I.  Fixed Assets
 
 Fixed assets are stated at their original cost including Freight,
 Duties, Taxes and other incidental cost related to acquisition and
 installation. Also refer to Note 3 below.
 
 II.  Depreciation
 
 Depreciation on Fixed Assets other than Plant and Machinery has been
 provided on written down value method and on Plant and Machinery on
 straight line method in accordance with the rates and manner specified
 in Schedule XIV to the Companies Act, 1956 (as amended). Leasehold land
 is amortized over the life of the lease.
 
 III. Inventory
 
 Inventories are valued as follows:
 
 Raw materials and Packing materials Stores and spare parts - At Cost
 Finished Goods - At lower of cost or net realisable value
 
 IV.  Investments
 
 Investments are valued at cost. Earnings from investments are accounted
 for on accrual basis
 
 V.  Revenue
 
 Revenue from sale of goods is recognised on dispatch of goods from the
 factory/depots or consignee agents. Insurance claims are accounted for
 on admittance of the claim by the relevant authorities.
 
 VI.  Gratuity
 
 In keeping with practice generally followed by in the Company,
 Provision for gratuity is made in respect of employees who have
 completed five years of service with the Company on the basis of last
 salary drawn for half month''s salary for every completed year of
 service.