i) METHOD OF ACCOUNTING
 
 The financial statements are prepared under the historical cost
 convention in accordance with generally accepted Accounting Principles
 in India & the Provisions of the Companies Act, 1956 and the applicable
 accounting standards notified under the Companies Accounting Standards
 Rule, 2006.
 
 ii) Use of Estimates
 
 The preparation of the financial statements in conformity with GAPP
 requires the Management to make estimates and assumptions that affect
 the reported balances of assets and liabilities and disclosures
 relating to contingent liabilities as at the date of the financial
 statements and reported amounts of income and expenses during the
 period. Accounting estimates could change from period to period. Actual
 results could differ from those estimates. Appropriate changes in
 estimates are made as the Management becomes aware of changes in
 circumstances surrounding the estimates. Changes in estimates are
 reflected in the financial statements in the period in which changes
 are made and, if material, their effects are disclosed in the notes to
 the financial statements.
 
 iii) RECOGNITION OF INCOME & EXPENDITURE
 
 Revenues/Incomes and costs / expenditures are generally accounted on
 accrual, as they are earned or incurred. Sales are inclusive of excise
 duty but exclusive of Sales Tax / VAT collected.  With regard to sale
 of product, Sales are recognised, net of returns and trade discounts,
 on transfer of significant risks and rewards of ownership to the buyer,
 which generally coincides with the delivery of goods to customers.
 Sales include excise duty but exclude sales tax and value added tax.
 
 iv) EXCISE DUTY
 
 Excise duty is accounted on the bases of both, payment made in respect
 of goods cleared and also provision made for goods lying in bonded
 warehouses. Excise duties in respect of Finished Goods lying in stock
 are shown separately as an item of Other Manufacturing Expenses.
 
 v) FIXED ASSETS
 
 (a) Fixed assets are stated at cost (net off of Cenvat & VAT), less
 accumulated depreciation (other than land and goodwill where no
 depreciation is charged).
 
 (b) Capital Work in Progress is stated at cost.
 
 (c) Intangible assets are recorded at the consideration paid for
 acquisition.
 
 vi) INVESTMENTS
 
 Current investment are carried at the lower of cost or quoted/fair
 value. Long Term Investments are stated at cost of acquisition.
 Provision for diminution in the value of long term investment is made
 only if such a decline is other than temporary.
 
 vii) VALUATION OF INVENTORIES
 
 a) Raw materials are valued at lower of cost or net realizable value
 whichever is lower.
 
 b) Work in progress is valued at cost of materials and labour charges
 together with relevant factory overheads.
 
 c) Finished Goods are valued at lower of cost or net realizable value
 which ever is lower.  (Inclusive of Excise Duty).
 
 d) Goods in transit are valued at cost.
 
 viii) METHOD OF DEPRECIATION
 
 (a) Depreciation on fixed assets (other than land & goodwill where no
 depreciation is provided) has been provided on straight line method in
 accordance with the provisions of section 205(2)(b) of the Companies
 Act, 1956, at the rates specified in Schedule XIV to the Companies Act,
 1956.
 
 (b) Depreciation in respect of fixed assets put to use during the
 year/period is charged on pro- rata basis with reference to the
 installation of the assets.
 
 (c) No depreciation has been provided on the assets where the
 accumulated depreciation has exceeded 95% of its original cost.
 
 (d) No depreciation has been provided in respect of Capital Work In
 Progress.
 
 (e) No depreciation has been provided on self generated intangible
 assets.
 
 (f) Intangible assets acquired during the year are written off over a
 period of five year.
 
 ix) FOREIGN CURRENCY TRANSACTIONS
 
 Transactions in the foreign currency which are covered by forward
 contracts are accounted for at the contracted rate; the difference
 between the forward rate and the exchange rate at the date of
 transaction is recognized in the profit & loss account over the life of
 the contract. Foreign currency denominated monetary assets and
 liabilities are translated into the relevant functional currency at
 exchange rates in effect at the Balance Sheet date. The gains or losses
 resulting from such translations are included in the Statement of
 Profit and Loss. Non-monetary assets and non- monetary liabilities
 denominated in a foreign currency and measured at fair value are
 translated at the exchange rate prevalent at the date when the fair
 value was determined. Non-monetary assets and non-monetary liabilities
 denominated in foreign currency and measured at historical cost are
 translated at the exchange rate prevalent at the date of
 transaction. Revenue, expense and cash-flow items denominated in foreign
 currencies are translated into the relevant functional currencies using
 the exchange rate in effect on the date of the transaction. Transaction
 gains or losses realized upon settlement of foreign currency
 transactions are included in determining net profit for the period in
 which the transaction is settled.
 
 x) IMPAIRMENT OF ASSETS
 
 The Management periodically assesses using, external and internal
 sources, whether there is an indication that an asset may be impaired.
 An impairment loss is recognized wherever the carrying value of an
 asset exceeds its recoverable amount. The recoverable amount is higher
 of the asset''s net selling price and value in use, which means the
 present value of future cash flows expected to arise from the
 continuing use of the asset and its eventual disposal. An impairment
 loss for an asset other than goodwill is reversed if, and only if, the
 reversal can be related objectively to an event occurring after the
 impairment loss recognized. The carrying amount of an asset other than
 goodwill is increased to its revised recoverable amount that would have
 been determined (net of any accumulated amortization or depreciation)
 had no impairment losses been recognized for the asset in prior years.
 
