I.  Basis of Presentation
 
 The financial statements are prepared under the historical cost
 convention modified by revaluation of fixed assets and in accordance
 with applicable Accounting Standards and relevant presentation
 requirements of the Companies Act. For recognition of income and
 expenses, Mercantile system of Accounting is followed.
 
 II.  Fixed Assets
 
 Fixed Assets are stated at cost or revaluation net of accumulated
 depreciation. Cost comprises the purchase price and any directly
 attributable costs of bringing the assets to working condition for its
 intended use. When fixed assets are revalued,surplus on revaluation is
 credited to Revaluation Reserve Account.
 
 III. Investments
 
 Investments are stated at cost of acquisition. Market value of quoted
 Investments at the date of the Balance Sheet is disclosed. Adjustment
 for increase / decrease in the value of investment, if any, is
 accounted for on realisation of the investment.
 
 IV.  Inventories
 
 Inventories are valued at lower of cost or net realisable value. Cost
 for raw materials, store, packing material and consumables is generally
 determined on FIFO basis. Cost for own manufacturued goods comprises of
 materials and other attributable expenses and overheads (including
 interest).
 
 V.  Depreciation
 
 Depreciation on fixed assets has been provided on streight line method
 basis. Depreciation on Plant and Machinery has been provided for at the
 rates prescribed in Schedule XIV to the Companies Act 1956. In respect
 of certain assets whose residual useful life is determined to be less
 than the residual life as per books, depreciation is provided at the
 adjusted higher rates so that the value thereof is written off over the
 useful life detrmined.  ''
 
 VI.  Retirement Benefits
 
 Retirement benefit in the form of provident fund is a defined
 contribution scheme. The contributions to the Provident fund are
 charged to the statement of profit and loss for the year when the
 contributions are due. The comapny has no obligation, other than the
 contribution payable to the provident fund.
 
 The company operates defined benefit plan viz gratuity. The costs of
 providing benefits under this plan are determined on the basis of
 actuarial valuation each year.
 
 VII. Foreign Currency Transactions ''
 
 Outstanding foreign currency assets and liabilities are translated at
 the exchange rate prevailing as on Balance Sheet date or forward cover
 rate (as stretched over the period of contract), as the case may be.
 Gains or losses on these assets and liabilities including those on
 cancellation of forward exchange contracts, relating to the acquisition
 of fixed assets are adjusted to the cost of such fixed assets and those
 relating to other accounts are recognised in the Profit and Loss
 Account under res- pective heads of accounts. The difference between
 the forward rate and the exchange rate at the date of transaction is
 recognised as income or expencese over the life of contract.
 
 VIII.  Taxes on Income
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the period. .
 
 Deferred tax is recognised, subject to the consideration of prudence,
 on timing differences, being the differeces between taxable income and
 accounting income that originate in one period and are cap- able of
 reversal in one or more subsequent periods. Deferred tax assets are not
 recognised unless there is virtual certainty that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realised.