1.  Interest and other borrowing costs attributable to qualifying
 assets are capitalized. Other interest and borrowing cost are charged
 to revenue.
 
 2.  During the Year under report, the Company has written off
 Rs.3,60,080 , being the remaining portion of the amount paid to the
 workmen who opted retirement in previous years under Voluntary
 Retirement Scheme.
 
 3.  The manufacturing unit at Lamdapura - Manjusar has been closed
 since May, 2009 and hence the purchase - production - sales activity in
 respect of the manufacturing unit is no more there.  However Company
 now, has been engaged into trading activity in the same line of
 business at Chennai.
 
 4.  In the opinion of the Board, the Current Assets, Loans and Advances
 are approximately of the value stated, if realised in the ordinary
 course of business. Provision for all known liabilities is adequate and
 not in excess of the amount reasonably necessary.
 
 5.  Debit and Credit balances in party accounts are subject to
 confirmation and reconciliation. In absence of taxable income,
 provision for Income Tax has not been made.
 
 6.  The Company has yet to comply provisions of Section 383-A of the
 Companies Act 1956 in respect of appointment of Company Secretary and
 provisions of Section 205-A of the Companies Act, 1956 in respect of
 payment of Dividend for the year 1995-96. However a Practicing Company
 Secretary has been appointed as a retainer.
 
 7.  Under the Micro, Small and Medium Enterprises Development Act, 2006
 which came into force on October, 2006, certain disclosures are
 required to be made relating to Micro, Small and Medium Enterprises.
 Since the relevant information is not readily available, no disclosures
 have been made in the Books of Accounts.
 
 8.  Accounting for Taxes on Income and Deferred Tax Asset AS - 22
 
 The Company has not been liable to pay any Income-tax for the year as
 the Company has been in loss. Further the Company has huge Unabsorbed
 Business Losses and Unabsorbed Depreciation under the Income tax Act
 and hence its Deferred Tax Assets are much in excess of Deferred Tax
 Liabilities. Company has not recognized differed tax asset till last
 year in absence of virtual certainty of continual future profits. But,
 though in the current year, there has been business loss, the
 expectation of business profit has been certain and hence Deferred Tax
 Asset has been recognized as under.
 
 9. Figures for the previous year have been regrouped, rearranged and
 recast wherever necessary so as to make them comparable with those of
 the current year.