are no other
 obligations other than contribution payable to the respective
 authorities.
 
 ii) Gratuity
 
 Gratuity has been provided in the books of accounts on accrual basis.
 The gratuity calculation is based on assumption mat such benefits are
 payable to all eligible employees at the end of accounting year.
 
 (i) Taxation
 
 Income Tax expenses comprise current tax and deferred tax charge Or
 credit. Provision for current tax is made on the assessable income at
 the tax rate applicable to the relevant assessment year. The deferred
 tax asset and deferred tax liability is calculated by applying tax rate
 and tax laws mat have been enacted by the balance sheet date.
 
 (j) Provisions, Contingent Liabilities and Contingent Assets
 
 The Company recognizes a provision where there is a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation. A disclosure for contingent liability is made when there is
 a possible obligation or a present obligation that may, but probably
 will not, require an outflow of resources.  Where there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure is made contingent
 assets are neither recognized nor disclosed, provisions, contingent
 liabilities and contingent assets are reviewed at each Balance Sheet
 date.
 
 (k) Investment
 
 The Investment is stated at cost.