a) Basis of Preparation of Accounts :
 
 The Company maintains its accounts on accrual basis.  Following the
 historical cost convention, except for the revaluation of certain fixed
 asset, in compliance with the accounting standards specified to be
 mandatory by the Institute of Chartered Accountants of India and the
 relevant provisions of the Companies Act, 1956.  However, certain
 claims/expenses which are not ascertainable/acknowledged by the
 customers, are not taken into account.  In case of interest on delayed
 payments towards loans from Financial Institutions, Banks, Sales Tax
 Authority which are accounted on cash basis.
 
 b) Fixed Assets and Depreciation :
 
 Fixed Assets are stated at Cost Less Depreciation except office
 premises which has been revalued as of 31st March, 1993 on the basis of
 the valuation report submitted by approved valuers and are stated at
 revalued cost.
 
 Depreciation on the fixed assets has been charged on the straight-line
 method basis at the rate prescribed in Schedule XIV of the Companies
 Act, 1956.  Lease rent in respect of Leasehold Land is not written off
 proportionately.  In respect of to Office Premises, which were revalued
 in the earlier year, the incremental annual differential depreciation
 on account of revaluation and original cost is being charged to
 revaluation reserve.
 
 c) Sales :
 
 Sales are stated inclusive of Excise Duty and Sales Tax as per practice
 followed in the past.
 
 d) Inventories :
 
 Raw Materials and work in process are valued at the cost.  Trading
 goods are valued at lower of cost or market value.  Packing Materials
 and consumables are charged to expenses as and when purchased.
 
 e) Retirement Benefit :
 
 Leave Encashment, Gratuity are accounted on cash basis.
 
 f) Taxation :
 
 In view of the losses no provision has been made for Income Tax.
 
 g) Liabilities on account of Import :
 
 Liabilities on account of imported raw material are accounted on the
 actual liabilities incurred or in case of non-settled liabilities,
 these are accounted based on the exchange rate prevailing on the date
 of Balance Sheet.