1.A The company follows the mercantile system of accounting and
 recognises Income and Expenditure on an accrual basis except in case of
 significant uncertainties.
 
 B.  The accounts of the company have been prepared based on the going
 concern concept and the company is operating at a low capacity
 utilisation level.
 
 2.  REVENUE RECOGNITION
 
 Revenue from the sale of manufacture and traded products are recognised
 upon passage of title to the customer and generally coincides with the
 delivery and acceptance.
 
 3.  FIXED ASSETS AND DEPRECIATION FIXED ASSETS
 
 Fixed assets are stated at cost less accumulated depreciation. The cost
 of an asset comprises purchase price and any directly attributable cost
 of bringing the assets to its present condition or intended use.
 
 The fixed assets includes a sum ofRs. 13515861- work in progress during
 the FY 2011-12 and Rs. 2154999]-was for the FY 2010-11..
 
 DEPRECIATION
 
 a.  Depreciation has been provided on straight line method at the rates
 prescribed in Schedule of the Companies Act, 1956 as amended vide 
 Notification No. 756[E] dated 16th December 1993. No depreciation has 
 been provided on the revaluation cost of the assets.
 
 b.  Depreciation on additions is being provided on prorata basis from
 the date of such additions.
 
 4.  TECHNICAL KNOW-HOW FEES
 
 No technical know-how fee is paid during the year.
 
 5.  INVESTMENTS
 
 Investment Rs, 17.65 lacs held on a long term basis and are valued at
 cost of acquisition since the shares are not quoted in any exchange and
 also to the companies where most of the Directors are common.
 
 Stores and spares purchased are charged to Profit & Loss account in the
 year of purchase as the quantum is not material.
 
 7.  SALES
 
 The company has done an export sales ofRs. 5622753/- to Nepal country.
 
 8.  RESEARCH AND DEVELOPMENT EXPENDITURE
 
 No research and development expenditure is incurred during the year.
 
 9.  RETIREMENT BENEFITS
 
 a.  Retirement benefits are accounted for as and when paid.  .
 
 b.  Provision of Gratuity has not been made since it is paid as and
 when due.
 
 C.  Provident Fund contributions Rs. 283036/- and ESI Rs. 15963/- are
 payable as on 31.3.2012.
 
 d.  Accounting policies not specifically referred to are consistent
 with generally accepted'' accounting practices.
 
 10.  PROPOSED DIVIDEND 
 
 No provision has been made for the payment of Dividend.
 
 11.  PROVISION FOR TAXATION
 
 The company have profit ofRs. 342057- as per P&L account during the
 year after adjustment and will pay Income Tax as per separate
 calculation.