a) The financial accounts are prepared under the historical cost
 convention and accounted on accrual basis.
 
 b) INVENTORIES
 
 Raw materials including components, finished goods, goods in process,
 materials in transit, packing materials and stores & spares have been
 valued at lower of cost and estimated net realiseable value. Cost is
 computed under the FIFO method.
 
 c) DEPRECIATION
 
 Depreciation has been charged :
 
 i) at 10% under straight line method on machinery imported Body maker
 and Bag openers and other projects having regard to the expected useful
 life and residual value and
 
 ii) at the rates and in the manner prescribed under Schedule XIV of the
 Companies Act, 1956.
 
 a) on assets relating to 3D Project (I Line) and assets related to Wind
 Mill under straight line method.
 
 b) on all the other assets under written down value method.
 
 d) REVENUE RECOGNITION
 
 i) Sales exclude Discounts, Sales Tax recoveries and include Excise
 Duty.
 
 ii) Interest is recognised on the time basis determined by the amount
 outstanding and the rate applicable.
 
 e) FIXED ASSETS
 
 Fixed Assets are stated at cost less depreciation except land which is
 stated at cost. Cost comprises purchase price and attributable costs
 (including financing costs).
 
 f) FOREIGN CURRENCY TRANSLATION
 
 Net gain or loss on conversion at year end of current assets and
 current liabilities other than transactions relating to fixed assets is
 recognised in the Profit & Loss Account. In respect of liabilities
 incurred in foreign currencies for acquisition of fixed assets,
 variations in exchange rates at the time of repayment of loan
 instalments are adjusted to the value of fixed assets.
 
 g) EMPLOYEE BENEFITS
 
 1) Short term employee benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 2) Post employment and other long term employee benefits are recognised
 as expense in the profit and loss account of the year in which the
 employee has rendered services:
 
 i) Employees Provident Fund, Employees State Insurance and
 Superannuation are defined contribution plans.  The contributions under
 these plans are charged to revenue.
 
 ii) a) Gratuity is a defined benefit plan funded with the L.I.C. The
 contributions actuarially assessed by the L.I.C and paid under the plan
 are charged to revenue.
 
 b) Actuarial gains and losses are charged to revenue.
 
 iii) In respect of those not covered by L.I.C., schemes necessary
 provisions has been made as applicable.
 
 iv) Future liability on leave encashment to employees has been provided
 as per Companys Policy.
 
 3) Termination benefits: Payments made under employees  Early
 Separation Scheme are amortised over a period of five years from the
 date upto which the scheme was in operation.
 
 h) EARNINGS PER SHARE
 
 The Companys share capital consists only of Equity Shares. The basic
 earning per share is calculated and disclosed.
 
 i) ACCOUNTING FOR TAXES ON INCOME
 
 Tax expense for the current year comprises current tax and deferred
 tax. Deferred tax is recognised for all timing differences subject to
 consideration of prudence. Deferred tax in respect of the accumulated
 balance as on 31- 03-2001 has been recognised in the accounts as
 deferred tax, asset / liabilities with a corresponding charge of net
 amount to the general reserve.
 
 j) RELATED PARTY DISCLOSURES have been made as per Accounting Standard
 18
 
 k) RESEARCH AND DEVELOPMENT
 
 Revenue expenditure on Research and Development is charged to Profit
 and Loss Account as and when incurred.  Expenditure on assets acquired
 are capitalised.
 
 l) INTANGIBLE ASSETS
 
 There are no other intangible assets except those disclosed in the
 accounts separately for Cost of acquired computer software
 
 m) IMPAIRMENT OF ASSETS
 
 There being no indication of impairment of assets, no loss has been
 recognised on impairment of assets.