(a) The Accounts are prepared under the historical cost concept and
 they materially comply with mandatory accounting standards issued by
 the Institute of Chartered Accountants ol India.
 
 (b) The Company generally follows mercantile system of accounting and
 recognizes significant items of income and expenditure on accrual
 basis.
 
 i) SALES:
 
 Export Sales is stated at C&F/CIF/FOB basis.
 
 ii) Fixed Assets are stated at cost less depreciation. Cost comprises
 of purchase price (net of rebates and discounts), import duties, levies
 and any directly attributable cost of bringing the assets on its
 working condition for the intended use.
 
 iii) DEPRECIATION:
 
 1) Depreciation is charged under Straight Line method.
 
 2) Depreciation on Additions during the year is provided on a prorata
 basis from the date the assets have been installed and put to use on a
 Straight Line method at rates and in the manner specified under
 Schedule XIV of the Companies Act, 1956.
 
 iv) CURRENT ASSETS:
 
 Inventories are certified by a Director and are valued as under:
 
 1) Raw Materials & Stores : At cost
 
 2) Semi finished goods : At cost
 
 3) Finished goods : Lower of cost or market price
 
 v) All accounts receivable are unsecured and are considered good other
 than that have been classified as Doubtful and are subject to
 confirmation.
 
 vi) RECOGNITION OF INCOME & EXPENDITURE:
 
 1) Income & Expenditure are recognised on accrual basis.
 
 2) Bonus to Employees is accounted on cash basis.
 
 vii) FOREIGN CURRENCY TRANSACTION :
 
 1) Export sales are accounted at exchange rates prevailing on the date
 of negotiation of bills by the bankers.
 
 2) Purchase of imported raw materials and components are accounted at
 amounts paid to discharge the related liabilities.
 
 3) Foreign currency loans for acquisition of fixed assets are converted
 at the rate prevailing on the date of Balance Sheet. The gain or loss
 arising out of currency translation is adjusted in the cost of fixed
 assets.
 
 4) Current Assets and Current Liabilities are translated at the rate
 prevailing on the date of Balance Sheet. The gain or loss if any,
 arising therefrom are recognised in the Profit and Loss Account.
 
 viii) RETIREMENT BENEFITS :
 
 1) Short term employee benefits are charged off at the undiscounted
 amount in the year in which the related service is rendered.
 
 2) Contribution payable by the Company under defined contribution
 schemes towards Provident Fund for the year are charged to Profit and
 Loss Account.
 
 3) The Company has its own approved Gratuity Fund and the contributions
 to that fund are being made to LIC.
 
 4) The Leave encashment entitlement is computed on Calendar year basis
 and payment made to the Employees accordingly in the succeeding January
 of every year.  Hence, there is no outstanding liability towards Leave
 encashment as per Accounting Standard 15.
 
 IX.  PROVISION, CONTINGENTLIABILITIES AND CONTINGENT ASSETS :
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent liabilities are not recognized but are disclosed in the
 Notes. Contingent Assets are neither recognized nor disclosed in the
 financial statements.
 
 X.  RESEARCH AND DEVELOPMENT:
 
 No such expenditure incurred during the current year.
 
 XI.  BORROWING COSTS:
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets.
 
 All other borrowing costs are charged to revenue.
 
 XII. TAXES ON INCOME:
 
 Tax expenses comprises current tax and deferred tax.
 
 a) Current income tax is measured at the amount expected to be paid to
 the tax authorities, computed in accordance with the applicable tax
 rate and tax laws.
 
 b) The Company recognizes the deferred tax liability / asset based on
 the accumulated timing difference using the current tax rate.
 
 XIII.GOVERNMENTSUBSIDY/GRANT:
 
 Interest subvention under Pre and Post shipment advance is credited to
 the interest and finance charges.
 
 XIV. IMPAIRMENT OF ASSETS : AS-28
 
 In the Opinion of the Company, the recoverable amount of the fixed
 assets of the Company will not be lower than the book value of the
 fixed assets. Hence, no provision has made for impairment.