Basis of Accounting:
 
 The accounts have been prepared under the historical cost on an accrual
 basis as a going concern. Revenue recognition and expenses incurred are
 accounted on accrual basis and applicable mandatory standards and in
 accordance with the requirements of the Companies Act, 1956.
 
 Revenue Recognition:
 
 Sales:
 
 Income from Product Sales/Services Charges is recognized upon
 completion of sales and rendering of the services respectively.  Sales
 are inclusive of excise duty but accounted net of sales tax, whenever
 applicable. Income includes inter-divisional transfer at market price.
 The value of such inter divisional transfer is included in the value of
 materials purchase & sales.
 
 Dividend and Interest:
 
 Dividend income from investments is recognized when right to receive to
 payment is established. Interest income is accounted on its accrual on
 a time proportion.
 
 Employees'' Remuneration:
 
 The Company''s contributions to the Provident Fund are charged to Profit
 & Loss for the period.
 
 Depreciation :
 
 i) Depreciation is charged on Fixed Assets (other than Goodwill) on
 Straight Line Method and in the manner prescribed in Schedule XIV to
 the Companies Act, 1956.
 
 ii) Goodwill is amortized over its estimated useful life commencing
 from the year in which it is determined.
 
 Fixed Assets:
 
 Fixed Assets are stated at cost of acquisition or construction, less
 accumulated depreciation. All costs relating to the acquisition and
 installation of fixed assets are capitalized and include financing
 costs relating to the borrowed funds attributable to construction or
 acquisition of fixed assets up to the date the assets are put to use.
 
 Impairment of Assets:
 
 An asset is treated an impaired when the carrying cost of Assets
 exceeds its recoverable value. An impairment loss is charged to the
 Profit and Loss Account in the year in which as asset is identified as
 impaired. The impairment loss recognized in prior accounting periods is
 reversed if there has been a change in the estimate of recoverable
 amount.
 
 Investments :
 
 Investments are classified as long term Investment and carried at cost.
 Provision for diminution in value of long term investments is made
 only, if such a decline is not temporary, in the opinion of the
 management.
 
 Inventories:
 
 i) Finished Goods : At lower of cost or estimated net realizable value.
 
 
 ii) Service Components are valued at cost.  
 
 iii)Raw materials are valued at cost.
 
 Foreign Currency Transaction:
 
 Any income or expenses on account of exchange the difference is either
 in settlement or on transaction is recognized as per revenue gain/loss.
 
 Income Tax:
 
 In view of the carried forward losses, it has been adjusted against
 current year''s profit. Provision for Income Tax has been made against
 balance current year''s profit.
 
 Deferred Tax Assets & Liabilities:
 
 Deferred Tax assets or liability for timing difference between the
 profits per financial statements and the profit offered for income tax,
 based on tax rates that have been enacted or substantively enacted as
 at the Balance sheet date. Deferred tax assets are recognized only if
 there is reasonable certainty that sufficient future taxable income
 will be available, against which it can be realized. The carrying
 amount of deferred tax assets is reviewed at each Balance Sheet Date
 and reduced if sufficient taxable profits are not like to be available
 to realize all or part of the deferred tax assets.
 
 Prior Period Expenses/ Income:
 
 All identifiable items of income and expenditure pertaining to prior
 period are accounts as per Prior Period Adjustment.
 
 Retirement Benefits:
 
 Liability in respect of retirement benefits is provided and/or charged
 to profit & loss account as follows:
 
 a) Gratuity: No provision is made in the accounts in respect of
 Gratuity payable to staff. These are charged in the accounts as and
 when paid.
 
 b) Provident Fund: Annual contribution to Provident Fund is charged to
 the Profit and Loss Account.
 
 c) Leave Encashment: Provision for leave encashment has not been made
 in Accounts, as per the present service rules the leave is required to
 be enjoyed or utilized. Hence no leave entitlement is permissible.
 
 Leases:
 
 Assets taken on lease, under which lesser effectively retains all the
 risks and rewards of ownership, are classified as operating lease.
 Operating lease payments are recognized as expenses in the profit and
 loss account on a straight line basis over the lease term.
 
 Borrowing Cost:
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of cost of
 such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowing costs are charged to revenue
 
 Other Accounting Policies:
 
 These are consistent with generally accepted accounting practices