A. Sales
 
 Sales are exclusive of Excise Duties and Sales-Tax.
 
 B. Depreciation
 
 The Company has provided depreciation on all fixed assets acquired till
 31-12-1980 on the Written Down Value method and on assets added
 thereafter on the Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956.
 
 C. Fixed Assets
 
 Fixed Assets are stated at cost of acquisition or construction less
 depreciation except for certain land and Buildings which have been
 valued at depreciated replacement value as stated in Note 6.  All costs
 relating to the acquisition, net of Modvat Benefit, and installation of
 fixed assets are capitalised and include all costs prior to the
 commencement of production.  In respect of assets sold, where the cost
 can not be ascertained, sales proceeds are considered to be the original cost.
 
 D. Foreign Currency Transactions
 
 (i) The current assets of the London Office as at the end of the year
 have been translated at closing rate.  Fixed assets have been translated at the exchange rate on the date of
transaction.  Revenue items have been translated at average rate.
 
 (ii) Monetary assets and liabilities related to foreign currency
 transactions remaining unsettled at the end of the year are translated
 at the year end rates.  The difference in translation of monetary assets and liabilities and realised gains
and losses on foreign exchange transactions other than those relating to fixed assets are recognised under
respective heads in the Profit and Loss Account.  In respect of transactions covered by foreign exchange
contracts, the difference between contract rate and spot rate on the date of transaction is charged under the
respective head to the Profit and Loss Account over the period of the contract.
 
 E. Investments
 
 (i) Investments in foreign currency in Shares of foreign joint venture
 company is translated at the rate prevailing on the transaction date.
 
 (ii) Investments are stated at cost of acquisition.  As the same are
 intended to be held for a long period, temporary diminution in the
 value of quoted shares is not recognised.  In case of unquoted shares
 where diminution is not temporary, the same is fully provided for.
 
 F. Inventories
 
 (i) Inventories of Raw Materials are valued at monthly weighted average
 cost or net realisable value, whichever is lower.  Finished goods and
 Stock-in-process are valued at lower of cost or net realisable value.
 Landed cost of Raw Materials and Stores is net of the credit, if any,
 for Excise Duty paid thereon.  The amount of any Customs Duty payable
 on Raw Materials and Excise Duty payable on finished goods is not
 included in the value of the goods untill it is paid.
 
 (ii) Stock of Developed Property and Property development work-in-progress represents cost of land,
construction and development
 expenditure.
 
 G. Export Incentives
 
 Export incentives are accounted for on accrual basis.
 
 H. Property Development
 
 The Company follows completed contract method of accounting in respect
 of property development.  Under this method the profit in respect of
 units sold will be recognised only when the work in respect of relevant
 units are completed.
 
 I. Interest
 
 Interest on delayed payments is accounted on accrual thereof.
 
 J. Research and Development
 
 Research and Development expenses which are revenue in nature are charged off in the year in which they are
incurred.  Capital Expenditure is included in Fixed Assets under appropriate heads.
 
 K. Retirement Benefits
 
 (i) Liability is provided and funded for retirement benefits of 
 Provident Fund, Superannuation Fund and Gratuity in respect of all
 eligible employees of the Company.  The Gratuity liability is evaluated
 on the basis of an actuarial valuation.
 
 (ii) The Company extends the benefit of encashment of leave to its
 employees while in service as well as on retirement.  As the Company
 does not have any defined retirement benefit scheme in this respect,
 Accounting Standard AS 15 issued by the Institute of Chartered Accountants of India is not considered
applicable.
 
 Encashment of leave accumulated while in service is at the option of
 the employee and is accounted for as and when claimed hence not provided for.
 
 L. Miscellaneous Expenditure
 
 Cost of Early Retirement Scheme is charged on payment basis.