The Financial statements are prepared on historical cost basis in accordance with applicable accounting standards and on the accounting principle of going concern. Income and expenses to the extent considered receivable or payable are accounted for on mercantile basis.

b) Fixed Assets, Depreciation, Amortization and impairement:

i) Fixed Assets are stated at cost of acquisition net of Cenvat, inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. As per the practice and on the basis of technical evaluation report expenses incurred on trial runs, know-how, development, modernization, de-bottlenecking of plant and equipment and adjustment arising from exchange rate variation relating to borrowings attributable to the fixed assets, are capitalized.

ii) Depreciation is provided for in the accounts on straight line method at the rates computed in accordance with Schedule XIV of the Companies Act, 1956 except for certain asset as on 1st April, 1994 for which specified period has been recomputed as per the revised rates in Schedule XIV and operational charge calculated by allocatingnthe u -amortized value over the remaining part of the recomputed specified period.

iii) Depreciation on addition is being provided on pro-rata basis from the following month of such additions.

iv) Depreciation on assets sold, discarded or demolish during the year is being provided at their rates up to the month in which such assets are sold, discarded or demolished.

v) Normal depreciation is provided on addition on account of exchange variation of foreign currency loans in the following years.

vi) Rates of depreciation for plant and machinery of the co-extruded tube division is considered as continuous process plant @5.28%.

vii) The depreciation has been charged on block of assets instead of individual assets in respect of assets owned by the company up to 01-04-1991 in absence of sufficient details.

viii) Premium on leasehold land has been amortized (written off) proportionately over the period of lease. .

ix) The fixed assets specifically Land, Building and Plant & Machinery of the company have been valued from the approved valuer at a reasonable interval in order to comply with the requirement of AS-28. Impairment aspect of Fixed Assets for other assets, they are stated at residual value.

x) Software purchased (intangible assets) for computers are debited to profit & loss account under the sub head miscellaneous expenditure in the year of purchase.

c) Foreign Currency Transactions

a) The transactions denominated in foreign currency are recorded at the exchange rate prevailing at the time of transactions. Monitory items denominated in foreign currency at year-end are translated at rates prevailing on the last day of the Financial Year.

b) Foreign Currency Loans for acquisition of fixed assets are converted at the rate prevailing on the date of Balance Sheet. The fluctuation is adjusted in the cost of fixed assets.

d) Investments:

Investments are stated at cost and appropriate diminution except temporarily nature in the value of quoted investment is being provided for.

e) Inventories:

i. Inventories are valued at lower of cost and net realizable value except packing material, stores & spares, semi finished goods and work in progress which are valued at cost.

ii. Cost is computed on the basis of FIFO. In case of finished Goods and goods in process, cost includes material cost (at year end), labor and overhead expenses inclusive of depreciation.

iii. Inventory verified, valued and certified by management.

f) Sales and Income Recognition

i. Sales are stated and recognized on dispatches at Gross value i.e. inclusive of all taxes and freight charged to customers.

ii. Gross sales includes inter unit sale of finished and semi-finished goods. Inter unit transfers of raw materials, consumables, stores and spares are transferred at cost and not included in sales.

iii. Traded Goods (Inclusive of Transportation thereon) accounted on dispatch to customer basis on gross value and grouped under sales

iv. Dividend and interest on investment are accounted for as and when right to receive basis accrued in favour of company.

g) Cen vat (Mod vat):

Cen vat (Mod vat) Credit availed on fixed assets is adjusted to the cost of the asset. Other Cen vat (Mod vat) Credit availed is set off with the purchase cost. Cen vat of Service Tax availed is set-off with the respective services. Unutilized balance is shown under the head "Other Current Assets."

h) Retirement Benefits:

i. Contribution to the Provident Fund is made monthly as per the provisions of the Provident Fund Act.

ii. The provision of Gratuity for employees and Directors are recognized and accounted for on the basis of Actuarial Valuation made by authorized assessor.

iii. Leave encashment is determined on the basis of leave lules of the company and accounted on accrued basis.

i) Government Grants:

Grants in nature of project capital subsidy are credited to capital reserve.

j) Misc. Expenditures:

Misc. preliminary and preoperative expenses are witten off over a period of five years.

k) Prior period items etc.

Prior period expenses/income, non-recurring and extra-ordinary items having material impact disclosed in financial statement separately.

l) Contingent Liability:

Contingent Liabilities are disclosed by way of the Notes to the Accounts. Disputed demands in respect of Central Excise, Customs, Income Tax, Sales Tax and other claims are disclosed as contingent liabilities. Payment in respect of such demands, if any, is shown as an advance, till the final outcome of the matter and payment debited to respective head of expenses in the year of payment made, as the case may be.

m) Taxes on Income:

Deferred tax is recognized on timing difference between the accounting income and taxable income for the year that originates in one period and is capable of reversal in one or more subsequent period. Such deferred tax is quantified using the tax rate and lavs enacted or substantively enacted as on the Balance sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient futne taxable income will be available against which such deferred tax assets can be realized.

n) Borrowing Costs:

In case of period of construction / installation of the qualifying fixed assets is which takes more than a year, borrowing costs that are directly attributable to the acquisition / construction of the are capitalized as part of respective asset, up to the date of acquisition / completion of construction. Other borrowing costs are recognized as expenses in the period in which they are incurred.

G Secured by hypothecation of the vehicles acquired by utilising the said loan in the name of managing director of the company

and is repayable in equated monthly installments, due upto October 2015, the loan carries the interest @ 7% p.a.

H Secured by hypothecation of the vehicles acquired by utilising the said loans in the name of managing director of the company

and was repayable in equated monthly installments, due upto October 2013, the loan carried the interest @ 9 to 11% p.a.

I Secured by hypothecation of the vehicles acquired by utilising the said loans and is repayable in equated monthly installments,

due upto August 2013, the loan carried the interest @ 16 % p.a.

J Secured against the machine purchased from the machine supplier and is repayable immediately without any interest. The

loan is in CHF currency.

K Secured against machine & toolings purchased from machine supplier and is repayable in monthly installments up to the year

May 2016 without any interest. The loan is in CHF currency.

L This is as per incentive scheme of Government of Maharashtra for the co ex tube unit of the company situated at Pharola. The repayment of each year of the deferred sales tax amount is to be made in five equal installments in 11th to 15th year, without

any interest till the respective due dates. Thereafter it carries interest @ 15% p.a.

M Carry interest @ 9% to 15% p.a.

N Carry interest @ 12% p.a..

O Interest free.

P Carry interest @ 9% p.a.

A. Primary Segment: Business segment

The operations of the company mainly fall within a single business segment i.e. Go extruded tube segment. The financial data for segment reporting as follows. The figures of traded goods being around 1 % of total turnover, the same have not been disclosed separately.

submissions for obtaining Export Obligations Discharge Certificates have been made by the Company to the office of Director General of Foreign Trade, Mumbai.

d. In respect of demand raised by Sales Tax authority, Aurangabad for Rs.2.25 Lacs for Sales Tax amount and Rs. 2.22 Lacs for interest thereon for the FY 2008-2007.

e. In respect of notices issued by Sales Tax Authority, Hardwar with respect to various compliances for Rs. 0.28 Lacs (Rs.1.61 Lacs)

f. in respect of Fiscal liabilities that may arise on account of non-observance of provisions of various fiscal statues, Companies Act and other related laws and interest / other charges chargeable on demands raised and not paid if any, amount is not ascertainable.

g. Estimated amount of contract remaining to be executed net of advances on capital account and not provided for Rs. 4.34 Lacs (Rs. 73.31 Lacs).