1.  ACCOUNTING ASSUMPTIONS
 
 Accrual system of Accounting is generally followed to record income and
 expenditure.
 
 2.  FIXED ASSETS
 
 Fixed Assets are accounted at cost of acquisition inclusive of inward
 freight, duties and taxes and incidentals related to acquisitions.
 Assets under installation or under construction as at the Balance Sheet
 date are shown as Capital Work-in-Progress.
 
 3.  DEPRECIATION
 
 Depreciation is provided on straight line method at the rates computed
 in accordance with Sec.205(2)(b) of the Companies Act, 1956 and in
 accordance with Schedule XIV of the Companies Act, 1956 as amended from
 time to time.
 
 4.  INVENTORIES
 
 Inventories are valued as under:
 
 a) Finished Goods are valued at lower of cost or realisable value.
 
 b) Stores & Spares, Raw materials, Packing Materials, Work-in-Progress
 are valued at Cost.
 
 c) Scrap Stores are valued at net realisable value.