1. SALES :
 
 Sales comprise sale of goods and services.
 
 2. RESEARCH & DEVELOPMENT :
 
 Revenue expenditure on research and development is charged against the
 profit of the year in which it is incurred.  Capital expenditure on
 research and development is shown as an addition to fixed assets.
 
 3. FIXED ASSETS & DEPRECIATION :
 
 Tangible assets are stated at cost less depreciation, which is provided
 on written down value method in accordance with Schedule XIV of the
 companies Act, 1956 as amended vide notification dated 16th December,
 1993 issued by the Department of Company Affairs, Government of India.
 
 4. INVESTMENTS :
 
 Investments are stated at cost.
 
 5. CURRENT ASSETS :
 
 Inventories are valued at direct cost or estimated net realisation
 value after providing for cost of obsolescence, which ever is less.
 
 6. FOREIGN CURRENCIES :
 
 Exchange differences are dealt with as follows :
 
 All exchange difference arising from foreign currency transactions
 (including forward contracts) are dealt within the Company's profit and
 loss account.
 
 All other foreign currency liabilities/assets not covered by any
 forward contracts are restated at the rates ruling at the year end and
 any material exchange difference arising on such transactions are
 dealt within the profit and loss account.
 
 7. INTEREST :
 
 Interest received on deposits is adjusted against Interest paid.