a) Method of Accounting :
 
 The accounts are prepared on Historical cost concept on an accrual
 basis and accounting principles generally accepted in India.
 
 b) Fixed Assets & Depreciation :
 
 Fixed assets are stated at original cost including freight, duty, taxes
 and other incidental and pre- operative expenses relating to the
 acquisition, installation on appropriate basis. Depreciation has been
 charged on a straight line method as per the rates and in the manner
 prescribed by Schedule XIV of the Companies Act, 1956.
 
 c) Inventories :
 
 Closing stocks are valued at cost or market price whichever is less and
 cost is ascertained on FIFO Method Basis.
 
 d) Gratuity and leave encashment is accounted for on cash basis.
 
 e) Investment :
 
 Long term investment are stated at cost less permanent diminution in
 value if any.
 
 f) Misc. Expenses :
 
 ( To the extend not written off ) : These are written off over ten
 years.
 
 g) Pre-operative Expenses :
 
 The Pre-operative Expenses on Bio-Diesel Project will be capitalized as
 and when commercial production of the project starts.