[i] The accounts have been prepared on historical cost convention.
 [ii] Fixed Assets and Depreciation
 
 [a] Fixed assets are stated at cost less accumulated depreciation. Cost
 of acquisition or construction is inclusive of freight, duties, taxes
 and other incidental expenses.
 
 [b] Depreciation is charged on a prorata basis at the SLM rates
 prescribed in Schedule XIV of the Companies Act, 1956.  No write-off is
 being made in respect of leasehold land.
 
 [iii] Inventories
 
 [a] Raw materials and components are valued at cost.
 
 [b] Finished goods are valued at cost or market value, whichever is
 lower. Finished stock lying in the factory premises are valued
 exclusive of excise duty. Custom duty on material lying in Bond or in
 transit is accounted for at the time of clearance thereof.
 
 [iv] Recognition of Income and Expenditure :
 
 All Income and Expenditure are accounted on an accrual basis.