1.  GENERAL :
 
 (a) The Accounts are prepared under the historical cost convention, in
 accordance with the generally accepted accounting principles and the
 provision of the Companies Act, 1956 as adopted consistently by the
 company.
 
 (b) Accounting policies not specifically referred to otherwise are
 consistent with generally accepted accounting principles.
 
 2.  FIXED ASSETS :
 
 Fixed Assets are shown at Original cost of acquisition less accumulated
 depreciation.
 
 Fixed Assets are revalued as on 31.03.2012. The surplus arising from
 the revaluation has been transferred to Revaluation Reserve and
 shown under the head Reserves & Surplus. As the Fixed Assets were
 revalued on the last day of the Balance sheet, no depreciation has been
 provided on Revalued Figures.
 
 3.  DEPRECIATION :
 
 Depreciation is provided on straight line basis applying the rates
 specified in Schedule XIV of the Companies Act 1956 under straight line
 method:
 
 (i) In respect of assets acquired on 01.01.1994 and thereafter at
 revised rates specified in the said Schedule vide Notification No 756 E
 dated 16.12.93 and as clarified in Circular No. 14 dated 20.12.1993
 issued by the Department of the Company Affairs.
 
 (ii) In respect of assets on hand as on 31.12.93 at the rates in force
 prior to the abovementioned notification.
 
 4.  INVENTORIES :
 
 Raw materials and consumable Stores are valued at cost. Finished and
 Semi Finished goods are valued at lower of cost or market value.
 
 5.  REVENUE RECOGNITION :
 
 In case of Sales of Goods - When the property and all significant risk
 and rewards of ownership are transferred to the buyer or no significant
 uncertainty exists regarding the amount of consideration that is
 derived from the sale of goods. It excludes amounts recovered towards
 Sales Tax and includes amount received towards process- ing activities
 done for other, if any.
 
 6.  TREATMENT OF EXPENDITURE DURING CONSTRUCTION PERIOD:
 
 All normal pre-production revenue expenditure including interest on
 borrowed funds till the commencement of commercial production are
 capitalized.
 
 7.  TREATMENT OF EMPLOYEES BENEFITS :
 
 Benefits payable to employees during their tenure of employment viz.
 Bonus, Leave Encashment etc are ac- counted on cash basis. Retirement
 benefits are accounted as and when the same become due for payment.
 
 8.  CURRENCY TRANSACTION :
 
 (i) Import and Export of goods in foreign currency are accounted at
 exchange rates prevailing on the date of payment, whenever made.
 
 (ii) Term loans in foreign currency for financing capital expenditure
 were accounted at rupee equivalent values on the date of loans
 disbursement. Till 31.12.2001 year-end outstanding loans were
 reconverted at the rate prevailing on Balance Sheet Date.
 
 9.  MISCELLANEOUS EXPENDITURE:
 
 The balance amount of Expenses on Exhibition Index-II would have been
 amortised in the two financial years
 
 10.  TREATMENT OF CONTINGENT LIABILITIES/GAINS
 
 The amount of contingent losses are charged to the Profit & Loss
 Account on a reasonable estimated basis that probable future event
 confirm that an asset has been impaired or a liability has been
 incurred as at the Balance Sheet Date and contingent gains are not
 recognized in the accounts.