The financial statements are prepared under historical cost convention
 on accrual basis and comply with Accounting Standards (AS) referred to
 in Section 211(3C) of the Companies Act, 1956. The preparation of
 financial statements requires the management to make estimates and
 assumptions considered in the reported amounts of assests and
 liabilities(including contingent liabilities) as of the date of the
 financial statements and the reported income and expenses. The
 management believes that the estimates used in the preparation of the
 finanfial statements are prudent and reasonable. Future results could
 differ from the estimates. Significant accounting policies adopted in
 the presentation of the accounts are as under:
 
 a) Fixed Assets
 
 Fixed Assets are carried at cost less depreciation.
 
 b) Depreciation
 
 Depreciation on Assets is provided on straight line basis at rates
 which are in conformity with the requirements of the Companies Act,
 1956. Assets given to the employees under the Companys white good
 scheme are depreciated as per the terms of the scheme. Buildings
 constructed and capital expenditure incurred on leasehold rights are
 depreciated at the rates arrived at based on the number of years of
 total lease or the rates applicable as per the Companies Act, 1956
 whichever is higher.
 
 c) Investments
 
 Long Term Investments are carried at cost. Provision for decline in the
 value, other than temporary, has been made wherever necessary.
 
 Current Investments are carried at lower of cost and market value / net
 asset value.
 
 d) Inventories
 
 Inventories are valued at cost on weighted average basis.
 
 e) Transactions in Foreign Exchange
 
 Transactions in foreign currencies are recorded at the exchange rate
 prevailing on the date of the transactions. Monetary
 items denominated in foreign currency and outstanding at the Balance
 Sheet date are translated at the exchange rate ruling at the year end. 
 Exchange differences arising on foreign currency transactions are 
 recognised as income or expense in the period in which they arise.
 
 Non-monetary items denominated in foreign currency are carried at the
 exchange rate in force at the date of the transaction.
 
 f) Derivative Instuments
 
 Exchange defference arising on repayment/revaluation of derivative
 contracts, entered in to in respect of some of the companys undelying
 borrowings, are recognised as income or expense, as the case may be, in
 the period in which arise.  Interest rate derivatives are accounted
 based on the underlying benchmark for the relevant period.
 
 g) Employee Benefits
 
 In respect of defined contributions schemes, contributions to Provident
 Fund and Family Pension are charged to profit and loss account as 
 incurred.
 
 In respect of defined benefit schemes, the post - retirement benefits
 such as gratuity, leave encashment and other
 retirement benefits are accounted for based on valuations, as at the
 balance sheet date, made by an independent actuary.
 
 Gratuity in respect of certain employees is covered by Group Gratuity
 scheme with the Life Insurance Corporation of India
 and the balance employees contribution is made to a recognised fund and
 is managed by the company.
 
 In respect of other employee benefits, provision for such benefits are
 provided in terms of Accounting Standard - 15 (Revised) - Employee 
 Benefits.
 
 h) Borrowing Cost
 
 Borrowing costs incurred on acquiring qualifying assets (i.e. assets
 that necessarily take a substantial period of time to get ready for
 their intended use) are capitalised at the weighted average rate at
 which the funds have been borrowed for such acquisition.Other borrowing
 cost are recognised as an expense in the year in which they are
 incurred.
 
 i) Taxes on Income :
 
 Income Tax is computed in accordance with Accounting Standard 22
 (AS-22)  Accounting for Taxes on Income. Tax
 expenses are accrued in the same period as the revenue and expenses to
 which they relate.
 
 Provision for current income tax is made on the tax liability payable
 on taxable income after considering tax allowances, deductions and
 exemptions determined in accordance with the prevailing tax laws. The
 differences between taxable income and the net profit /loss before tax
 for the year as per the financial statements are identified and the tax
 effect of the deferred tax asset or deferred tax liability is recorded
 for timing differences, i.e. differences that originate in one
 accounting period and reversed in another. The tax effect is calculated
 on accumulated timing differences at the end of
 the accounting year based on applicable tax rates. Deferred tax assets/
 liabilities are reviewed as at each Balance Sheet date.
 
 Deferred tax assets, other than on unabsorbed depreciation and carried
 forward losses, are recognised only if there is reasonable certainty 
 that they will be realised in future and are reviewed for the 
 appropriateness of their respective carrying values at each balance 
 sheet date. In situations, where the company has unabsorbed 
 depreciation and carried  forward losses, deferrred tax assets are 
 recognised only if there is virtual certainty supported by convincing 
 evidence that the same can be realised against future taxable profits.
 
 j) Impairment of Assets:
 
 Impairment is ascertained at each balance sheet date in respect of the
 Companys fixed assets. An impairment loss is recognised whenever the
 carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the greater of the net selling price and value in
 use. In assessing value in use, the estimated future cash flows are
 discounted to their present value based on an appropriate discount
 factor.
 
 k) Accounting for Provisions, Contingent Liabilities and Contingent
 Assets:
 
 Provisions are recognised in terms of Accounting Standard 29 -
 Provisions, Contingent Liabilities and Contingent Assets, when there
 is a present legal or statutory obligation as a result of past events
 where it is probable that there will be outflow of resources to settle
 the obligation and when a reliable estimate of the amount of the
 obligation can be made.  Contingent Liabilities are recognised only
 when there is a possible obligation arising from past events due to
 occurrence or non-occurrence of one or more uncertain future events not
 wholly within the control of the Company or where any present
 obligation cannot be made. Obligations are assessed on an ongoing basis
 and only those having a largely probable outflow of resources are
 provided for.  Contingent Assets are not recognised in the financial
 statements.