1. SIGNIFICANT ACCOUNTING POLICIES
 
 1) FIXED ASSETS : All Fixed assets are valued at cost less
 Depreciation.
 
 ii) INVENTORIES : At cost or market value whichever is lower.
 
 iii) REVENUE RECOGNITION : Items of Income and expenditure are
 recognised generally on accrual basis except for the following which
 are being accounted for on cash basis, since it is not possible to
 ascertain the exact quantum with the reasonable accuracy
 
 a. Interest on overdue payments
 
 b. Bank guarantee commission
 
 c. Rate difference, discount, rebate claims.
 
 iv) CONTINGENT LIABILITIES : Contingent liabilities are shown by way of
 Notes forming part of accounts
 
 v) GRATUITY, LEAVE ENCASHMENT: Provisions is not made at actuarial
    AND OTHER RETIREMENT        basis
    BENIFITS