(a) Fixed Assets:
 
 To state assets at cost of acquisition inclusive of Inward Freight,
 Taxes and Incidental expenses related to acquisition but exclusive of
 taxes & duties for which credit is availed, Interest on Loans, during
 the period of construction, is added to the cost of Fixed Assets.
 
 (b) Capitalization of Project:
 
 To capitalize all related pre-operational and direct expenditure
 (including temporary facilities) during construction period. Direct
 financing cost, if any is also capitalized.
 
 (c) Depreciation:
 
 i) To provide for Depreciation on Fixed Assets under the ''Straight
 line method'' at the rates provided by and in accordance with schedule
 XIV to the Companies Act, 1956.
 
 ii) To charge Depreciation on pro-rata basis on all additions/deletions
 and on the assets that are put to use.
 
 (d) Prior period and Extra-ordinary Debits/Credits:
 
 i) To consider Income and Expenditure over Rs.5,000/- only, in each
 case, pertaining to prior items arising, in the current period, because
 of errors and omissions, as prior period credit/ debits.
 
 ii) To disclose separately extra-ordinary items which are material.
 
 (e) Disclosure of other Income etc.:
 
 i) To disclose items of Income and Expenditure at the net of payments
 and related collections,
 
 wherever they occur.
 
 ii) To recognize interest income etc., upon receipt of confirmation
 from concerned agency.
 
 (f) Amortization and Write Offs :
 
 i) To amortize Preliminary Expenses and Public Issue Expenses, over a
 period of Ten years, from the year of commencement of commercial
 production of plant.
 
 ii) To write off.Deferred Revenue Expenditure depending upon the nature
 and the expected period of future benefits.
 
 (g) Foreign Currency Transactions:
 
 To initially record monetary items, of Foreign Currency in Rupees, by
 applying the Exchange Rate prevailing at the time of transaction. To
 recognize as expense or income the amount short or excess realized /
 incurred because of settlement / conversion by transferring to Exchange
 Rate Variation Account and in the period in which they arise.
 
 (h) Sales & Purchases:
 
 i) To disclose all sales at net of sales tax.
 
 ii) To account for all purchases exclusive of taxes & duties for which
 credit is availed.
 
 iii) To disclose sale of DEPB licenses at the time of realization.
 
 (i) Valuation of Inventories: -
 
 i) To value all raw materials, stores and spare parts, loose tools,
 packing materials, finished goods etc., at lower of cost or net
 realizable value.
 
 ii) To determine cost on the basis of
 
 Finished Goods - Weighted Average cost Raw materials/utilities - FIFO
 
 iii) To account for all empties, scrap and waste upon realization.
 
 (j) Valuation of Investments:
 
 Current Investments are valued at lower of cost and fair value, and
 long-term investments at cost.  Where applicable provision is made in
 case of other than temporary diminution in value of investments.
 
 (k) Employee Benefits:
 
 To recognize actuarial gains and losses on defined benefit plans during
 the year.
 
 (I) Taxes on Income:
 
 Provision for current tax is made for the amount of tax payable in
 respect of taxable income for the year under the Income Tax Act, 1961.
 
 Deferred tax is recognized on timing differences being the difference
 between taxable income and accounting income that originate in one
 period and are capable of reversal in one or subsequent periods,
 subject to consideration of prudence.
 
 (m) No value is attributed to Silica which, in the opinion of the
 Management, is a process waste and has no guaranteed market value (net
 realizable value), except for the quantities which are being disposed
 off on an as is where is basis to parties on a irregular basis,
 quantities and prices.
 
 (n) Impairment of Assets:
 
 The entire plant is considered as a cash-generating unit. As the
 recoverable amount of the Cash Generating Unit, being its value in use,
 is in excess of its carrying mount there is no impairment loss in terms
 of Account Standard 28 - Impairment of Assets.
 
 (o) Leases:
 
 Since the lease transaction of the company, are incidental to the
 Company''s main business of production of Aluminum Fluoride, specific
 disclosures as per Accounting Standard 19 on ''Leases'' are not
 considered necessary. ''
 
 (p) Till the year ended 31 March, 2011, the Company was using
 pre-revised Schedule VI to Companies , Act, 1956 for preparation and
 presentation of its financial statements. During the year ended
 31 March, 2012, the revised schedule VI notified under the Companies
 Act, 1956, has become applicable to the Company.
 
 The Company has re-classified previous year''s to confirm to this
 year''s classifications.  However, the adoption of revised Schedule VI
 does not impact recognition, measurement, principles - presentation and
 disclosures.
 
 The Company has only one class of shares referred to as equity shares
 having a par value of Rs.10/- Each holder of equity shares is entitled
 to one vote per share.
 
 Reconciliation of number of equity shares and amount outstanding of the
 beginning and at the end of the year:
 
 Based on the information available with the Company, there are no
 dues/interest outstanding to Micro, Small and Medium enterprises, as
 defined under the MSMED Act, 2006 as on 31 March, 2012 (as on 31 March,
 2011 - Nil).
 
 Information relating to ''supplier'' under the provisions of Micro,
 Small and Medium Enterprise Development Act, 2006.