1. SIGNIFICANT ACCOUNTING POLICIES :
 
 A. System of Accounting
 
 i. The financial statements are prepared under historical cost basis.
 
 ii. The Company generally follows the mercantile system of accounting.
 
 B. Fixed Assets
 
 Fixed assets are stated at their original cost of
 acquisition/installation less depreciation as per schedule XIV of the
 Companies Act, 1956 following the straight line method of depredation
 on triple shift basis.
 
 C. Investments
 
 Investments are stated at the cost.
 
 D. Inventories
 
 Finished goods are valued at cost or net market value whichever is
 lower.  Raw materials are valued at cost on FIFO basis.  Stores, Spares
 and work-in-progress are valued at cost or market value whichever is
 lower.
 
 E. Foreign Exchange Transactions
 
 i. Foreign currency liabilities outstanding at the closing of the
 financial year are booked at rate prevailing at the time of each
 transactions.
 
 ii. Difference in conversion of machinery, assets and liabilities and
 realised gains and losses of foreign exchange transactions other than
 those relating to fixed assets are recognized in profit & loss A/c