1.  Basis of Accounting: -
 
 (a) The accounts are prepared under the historical cost concept. All
 expenses and incomes to the extent ascertained as payable and
 receivable respectively are accounted for on mercantile basis unless
 stated otherwise
 
 (b) Sales are recognised in passing of property in goods as per terms
 of sale.
 
 2.  Fixed Assets: -
 
 Fixed assets are carried at cost of acquisition or construction less
 accumulated depreciation.
 
 3.  Depreciation: -
 
 Depreciation on assets is provided in the accounts at the straight-line
 value method. Depreciation on additions have been provided on prorata
 basis (monthly rests) as prescribed under the Schedule XIV of the
 Companies Act, 1956
 
 4.  Inventories are valued as under: -
 
 (a) Raw Material, Stores, Spares and Consumable At cost
 
 (b) Finished Goods Lower of cost or Market Price
 
 (c) Goods in Process At Estimated Cost Cost includes an appropriate
 proportion of expenses.
 
 5.  Contingent Liabilities: -
 
 Contingent Liabilities not provided for are disclosed by way of notes.
 
 6.  Sales: -
 
 Sales are net of Excise duty.
 
 7.  Excise Duty: -
 
 Excise duty on finished goods is accounted for as and when the material
 is cleared.
 
 8.  Retirement Benefits: -
 
 (a) Contribution to Provident Fund and other recognized Funds are
 charged to Profit & loss Account
 
 (b) Leave encashment is provided in terms of contractual obligations as
 per companys Rules
 
 (c) Gratuity liability is provided on the basis of actuarial valuation.
 
 9.  Contingent Liabilities: -
 
 Contingent Liabilities are not provided and disclosed by way of notes
 on accounts.
 
 10.  Accounting Policies: -
 
 Accounting policies not specifically referred to here in above is in
 consistent with generally accepted accounting practices.