a.  Basis of accounting: The accounts of company are prepared under
 historical cost convention and in accordance with applicable accounting
 standards except where otherwise stated. Accounting policies not
 specifically referred to are consistent with generally accepted
 accounting practices. Revenue / Income and Costs and Expenditure are
 generally accounted on accrual basis, as they are earned or incurred.
 
 b.  Fixed Assets and Depreciation:
 
 i.  All the fixed assets purchased are stated at cost of acquisition
 except in case of those assets, which are revalued.
 
 ii.  Depreciation: Depreciation of other assets is provided on Written
 down value Method , at the rates prescribed by Schedule XIV to the
 Companies Act, 1956.
 
 c.  Sundry Debtors/Loans and Advances: are stated net of provision for
 identified doubtful debts/advances.
 
 d.  Revenue Recognition: Sales Receipts is recognized on the basis of
 deliveries made.
 
 e.  Retirement Benefits:
 
 i.  The retirement benefit in the form of Provident Fund and Pension
 Schemes, whether in pursuance of any law or otherwise, is accounted on
 accrual basis and charged to the profit and loss account of the year.
 
 ii.  Payment for present liability of future payment of gratuity is
 made on actual basis.