i) The Company has been consistently following accrual method in
 account- ing its income and expenditure. The accounting is on the basis
 of going concern concept.
 
 ii) The values of fixed assets have been arrived at on historical cost
 including sales tax and other expenses incurred and as reduced by
 Cenvat credits.
 
 iii)Depreciation has been charged in the accounts as per schedule XIV
 of Companies Act, 1956. From the year 1990-91 and onwards, depreciation
 has been calculated on Straight Line Method on additions made to the
 fixed assets and on Written Down Value Method for assets put into use
 prior to that date.
 
 iv) Investments are valued at cost
 
 v) Stock of raw materials, stores and spares, finished goods and stock
 in trade are valued at cost or net realisable value whichever is
 lower.Cost as- signed for valuation of stores and spares is on weighted
 average basis and of raw materials,finished goodsand stock in trade on
 first in first out basis, after providing for diminution in value of
 obsolete/damaged and slow moving items.
 
 vi)Revenue from sales transactions is recognised as and when the
 property in the goods is transferred to the buyer for a definite
 consideration. Export incentives are recognised on accrual basis.
 
 vii)Contingent liabilities are generally not provided in the accounts
 and are shown in item No.25 of notes attached to and forming part of
 financial statements.
 
 viii)Deferred tax is recognised on the timing differences between the
 ac- counting income and taxable income for the year and quantified on
 the basis of tax rates enacted as on the date of Balance Sheet.