(a) Basis of Accounting
 
 Financial Statements are prepared under the historical cost convention
 on accrual basis in accordance with the requirements of the Companies
 Act, 1956.
 
 (b) Fixed Assets and Depreciation :
 
 (i) Fixed Assets are stated at cost of acquisition less accumulated
 depreciation.
 
 (ii) Depreciation is provided as per section 205(2)(b) of the Companies
 Act, 1956 on the SLM method No. G.S.R 756 E), dated 16 December, 1993,
 of the Ministry of Law, Justice & Company Affairs, Department of the
 Company Affairs.
 
 (iii) Depreciation is provided on pro-rata basis
 
 (c) Inventories
 
 Inventories are valued at cost or market value whichever is lower,
 after allowing for reducing in value on account of absolescence and
 damages for non-moving items.
 
 (d) Investments
 
 Investments are valued at cost and the income thereon is accounted for
 when accrued.
 
 (e) Retirement Benefits
 
 Contributions to various recognised provident funds/approved pensions
 funds are charged to the profit & loss account.  The provisions of the
 payment of Gratuity Act are not applicable to the company now. As and
 when the provisions of the said Act become applicable the company
 intends to provide for the gratuity liability on the basis of actuarial
 valuation.
 
 (f) Foreign Exchange Transactions
 
 Assets and liabilities in foreign currencies are translated at the
 rates of exchange ruling on the Balance Sheet date or at the rates of
 exchange fixed under contratual arrangement.  Gain/loss arising out of
 fluctuations in the exchange rate are accounted for in the Profit &
 Loss Account.  Loss on conversion of Foreign Currency liability for
 acquisition of Fixed Assets are not added to Cost but has been
 recognised in the Profit and Loss Account.