(a) Accounting Convention
 
 The financial statements presented herewith are prepared in accordance
 with the historical cost convention and on accrual basis.
 
 (b) Fixed Assets and Depreciation
 
 The Company has provided depreciation on Straight line method at the
 specified under schedule XIV of the companies act 1956 on pro-rata
 basis.
 
 (c) Amortisation of Preliminary, Pre-Operative & Differed Revenue
 Expenses
 
 1/10 of Preliminary & Pre-Operative Expenses are amortised during the
 year.
 
 (d) Taxation
 
 In absence of taxable profits, no provision for Income-tax has been
 made in accounts.
 
 (e) Sundry debtors and Loans and Advances :
 
 In the opinion of the board and to the best of their knowledge and
 belief the value on realisation of current assets, loans and advances
 in the ordinary course of business would not be less than the amount of
 which they are stated in the balance sheet.  The provision for all
 known liabilities is adequate and neither in excess nor short of the
 amount reasonably necessary.
 
 (f) Inventories :
 
 Inventories on hand are carried at Direct Cost or Net Realisable value
 whichever is lower.  Direct Cost Comprises Raw Materials, Direct wages,
 Consumables, Power and Fuel.
 
 (g) Excise Duty :
 
 1. Excise duty on goods manufactured laying in the factory premises are
 accounted as and when goods are dispatched.
 
 2. Excise duty collected on sales has been included in sales.
 
 3. Excise duty Receivable reflects net of Modvat Credit during the year
 as well as cash deposited in Personal Ledger Account during the year.