1. SALES
 
 a. Sales as reported in inclusive of Excise Duty.
 
 b. Income and Expenditure are accounted on accrual basis.
 
 2. MODVAT
 
 Modvat credit is accounted for by reducing the purchase cost of related
 material.
 
 3. FIXED ASSETS
 
 Fixed assets include all expenditure of capital nature and are stated
 at cost of acquisition, installation and commissioning, less
 depreciation.  Fixed Assets values are stated at historical cost.
 
 4. DEPRECIATION ON FIXED ASSETS
 
 Depreciation is provided on the straightline method corresponding to
 the rates specified under Schedule XIV of the Companies Act, 1956 as
 amended upto date.  Depreciation for additions has been provided for
 the full year.  No Depreciation is provided on Assets in the year of
 their sale/disposal.
 
 Depreciation on Machinery and Equipment costing upto Rs. 5,000.00 each
 is provided at 100%.
 
 5. FOREIGN CURRENCY TRANSACTION
 
 Import of Goods in Foreign Currency are stated at the Exchange Rate
 prevailing on the date of purchase where such purchases are not covered
 by forward contracts.  Gain/Loss arising out of fluctuations in the
 exchange rate are accounted for on realisation.  As regards exports,
 the company gets Post Shipment credit in Indian Rupees by way of
 negotiation/discount of export bills.  The Foreign Exchange,
 fluctuation on export sales is added to export sales in the year of
 realisation.
 
 6. INVENTORIES
 
 (a) Raw materials/Packing materials are valued at cost.
 
 (b) Stock-in-process is valued at cost.
 
 (c) Finished goods are valued at lower of cost or Market Price.
 
 7. CONTINGENT LIABILITIES
 
 Contingent liabilities are not provided for and are disclosed by way of
 notes to accounts.
 
 8. TREATMENT OF EXPENDITURE DURING CONSTRUCTION PERIOD
 
 Expenditure during construction period are included under Capital Work
 in Progress and the same is allocated to the respective fixed assets on
 the completion of construction.
 
 9. RETIREMENT BENEFITS
 
 Gratuity contribution is charged to revenue on the basis of payment
 made to Gratuity Trust in accordance with scheme framed by the Life
 Insurance Corporation of India.