1) METHOD OF ACCOUNTING
 
 a) The financial statements are prepared on the historical cost
 convention and in accordance with the generally accepted accounting
 principles.
 
 b) The Company follows accrual system of accounting in the preparation
 of accounts.
 
 c) The UAE Branch financial statements have been prepared in accordance
 with the International Financial Reporting Standards (IFRS) and the
 same is merged in the Company.
 
 d) Accounting policies not specifically referred to otherwise, have
 been followed consistently, and are in consonance with generally
 accepted accounting principle in India.
 
 2) FIXED ASSETS
 
 Fixed Assets are stated at cost inclusive of incidental expenses less
 accumulated depreciation.
 
 3) DEPRECIATION
 
 Depreciation is charged on a pro-rata basis on written down value as
 per the rates and in the manners prescribed under the Schedule XIV of
 the Companies Act, 1956. For office equipment acquired at foreign
 branch which is written off in equal installments, depreciation is
 charged @ 20% p.a. on S.L.M. Basis, which is higher than the rate
 prescribed in Schedule XIV of the Companies Act, 1956.
 
 4) IMPAIRMENT OF ASSETS
 
 Factors giving rise any indication of any impairment of the carrying
 amount of the Company''s assets are appraised at each Balance Sheet date
 to determine and provide/revert an impairment loss following Accounting
 standard 28 for impairment of assets.
 
 5) INVESTMENTS
 
 Long term investments are carried at cost less provision for permanent
 diminution, if any, in value of such investments. Current investments
 are carried at lower of cost and fair value.
 
 6) REVENUE RECOGNITION
 
 a) Sales are recognised on dispatch of goods to customers
 
 7) RETIREMENT BENEFITS
 
 a) As per the management of the Company, in accordance with The Payment
 of Gratuity Act, 1972, the Act is not applicable to the Company since
 the number of Indian employees are within the limit as prescribed by
 the Act but the Company has voluntarily taken policy of Gratuity with
 Life Insurance Corporation of India for future payment of gratuity to
 employees.
 
 b) The company does not have the policy of leave encashment and the
 annual leave entitled to the employees is required to be availed in the
 year itself, otherwise it will be lapsed.
 
 c) As per the Management of the Company, the provision of the
 Employee''s Provident Fund and Miscellaneous Provisions Act, 1952 is not
 applicable to the Company since the numbers of employees are within the
 limit as prescribed by the respective Act.
 
 8) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent liabilities are not recognized but are disclosed in the
 notes. Contingent assets are neither recognized nor disclosed in the
 financial statements.
 
 9) EARNING PER SHARE
 
 Basic earning per share is calculated by dividing the net profit or
 loss for the year attributable to equity shareholders (after deducting
 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.
 
 10) TAXATION
 
 a) Current tax has been provided as per the provision of Income Tax Act
 1961.
 
 b) Tax expenses comprise of current and deferred tax. Current income
 tax is measured at the amount expected to be paid to the tax
 authorities in accordance with the Indian Income Tax Act, 1961.
 Deferred tax reflects the impact of current year timing differences
 between book profit and taxable income for the year and reversal of
 timing differences of earlier years.
 
 The deferred tax for timing differences between the book profit and
 taxable income for the year is accounted for using the tax rates and
 laws that have been substantially enacted as of the Balance Sheet date.
 Deferred tax assets are recognized only to the extent that there is
 reasonable certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realized. If
 the company has carry forward unabsorbed depreciation and tax losses,
 deferred tax assets are recognized only to the extent there is virtual
 certainty supported by convincing evidence that sufficient taxable
 income will be available against which such deferred tax asset can be
 realized.
 
 11) CASH FLOW STATEMENT
 
 The Cash Flow Statement is prepared by the indirect method set out in
 Accounting Standard 3 on Cash Flow Statements and presents the cash
 flows by operating, investing and financing activities of the company.
 Cash and cash equivalents presented in the Cash Flow Statement consist
 of cash on hand and demand deposits with banks.
 
 12) INVENTORIES
 
 Stock in Trade, if any, is valued at lower of cost or NRV after
 providing for damages and obsolesces.