1.  General :- The financial statements have been prepared under the
 historical cost convention in accordance with the generally accepted
 accounting principles in India and the provisions of the Companies Act
 1956.
 
 The Company generally follows the mercantile system of accounting and
 recognizes significant items of Income and Expenditure on accrual
 basis.
 
 Accounting Policies not specifically referred to otherwise be
 consistent and in consonance with generally accepted accounting
 principles.
 
 2.  Revenue Recognition :- The export sales have been recognized on the
 date of issuance of Bill of Lading, at an average rate stated in
 shipment bill. However it can be recorded at the value calculated
 according to current exchange rate.  Expenses and Income considered
 payables and receivables respectively are accounting for on accrual
 basis.
 
 3.  Fixed Assets :- Fixed assets are stated at their historical cost
 less depreciation till date.
 
 4.  Depreciation :- Depreciation has been provided on the basis of
 Straight Line Method as per rates prescribed in Schedule XIV of the
 Companies Act, 1956.
 
 5.  Investments :- Company has no Investments
 
 6.  Inventories :-
 
 Raw Material & Packing Material : At Cost
 
 Finished Goods : As Cost or NRV whichever is lower Further Stock traded
 is recorded in weight, gross or net, as per receipts from the suppliers
 and sales to customers.
 
 7.  Retirement Benefits :-
 
 No employee is eligible for gratuity benefits and has no leave
 accumulated entitling encashment at the end of the year.  Hence no
 provision to the above effect was required to be made.
 
 8.  Provision for Deferred Tax Assets / (Liability) (AS22):- Deferred
 Tax arising on account of timing difference and which are capable of
 reversal in one or more subsequent periods, should be recognized using
 the tax rate and tax laws that have been enacted or substantively
 enacted. Deferred Tax Assets are not recognized unless there is
 sufficient assurance with respect to reversal of the same to future
 years.
 
 In accordance with Accounting Standard 22, Accounting for Taxes on
 Income issued by the institute of Chartered Accountants of India, the
 company has accounted for deferred tax.
 
 9.  Foreign Currency Transactions :- Transactions denominated in
 foreign currencies are normally recorded at the average exchange rate
 specified in the shipment bill at the time of the transaction.
 
 Any income or expenses on account of exchange difference either on
 settlement or on translation is recognized in the Profit and Loss
 Account.
 
 However year end balances of Foreign currency account and Debtors are
 translated using the rate prevailing at the year end (i.e.31st March)
 as per requirement of AS-12