1.  GENERAL:
 
 Unless otherwise stated hereunder the financial accounts have been
 drawn up on Historical Cost Convention generally following accrual
 basis of accounting.
 
 2.  FIXED ASSETS:
 
 Fixed Assets are recorded at cost of acquisition/construction.
 
 3.  DEPRECIATION:
 
 Depreciation on Fixed Assets has been provided on Straight Line Method
 in accordance with the rates prescribed in Schedule XIV of the
 Companies Act, 1956 as amended by the Notification GSR 756 (E) dated
 16.12.93 issued by the department of Company Affairs.
 
 4.  INVESTMENTS:
 
 Investments are recorded at cost.
 
 5.  INVENTORIES:
 
 Inventories are valued on the basis given below:
 
 (a) Raw Material - At Cost.
 
 (b) Semi Finished Goods - At Direct Cost i.e. Raw Materials and
 Conversion Cost, except those purchased directly which are valued at
 cost.
 
 (c) Finished Goods-At Absorption Cost.
 
 (d) Packing Materials - At Cost.  «.  EMPLOYEE BENEFIT SCHEMES:
 
 (a) Provident Fund- Eligible employees of the Company receive benefits
 under the Provident Fund which is a defined contribution plan, where
 both the employee and the Company make monthly contributions equal to
 specified percentage of the covered employee''s salary. These
 contributions are made to the funds administered and managed by the
 Government.  The Company''s monthly contributions are charged to revenue
 in the period they are incurred.
 
 (b) Gratuity - In accordance with the Payment of Gratuity Act 1972, the
 Company provides for gratuity a defined retirement benefit plan (the
 Gratuity Plan) covering eligible employees. Liabilities with regards
 to such Gratuity Plan are determined by actuarial valuation and the
 excess of actuarial valuation over the fund available as corpus under
 Company''s LIC Group Gratuity Policy is provided and charged to revenue
 in the period along with the contribution made to the said policy. The
 actuarial assumptions in arriving at the provision of gratuity
 liability as at the year end amounting to Rs.2,04,164 are as follows;
 
 i) Discount Rate (p.a.) 8%
 
 ii) Salary escalation rate 4%
 
 iii) Retirement age 60 Years.
 
 (c) Provision for unutilized Leave- The accrual for unutilized leave is
 determined for the entire available leave balance standing to the
 credit of the employees at the year end and charged to the revenue in
 the period.
 
 7.  FOREIGN CURRENCY TRANSACTIONS:
 
 Transactions in Foreign Currency are accounted at the exchange rate
 prevailing on the date of the transaction. Year end balances of the
 foreign currency transactions are translated at the year end rate and
 the corresponding effect is given in the respective account.
 
 8.  EXCISE DUTY:
 
 (a) Excise duty is charged to Profit and Loss Account in the year of
 clearance of goods.
 
 (b) CENVAT credits on materials purchased for production are taken into
 account at the time of purchase and cenvat credits on purchase of
 capital items wherever applicable are taken into account as and when
 the assets are installed to the credit of respective purchase and asset
 accounts. The Cenvat credits so taken are utilised for payment of
 excise duty on goods manufactured. The unutilised Cenvat credit is
 carried forward in the books.
 
 9.  EARNING PER SHARE:
 
 In determining earnings per share, the Company considers the net
 profit/(loss) after tax for the year attributable to equity
 shareholders. The number of shares used in computing basic earnings per
 share is the weighted average number of shares outstanding during the
 year. The number of shares used in computing diluted earnings per share
 comprises the weighted average shares considered for deriving basic
 earnings per share, and also the weighted average number of equity
 shares which could have been issued on the conversion of all dilutive
 potential equity shares.