(a) Basis of Preparation of Financial Statements
 
 The financial statements have been prepared on a going concern basis
 and on accrual basis, under the historical cost convention and in
 accordance with the generally accepted accounting principles, the
 accounting standards issued by the Institute of Chartered Accountants
 of India and provisions of the Companies Act, 1956, which have been
 adopted consistently by the Company.
 
 (b) Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumption to be made that affect the reported amount of assets and
 liabilities on the date of financial statements and the reported amount
 of revenues and expenses during the reporting period. Difference
 between the actual results and estimates are recognized in the period
 in which the results are known/ materialized,
 
 (c) Revenue recognition
 
 Revenue from sale of goods is recognized when significant risk and
 rewards of ownership are transferred to the customers. Sales are net of
 sales return and trade discount.
 
 (d) Fixed Assets
 
 Fixed Assets are stated at their historical costs less depreciation and
 upon provision of Impairment Losses duly recognized as per the
 provisions of AS28 issued by the Institute of Chartered Accountants of
 India. Cost of Acquisition is inclusive of taxes and other incidental
 expenses up to date, the assets are put to use.
 
 (e) Depreciation
 
 Depreciation on Fixed Assets has been provided on SLM basis for the
 period of use at the rates prescribed in Schedule XIV to the Companies
 Act, 1956.
 
 (f) Investments
 
 Long term investments are stated at cost, Provision for diminution in
 the value of long term investments is made only if such decline is of a
 permanent nature.
 
 (g) Inventories
 
 Inventories are valued at cost or net realizable value whichever is
 lower.
 
 (h) Retirement Benefits
 
 Provision for retirement benefits to employees was not provided on
 accrual basis, which is not in conformity with Accounting Standard-15
 issued by ICAI and the amount has not been quantified because actuarial
 valuation report is not available. However, in the opinion of the
 management the amount involved is negligible and has no material impact
 on the Profit & Loss Account.
 
 (I) Foreign Currency Transactions
 
 Foreign currency transactions are recorded at the rates of exchange
 prevailing on the date of transaction. Exchange differences, if any
 arising out of transactions settled during the year are recognised in
 the profit and loss account. Monetary assets and liabilities
 denominated in foreign currencies as at the balance sheet date are
 transacted at the closing exchange rate on that date.  The exchange
 differences, if any, are recognised in the profit and loss account and
 related assets and liabilities are accordingly restated in the Balance
 Sheet. During the period under review company has not entered into any
 foreign currency transaction.
 
 0) Taxation
 
 Deferred tax for the year is recognized on timing difference, being the
 difference between taxable incomes and accounting income that
 originates in one period and is capable of reversal in one or more
 subsequent periods.
 
 The deferred tax charge or credit and the corresponding deferred tax
 liabilities or assets are recognized using the tax rates that have been
 enacted or substantively enacted by the balance sheet date. Deferred
 tax assets are recognized only to the extent there is a reasonable
 certainty that the assets can be realized in future, however when there
 is unabsorbed depreciation or carry forward loss under taxation laws,
 deferred tax assets are recognized only if there is a virtual certainty
 of realization of such assets.
 
 (k) Provision, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 Notes. Contingent Assets are neither recognized nor disclosed in the
 financial statements.