i) FIXED ASSETS :
 
 Fixed Assets are stated at cost less Depreciation. Depreciation on
 Fixed Assets is calculated on straight line method at the rates
 specified in Schedule XIV of the Companies Act, 1956.
 
 ii) INVESTMENTS :
 
 Long term investments are stated at cost except unquoted shares which
 have been taken at lower of break up value or carrying cost. Gain/Loss
 on disposal of Investments is recognised as income/expenditure.
 
 iii) INVENTORIES :
 
 Stock in Trade are valued at lower of cost or realisable value. Stock
 on Hire are valued at the agreement value less instalments received.
 
 iv) RECOGNITION OF INCOME AND EXPENDITURE :
 
 Income and Expenditure are recognised on accrual basis and lease
 transactions are accounted for on the basis of Guidance Note on
 Accounting for Leases issued by the Institute of Chartered Accountants
 of India.
 
 v) FOREIGN CURRENCY TRANSACTIONS :
 
 Gain/Loss on foreign currency transactions is recognised on actual
 basis.
 
 ovi) RETIREMENT BENEFITS :
 
 Year end accrued liabilities on account of Gratuity and Leave have been
 recognised on the basis of actuarial valuations.
 
 vii) AMORTISATION OF MISCELLANEOUS EXPENDITURE :
 
 Items of Miscellaneous Expenditure are being amortised proportionately
 over a period of ten years.
 
 viii) CONTINGENT LIABILITIES :
 
 Contingent Liabilities are generally not provided in the accounts and
 are separately shown elsewhere in the Schedule.