a.  Financial statements have been prepared in accordance with the
 historical cost convention on accrual basis in accordance with the
 provisions of Companies Act, 1956.
 
 b.  Fixed assets are stated at cost of acquisition including
 preoperative expenses capitalized less accumulated depreciation.
 
 c.  Depreciation on plant & machinery is provided on written down value
 method at the rates prescribed in Schedule-XIV of the Companies Act,
 1956.
 
 d.  Investments are stated at cost of acquisition.
 
 e.  Preliminary expenses are amortised over a period of five years.
 
 f.  Inventories are valued at cost of purchase or production.