(1) System of Accounting :
 
 The Financial statements are prepared under the historical cost
 convention on accrual basis of accounting, in accordance with Generally
 Accepted Accounting Principles in India, the Accounting Standards
 issued by the Institute of Chartered Accountants of India and relevant
 provisions of the Companies Act,1956.
 
 (2) Fixed Assets and Depreciation :
 
 All fixed assets are stated at cost, comprising of purchase price,
 duty, levies and any direct attributable cost of bringing the assets to
 their working condition for the intended use.
 
 Depreciation is provided according to straight line method at the rates
 prescribed by the Schedule XIV to the Companies Act, 1956 and Provision
 for impairment loss is recognised to the extent by which the carrying
 amount of an asset exceeds its recoverable amount.
 
 (3) Investments :
 
 Investments are stated at cost less fall in their market value, if
 considered permanent.
 
 (4) Inventories :
 
 Inventories are valued at cost arrived at FIFO basis or net realisable
 value whichever is lower.
 
 (5) Sales :
 
 Sales are recognised on despatch of goods to the customers, net of
 commercial taxes i.e. central sales tax / value added tax and net of
 return, if any.
 
 (6) Foreign Currency Transactions :
 
 Foreign currency transactions are accounted at the exchange rates
 prevailing at the date of the transaction. Gains / Losses resulting
 from the settlement of such transactions and from conversion of
 monetary assets and liabilities denominated in foreign currencies are
 recognised in the profit and loss account.
 
 In respect of the transactions covered by forward exchange contracts,
 the difference between the year end rates and the exchange rate at the
 date of contract is recognised in Profit & Loss Account and the premium
 paid on forward contract is recognised over the life of the contract.
 
 (7) Borrowing Cost :
 
 Borrowing Cost that are directly attributable to acquisition,
 construction or production of a qualifying asset are capitalised. Other
 borrowings costs are expensed out.
 
 (8) Employee Retirement Benefits :
 
 a.  Company''s contribution to Employees'' Provident Fund is charged to
 Profit and Loss Account.
 
 b.  Company has taken a Group Gratuity Cash Accumulation Policy from
 LIC for its employees including directors and the premium for the
 policy is charged to Profit and Loss Account.