Method of Accounting
 
 The Company maintain its accounts on accrual basis.  However, certain
 escalation and other claim which are not ascertainable/knowledged are
 not taken into account.
 
 Inventories :
 
 Raw Materials are value at cost and finished goods at the lower of cost
 or net realisable value.
 
 FIXED ASSETS
 
 Fixed Assets are valued at cost or acquisition including freight,
 import duty, excise, local taxes, cost or erection and other incidental
 expenses.
 
 DEFERRED REVENUE EXPENDITURE :
 
 Deferred revenue expenditure is being written off over the period of
 benefit derived from the expenses as estimated.
 
 Retirement Benefits :
 
 Retirement benefits in respect of Gratuity is being treated on cash
 basis and no provision has been made for the same.
 
 FOREIGN EXCHANGE TRANSACTION :
 
 Export sales are accounted for on shipment against order at the
 conversion rates prevailing as on the date of negotiation of documents
 and balance on actual realisation.