1.  Method of Accounting
 
 The financial statements have been prepared on accrual basis and at
 historical cost in accordance with generally accepted accounting
 principles in India and provisions of the Companies Act 1956 read with
 the Companies (Accounting Standards) Rules 2006.
 
 The accounts were regrouped according to the requirements of the
 revised schedule VI
 
 2.  Revenue Recognition
 
 Sales comprises sale of goods and services net of trade discount and
 inclusive of Excise duty.
 
 Term Loan from SBI Secured By First Charge on All Fixed Assets (Present
 and Future Both Moveable and Immovable.) of The Company
 Collateral-second Charge on All Current Assets of the Company
 
 The Term Loans-1 Is Repayable In 12 Quarterly Instalments and out of
 which 6 are paid .
 
 The Repayment Commenced from December 2010
 
 The Second Term Loan of Rs 500 Lacs taken on 09.11.2011 and the
 Repayable in 10 Quartrely Instalments Commenced from December 2011
 
 The Instalments that were falls Due In the Next 12 Months has been
 shown under Current Labilities an amount of Rs 366.64 Lacs was shown
 under Current Liabilities
 
 The Loan for Vehicles from ICICI Bank and the Vehicle is Hypothecated
 to ICICI Bank the Instalment for the next 12 Months amounting 4.5 Lacs
 were Considered under Current Liabilities.
 
 The other Loans are from Directors and their relatives. The Interest
 were paid at 15%.
 
 No Part of the Loan Is Repayable Till The Term Loan from the Banks are
 Cleared.
 
 INTEREST FREE SALES TAX LOAN IS REPAYABLE AS FOLLOWS:
 
 1.  Plant-I - Second Deferment Repayable In 14 Years Commencing from
 April 2012.
 
 2.  Plant-II - First Deferment Repayable In 10 Years Commenced from
 2004 and Second Deferment from April 2015.
 
 3.  Plant-III - Repayable In 14 Years Commenced from April 2011.
 
 An Amount Of Rs 198.09 Lacs Represents Repayable In The Next 12 Months
 had been shown under Current Liabilities.
 
 The work in progress represents only part of the regular product that
 were under production and NOT covered for any reservation of warranty
 claims
 
 The finished goods were valued at cost which does not include excise
 duty component. The excise duty is neither considered for opening stock
 nor closing stock .
 
 This method was followed consistantly by the company.
 
 The Raw materails including traded goods, stores and spares were valued
 at cost to the unit.