a Accrual system of accounting is followed to record income and
 expenditure, excepting in the areas herein specifically mentioned.
 
 b Fixed Assets are stated at cost less accumulated depreciation. Cost
 comprises of direct costs and in the case of Plant & Machinery interest
 on loan taken for the acquisition of assets upto the date of
 commissioning of the assets. Depreciation is provided on written down
 value method except on Plant & Machinery acquired after April 1,1992,
 which is provided on straight line method at the rates prescribed under
 schedule XIV to the Companies Act, 1956. Additions made during the year
 are depreciated pro-rata from the date of addition. Freehold /
 Leasehold Lands and Goodwill are not depreciated.
 
 c Raw Materials and Packing Materials are valued at weighted average
 cost. Finished Stock and Process Stocks are valued at lower of cost or
 net realisable value.
 
 d Investments in Subsidiary Companies are long term investments and are
 carried at cost. Other investments are carried at lower of cost or
 realisable value. Provision for diminution in value is made whereever
 necessary in accordance with the mandatory Accounting Standard.
 
 e Research & Development costs not resulting in any tangible property /
 equipment are charged as an expense in the year in which they are
 incurred. Capital expenditure is shown as additions to Fixed Assets.
 
 f Insurance on Company''s properties, immovable and movable is on
 reinstatement value basis.
 
 g Insurance claims and scrap sales proceeds are accounted on cash
 basis.
 
 h Foreign Exchange transactions are accounted at the exchange rates
 prevailing at the time of transactions or at contracted rates.  Gains /
 losses, if any, arising therefrom are recognised in the Profit & Loss
 A/c.
 
 i Employee Benefits:
 
 Liability for Gratuity to employees determined on the basis of
 actuarial valuation as on balance sheet date is funded and is
 recognised as an expense in the year incurred
 
 Contribution to defined contribution schemes such as provident fund,
 employees pension fund, superannuation fund and cost of other benefits
 are recognised as an expense in the year incurred
 
 J Current Tax is determined as the amount of tax payable in respect of
 taxable income for the year. Deferred tax is recognised on timing
 differences, being the difference between taxable income and accounting
 income that originate in one period and are capable of reversal in one
 or more subsequent periods