(I) BASIS OF ACCOUNTING :The accounts are prepared in accordance with
 applicable mandatory accounting standards under the historical cost
 convention and mercantile system of accounting is followed for
 recognition of Income and Expenses.
 
 (II) INVESTMENT: Current investments are valued at lower of cost and
 fair market value. Long term investments are stated at cost after
 deducting provisions made for other than temporary diminution in the
 value, if any.
 
 (III) FIXED ASSETS: Fixed assets are stated at cost. Cost comprises its
 purchase price, including import duties and other non-refundable taxes
 or levies and any directly attributable cost of bringing the assets to
 its working condition for its intended use.
 
 (IV) INVENTORIES: Inventories are valued at the lower of cost and net
 realizable value. Cost comprises of all costs of purchase, cost of
 conversion and other costs incurred in bringing the inventories to
 their present location and condition.
 
 Cost of Raw Material is determined on seasonal weighted average cost.
 Cost of stores and spares and finished goods are determined on weighted
 average cost.
 
 (V) BORROWING COST :Borrowing Cost that are directly attributable to
 the acquisition .construction or production of a qualifying asset are
 capitalized and other borrowing cost are charged to Profit & Loss
 Account.
 
 (VI) DEPRECIATION -.Depreciation on the Fixed Assets has been provided
 in the books as per straight the method at the rates prescribed in
 schedule XIV of the Companies Act, 1956.
 
 (VII) SALES:Sales includes freight and handling outwards but is net of
 goods returned, rebates and discounts
 
 (VIII) EMPLOYEE BENEFITS: 
 
 (i)Salaries, wages, house rent allowances and leave encashments are
 accounted for on accrual basis.
 
 (ii)Liability for employees'' gratuity is accounted for on the basis of
 contribution determined by L.I.C.  under their Group Gratuity Cash
 Accumulation Scheme.
 
 (IX) Prepaid expenses are proportionately accounted for on time basis
 in respect of insurance premium.
 
 (X) Insurance claims are accounted for on the basis of claims filed
 with the Insurance Company and adjustments arising due to short/excess
 received in such claims are made in the year the claim is finally
 settled.