(a) Fixed Assets are stated at cost less depreciation.
 
 (b) Depreciation :
 
 Depreciation has been provided on straight line method as per rates
 prescribed by the Department of Company Affairs vide circular No.
 GSR/756(E) dated 16-12-93.  The new SLM rates of depreciation as
 prescribed in the said circular are straightaway applied to the
 original cost of all fixed assets including the existing assets.
 
 (c) Valuation of Inventories :
 
 (i) Raw materials            - At Cost
 
 (ii) Tools & Laboratory
      Instruments, Stores 
      & Spares                - At Cost
 
 (iii) Work-in-Process        - At Estimated Cost
 
 (iv) Finished goods          - At Cost or Net realisable value 
                                whichever is lower.
 
 (d) Excise Duty :
 
 Excise duty payable on Finished Goods lying at factory is accounted
 for on clearance of goods from the factory and the stock is valued
 accordingly.
 
 (e) Raw material cost is net of MODVAT and stock is valued
 accordingly.
 
 For calculating the cost of Finished Goods and Work-in-Process,
 interest on working capital has also been considered as an element of
 cost.
 
 (f) Gratuity and Leave Encashment :
 
  Accounted for as and when paid.
 
 (g) Sales include Excise duty and is net of returns.
 
 (h) Miscellaneous Expenditure :
 
 (i) Preliminary and share issue expenses upto the date of commercial
 production are written off from the date of commercial production
 equally over a period of ten years.
 
 (ii) Expenses on shares issued after the date of commercial
 production are written off in ten years from the year in which share
 issue is made.
 
 (i) Contingent liabilities are not provided in Accounts, but are only
 stated by way of Notes to Accounts.
 
 (j) Foreign currency transactions :
 
 (a) Exchange differences relating to the acquisition of fixed assets
 are adjusted against the relevant fixed asset.
 
 (b) Transactions in foreign currencies during the year, other than
 those relating to fixed assets, are initially recorded at the
 exchange rate on the date of the transaction and are restated at the
 actual settlement rate if settled during the year and at the closing
 rate if not settled during the year.
 
 (k) Others :
 
 (i) DG Set Subsidy will be accounted for at the time of receipt.
 
 (ii) Insurance and other claims are being accounted for on settlement
 basis.
 
 (iii) Interest on National Saving Certificate and calls in arrears
 are accounted for on cash basis.