a) GENERAL
 
 The financial statements have been prepared on the basis of going
 concern, under the historic cost - convention on accrual basis, to
 comply in all material aspects with applicable accounting principles in
 India, the Accounting Standards issued by the Institute of Chartered
 Accountants of India &nd the relevant provisions of the Companies Act,
 1956. The Unit has discontinued its operation from Octobcr 2008.  ,
 
 b) FIXED ASSETS
 
 Fixed assets are carried at cost less depreciation. Expenditure which
 are of a capital nature capitalised at a cost which comprises of
 purchase price, levies (except CENVAT) and any directly attributable
 cost of bringing the assets to its working condition for the intended
 use.  Borrowing costs are capitalised during the period of construction
 of qualifying assets.
 
 c) DEPRECIATION
 
 Depreciation is provided on straight-line basis at the rates prescribes
 by schedule XIV to the Companies Act, 1956. These rates are applied to
 the original cost and depreciation has been provided on pro-rata basis
 with reference to the month of addition/installation /reduction of
 assets during the year.
 
 d) INVESTMENTS
 
 Investments are valued at cost.  -
 
 e) INVENTORIES
 
 Raw materials are valued at lower of cost and net realisable value.
 
 Work in progress is carried at cost.  .....
 
 Finished goods are valued at lower of cost and net realisable value.
 
 Packing materials and Stores and Spares are valued at tost.
 
 - FOREIGN CURRENCY TRANSACTIONS
 
 No foreign currency transactions.
 
 First charge on all the movable and immovable assets of the company,
 present and future subject to prior charge on specified movables in
 favour of the company''s bankers for working facilities, ranking pari
 passu in favour of MCB/Reliance Asset Reconstruction Company
 Limited/Typhoon Financial Services Limited for their term loan / term
 overdraft.
 
 As per the provisions of the Income Tax Act, 1961 the Company has
 unabsorbed depreciation. As a conservative business policy, the Company
 has not recognized the same as Deferred Tax Assets
 
 The company has secured an order of the Honourable High Court for
 arbitration proceedings to be commenced within time limit specified in
 the said order for the balance disputed insurance claim of Rs.
 7,000,000/-. The insurance company''s appeal in the matter heard by
 the larger Bench and decided in favour of the Company. Moreover, there
 are several Supreme Court judgements to support the contention of the
 company in the matter. Hence, the company is confident of recovering
 the balance claim amount with interest.