I.  ACCOUNTING POLICIES: TURNOVER:
 
 Sales are net of excise duty and rebates.
 
 FIXED ASSETS:
 
 Fixed assets are valued at cost. Land and Building at Sonepat and at
 Rasoi were revalued on 30th June, 1986.  Subsequent additions to these
 units are shown at cost.
 
 DEPRECIATION:
 
 In case of Sahibabad , Malanpur and Bawal units depreciation is
 calculated at straight line method. All other units the written down
 value method has been followed.
 
 INVENTORIES:
 
 Raw material, Components and spare parts are valued at weighted average
 basis cost concept. Finished goods and work in progress are valued at
 cost. The cost includes material cost plus appropriate share of labour
 and overheads.
 
 INVESTMENTS:
 
 Long term Investments are valued at cost. Current Investment is valued
 at cost or market Value which ever is less.
 
 CONTIGENT LIABILITIES:
 
 Contingent Liabilities are not provided for in accounts and are shown
 separately.
 
 RECOGNISATION OF INCOME AND EXPENDITURE:
 
 Items of Income & Expenditure recognised on accrual basis.
 
 RETIREMENT/GRATUITY BENEFITS:
 
 Liabilities in respect of gratuity benefits, Provident Fund and
 Superannuation benefits, for its senior employees are provided for by
 the company via Gratuity Fund Trust and Superannuation Trust maintained
 at LIC. Earned leave has been provided for on actuarial valuation.
 
 RESEARCH AND DEVELOPMENT EXPENSES:
 
 Revenue Expenditure on Research and Development is charged to the
 Profit and Loss Account in the year in which it is incurred, while the
 capital expenditure is shown as an addition to the Fixed Assets.
 
 TAX ON INCOME:
 
 Current Tax is determined as the amount of Tax Payable in respect of
 Taxable income for the year.
 
 Deferred Tax is recognised, subject to the consideration of prudence in
 respect of deferred tax assets 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
 period.