a] Fixed Assets
 
 Fixed Assets are stated at their original cost except certain Fixed
 Assets which are adjusted for revaluation.
 
 b] Depreciation
 
 Depreciation on Fixed Assets has been provided on Straight Line
 Method at the rates and in the manner specified in Schedule XIV of the
 Companies Act, 1956. Depreciation on account of enhancement in the
 value of certain Fixed Assets on account of revaluation is adjusted
 against Revaluation Reserve.
 
 c] Investment
 
 Current Investments are valued at cost or market value whichever is
 lower.
 
 d] Inventories -
 
 1.  Inventories are valued at cost or market value whichever is lower.
 The company has been following this generally accepted accounting
 policy in accordance with the Accounting Standard (AS2) on valuation of
 Inventories.
 
 2.  Moulds are amortized over a period of Three years.
 
 e] Impairment of Assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognized in the profit and loss account.  If at the balance sheet
 date there is identification that if a previously assessed impairment
 loss no longer exists, the recoverable amount is reassessed and the
 asset is reflected at the recoverable amount.
 
 f] Income & Expenditure Recognition
 
 Income & Expenditure are recognized and accounted for on accrual basis.
 In case of uncertainties in either aspect, revenue recognition is
 postponed to the time of realizing such claims.
 
 g] Sales
 
 Sales are recognized when goods are invoiced on despatch to customers
 and are recorded inclusive of Excise duty but are net of trade discount
 and Sales Tax.
 
 h] Foreign Currency Transactions
 
 1.  Transactions in foreign currency are recorded at the exchange'' rate
 existing at the time of the transaction.
 
 2.  Monetary items denominated in foreign currencies at the year end
 are restated at year end rates. In case of monetary items which are
 covered by forward exchange contracts, the difference between the year
 end rate and rate on the date of the contract is recognized as exchange
 difference and the premium paid on forward contracts is recognized over
 the life of the contract.
 
 3.  Any income or expense on account of exchange difference either on
 settlement or on translation is recognized as Revenue.  
 
 i] Retirement and other Employee''s Benefit
 
 1.  Retirement benefits in the form of Provident Fund & Superannuation
 Fund is a defined contribution scheme and the contributions are charged
 to the Profit & Loss Account of the year when the contributions to the
 respective funds are due.  The Company has no other obligation other
 than the qontributions payable.
 
 2.  Gratuity liability is a defined benefit obligation and is provided
 for on the basis of an actuarial valuation on Projected Unit Credit
 Method calculated at the end of each financial year.
 
 3.  Leave encashment liability is provided for based on actuarial
 valuation done as per Projected Unit Credit Method calculated at the
 end of each financial year.
 
 4.  Actuarial gains / losses are immediately taken to profit and loss
 account and are not deferred.
 
 j] Research and Development ,
 
 Capital expenditure on Research and Development (R&D) is included in
 fixed assets under appropriate heads and revenue expenditure on R & D
 is charged as expenditure in the year in which it is incurred.
 
 k] Provision for Current and Deferred Tax
 
 Provision for Current tax is made after taking into account benefits
 admissible under the provisions of the Income Tax Act, 1961.  Deferred
 tax resulting from timing difference between book profit and taxable
 profit using the tax rates and laws that have been enacted or
 substantively enacted as on Balance Sheet date. The company has taken
 credit for MAT which it is entitled on future taxable profits.  .
 
 l] Segment Reporting
 
 The Company is engaged mainly in Manufacturing of Industrial Oils &
 Lubricants and as such it is the only reportable segment as per
 Accounting Standard (AS 17) on Segment Reporting. The geographical
 segmentation is not relevant as export turnover is not significant in
 respect to total turnover.  2] As per information available with the
 Company, none of the creditors have confirmed that they are registered
 under the Micro, Small and medium enterprises Development Act, 2006.