GAUTAM ENGINEERS LTD.

Schedules forming part of Balance Sheet and Profit & Loss Account for the year
ended 31st March 2008

SCHEDULE L: Significant Accounting Policies & Notes to Accounts

A) SIGNIFICANT ACCOUNTING POLICIES: -

1. Basis of Accounting: Accounts have been prepared on a Going Concern

basis, to comply in all material respects with the relevant provisions of the
Companies Act 1956 and the Accounting Standards issued by the Institute of
Chartered Accountants of India.

2. Revenue Recognition: Income and expenditure is generally recognised on

accrual basis.

3. Fixed Assets: Fixed assets are stated at cost less depreciation. Cost includes
purchase price and any other attributable cost of bringing the asset to the
location and condition for its intended use.

4. Depreciation: Depreciation is provided on Written Down Value basis at the

rates prescribed under the Companies Act 1956.

5. Investments: Investments are treated as long term and valued at cost.

Provision for diminution in value of such investments is made only if the
diminution is not temporary in view of, and to the extent of information
available with, the management.

6. Inventories: Inventories are stated at lower of cost or net realizable value.

7. Retirement Benefits: The Company has not provided for gratuity liability
accruing for the year and the same shall be accounted for on payment basis.
There are no definite rules of the company for payment of leave encashment
to its employees.

8. Taxes on Income: Provision for Income tax and Fringe Benefit Tax is made
in accordance with the applicable provisions of the Income-tax Act 1961.
Deferred tax is accounted for based on the timing difference in recognition of
accounting taxable income that arises in one period and is capable of reversal
in one or more subsequent periods. Deferred tax liability is accounted for so
far it is, in view of the management, material in nature. Deferred tax assets
are not accounted for unless there is certainty of their realization in future.
B) NOTES TO ACCOUNTS: -

1. Auditors Remuneration includes payment to auditors for Statutory Audit Fees

Rs.8,265/- (Rs.8,265/-), Tax Audit Fees Rs.2,755/- (Rs.2,755/-)

2. Deferred tax- No deferred tax is accounted for since in the company had no
material deferred tax assets or liabilities as at the year end in accordance
with Accounting Standard 22.

3. Quantitative information as required by Part II of Schedule VI to the

Companies Act 1956 in respect of Traded Goods

Particulars Oxygen Gas (Cu.M.)

Opening Stock 21840
( 1,274 )
Purchases 262115
( 291711 )
Sales 263592
( 2,92,985 )
Closing Stock 20363
( 21,840 )

4. Sundry Creditors include dues to SSI Units Rs. NIL (Rs. NIL) in accordance
with the information regarding its suppliers available with the Company.

5. Previous years figures have been regrouped/ rearranged where necessary.

Figures in brackets where disclosed show previous years figures.
_________________________________________________________________
In terms of our Report of even date

For & on behalf of For & on behalf of the Board

S.B.Dandeker & Co.
Chartered Accountants
D
I
(Kedarashish Bapat) R
Partner E
C
Place: Kolkata T
Date: 16th July, 2008 O
R
S