- The Financial Accounts are prepared under the historical cost
 convention on accrual basis on going concern basis of accounting and
 comply with the mandatory accounting standards issued by ICAI.
 
 - Fixed Assets are stated at cost and depreciation is provided on
 straight line method at the rate specified in Schedule XIV of Companies
 Act, 1956.
 
 - Inventories are valued as under :
 
 (a) Raw Material, Stores & Packing Items    At Cost
 
 (b) Stock in Process                        At Estimated Cost
 
 (c) Finished Goods                          At Ex-Factory price 
                                             excluding ED & ST
 
 (d) Dead Stock                              At Estimated Cost
 
 - The Technical know-how fees are treated as deferred revenue
 expenditure and the said amount is written off over a period of six
 years.
 
 - Sales are excluding Excise Duty & Sales Tax.
 
 - Income/Expenditure are generally accounted on accrual basis except
 Excise Duty on account of Goods Manufactured is accounted at the time
 of removal of Goods from place of manufacture.
 
 - Foreign Currency transactions are recorded at the Exchange rate
 prevailing at the time of purchase and any fluctuation thereon is
 accounted at the time of actual payments.
 
 - Leave Encashment is paid every year and charged to P&L Account. For
 Gratuity Company is contributing to Gratuity Trust Fund to LIC and any
 difference on actual payment is accounted at the time of payment.