1. The Company follows accrual system of accounting for recognition of
 income and expenses. The accounts have been prepared primarily on the
 historical cost convention.
 
 2. FIXED ASSETS
 
 Fixed Assets are stated at historical costs. They are not adjusted to
 reflect inflation.  The assets are capitalised at cost including
 transportation, installation and other related expenses.
 
 Depreciation is calculated on Straight Line Method in the manner
 prescribed and at the rates specified in Schedules XIV to the Companies
 Act, 1956.
 
 3. INVENTORIES
 
 Inventories of Raw Materials, Stores and Spares and Packing Material
 are valued at cost. Work in Process is valued at an estimated cost.
 Finished goods are valued at lower of cost or net realisable value.
 
 4. FOREIGN CURRENCY TRANSACTIONS
 
 Transactions in Foreign Currency are recorded at the exchange rate
 prevailing on the due dates. Assets and Liabilities remaining unsettled
 are converted at the exchange rates prevailing as at the end of the
 year.
 
 Realised gains and losses on Foreign Exchange transactions other than
 those related to Fixed Assets are recognised in Profit and Loss
 Account.
 
 5. RETIREMENT BENEFITS.
 
 Gratuity : The Company has an arrangement with Life Insurance
 Corporation of India to administer the gratuity scheme. The premium
 paid/payable is debited to the Profit & Loss Account on accrual basis.
 
 Leave Salary : Leave Salary is accounted on accrual basis.
 
 6. Preliminary and share issue expenses are written off over a period
 of ten years.
 
 7. Sales include excise duty and sales tax.