A.  Basis of Preparation of Financial Statements
 
 The Financial statements have been prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on accrual basis and are in accordance with the
 applicable accounting standards issued by the Institute of Chartered
 Accountants of India (ICAI) & prescribed in the Companies (Accounting
 Standards) Rules, 2006. These accounting policies have been
 consistently applied, except where a newly issued accounting standard
 is initially adopted by the company. The management evaluates the
 effect of accounting standards issued on a going basis and ensures that
 they are adopted as mandated by the ICAI.
 
 As required & mandated by relevant guidelines prescribed under the
 Companies Act, 1956, the company has prepared its financials as per the
 revised Schedule VI. All assets and liabilities have been classified as
 current or non-current as per the company''s normal operating cycle and
 other criteria set out in the revised Schedule VI to the Companies Act,
 1956. Based on the nature of products and the time between the
 acquisition of assets for processing and their realization in cash and
 cash equivalents, the company has considered a period of nine months
 for current accounting period and twelve months for previous accounting
 year for the purposes of classification of assets and liabilities as
 current and non-current.
 
 B.  Revenue Recognition
 
 (a) Revenue is being recognized in accordance with the Guidance Note on
 accrual basis of accounting issued by the Institute of Chartered
 Accountants of India. Accordingly, if there are any uncertainties in
 realization, income is not accounted for.
 
 (b) Dividend on shares is accounted for as and when received.
 
 c) In respect of other heads of income, the company follows the accrual
 basis of accounting.
 
 d) Overdue Interest on debtors has been accounted for at the time of
 settlement with debtors in accordance with the principle of virtual
 certainty.
 
 C.  Investments
 
 Investments are classified into current and long term investments.
 Investments that are readily realizable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long term investments. A provision for
 diminution in value is made to recognize a decline other than temporary
 in the value of long term investments.
 
 D.  Fixed Assets
 
 (a) Fixed assets are stated at cost of acquisition inclusive of inward
 freight, duties and taxes (excluding tax and duties recoverable) and
 other incidental expenses related to their acquisition.
 
 (b) The company''s own assets and the assets given out on lease are
 valued at cost. In respect of vehicles on lease, cost excludes
 insurance and road tax, which is recovered from the customer.
 
 E.  Inventory
 
 Securities held as stock in trade are valued at lower of estimated cost
 or market value.
 
 F.  Earnings Per Share
 
 The basic and diluted earnings per share (EPS) are computed by dividing
 the net profit after tax for the year by the weighted average number of
 equity shares outstanding during the year.  However, it does not
 include potential equity shares which are contingent on the decision of
 the judiciary.
 
 G.  Depreciation
 
 Depreciation is computed at the following rates: -
 
 (a) On its own fixed assets on a pro-rata basis on the straight line
 method at rates specified in Schedule XIV to the Companies Act, 1956.
 
 (b) For assets given out on financial lease at rates specified in
 Schedule XIV to the Companies Act, 1956 or the amounts to be written
 off evenly over the period of lease, whichever is higher . The amount
 to be written off is determined after deducting the security deposit
 received from the cost of the asset.
 
 (c) On assets given out on operating lease, on a pro-rata basis, on the
 straight-line method at rates specified in Schedule XIV to the
 Companies Act, 1956.
 
 (d) On assets purchased for less than equal to Rs. 5,000, the company
 charges depreciation @100% on a pro-rata basis.
 
 (e) In respect of additions made during the year, depreciation is
 computed from the beginning of the month of acquisition and in respect
 of assets sold/discarded during the year the depreciation is charged up
 to the end of the month in which sale/discard takes place.
 
 H.  Repossessed Stock
 
 Assets on hire purchase and lease, which have been repossessed, are
 recorded at the end of the year on the basis of the value estimated by
 the company but a financial entry adjusting the account of the customer
 is passed only when the asset is disposed off.
 
 I.  Retirement and Other Employee Benefits
 
 (a) Short Term Employee Benefits
 
 All employee benefits falling due within twelve months of rendering
 service are classified as short term employee benefits. The benefits
 like salaries, wages, short term compensated absences etc. and the
 expected cost of bonus, ex-gratia are recognized in the period in which
 the employee renders the related service.
 
 (b) Post-Employment Benefits
 
 (i) Defined Contribution Plans: The State governed provident fund
 scheme and employee state insurance scheme are defined contribution
 plans. The contribution paid/payable under the schemes is recognized
 during the period in which the employee renders the related service.
 
 (ii) Defined Benefit Plans: Gratuity liability is covered under the
 defined benefit plan. The present value of the obligation is determined
 based on actuarial valuation using the Projected Unit Credit Method,
 which recognizes each period of service as giving rise to additional
 unit of employee benefit entitlement and measures each unit separately
 to build up the final obligation.
 
 Actuarial gains and losses are recognized immediately in the profit &
 loss account.
 
 (c) Long Term Employee Benefits
 
 The obligation for long term employee benefits such as long term
 compensated leave or encashment of leave accrued up to the specified
 period are recognized in the manner similar to the case of Gratuity.
 
 J.  Provisions and Contingencies
 
 Provisions are recognized when the company has a present obligation as
 a result of past events, for which it is probable that an outflow of
 resources embodying economic benefits will be required to settle are
 reviewed regularly and are adjusted where necessary to reflect the
 current best estimates of the obligation. Liabilities are disclosed
 after an evaluation of the facts and legal aspects of the matters
 involved. Contingent assets are neither recognized, nor disclosed.
 Provisions, contingent liabilities and contingent assets are reviewed
 at each Balance Sheet date.
 
 K.  Use of Estimates
 
 The preparation of the financial statements in conformity with GAAP
 requires the management to make estimates and assumptions that affect
 the reported balances of assets and liabilities and disclosures
 relating to contingent assets and liabilities as at the date of the
 financial statements and reported amounts of income and expenses during
 the period. Examples of such estimates include provisions for doubtful
 debts, future obligations under employee retirement benefit plans,
 income taxes, provision for estimated liabilities and the useful lives
 of fixed assets and intangible assets. Actual results could differ from
 those estimates. Any revision in the accounting estimate is recognized
 prospectively in the current and future periods.