(a) Basis & Method of Accounting
 
 The Company maintains accounts on historical cost convention. The
 accrual system of accounting is followed except for Lease Rent,
 Gratuity, Bonus & Interest on borrowings from Ranks and FIs and
 interest on acceptances.
 
 (b) Fixed Assets and Depreciation
 
 Fixed Assets are stated at the cost of acquisition or construction
 inclusive of pre-operative expenditure incurred during the construction
 period.
 
 Depreciation is provided under the Written Down Value Method at the
 rates specified in the Schedule XIV of the Companies Act, 1956.
 Depreciation on additions and capitalisation of assets has been
 provided on pro-rata basis from the month of additional and
 capitalisation as the case may be.
 
 No amount has been written off in respect of Lease-hold land.
 
 (c) Inventories
 
 Inventories are valued at cost or net realisable value whichever is
 lower. In the case of work in process & finished goods the same is
 valued at raw materials and proportionate overhead costs.
 
 (d) Revenue Recognition
 
 Tax exemption and Modvat benefits.
 
 (e) Miscellaneous Expenditure
 
 Miscellaneous expenditure have been written off as 1/10th of every year
 in case of Preliminary and Issue Expenses.
 
 (f) Excise Duty
 
 Excise duty on finished goods manufactured is accounted for on
 clearance of goods from Factory Premises.
 
 (g) Retirement Benefits
 
 No provision has been made in respect of payment of Gratuity since the
 same is accounted on payment basis. Contribution to Provident Fund is
 accounted on payment has is.