 
 
 
 xi) TAXATION
 
 - Income-tax expense comprise of current tax, wealth tax and deferred
 tax charge or credit.
 
 - Provision for current tax is made on the basis of the assessable
 income at the tax rate applicable for the relevant assessment year.
 
 - The deferred tax asset and deferred tax liability is calculated by
 applying tax rate and tax laws that have been enacted or substantively
 enacted by the balance sheet date. Deferred tax assets arising mainly
 on account of brought forward losses and unabsorbed depreciation under
 tax laws, are recognized, only if there is a virtual certainty of its
 realization, supported by convincing evidence. Deferred tax assets on
 account of other timing differences are recognized only to the extent
 there is a reasonable certainty of its realization. At each balance
 sheet date, the carrying amounts of deferred tax assets are reviewed to
 reassure realization.
 
 xii) RETIREMENT BENEFITS
 
 a) Short Term
 
 Short term employee benefits are recognized as an expense at the
 undiscounted amount expected to be paid over the period of services
 rendered by the employees to the company.
 
 b) Long Term
 
 The company has both defined contribution and defined benefit plans, of
 which some have assets in approved funds. These plans are financed by
 the Company in the case of defined contribution plans.
 
 c) Defined Contribution Plans
 
 These are the plans in which the Company pays pre-defined amounts to
 separate funds and does not have any legal or informal obligation to
 pay additional sums. These comprise of contribution to Employees
 Provident Fund. The Company''s payments to the defined contribution
 plans are reported as expenses during the period under which an
 employee perform the services that the payment covers.
 
 d) Defined Benefit Plans
 
 Expenses for defined benefit gratuity payment plans are calculated as
 at the balance sheet date by independent actuaries in the manner that
 distributes expenses over the employees working life. These commitments
 are valued at the present value of the expected future payments, with
 consideration for calculated future salary increase, using a discounted
 rate corresponding to the interest rate estimated by the actuary having
 regard to the interest rate on Government Bonds with a remaining terms
 i.e. almost equivalent to the average balance working period of
 employees.
 
 e) Leave Encashment
 
 The company is providing for Leave Encashment on the basis of unavailed
 leave by the employees.
 
 xiii) CONTINGENT LIABILITES/ CONTINGENT ASSETS
 
 a) Contingent liabilities are disclosed by way of note in the Balance
 Sheet.
 
 b) Contingent Assets are neither recognized nor disclosed in the
 Financial Statements.
 
 ix) Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature, any deferrals or accruals of past or future operating cash
 receipts or payments and item of income or expenses associated with
 investing or financing cash flows. The Cash flows from operating,
 investing and financing activities of the Group are segregated.
 
 Cash and Cash equivalents presented in the Cash Flow Statement consist
 of cash on hand and demand deposits with banks.
 
 x) Earning per Share :
 
 Basic earning per share is calculated by dividing the net profit after
 tax for the year attributable to Equity Shareholders of the Company by
 the weighted average number of Equity Shares in issue during the year.
 Diluted earning per Share is calculated by dividing net profit
 attributable to equity Shareholders (after adjustment for diluted
 earnings) by average number of weighted equity shares outstanding
 during the year.
 
 xi) PROPOSED DIVIDEND & CORPORATE DIVIDEND TAX
 
 Dividend proposed by the Board of Directors along with corporate
 dividend tax is provided in the books of accounts. Approval in the
 General Meeting is pending for the same.
 
 Note: 1 Working Capital facilities from Bank of Baroda is secured by
 way of hypothecation of raw-materials, stores and spares,
 work-in-progress of finished goods and book debts of the company both
 present and future and first charge on company''s plant & machinery,
 other movable assets of the company as well as secured by mortgage of
 companies factory land and building situated at Plot no. 805, 806, 807,
 and 810 at Rakanpur, Tal. Kalol, Dist.  Gandhinagar and also equitable
 mortgage on plot no 811 of the company situated at village Rakanpur
 Taluka Kalol Dist Gandhinagar as collateral security and is also
 personally guaranteed by the Promoters of the company.