a. BASIS OF ACCOUNTING
 
 i) The accounts have been prepared in accordance with the historical
 cost concept and in accordance with the applicable accounting
 standards.
 
 ii) Income and expenditure are generally accounted for on accrual basis
 except for interest on Income-tax refunds, Insurance claims, Leave
 encashment, Gratuity and realisible value of Advance License received
 against exports made are being accounted for on cash basis.
 
 b. FIXED ASSETS
 
 i) Fixed assets are stated at cost of acquisition or construction
 inclusive of freight, duties, taxes and other expenses related to
 acquisition and installation of the assets concerned.
 
 ii) Land includes leasehold land of Rs. 93,19,404.90.
 
 iii) For assets acquired on hire Purchase amounting to Rs.355.80 lacs,
 unpaid liability is deferred and shown under Deferred Payment Credit.
 
 iv) The carrying amount of Fixed Assets has been reduced by Rs.
 17,02,791.45 to affect the adjustment of exchange difference.
 
 v) Assets amounting to Rs. 20.76 lacs has been discarded and valued at
 NIL.
 
 vi) Assets of the company transferred/shifted from one unit to another
 unit has been considered at original cost at which they were in the
 unit from where shifted.
 
 c. DEPRECIATION
 
 i) Depreciation on all fixed assets is provided on the straight-line
 method in accordance with the Companies Act, 1956.
 
 ii) Depreciation on Plant & Machinery is provided on Triple Shift
 operation basis.  
 
 iii) Depreciation on software is provided at the rate of hundred per
 cent.
 
 iv) Depreciation is provided on pro-rata basis from the date when
 assets are put to use except the assets on which depreciation is
 provided at the rate of hundred per cent.
 
 v) Depreciation on assets transferred from one unit to another unit has
 been charged on original cost of such asset.
 
 d. INVESTMENTS
 
 i) Unquoted Investment is stated at cost. Quoted Non Trading Long-Term
 investments are value at cost.  
 
 ii) No investments has been sold below the price at which they were 
 purchased.  
 
 e. INVENTORIES
 
 i) Stores and spares are valued at cost.
 
 ii) Stock in Trade is valued at lower of cost and net realisable value.
 Cost of inventories is generally ascertained on the 'FIFO' basis. In
 the case of finished goods and process stock appropriate share of
 manufacturing overheads is included.
 
 iii) Inventory of CD-ROM is valued at cost inclusive of appropriate
 share of manufacturing over heads including cost of Stamper/Dat/
 Software. The replication stock is valued at replication N.R.V.
 
 iv) Software Stock is valued at cost.
 
 v) Excise duty on finished goods has been provided at N.R.V. and that
 on process stock and raw material stock has been provided to the extent
 modvat/cenvat availed.
 
 f. MISCELLANEOUS EXPENDITURE
 
 i) Preliminary Expenses and Public issue expenses are being amortised
 over a period of ten years.
 
 ii) Deferred Revenue Expenditure will be written off over a period of
 five years. Rights of CD's purchased during the period have been
 treated as deferred revenue expenditure and will be written off over a
 period of five years.
 
 iii) In preparation of this financial statement of 18 months,
 preliminary expenses and public issue expenses and deferred revenue
 expenses have been written off proportionately for a period of 18
 months period.
 
 g. RETIREMENT BENEFITS
 
 No provision has been made for gratuity and leaves encashment as
 required by Accounting Standard -15 issued by ICAI.
 
 h. EXCISE DUTY/CUSTOM DUTY
 
 Excise duty payable on finished goods and custom duty payable on raw
 material, stores, spares and components are accounted for on the
 clearance of goods from the factory premises/bonded warehouses.
 
 i.  FOREIGN EXCHANGE TRANSACTIONS
 
 i) Export/Import of goods/services and other transactions in foreign
 currency are recorded at the exchange rate prevailing at the time of
 transactions.
 
 ii) Foreign currency assets/liabilities as on the date of Balance Sheet
 are treated at the exchange rate prevailing on the date of Balance
 Sheet.
 
 iii) The resulting exchange difference if any except on account of
 Fixed Assets is recognised in the revenue account.
 
 iv) As a result of change in accounting policy, the company has made
 adjustment on account of difference in exchange in this year as against
 NIL in the last year. Miscellaneous income includes Rs. 2836.66 lacs
 (Net) on account of difference in exchange rate against realisation of
 export outstanding for financial year prior to 1998-99 and on accrued
 basis for the current period.
 
 j. SALES
 
 i) Sales include excise duty but exclude sales tax, all other charges
 and returns.
 
 ii) Domestic Sales is recognised on clearance of goods from factory
 premises/godowns and Export sales are recognised on the date of
 shipping bills.