(A) GENERAL
 
 The accounts are prepared on historical cost basis as a going concern
 following the mercantile system of accounting and recognizing income
 and expenditure on accrual basis. Accounting policies not specifically
 referred to otherwise are consistent and in concurrence with generally
 accepted accounting principles.
 
 (B) VALUATION OF INVENTORIES
 
 Inventories are valued at cost or market price whichever is lower.
 
 (C) FIXED ASSETS AND DEPRECIATION
 
 Fixed assets are stated at cost less accumulated depreciation.
 Depreciation on fixed assets is provided on straight-line method at the
 rates and in the manner provided in schedule XIV to the Companies Act,
 1956.
 
 (D) INVESTMENTS
 
 Investments are stated at cost of acquisition.
 
 (E) REVENUE RECOGNITION
 
 (i) Sales
 
 Sales are recognized when effectively the risk and rewards of ownership
 has passed to the buyer.  
 
 (ii) Commission/Fee/Discount Income
 
 Commission / Fee/ Discount Income is accounted as and when accrued and
 realizable upon raising of bills.
 
 (F) FOREIGN EXCHANGE TRANSACTION
 
 Transactions in foreign currency are recorded at the exchange rate
 prevailing at the time of such transactions.  Realized gains or losses
 on foreign exchange transactions are recognized in the Profit and Loss
 account at the time of actual realization of gains/losses.
 
 (G) CONTINGENT LIABILITIES
 
 Liabilities below Rs. 1,00,000/- if any are not recognized as
 contingent liability.