i) The financial accounts are prepared under the historical cost
 convention on a going concern basis. The accounting policies not
 specifically mentioned are consistent with generally accepted
 accounting principles.
 
 ii) All items of income and expenditure are accounted for on accrual
 basis.
 
 iii) Depreciation
 
 The depreciation on fixed assets has been provided on Written Down
 Value Method on Pro rata basis at the rates specified in Schedule XIV
 of the Companies Act, 1956. Leasehold land is being amortised over the
 leased a period of lease of 15 years.
 
 iv) Foreign Currency Transactions
 
 a) Transactions denominated in foreign currencies are normally recorded
 at the exchange rate prevailing at the time of the transaction.
 
 b) Foreign currency transactions remaining unsettled till the
 finalisation of accounts of the year are translated at contracted
 rates, when covered by forward exchange contracts and at year end
 rates, in all other cases.
 
 v) Investments
 
 Investments are stated at cost.
 
 vi) Stock
 
 a) Closing stock of Finished Goods is stated at lower of the cost or
 net realisable value on FIFO Basis
 
 b) Raw Materials are valued at Cost.
 
 c) Stores items purchased during the year are treated as consumed.
 
 vii) Sales tax
 
 VAT collected by the Company is not treated as part of its income.
 
 viii)Contingent Liability
 
 Contingent Liability, if any, are generally not provided for in the
 accounts and is shown separately as a note to the accounts.
 
 ix) Taxation
 
 a) Provision for current Tax is made and retained in the accounts on
 the basis of estimated tax liability as per the applicable provisions
 of the Income tax Act, 1961 and considering assessment orders and
 decisions of appellate authorities in Company''s case.
 
 b) Deferred tax for timing differences between tax profits and book
 profits is accounted for using the tax rates and laws that have been
 enacted or substantially enacted as of the balance sheet date.
 
 x) Financial Derivatives & Commodity Hedging Transactions
 
 a.  Financial derivatives and commodity hedging contracts are accounted
 on the date of their settlement and realised gain/loss in respect of
 settled contracts are recognised in the profit & loss account.
 
 x) b.  The unrealised loss on contracts outstanding at the year end are
 provided for in the books of account of the Company in accordance with
 the guidance note on Accounting for Equity Index & Equity Stock Futures
 and Options issued by the Chartered Accountants of India.