i) Method of Accounting :
 
 The Financial Statements have been prepared on the Historical Cost
 Convention method and are in accordance with normally accepted
 accounting principles.
 
 ii) Recognition of Income and Expenditure :
 
 Revenues/Incomes and Costs/Expenditures are generally accounted on
 accrual, as they are earned or incurred.  Sales are inclusive of Excise
 Duty but exclusive of VAT and net of sales returns. Purchases are net
 of discounts and returns.
 
 iii) Fixed Assets :
 
 a) Fixed Assets are stated at Cost. All costs which are directly
 related to particular assets, are capitalised and added to the cost of
 relevant assets. Freehold Land is stated at Revalued Price.
 
 b) Pre-Operative expenditure incurred on project has been capitalized
 amongst the various heads of fixed assets on the commencement of
 project.
 
 iv) Impairment of Assets :
 
 The carrying amounts of assets are reviewed at each balance sheet date,
 if there is any indication of impairment based on internal/external
 factors. An asset is impaired when the carrying amount of the asset
 exceeds the recoverable amount. An Impairment loss is charged to the
 profit and loss account in the year in which an asset is identified as
 impaired. An impairment loss recognized in prior accounting period is
 reversed if there has been change in the estimate of the recoverable
 amount.
 
 v) Depreciation :
 
 a) Trading Division :
 
 Depreciation on Fixed Assets have been provided on written down value
 method in accordance with and at the rates specified in schedule XIV to
 the Companies Act, 1956.
 
 b) Manufacturing Division:
 
 i) Computer Stationery Division :
 
 Depreciation on Fixed Assets (other than Land where no Depreciation is
 provided) has been provided on Straight Line Method in accordance with
 the provisions of Section 205(2)(b) of the Companies Act, 1956 and at
 the rates specified in schedule XIV to the Companies Act, 1956. As per
 the certificate received from the management, Depreciation in respect
 of Plant & Machinery & Electrical installation has been provided on the
 basis of Double Shift working.
 
 ii) CD-R Division :
 
 Depreciation on Fixed Assets has been provided on straight line method
 in accordance with provisions of section 205 (2)(b) of the Companies
 Act, 1956 and at the rates specified in Schedule XIV to the Companies
 Act, 1956.
 
 Depreciation on additions made w.e.f. 01-04-2005 in Plant & Machinery
 and Electrical Installation has been provided on written down value
 method in accordance with provisions of Section 205 (2)(b) of the
 Companies Act, 1956 and at the rates specified in Schedule XIV to the
 Companies Act. 1956.
 
 On the basis of the certificate received from the management,
 Depreciation in respect of Plant & Machinery & Electrical Installation
 in CD-R Division has been provided on single Shift basis.
 
 c) Depreciation in respect of Fixed Assets put to use during the year
 is charged on pro-rata basis with reference to the date of installation
 of the Fixed Assets. The date of installation is taken on the basis of
 certificate received from the management.
 
 d) Depreciation charged to Profit and Loss Account is exclusive of
 Depreciation on Revaluation of Assets. No Depreciation is charged on
 balance revalued amount of Assets in the absence of Revaluation
 Reserve.
 
 e) Expenditure incurred for purchase of copyrights are amortised over a
 period of 10 years.
 
 vi) Investments :
 
 Long term investments are stated at cost of acquisition.
 
 vii) Valuation of Inventories :
 
 (a) Raw Material, Work-in-Process, Processing Material, Trading Goods,.
 Stores and Spares and Packing Material are valued at cost.
 
 (b) Finished Goods are valued at Lower of the Cost or Net realisable
 value.
 
 (c) Goods-in-Transit are valued at Cost.
 
 viii) Taxation :
 
 Income-Tax expenses comprises of current tax, fringe benefit tax (FBT)
 and deferred tax charge or credit.  Provision for current tax is made
 on the basis of the assessable income at the tax rate applicable to the
 relevant assessment year. Provision for FBT is made on the basis of
 fringe benefit provided/deemed to have been provided during the year at
 the rates and values applicable to the relevant assessment year. The
 deferred tax asset and deferred tax liability is calculated by applying
 tax rate and tax laws that have been enacted or substantively enacted
 by the balance sheet date. Deferred tax assets arising mainly on
 account of brought forward losses and unabsorbed depreciation under tax
 laws, are recognized, only if there is a virtual certainly of its
 realization, supported by convicing evidence. Deferred tax assets on
 account of other timing differences are recognized only to the extent
 there is a reasonable certainty of its realization. At each balance
 sheet date, the carrying amount of deferred tax assets are reviewed to
 reassure realization.
 
 ix) Foreign Currency Transactions :
 
 Transactions in the foreign currency which are covered by forward
 contracts are accounted for at the contracted rate, the difference
 between the forward rate and the exchange rate at the date of
 transaction be recognized in the profit & loss account over the life of
 the contract. Transactions in the foreign currency other than those
 covered by forward contract rates are recorded at rate of exchange in
 force at the time of occurrence of transactions. Gain or Loss due to
 fluctuation in exchange rates is dealt with through profit and loss
 account.  Monetary liabilities related to foreign currency transactions
 remaining unsettled at the end of the year are translated at the
 year-end rate. The difference in transactions of monetary liabilities
 and related gains or losses on foreign exchange transactions are
 recognized in the profit & loss account.
 
 x) Borrowing Cost:
 
 Borrowing cost that are attributable to the acquisition or construction
 of assets are capitalized as part of the cost of such assets.
 
 xi) Employee Benefits :
 
 a) Gratuity
 
 Gratuity is accounted for as & when paid & to that extent there is a
 contravention of AS-15 Which has become mandatory, However, the quantum
 of gratuity payable is not worked out & therefore it is not possible to
 quantify the effect of the same on profit & loss a/c.
 
 b) Defined Contribution Plans
 
 These are plans in which the Company pays pre-defined amounts to
 separate funds and does not have any legal or informal obligation to
 pay additional sums. These comprise of contributions to Employees
 Provident Funds. The Companys Payments to the defined contribution
 plans are reported as expenses during the period in which the employee
 perform the services that the payment covers.
 
 Leave encashment is accounted for as and when paid and to that extent
 there is a contravention of AS-15, Which has become mandatory,.
 However, The quantum of leave Encashment payable is not worked out &
 therefore it is not possible to quanitify the effect of the same on
 profit & loss account
 
 xii) Excise Duty / Custom Duty :
 
 a) Excise Duty liability on closing stock of finished goods lying at
 the manufacturing unit is accounted based on the estimated duty payable
 as at the close of the year.
 
 b) Custom Duty is accounted in the year in which the goods are cleared
 from custom bonded warehouse.
 
 xiii) Deferred Revenue Expenses :
 
 a) Deferred Revenue Expenditure incurred during the year 1998-1999,
 1999-2000, 2001-2002 and 2005- 2006 are charged to Profit and Loss
 Account over a period of Five Years and those incurred in earlier years
 are charged to Profit and Loss Account over a period of Ten Years.
 
 b) Net present value of interest rate differential amounts to amount
 payable to Financial Institutions upon their reduction of rate of
 interest below the contractual rate is considered as a Deferred Revenue
 expenditure and the same is written off proportionately over the
 balance loan repayment period.
 
 xiv) Contingent Liabilities / Contingent Assets :
 
 a) Contingent liabilities are disclosed by way of a note in the balance
 sheet.
 
 b) No Contingent Assets has been recognized in the accounts.