a) Accounting convention
 
 Accounts have been prepared on historical cost convention.
 
 b) Fixed Assets are stated at cost of acquisition inclusive of inward
 freight, duties, taxes and incidental expenses related to acquisition.
 
 c) Depreciation is provided as per rates prescribed in Schedule XIV of
 the Companies Act, 1956, as under :
 
 Plant and Machinery      -    Straight line method
 
 Other Assets             -    written down value method
 
 No provision for Depreciation is made in current year.
 
 d) Inventories are valued as under :
 
 Stores and Spare Parts             -    Net realisable value.
 
 Work-in-progress (Real Estate)     -    At Cost.
 
 Unsold Flats                       -    At Cost.
 
 e) Retirement Benefits
 
 Due to closure of the mills, liability is not provided for retirement
 benefits namely Provident Fund, Family Pension Fund and Superannuation
 Fund to all eligible employees of the Company.
 
 f) Investments are stated at Cost.