1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 The Company follows the Mercantile System of Accounting and the
 accounts have been prepared on historical cost convention. The
 Financial Statements are prepared in accordance with the accounting
 standards specified in the Companies(Accounting Standards)Rules, 2006
 notified by the Central Government in terms of section 211(3C) of the
 Companies Act, 1956.
 
 2 FIXED ASSETS AND DEPRECIATION
 
 a Fixed Assets are stated at cost except Brady House at Mumbai, which
 is revalued on the basis of the market value as at 1 st November 2006
 as certified by an approved valuer. Interest paid on loans taken for
 acquisition of Fixed Assets is capitalized upto the date of
 installation / put to use.
 
 b Depreciation is provided on Written Down Value Method at the rates
 prescribed under Schedule XIV to the Companies Act, 1956 as amended. As
 stated in Para 11.2 to Note 11, depreciation relating to increase in
 the value of Brady House on account of revaluation is not charged to
 Profit & Loss Account but charged to Revaluation Reserve.
 
 3 FOREIGN CURRENCY TRANSACTIONS
 
 All assets and liabilities remaining unsettled at the year-end are
 translated at the closing exchange rate. Any income or expenses on
 account of exchange difference either on settlement or on translation
 is recognized in the relevant head of the Profit & Loss account except
 in case where they relate to acquisition of Fixed Assets in which case
 they are adjusted in the carrying cost of such assets/capital work in
 progress and the relevant loan account.
 
 4 INVESTMENTS
 
 a Quoted Investments are stated at book value based on market value as
 at 31.03.1995 as per practice followed.  Investments acquired upto
 31.03.1995 are stated at book value except in a case where shares are
 cancelled, the same are taken at face value and those acquired after
 31.03.1995, at cost in conformity with Accounting Standard (AS) 13
 Accounting for Investments issued by the Institute of Chartered
 Accountants of India.
 
 b Unquoted Investments in the Shares which have no realizable value are
 stated at token value of Re.1 each by writing down the value of the
 Investments. However other Investments are stated at cost.
 
 5 INVENTORIES
 
 These are valued as under: -
 
 i Finished goods
 
 ii Trading Stock in Process
 
 iii Stores, Spares and Loose Tools
 
 iv Goods in transit
 
 v Trading Goods
 
 At lower of cost or net realizable value
 
 6 REVENUE RECOGNITION
 
 Revenue is recognized only when it can be reliably measured and it is
 reasonable to expect ultimate collection. Revenue from operations
 includes sale of goods, services, commission & rent. Dividend income is
 recognized when right to receive is established. Interest income is
 recognized on time proportion basis taking into account the amount
 outstanding and rate applicable.
 
 7 EMPLOYEE BENEFITS
 
 a Contribution for incremental liability of Gratuity to approved
 gratuity fund is accounted on the basis of actuarial valuation.
 
 b The liability in respect of unavailed privilege leave of employees is
 accounted on the basis of Actuarial valuation Certificate.
 
 8 PROVISION FOR CURRENT AND DEFERRED TAX
 
 Tax on Income taxes are accounted for in accordance with Accounting
 Standard 22 on Accounting for Taxes on Income, AS (22) issued by
 The Institute of Chartered Accountants of India. Tax expenses comprise
 both, current & deferred tax.  Current tax is measured at the amount
 expected to be paid to / recovered from the tax authorities using the
 applicable tax rates. Deferred tax assets and liabilities are
 recognized for future tax consequences attributable to timing
 differences between taxable income and accounting income that are
 capable of reversal in one or more subsequent periods and are measured
 using enacted tax rates.
 
 9 PROVISIONS & CONTINGENT LIABILITIES
 
 Provisions are recognized for present obligation of uncertain timing or
 amount as a result of a past event where a reliable estimate can be
 made and it is probable that an outflow of resources embodying economic
 benefits will be required to settle the obligation. Where it is not
 possible that an outflow or resources embodying economic benefits will
 be required or the amount cannot be estimated reliably, the obligation
 is disclosed as contingent liability, unless the probability of outflow
 or resources embodying economic benefits is remote.
 
 Possible obligations whose existence will only be confirmed by the
 occurrence or non-occurrence of one or more uncertain events are also
 disclosed as contingent liabilities unless the probability of outflow
 of resources embodying economic benefit is remote.
 
 Contingent Liabilities are not provided for and are disclosed by way of
 Notes.