SIGNIFICANT ACCOUNTING POLICIES: 
 
 a) General
 
 i) These accounts are prepared on the historical cost basis and on the 
 accounting principles of a going concern.
 
 ii) Accounting Policies not specifically referred to otherwise are 
 consistent and in consonance with generally accepted accounting 
 principles.
 
 b) Sales
 
 Sales are inclusive of Excise Duty.
 
 c) Valuation of Inventories
 
 Raw Materials, Stores, Spare parts and Packing materials are valued at 
 cost or market price whichever is lower, scrap stock is valued at 
 realisable value.
 
 Goods in process are valued at cost, and finished goods are valued at 
 lower of cost or net realisable value. Cost for this purpose is 
 computed on the basis of cost of material, labour and other related 
 overheads.
 
 d) Depreciation
 
 Depreciation on fixed assets has been provided on straight line method 
 at rates provided by Schedule XIV of the Companies Act, 1956. Freehold 
 land is not depreciated.
 
 e) No provision for gratuity and provident fund has been made as the 
 Company was incorporated in January, 1992 so no employee has been put 
 in the qualifying period of service.