I) SYSTEM OF ACCOUNTING : 
 
 The Accounts have been prepared in all material respects with
 applicable Accounting Principle in India, the Accounting Standards
 issued by ICAI and relevant provisions of Companies Act,1956 of India
 Items of Income and expenditure are recognised an accrual basis unless
 stated otherwise
 
 II) FIXED ASSETS : 
 
 All fixed assets are valued at cost less depreciation provided in Books
 of Account.
 
 III) DEPRECIATION : 
 
 Depreciation is being provided on straight line method at the rates
 prescribed in Schedule XIV of the companies Act,1956, such as amended
 on pro-rata basis from the date each asset were put to use during the
 year.
 
 IV) INVENTORIES : 
 
 a) Raw material - At cost (FIFO Method)
 
 b) Finished Goods - At cost or market value whichever is lower
 
 c) Stores,Spares & Packing Materials - At cost (FIFO Method)
 
 
 V) SALES : Sales is Exclusive of Excise duty wherever applicable.
 
 
 VI) INVESTMENTS : Investment are stated as cost of acquisation
 
 
 VII) FOREIGN CURRENCY: 
 
 a) Transactions denominated in foreign currency are normally recorded
 at the exchange rate prevailing at the time of the transactions
 
 b) Monetary item denominated in foreign currency at the year end and
 not covered by forward exchange contract are translated at the year in
 rate and those covered by forward exchange contracts are translated at
 the rate ruling on the date of transactions as increased or decreased
 by the proportionated difference between the forward rate and exchange
 rate on the date of transaction such differences having been recognised
 over the life of the contract
 
 c) Non-monetary foreign currency item are carried at cost.
 
 d) Any income of expense on account of exchange difference either on
 settlement or on translation is recognised in the profit or loss
 account except in case where they relate to the acquistion of fixed
 assets in which case they are adjusted to the carrying cost of such
 assets.