(a) General
 
 The accounts are prepared on accrual basis under the historical cost
 conventions and in accordance with the generally accepted accounting
 principles. However, Bonus and gratuity payable to the employees is
 accounted for in the year of actual payment.
 
 (b) Valuation of Inventory
 
 Stocks are valued at cost or estimated realizable value as decided by
 the management.
 
 (c) Valuation of fixed assets:
 
 Fixed Assets are valued at cost of acquisition less accumulated
 depreciation. Cost of acquisition includes freight, duties, taxes and
 incidental expenses attributable to bringing the same to their working
 condition.
 
 (d) Depreciation:
 
 Depreciation is provided on straight line method as per rates
 prescribed in Schedule XIV of the Companies Act, 1956.
 
 (e) Amortisation of Expenses:
 
 Share issue expenses are written off over a period of ten years.
 
 (f) Retirement Benefits:
 
 Contribution to Provident Fund are accounted for on actual liability
 basis. Gratuity & Leave Encashment payable to ex-employees is accounted
 for as and when actually paid.
 
 (g) Borrowing Cost:
 
 Borrowing costs attributable to the acquisition, construction or
 production of qualifying assets are capitalized as part of costs of such
 assets. A qualifying asset is an asset that necessarily requires a
 substantial period of time to get ready for its intended use or sale.
 All other Borrowing Costs are recognized as an yawn in the period in
 which they are incurred.