1.SIGNIFICANT ACCOUNTING POLICIES
 
 a Basis for Preparation of Financial Statements
 
 The financial statements have been prepared under the historical cost
 convention in accordance with Generally Accepted Accounting Principles,
 Accounting Standards issued by The Institute of Chartered Accountants
 of India and the provisions of The Companies Act 1956, as adopted
 consistently by the Company. All income and expenditure having a
 material bearing on the financial statements are recognized on accrual
 basis.
 
 b Revenue Recognition
 
 Revenue from the sale of Textile products is recognized when delivery
 is made and invoice to the parties is being made. Income from land
 levelling work is recognized as and when the work has been successfully
 accomplished and invoices have been raised to the Customers. In respect
 of all other income Company account the same on accrual basis.
 
 c Expenditure
 
 Expenses are accounted on accrual basis and provision is made for all
 known losses and liabilities.
 
 d Inventory
 
 Inventories are valued at cost or estimated net realizable value
 whichever is lower. Cost of Inventory is determined following the FIFO
 basis. Finished goods and Work in Progress include costs of conversion
 and other costs incurred in bringing the inventories to their present
 location and condition as certified by the management.
 
 e Fixed Assets
 
 Fixed assets are stated at cost of acquisition for assets installed and
 put to use less accumulated Depreciation.
 
 f Depreciation
 
 Depreciation on fixed assets has been provided using the straight-line
 method as per the Companies Act, 1956.  Depreciation is charged on
 pro-rata basis for assets purchased/sold during the year.
 
 g Investments
 
 Investments are classified into Current investments and long-term
 investments. Current Investments are carried at lower of cost or market
 value and provision is made to recognize any decline in the carrying
 value. Long-term investments are carried at cost and provision is made
 to recognize any decline, other than temporary, in the value of such
 investment.
 
 h Retirement Benefits
 
 Contributions to defined contribution schemes such as Provident Fund
 are charged to profit and loss account as incurred. The Company does
 not provide for any post retirement benefits.
 
 i.  Taxation
 
 Income-tax expense comprises current tax expense, and deferred tax
 expense or credit
 
 -  Current tax
 
 Provision for current tax is recognised in accordance with the
 provisions of the Indian Income Tax Act, 1961 and is made annually
 based on the tax liability after taking credit for tax allowances and
 exemptions.
 
 -  Deferred tax
 
 Deferred tax liability or asset is recognized for timing differences
 between the profits/losses offered for income taxes and profits/losses
 as per the financial statements. Deferred tax assets and liabilities
 are measured using the tax rates and tax laws that have been enacted or
 substantively enacted at the balance sheet date.
 
 Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realized in future;
 however, where there is unabsorbed depreciation or carried forward loss
 under taxation laws, deferred tax assets are recognised only if there
 is a virtual certainty of realisation of such assets. Deferred tax
 assets are reviewed as at each balance sheet date and written down or
 written up to reflect the amount that is reasonably/virtually certain
 to be realized.
 
 j.  Earnings per share (''EPS'')
 
 Basic EPS is computed using the weighted average number of equity
 shares outstanding during the year. Diluted EPS is computed using the
 weighted average number of equity and dilutive equity equivalent shares
 outstanding during the period except where the results would be
 anti-dilutive.
 
 k.  Provisions and Contingent Liabilities
 
 The Company recognizes a provision when there is a present obligation
 as a result of past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation. A disclosure for contingent liabilities made when there is
 a possible obligation or a present obligation that may, but probably
 will not, require an outflow of resources. When there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure as specified in
 Accounting Standard 29-''Provisions, Contingent Liabilities and
 Contingent Assets'' is made.