1.  SIGNIFICANT ACCOUNTING POLICIES:
 
 (i) Fixed Assets are capitalised at cost including all direct costs and
 other expenses incurred In connection with acquisition of fixed assets
 appropriated thereto.
 
 (ii) Depreciation is provided on Written Down Value Method at the rates
 prescribed in schedule XIV to the Companies Act, 1956 on prorata basis
 with reference to the actual date of purchase/use.
 
 (iii) BASIS OF ACCOUNTING
 
 The Accounts of the Company are prepared under the historical Cost
 Convention and in accordance with applicable accounting standard except
 otherwise stated. Mercantile System of Accounting is followed.
 
 (iv) REVENUE RECOGNITION
 
 Revenues from the Sales is recognised at the point of despatch of goods
 from works since Company is 100% E.O.U.
 
 (v) FOREIGN CURRENCY TRANSACTIONS
 
 Transactions in foreign currency are accounted for at the exchange rate
 prevailing on the date of transactions. The exchange differences
 arising on their settlement are dealt with in the Profit and Loss
 Account.
 
 (Vi) GOVERNMENT SUBSIDY
 
 Investment subsidy is treated as Capital Reserve.