(a) Sales are net of trade discounts, returns and exclusive of
 VAT/Sales Tax .
 
 (b) 1.  Fixed Assets are valued at cost less depreciation.
 
 2.  Depreciation has been provided based on written down value method,
 in accordance with Schedule XIV of the Companies Act, 1956.
 
 3.  Individual assets costing less than Rs.5,000/- are depreciated in
 full in the year of purchase.
 
 4.  Depreciation on lease hold assets are amortised over the period of
 lease.
 
 (c) Inventories are valued in line with the Accounting Standard (AS 2).
 Cost of inventories is net of VAT in respect of Local Purchases.
 
 (d) Long term investments are carried at cost and provision for decline
 in value, if any, other than temporary are made whenever necessary.
 Current Investments are stated at lower of cost or market value.
 
 (e) Employees Benefits:
 
 A) Short Term Employees Benefits:
 
 Short Term Employees Benefits for services rendered by them are
 recognized during the period when the services are rendered
 
 B) Post employment benefits: Defined Contribution Plan
 
 a) Provident Fund
 
 Contributions are made to the company''s Employees Provident Fund Trust
 in accordance with the fund rules. The interest rate payable by the
 trust to the beneficiaries every year is notified by the Government.
 The Company has an obligation to make good the shortfall, if any,
 between the return from the investment of the trust and the notified
 interest rate. The Company also contributes to government administrated
 pension fund and to Employees'' State Insurance Schemes on behalf of its
 employees.
 
 b) Superannuation
 
 The Company makes fixed contributions as a percentage on salary to the
 superannuation fund, which is administered by trustees and managed by
 the Life Insurance Corporation of India (LIC).  Defined Benefit Plan
 
 a) Gratuity
 
 The Company makes contribution to gratuity fund, as per actuarial
 valuation, which is administered by trustees and managed by the Life
 Insurance Corporation of India (LIC).
 
 b) Leave Encashment
 
 Liability on account of encashment of leave to employees is provided on
 the basis of an actuarial valuation. The expenses and actuarial gain /
 loss on account of the above benefit plans are recognised in the profit
 and loss account on the basis of an actuarial valuation.
 
 C) Other Long Term Employee Benefits:
 
 The estimated liability in respect of other long term benefits like
 entitlement of sick leave has been provided on the basis of actuarial
 valuation.
 
 The above contributions are charged to the Profit and Loss Account.
 
 (f) Insurance claims are accounted as and when the claims are settled.
 
 (g) Deferred tax resulting from timing differences between book and tax
 profits is accounted for at the current rate of tax to the extent that
 the timing differences are expected to crystalise.