i) Basis of Accounting 
 
 These Financial statements are prepared under the historical cost
 convention on accrual basis in accordance with the requirements of the
 Companies Act, 1956 and the applicable Accounting Standards.
 
 ii) Fixed Assets and Depreciation
 
 Fixed assets are stated at cost of acquisition (subject to revaluation
 during the year ended 30th September, 1985) less accumulated
 depreciation. Depreciation has been provided at the rates specified in
 Schedule XIV to the Companies Act, 1956 as amended, on the straight
 line method except in the case of Buildings where the written down
 value method is followed. Depreciation on additions / deletions during
 the year is provided on pro-rata basis.
 
 Fixed assets are reviewed for impairment with reference to their
 carrying cost compared to the recoverable value and necessary account
 is taken of impairment, if any.
 
 Intangibles : Computer Software Cost is amortised over a period of five
 years Product Development & Technical Know-how are amortised over a
 period of ten years
 
 iii) Investments
 
 Long term investments are valued at cost less provision, if any, for
 permanent diminution in the value. Current investments are valued at
 the lower of the cost or market value as on the date of the Balance
 Sheet.
 
 iv) Inventories
 
 Inventories are valued at the lower of the cost and the net realisable
 value where cost includes duties net of related credits.
 
 v) Sundry Debtors and Advances
 
 Specific debts and advances identified as irrecoverable or doubtful, if
 any, are written off or provided for, respectively.
 
 vi) Foreign Currency Transactions
 
 Transactions in foreign currency are recorded at the exchange rate
 prevailing on the date of the transaction. Foreign currency denominated
 current assets and current liabilities at the Balance Sheet date are
 translated at the exchange rate prevailing on the date of the Balance
 Sheet. Exchange rate differences resulting from foreign exchange
 transactions settled during the period, including year-end translation
 of current assets and liabilities are recognised in the Profit & Loss
 Account other than those exchange differences arising in relation to
 liabilities incurred for acquisition of fixed assets, which are
 adjusted to the carrying value of the underlying fixed assets. In
 respect of forward exchange contracts, except in case of fixed assets,
 the differences between the forward rate and the exchange rate at the
 inception of the forward exchange contract are recognised as
 income/expense over the life of the contract.
 
 vii) Revenue Recognition
 
 Sales exclude amounts recovered towards Sales Tax. Domestic Sales are
 recognised on dispatch of goods from Factory. Export Sales are
 recognised based on date of Bill of Leading and or Multi Modal
 Transport Documents on customer acceptance. Revenue from Project
 Contracts and services rendered are recognised on the basis of
 percentage of completion method.
 
 
 viii) Research and Development
 
 Capital expenditure on Research and Development is treated on the same
 lines as any other capital expenditure and is shown under the
 respective asset block. The revenue expenditure on Research and
 Development is charged to the Profit & Loss Account. Any expenditure
 resulting in creation of intangible asset is so recognized following
 the relevant accounting standard.
 
 ix) Retirement Benefits
 
 i) Defined Contribution Plan
 
 Companies contribution paid / payable during the year to Provident
 Fund, Gratuity and Superannuation Fund etc., are recognized in the
 Profit and Loss Account. These are approved / recognised scheme of the
 Company.
 
 ii) Defined Benefit Plan
 
 Companies annual liability towards Gratuity is funded on the basis of
 actuarial valuation furnished by the Life Insurance Corporation of
 India under Group Gratuity Scheme.
 
 iii) Un-availed earned leave liability has been provided on the basis
 of Actuarial Valuation.
 
 x) Borrowing Costs:
 
 Borrowing Costs that are attributable to the acquisition, construction
 or production of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is an asset that necessarily
 requires a substantial period of time to get ready for its intended use
 or sale. All other borrowing costs are recognised as an expense in the
 period in which those are incurred.
 
 xi) Segment reporting:
 
 (a) The Segment report is based on business segments identified as
 primary segments. These business segments are: I. Synthetic Cordage 2.
 Fibre and Industrial Products & Projects segments based on the location
 of the customers are identified as secondary segments.
 
 (b) Segment accounting policies are the same as those used in the
 preparation of the financial statements.
 
 (c) The segment revenues and segment expenses are directly attributable
 to the segments, except certain expenses which are allocated to the
 segments using appropriate basis.
 
 (d) The segment assets and liabilities are directly attributable to the
 segments, except certain assets and liabilities which are allocated to
 the segments using appropriate basis.
 
 xii) Taxation:
 
 (a) Provision for Income Tax is made on the basis of taxable income for
 the current accounting year in accordance with the Income Tax Act, 1961
 and the Rules there under.
 
 (b) Deferred Tax asset/ liability is recognised at the applicable rate
 of tax on the basis of timing difference between book profits and
 taxable income.
 
 xiii) Provisions and Contingencies liabilities:
 
 The Company creates a provision when there is present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. When there is a possible obligation or
 a present obligation in respect of which the likelihood of outflow of
 resources is remote, no provision or disclosure is made.