The accounts are prepared under the historical cost convention and
 materially comply with the mandatory accounting standards.
 
 The significant accounting policies followed by the company are as
 stated below:
 
 (i) FIXED ASSETS AND DEPRECIATION
 
 Expenditure which are of a capital nature are capitalised at cost.
 Depreciation is charged on straight-line method in accordance with the
 rates specified under Schedule XIV to the Companies Act, 1956. Full
 year''s depreciation is provided in the year of addition and no
 depreciation is provided in the year of sale/disposal.
 
 (ii) REVENUE RECOGNITION
 
 Revenue from sales and conversion charges is recognised at the point of
 despatch of goods to customers.
 
 (iii) RETIREMENT BENEFITS
 
 Contribution to Provident Fund is made monthly at a predetermined rate
 to the authorities and debited to the Profit and Loss Account on
 accrual basis.
 
 Gratuity has not been provided in the books of accounts.