1.  Basis of preparation
 
 The financial statements are prepared under the historical cost
 convention in accordance with Generally Accepted Accounting Principles
 (GAAP), and the Provisions of the Companies Act, 1956 as constantly
 adopted by the Company.
 
 Accounting policies not specifically referred to otherwise are
 consistently followed and are in consonance with Generally Accepted
 Accounting Principles.
 
 All income and expenditures are accounted for on accrual basis unless
 otherwise specifically stated.
 
 2.  Fixed Assets
 
 Fixed Assets are stated at cost less depreciation. Fixed Assets
 includes all related expenses upto acquisition and installations.
 
 3.  Depreciation
 
 Depreciation on fixed assets have been provided on Written Down Value
 Method at the rates specified in the schedule XIV of the Companies Act,
 1956.
 
 4.  Investments
 
 Investments are stated at cost.
 
 5.  Inventories
 
 Inventories are valued at Cost or net realizable value, whichever is
 less.
 
 6.  Retirement Benefits
 
 Retirement benefits payable to the employees are accounted for on cash
 basis as and when paid.
 
 7.  Revenue Recognition
 
 Sales are recognized at the time of dispatch of the goods.