A.  Basis of Accounting:
 
 The financial statements are prepared on an accrual basis in accordance
 with generally accepted accounting principles under the historical cost
 convention.
 
 B.  Fixed Assets, Depreciation:
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses, if any. Cost includes all expenditure necessary to
 bring the asset to its working condition for its intended use.
 Borrowing cost attributable to acquisition and installation of fixed
 assets are capitalised and included in cost of fixed assets.
 
 Depreciation on fixed assets is computed on the straight-line method at
 rates prescribed under Schedule XIV of the Companies Act, 1956. From
 the current financial year 2010-11, individual assets valuing for less
 than Rs.5,000/- are entirely depreciated in the year of acquisition.
 
 C.  Investments:
 
 Long term investments are carried at cost less any permanent diminution
 in value (if any), determined separately for each individual
 investment.
 
 D.  Current Assets:
 
 a.  Inventories
 
 Raw Material, Components and Work in progress are valued on FIFO basis,
 at cost or market value whichever is less, and is net of CENVAT & VAT
 (Finished goods are valued at cost or market value, whichever is less &
 is inclusive of Central excise duty there on.) Cost includes cost of
 conversion and other costs incurred in bringing the inventories at
 their present location and condition. Cost of conversion for the
 purpose of valuation of WIP and finished goods includes fixed and
 variable production overheads incurred in converting the material into
 their present condition and location.
 
 b.  Sundry Debtors, Loans & Advances are stated after making adequate
 provisions for doubtful debts, if any.
 
 E.  Revenue Recognition
 
 Revenue comprises sale of Plastic Processing Machines & Spare parts,
 DEPB License, Services, Labour Charges, Traded items, interest and
 dividend. Revenue in respect of sale of goods is recognised at the time
 of despatch of goods from factory. Revenue is disclosed exclusive of
 sales tax, service tax, VAT or other taxes, as applicable.
 
 Income from Investment
 
 i) Dividend income is recognized when the Company''s right to receive
 dividend is established.
 
 ii) Interest is accrued over the period of investment.
 
 F.  Foreign Currency Transactions
 
 Transactions in foreign currencies are normally recorded at the
 exchange rate prevailing on the date on which transaction occurred.
 Outstanding balances of foreign currency monetary items are reported
 using the period end rates. Exchange differences arising as a result of
 the above are recognised as income or expense in the profit and loss
 account except the following.
 
 In pursuance to notification no G.S.R 225 (E) 31.03.2009 issued by the
 Ministry of Corporate Affairs for amending Accounting Standard 11 The
 Effects of Changes in Foreign Exchange Rates, the Company has opted
 the option of capitalising Foreign Exchange gain/loss on long term
 foreign currency monetary assets.
 
 G.  Payments & Benefits to Employees
 
 (a) Short term employee benefits are recognized as an expense in the
 Profit and Loss account of the year in which the employee has rendered
 services.
 
 (b) Post employment and other long term benefits are recognised as an
 expense in the Profit and Loss account of the year in which the
 employee has rendered services. The expense is recognised at the
 present value of the amounts payable determined using acturial
 valuation. Acturial gains and losses in respect of post employment and
 other long term benefits are charged to the Profit and Loss account.
 
 H.  Operating Lease
 
 Assets acquired on lease where a significant portion of the risks and
 rewards of ownership are retained by the lessor are classified as
 operating lease. Lease rentals are charged off to the profit and loss
 account as incurred.
 
 I.  Tax Expense
 
 Current tax is measured after taking into consideration, the deductions
 and exemptions admissible under the provisions of the Income Tax Act,
 1961.
 
 Deferred tax is accounted for by computing the tax effect of timing
 differences which arise between book profits and tax profits and is
 accounted for at current rates of tax. Deferred tax assets are
 recognised only to the extent that there is reasonable certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realised.
 
 J.  Provisions and Contingent Liabilities
 
 The Company recognizes a provision when there is a present obligation
 as a result of a past event that probably requires outflow of
 resources, which can be reliably estimated. Contingent liabilities are
 not recognised but are disclosed in notes.