a) GENERAL:
 
 The financial statements have been prepared on the basis that the
 Company is a going concern and in accordance with historical cost
 convention.
 
 b) FIXED ASSETS AND DEPRECIATION:
 
 i) Fixed Assets are stated at cost less depreciation.
 
 ii) Depreciation is charged on Buildings and Plant and Machinery on
 Straight Line method and on other assets on Written down value
 method. The rates are as prescribed in Schedule XIV to the Companies
 Act, 1956.
 
 c) INVENTORIES:
 
 Stock of raw materials, Stores and spares, Work in Process, Finished
 goods are valued at lower of cost and net realizable value.
 
 d) FOREIGN CURRENCY TRANSACTIONS:
 
 i) Foreign currency transactions other than for purchase of capital
 items remaining unsettled as at the end of the year and not covered by
 contracted rates are translated at the rates prevailing at the last day
 of the year. The net resultant exchange difference is recognized in the
 Profit and Loss Account.
 
 ii) Exchange rate difference arising on Foreign Currency transactions
 for purchase of capita! items are adjusted to the cost of Fixed Assets.
 
 e) RETIREMENT BENEFITS:
 
 Liability in respect of Gratuity and Leave encashment are actuarially
 ascertained and provided in the books of account. Leave encashment
 benefit payable to employees computed as per rules of the company.
 
 f) TAXATION:
 
 Provision for Taxation, the aggregated of Income Tax Liability on the
 profit for the year chargeable to tax and Deferred Tax resulting from
 timing differences between Book and Tax Profits, if any, is provided in
 accordance with the Accounting Standard - 22 (AS22), Accounting of
 Taxes on Income, issued by the Institute of Chartered Accountants of
 India.