A.  Basis of Accounting: The Accounts have been prepared on the basis
 of historical costs and in accordance with the applicable accounting
 standards except where otherwise stated.  For recognition of Profit &
 Loss, Mercantile system of Accounting is followed except certain
 Expenditure & Income, which are accounted for, on payments/Receipts
 basis on account of uncertainties.
 
 B.  Fixed Assets: Fixed Assets are stated at the cost of acquisition
 less accumulated depreciation. The cost of assets comprises its
 purchase price and other directly attributable cost of bringing the
 Asset to working condition for its intended use. This cost also
 includes financing cost relating to specific borrowings attributable to
 Fixed Assets. The Company had not availed any foreign currency loan for
 acquisition of Fixed Assets thereby there is no adjustment in cost of
 fluctuation in exchange rate.
 
 C.  Depreciation: Depreciation is provided under the straight-line
 method at the rates and in the manner specified in Schedule XIV to the
 Companies Act, 1956. Depreciation on addition during the year provided
 on pro-rata basis from the date of addition.
 
 D.  Inventories: Inventories (Other than Stores & Spares) are valued at
 the cost or estimated net releasable value. The cost includes excise
 duty when paid.
 
 E.  Revenue Recognition:
 
 a.  Sales are exclusive of VAT (Sales Tax), Insurance and Freight
 Charges where applicable.
 
 b.  The Expenses (Other than provision for Gratuity) are accounted on
 mercantile basis.
 
 F.  Foreign Currency Transaction: The Company has not indulged in the
 Foreign Currency Transaction. Therefore accounting of foreign currency
 transaction is out of the purview of accounting policy.
 
 G.  Investments: Investments are valued at cost of acquisition and
 related expenses.
 
 H.  Research & Development: Research & Development expenses of revenue
 nature are charged to the Profit & Loss Account of the year in which it
 is incurred and that of capital nature are shown as addition to
 respective Fixed Assets.
 
 I.  Retirement Benefits:
 
 a.  The company is not covered under the Provident Fund Act and ESIS
 Act.
 
 b.  Gratuity Liability is accounted as and when due and paid.
 
 J. Marketing Expenditure: The Expenses incurred on marketing and market
 related activities are charged to Profit & Loss Account of the year in
 which it is incurred.
 
 K. CENVAT: The Company is not eligible for CENVAT Benefits for domestic
 sales.
 
 L. Material Events: occurring after Balance Sheet date are taken into
 cognisance.
 
 M. Contingent Liabilities: Contingent Liabilities are not provided for
 and are disclosed by way of notes wherever applicable.
 
 N. Taxes on Income : Keeping in view the carry over losses and
 unabsorbed depreciation as per Income Tax return for the year ending
 31/03/2011, the Company has not recognised Deferred Tax Assets, in
 respect of carry over losses, unabsorbed depreciation and items of
 timing difference between the accounting income and taxable income for
 the year, as there is reasonable uncertainty that sufficient taxable
 income in near future shall be available against which such Deferred
 Tax Assets can be realised against tax liability.