1.  ACCOUNTING CONVENTION
 
 a.  The Financial Statements are prepared under the historical cost
 convention in accordance with applicable accounting standards and
 relevant presentation requirements of the Companies Act, 1956.
 
 b.  Income/Expenditure is accounted on accrual basis.
 
 i.  FIXED ASSETS AND DEPRECIATION
 
 a.  Fixed Assets are stated at cost of acquisition less accumulated
 depreciation and is inclusive of freight, taxes, and incidental
 expenses relating to such acquisition.
 
 b.  Depreciation on Fixed Assets is provided on straight-line method at
 the rates prescribed in Schedule XIV of the Companies Act, 1956.
 Depreciation on the intangible assets is provided at the general rate
 of depreciation applicable to plant and machinery. Depreciation on
 assets has been provided from the date they were put to use.
 
 ii.  INVENTORIES
 
 Inventories are valued at cost.
 
 iii.  MISCELLANEOUS EXPENDITURE
 
 Preliminary expenses are written off over a period of ten years.
 
 iv.  INCOME TAXES
 
 Tax expense comprises 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 Income Tax Act.
 
 The company does not made provision for deferred Tax assets or
 liability
 
 v.  SALES
 
 Sales are accounted for on dispatch of goods to the Customers, net of
 Sales Tax.
 
 vi.  EARNINGS PER SHARE
 
 In accordance with the Accounting Standard 20  Earnings per Share 
 issued by the Institute of Chartered Accountants of India , basic
 earnings per share is computed using the weighted average number of
 shares outstanding during the year.
 
 vii.  PROVISIONS AND CONTINGENT LIABILITIES
 
 Provisions are recognized when the Company has a legal and constructive
 obligation as a result of past event, for which it is probable that a
 cash outflow will be required and a reliable estimate can be made of
 the amount of the obligation.
 
 Contingent Liabilities are disclosed when the Company has a possible
 obligation or a present obligation and it is probable that a cash
 outflow will not be required to settle the obligation.