General
 
 1.  Accounting Policies not specifically referred to otherwise are in
 consonance with generally accepted accounting principles.
 
 2.  Expenses & income considered payable and receivable respectively
 are accounted for on actual basis.
 
 3.  In the opinion of the Board, the Current Assets, Loans and Advances
 are approximately of the value stated if realized in the ordinary
 course of business. The provisions of all known liabilities are
 adequate and not in excess of the amount reasonably necessary.
 
 FIXED ASSETS & Capital WIP
 
 4.  a) Fixed assets are capitalized at cost inclusive of all incidental
 expenses related thereon of Textile Division.  b) The assets under
 construction in relation to mining division are recorded at cost
 inclusive of incidental expenses & reflected as Capital WIP.
 
 TURNOVER
 
 5.  Turnover is stated after adjusting rebates and discounts and
 excluding Sales Tax, if any.
 
 DEPRECIATION
 
 6.  Depreciation on Fixed Assets has been provided for on diminishing
 balance method at rates specified in Schedule XIV of the Companies Act
 1956. Depreciation on Assets purchased/sold during the year has been
 provided for on pro-rata basis.
 
 INVENTORIES
 
 7.  Inventories of Work-in-Progress, Raw Materials, Stores & Spares and
 Finished Goods are valued at cost and the same is done on FIFO basis.
 Stock of Shares is valued at cost.
 
 INVESTMENTS
 
 8.  Investments are valued at cost.