(1) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS
 
 The financial statements have been prepared under the historical cost
 convention in accordance with the applicable Accounting Standards 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 is recognized on accrual basis except
 otherwise stated hereunder.
 
 (2) GOING CONCERN DISCLOSURE
 
 The accounts under consideration have been drawn up on going concern
 basis.
 
 (3) REVENUE RECOGNITION
 
 Revenue from sale of goods/services is recognized when the
 sale/services have been completed, with the passing of the title.
 Return of goods if any are recognized in the year of return. Turnover
 represents invoiced amount of goods sold and services including excise
 duty but excluding sales tax.
 
 (4) FIXED ASSETS AND DEPRECIATION
 
 Fixed Assets are stated at cost less accumulated depreciation and
 impairment losses if any.
 
 Depreciation has been provided on straight-line method except for
 furniture & fixture and vehicles where the same has been provided on
 written down value method, in accordance with the rates prescribed in
 Schedule XIV of the Companies Act, 1956 as amended up to date except
 
 i) On material handling equipments, crates and bins where the rate of
 Depreciation is 50% on SLM as the average life of such assets is not
 more than 2 years.
 
 ii) The rates of depreciation on some Office equipments is taken at 20%
 on SLM after assessing the useful life of the asset, and
 
 iii) It is opined that life span of existing Jig & Fixture does not
 exceed one year, hence these are considered to be the part of Current
 Assets from Current Financial Year.
 
 (5) INVENTORIES:
 
 Valuation of Inventories are made as under :-
 
 i.  Raw Material at cost
 
 ii Work in progress is valued at factory cost.
 
 iii.  Scrap materials are valued at net realizable value.
 
 iv All other inventories are valued at cost or net realizable value
 whichever is lower.
 
 v.  The cost formulae used is weighted average cost formulae &
 applicable excise has been added in the stock of Finished goods.
 
 (6) FOREIGN CURRENCY TRANSACTIONS :
 
 In respect of Export Sales in foreign currency, the sales are accounted
 for at the exchange rate prevailing as on the date of transaction. The
 receivables as on the Balance Sheet date are accounted for at the
 closing rate.  Any difference arising due to exchange rate fluctuation
 is treated as revenue income /expense at the time the remittances are
 received. The accounting is in line with the AS-11.
 
 (7) EXCISE DUTY:
 
 Excise duty is accounted for at the time of dispatches. Excise duty
 realizable from customers is credited to Sales Account. Unutilized
 amount of Excise Duty Deposit is shown under Loans & Advances.
 
 The provision for excise duty on the finished goods as on 31.03.2011
 has been included in the closing stock of finished goods and the same
 amount of excise has been included in excise duty payable in current
 liabilities.
 
 (8) EMPLOYEES BENEFITS:
 
 Company''s contributions paid/ payable during the year to Provident Fund
 and Employees'' State Insurance Corporation (ESIC) are recognized in the
 Profit & Loss Account, Provident Fund contributions are made to a Trust
 administered by the company. The interest rate payable to the members
 of this trust shall not be lower than the statutory rate of interest
 declared by the Central Government under the Employees Provident Fund
 and Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be
 made good by the company. The remaining contributions are made to a
 Government Administered Employee Pension Fund towards which the company
 has no further obligations beyond its monthly contributions.
 
 Defined benefit contributions and other long term employee benefits are
 provided on the basis of actuarial valuation made at the end of each
 financial year. Actuarial gain or loss arising from such valuation are
 charged to revenue in the year in which they arise.
 
 (9) DEVELOPMENT EXPENDITURE
 
 The development expenditure includes the amount spent on development of
 prototype of samples in terms of the raw material consumed, consumption
 of major tools, loose tools and the amount spent in terms of machine
 hour rate multiplied by development time spent on individual machine.
 
 (10) PROVISION FOR CURRENT AND DEFERRED TAX
 
 (i) Provision for Current tax is made with reference to taxable income
 computed for the accounting period for which the financial statements
 are prepared by applying the tax rates relevant to the respective
 Previous Year. Minimum Alternate Tax (MAT) eligible for set-off in
 subsequent years (as per tax laws), is recognized as an asset by way of
 credit to the Profit and Loss Account only if there is convincing
 evidence of its realization. At each Balance Sheet date, the carrying
 amount of MAT Credit Entitlement receivable is reviewed to reassure
 realization.
 
 (ii) Deferred Tax resuming from timing difference between book and
 taxable profit for the year is accounted for using the current tax
 rates. The deferred tax asset is recognized and carried forward only to
 the extent that there is a reasonable certainty that the assets will be
 adjusted in future. However, in case of deferred tax assets
 (representing unabsorbed depreciation or carry forward losses) are
 recognized, if and only if there is a virtual certainty that there
 would be adequate future taxable income against which such deferred tax
 assets can be realized.
 
 (11) IMPAIRMENT OF ASSETS
 
 The carrying amount of assets are reviewed at each Balance Sheet date,
 if there is any indication of impairment based on internal/external
 factors. An asset is impaired when the carrying amount of the assets
 exceeds the recoverable amount. An impairment loss is charged to the
 Profit and Loss Account in the year in which an asset is identified as
 impaired. An impairment loss recognized in prior accounting periods is
 reversed if there has been change in the estimate of the recoverable
 amount.
 
 (12) EARNINGS PER SHARE (EPS)
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the year attributable to equity shareholders (after deducting
 preference dividends and attributable taxes) by the weighted average
 number of equity shares outstanding during the year. For the purpose of
 calculating Diluted Earning per Share, the net profit or loss for the
 year attributable to equity shareholders and the weighted average
 number of shares outstanding during the year are adjusted for the
 effects of all dilutive potential Equity Shares.