ACCOUNTING CONVENTION:
 
 The financial statement have been prepared in accordance with the
 Applicable Accounting Standards in India and in accordance with
 Historical cost convention.
 
 1. Figures of the Previous Year have been re-arranged re-grouped
 wherever necessary.
 
 2. Depreciation for the year ending 31-03-2002 has not been provided.
 
 3. Salary includes Whole Time Directors Remuneration amounting to Rs.
 60,000/-.
 
 4. Remuneration paid more than Rs. 20,0000/- per month when employed
 for part of the year or Rs. 24,00,000/- per annum - NIL.
 
 5) investments are valued at Cost.
 
 6) Retirement Benefits: i) Provident Fund ii) Gratuity iii) Leave
 Encachment iv) Post retirement v) Super Annuation Scheme vi) Other
 retirement benefits
 
 Accounted on Accural basis but partly paid. Gratuity is not accounted
 on accrual basis. It will be accounted on paid basis.
 
 7) REVENUE RECOGNITION: Sales are recognised at the point of despatch
 of finished goods to customers Sales are exclusive of Sales-Tax &
 Excise duty. Other income is on actual receipt basis.
 
 8) PROVISION FOR INCOME TAX: In view of losses no provision for income
 Tax has been made.
 
 9) CONTINGENT LIABILITIES: Claims against company not acknowledged as
 Rs. 7,56,819/-
 
 10) FIXED ASSETS: Fixed assets are stated at cost of acquisition. Less
 Depreciation..
 
 11) INVENTORY VALUATION:
 
 a) Raw-materials, Stores & Spares are at cost.
 
 b) Semi-finished goods are valued at production cost.
 
 c) Finished goods are valued at sales cost.
 
 12) SUNDRY CREDITORS: Dues to SSI units separate list enclosed.
 
 Note: To the extent to which the parties are identifiable on the basis
 of available records.