1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 (Annexed to and forming part of the financial statement for the year
 ended 31 st March, 2012) These financial statements have been prepared
 on an accrual basis and under historical cost convention and in
 compliance in all material aspects, with the applicable accounting
 principals in India, the applicable accounting standards notified under
 section 211 (3c) and the relevant provisions of the companies Act 1956.
 
 All the assets and liabilities have been classified as current as per
 the company''s normal operations cycle and other criteria set out in
 schedule VI to the companies Act, 1956. Based on the nature of products
 and the time between the acquisition of assets for the processing and
 their realization in cash and cash equivalent,
 
 (a). Terms/rights attached to equity shares
 
 The company has only one class of equity shares having a par value of
 Rs.10/- per share .Each holder of equity shares is entitled to one vote
 per share The company declares and pays Dividends in Indian rupees. The
 dividend proposed by the Board of Directors is subject to the Approval
 of the sn*re holders in the ensuing Annual General Meeting.
 
 During the year ended 31 -03-12 the amount of per share dividend
 recognized as distributions to equity share holders was Rs.nil.
 
 In the event of liquidations of the company the holders of equity
 shares will be entitled to receive remaining assets of the company,
 after distribution of all Preferential amounts .The distribution will
 be in proportion to the number of equity shares held by the
 shareholders