i.  Basis of Accounting
 
 The Financial Statement are prepared under historical cost convention
 and generally on accrual basis and are in accordance with the
 requirement of the Companies Act, 1956.
 
 ii.  Fixed Assets
 
 a) Fixed Assets are stated at their original cost which includes
 expenditure incurred in the acquisition.
 
 b) Depreciation on fixed assets has been provided on written down value
 method and depreciation on windmill has been provided on state line
 method as per the rates prescribed in the Schedule XIV to the Companies
 Act, 1956. Depreciation on addition / deductions during the year is
 provided on pro-rata basis.
 
 iii.  Intangible Assets :
 
 a) Expenditure incurred for acquiring Software is stated at acquisition
 cost less accumulated amortisation. They are amortised over their
 useful life not exceeding five years.
 
 b) Goodwill has not been amortised.
 
 iv.  Investments
 
 Long term investments are stated at cost. Provision for temporary fall
 in market value, if any, is not provided for.
 
 v.  Employee Retirement Benefits
 
 1) Post: Employment Employee Benefits
 
 a) Defined Contribution Plans
 
 The Company has Defined Contribution Plan for Post employment benefits
 in the form of Provident Fund for all employees which is administered
 by Regional Provident Fund Commissioner Provident Fund is classified as
 defined contribution plan as the Company has no further obligation
 beyond making the contributions. The Company''s contribution to Defined
 Contribution Plan is changed to the statement of Profit and Loss as and
 when incurred.
 
 b) Defined Benefit Plans
 
 Funded Plan: The Company has defined benefit plan for Post-
 
 employment benefit in the form of Gratuity for all employees which is
 administered through Life Insurance Corporation (LIC).
 
 Liability for above defined benefit plan is provided on the basis of
 valuation, as at the Balance Sheet date, carried out by an independent
 actuary. The acturial method used for measuring the liability is the
 Projected Unit Credit method.
 
 2)Other Long-term Employee Benefit:
 
 Liability for Compensated Absences (unutilized leave benefit) is
 provided on the basis of valuation, as at the Balance Sheet date
 carried out by an independent actuary. The acturial valuation method
 used for measuring the liability is the Projected Unit Credit method in
 respect of past service.
 
 3) Termination benefits are recognized an expense as and when incurred.
 
 4) The acturial gains and losses arising during the year are recognized
 in the statement of Profit and Loss of the year without resorting to
 any amortization.
 
 vi.  Sales
 
 Sales are net of sales tax, sales returns, claims and discount etc.
 
 vii.  Inventories
 
 Goods in trade have been valued At Cost or market value whichever is
 less.
 
 viii.  Taxes on Income
 
 Tax expense for the year comprises of current tax and deferred tax.
 Current tax provision has been determined on the basis of reliefs,
 deductions available under the Income Tax Act. Deferred Tax is
 recognized for all timing differences, subject to the consideration of
 prudence, applying the tax rates that are applicable on Balance Sheet
 date.
 
 ix.  Impairment of Assets
 
 Impairment of assets are assessed at each balance sheet date and loss
 is recognised wherever the receivable amount of an assets less than its
 carrying amount.
 
 x.  Foreign Currency Transaction
 
 a) Foreign currency transactions are recorded at exchange rate
 prevailing on the date of transaction.
 
 b) Foreign currency receivable/payables at the year end an translated
 at exchange rates applicable as on that date.
 
 c) Any gains or losses arising due to exchange differences at the time
 of translation or settlement are accounted for in the statement of
 Profit & Loss.
 
 xi.  Provisions, Contingent Liabilities and Assets
 
 Liabilities which are material and whose future outcome cannot be
 ascertained with reasonable certainty are treated as contingent and
 disclosed by way of notes on accounts. Contingent assets are neither
 recognised nor disclosed in the financial statements.