i.  BASIS OF ACCOUNTING
 
 The Company prepares its accounts on accrual basis except otherwise
 stated, in accordance with the normally accepted accounting principles.
 
 ii.  FIXED ASSETS AND DEPRECIATION
 
 Fixed Assets
 
 Fixed Assets are stated at cost of acquisition inclusive of inward
 freight, duties, taxes, incidental expenses & other pre-operative
 expenditure incurred during the year and trial run period form part of
 incidental expenses which are added to the cost of Fixed Assets.
 
 Depreciation
 
 No Depreciation has been provided on Fixed Assets. However, assets
 costing up to Rs. 5000/- are written off in the year of purchase.
 
 iii.  INVESTMENTS
 
 Investments are held on long term basis and valued at their acquisition
 cost. Diminution in value, if any which is of temporary nature is not
 provided for.
 
 iv.  SALES:
 
 Sales comprise Sale of Goods net of discount and goods returns.
 
 v.  VALUATION OF INVENTORY
 
 Raw materials -At Cost
 
 Finished Goods & Semi -At Cost or
 
 Finished Goods Net Realisation Value (Which ever is lower)
 
 vi. RETIREMENT BENEFITS
 
 Provision for Gratuity liability & Leave Encashment is made on
 Actuarial basis as per Accounting Standard -15 issued by the Institute
 of Chartered Accountants of India.
 
 vii. REVENUE RECOGNITION
 
 Interest on investment and other loans & advances is accounted for on
 accrual basis.
 
 viii.  CONTINGENCIES
 
 These are disclosed by way of notes in the Balance Sheet. Provision are
 made in the accounts in respect of those liabilities which are likely
 to materialise after the year end till the Finalisation of the accounts
 and have material effect on the position stated in the Balance Sheet.