MISCELLANEOUS EXPENDITURE


Examples of notes to accounts relating to miscellaneous  expenditure are given
below :


1.      Preliminary  and  Share   issue   expenses   have   been  written  off
        proportionate to their respective periods.

2.      Preliminary  expenditure  on  new  industrial  units  of  the   nature
        specified  in  Section  35D(2)  of  the  Income-tax Act, 1961 is to be
        amortised over ten years commencing from  the  year  in which  the new
        industrial unit commences production.

3.(a)   "Share issue expenses  are proposed to be written off over a period of
        10  years  and  accordingly  1/10th  of  the said expenditure has been
        written off".

(b)     "Development  Expenditure is  proposed to be written off over a period
        of  5  years  and  accordingly  1/5th of the said expenditure has been
        written off".

4.      Preliminary  expenses  will  be  written  off  in  installments  after
        commencement of commercial production.

5.      Miscellaneous Expenditure Rs. _________ appearing in the Balance Sheet
        represents expenses in connection with Debenture Issue. These expenses
        do not  include stamp duty on registration of Trust Deed which has not
        yet been executed.

6.      The Company has during the year  written off the entire balance amount
        of  Preliminary,  Pre-incorporation & Share Issue  Expenses and market
        Development  Expenses  against the practice  of writing off 1/10th and
        1/5th  amount  respectively  of  such  expenses  every year in earlier
        years. As a result, profit for the year is lower by Rs. ________.



                                   *******