(a) Basis for preparation of accounts
 
 The Board of Directors at its Meeting held on 31st October 2000 decided
 to close down its manufacturing operations with effect from lst
 November 2000. However, these accounts have been prepared on a going
 concern basis, since the Company has not altogether discontinued its
 business activity. The Company is exploring diverse business avenues to
 augment its revenue.
 
 (b) Fixed Assets
 
 (i) Fixed assets are stated at cost, less depreciatioa Costs include
 inward freight and other attributable costs. In case of borrowed funds
 and liabilities in foreign currencies for the acquisition of fixed
 assets, the exchange differences are adjusted to the cost of such
 assets.
 
 (ii) Depreciation on fixed assets is provided on the Straight Line
 Method at the rates and in the manner prescribed in Schedule XIV to the
 Companies Act, 1956.  However, no depreciation is provided during the
 year as the Company has closed down its manufacturing operations with
 effect from lst November, 2000.
 
 (iii) The Company has made Provision for Impairment of Assets as
 required by Accounting Standard - AS 28 issued by Institute of
 Chartered Accountants of India
 
 (c) Specific debts and advances identified as irrecoverable or doubtful
 are written off or provided for respectively.
 
 (d) Retirement Benefits
 
 In view of Note 1 (a) above, retirement benefits in respects of
 gratuity and leave encashable at retirement/cessation are provided on
 arithmetical basis. However, there are no employees at the year-end.
 
 (e) Revenue Recognition
 
 (i) Sale of goods is recognised on acceptance by the customer. Sales
 include excise duty exclude sales tax recovered.