A. ACCOUNTING CONVENTIONS
 
 The Financial Statements have been prepared under the Historical Cost
 Convention in accordance with applicable Accounting Standards and
 relevant disclosure of the Companies Act, 1956.
 
 B. FIXED ASSETS
 
 Fixed Assets are stated at cost less accumulated depreication. Cost of
 acquistion/ construction is inclusive of freigh, duties, taxes & other
 incidental expenses.
 
 C. DEPRECIATION
 
 The Company has followed the straight line method of depreciation. The
 depreciation for the year has been provided in accordance with the
 rates and in manner as specified in schedule XIV of the Companies Act,
 1956. 
 
 D. INVENTORIES
 
 The basis of valuation for different categories of inventory are as
 follows: 
 
 Raw Materials & Stores & Spares : At Cost
 
 Finished Goods : At Cost or market price whichever is less