a) SYSTEM OF ACCOUNTING :
 
 The company follows accrual system of accounting in accordance with
 normally accepted accounting principle.
 
 b) FIXED ASSETS :
 
 (i) Fixed Assets are stated at cost .
 
 (ii) Depreciation has been provided on W.D.V. basis at the rates
 prescribed in schedule - XIV of the Companies Act, 1956. (as amended)
 
 c) INVESTMENTS :
 
 Current Investments are carried at the lower cost or quoted/fair value.
 Long Term Investments are stated at cost. Provision for diminution in
 the value of Long Term Investment is made only if such a decline is
 other than temporary.
 
 d) TRANSACTION IN FOREIGN CURRENCY:
 
 1) Transactions in foreign currency are recorded for at the exchange
 rate prevailing on the date of transaction, Gain/Loss arising out of
 fluctuations in the exchange rates are recognized in the Profit and
 Loss Account in the period in which they arise & monetary assets and
 liabilities relating to foreign currency transactions remaining
 unsettled at the end of year are recorded at year end rate.
 
 e) INVENTORIES
 
 Raw Materials & Packing Materials :
 
 At cost or market price whichever is lower. The cost method is
 determined on First in First out basis.
 
 Finished Goods:
 
 On the basis of cost of convention including expenses incurred for
 bringing them in present location and condition or net realisable value
 whichever is lower
 
 f) i) Short term employee Benefits are recognised as an expenses in the
 Profit & Loss Account for the year in which the related service is
 rendered.
 
 ii) Post employment and other long term employee benefits are
 recognized as an expenses in the Profit & Loss Account for the year in
 which the employee has rendered service. The expenses is recognized on
 estimated basis.
 
 g) Contingent Liabilities and Provisions:
 
 Contingent Liabilities are disclosed after a careful evaluation of
 facts and legal aspects of the matter involved. Provisions are
 recognized when the company has a legal/constructive obligation and on
 management discretion, as a result of past event, for which it is
 probable that cash outflow may be required and reliable estimate can be
 made for the amount of the obligation. Contingent Assets are neither
 recognized or disclosed by way of note.
 
 h) Taxation:
 
 Tax expenses comprises of current deferred and fringe benefit tax,
 Current Income Tax and fringe benefit tax is measured at the amount
 expected to be paid to the tax authorities in accordance with the
 Indian Income Tax Act. Deferred Income Taxes reflects the impact of
 current year timing differences between taxable income and accounting
 income for the year and reversal of timing differences of earlier
 years.
 
 I) Deferred tax is measured based on the tax rates and tax laws enacted
 or substantially enacted at the balance sheet date. Differed tax
 assets are recognized 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 Realized.