1. Basis of Accounting :
 
 The accounts are prepared under the historical cost convention on
 accrual basis.
 
 2. Valuation of Inventories
 
 Raw Materials, Stores & Spares and Packing materials are valued at
 cost.
 
 Semi finished & finished goods are valued at lower of cost or estimated
 realisable value.
 
 Cost includes estimated apportioned overheads.
 
 Inventory of Raw Materials includes Material in Transit.
 
 3. Excise Duty
 
 Sales are inclusive of excise duty and net of discount.
 
 - Credit of CENVAT availed is adjusted towards cost of materials.
 
 4. Fixed Assets
 
 Fixed Assets have been stated at cost inclusive of expenses incurred
 for acquiring, erecting and commissioning, incidental and development
 expenditure incurred on projects.
 
 5. Depreciation
 
 Provided on Straight Line Method at the rates and in the manner
 prescribed in schedule XIV of the Companies Act, 1956.
 
 6. Investments
 
 - (I) Quoted
 
 Long Term Investment are stated at cost less diminution in value.
 
 - (II) Unquoted
 
 Long Term Investment are stated at cost less diminution in book value.
 
 7. Insurance Claims
 
 Accounted for on accrual basis.
 
 8. Research & Development
 
 Revenue Expenditure on research & development is charged to the profit
 and loss account in the year it is incurred. Capital expenditure on
 research and development is treated as addition to fixed assets.
 
 9. Material In Transit
 
 Custom duty and other incidental expenses on imports are accounted for
 on accrual basis.
 
 10. Taxes on Income
 
 Deferred tax is recognized subject to the consideration of prudence, on
 timing difference, being the difference between taxable income and
 accounting income that originate in one period and capable of reversal
 in one or more subsequent periods.
 
 11. Retirement Benefits
 
 (I) Gratuity is provided for on actuarial valuation basis.
 
 (II) Leave Encashment is provided for on accrual basis.
 
 12. Translation of Foreign Currency Loans
 
 Are realigned at the year end rate and the difference arising if any,
 is booked to revenue.