A Accounting Convention / Method of Accounting.
 
 The Financial Statements are prepared under Historical Cost Convention
 in accordance with generally accepted accounting principles and
 provisions of Companies Act 1956 Accounts are kept on accrual basis and
 according to the double entry system.
 
 Sales are recognised on despatch of goods to customers.
 
 Dividend Income on Investments is accounted forwhen received.
 
 B Fixed Assets
 
 i Fixed Assets are stated at cost less depreciation , cost being
 comprised of cost of acquisition and expenditure directly attributable
 for commissioning of the assets.
 
 ii Depreciation is provided on Written Down Value Method and at the
 rate and in the manner specified in Schedule XIV of the Companies Act
 1956.
 
 C Investments
 
 Long Term Investments are stated at cost.
 
 D CurrentAssets
 
 a. Stocks
 
 Raw Material , Traded Items and Finished Goods are valued at lower of
 monthly weighted average cost and net realisable value.Cost of finished
 goods include cost of material,cost of conversion,labour.
 
 b. Book Debts, Advances & Deposits Balances considered irrecoverable
 are written- off and those considered doubtful are provided for.
 
 E Employee/Retirement Benefits
 
 Retirement Benefits to employees are provided for by payments to
 Gratuity and Provident Fund. The gratuity liability is determined on
 the basis laid down under Employees Approved Gratuity Fund Scheme which
 takes into account the sum that would have been payable as gratuity to
 all the eligible employees on the last day of the financial year.
 Liability arising on account of accrued leave salary payable is
 provided in the accounts.The same is worked out on the basis of the
 amount that would have been payable as leave encashment to all the
 eligible employees on the last day of the financial year.
 
 F Foreign Currency Transactions
 
 Monetary items denominated in foreign currency as at the Balance Sheet
 date are converted at exchange rates prevailing on that date.Exchange
 differences are recognised in the Profit & LossAccount.
 
 G Taxation
 
 a Current Year Charges Provision for tax is based on the amount of tax
 payable in respect of taxable income as determined under Income
 TaxAct1961.  b Deferred Tax The Deferred Tax resulting from timing
 difference between the book and taxable profit for the year is
 accounted for, using the tax rates and laws that have been
 substantially enacted as of the balance sheet date.  Deferred tax
 assets arising from timing difference are recognised to the extent
 there is reasonable certainty that these would be realised in future.
 
 H Contingent Liabilities
 
 Contingent Liabilities are disclosed in the accounts by way of note.