(a) Basis of Accounting
 
 Financial Statements are prepared under historical cost convention on
 accrual basis except those disclosed in notes on accounts.
 
 (b) Revenue Recognition
 
 Sales are recognized on dispatch of materials to customers.
 
 (c) Employee Benefits
 
 i) Defined Contribution Plan:
 
 Contribution to Provident Fund, which is defined contribution
 retirement plan, is charged to the Profit & Loss account in the period
 in which the contributions are incurred.
 
 ii) Defined Benefit Plan:
 
 Retirement benefits in the form of Gratuity and leave encashment are
 determined on actuarial valuation using projected unit credit method at
 the balance sheet date and are charged to Profit & Loss account.
 
 (d) Fixed Assets
 
 (i) Fixed assets are stated at cost of acquisition inclusive of
 freight, duties and incidental expenses, etc.
 
 (ii) Depreciation of fixed assets has been charged on Straight Line
 Method at the rates and in the manner, prescribed under Schedule XIV of
 the Companies Act, 1956.
 
 (e) Investments
 
 Investments, if any, are stated at cost.
 
 (f) Inventories
 
 (i) Inventories of Raw Materials, Stores & Consumable are valued at
 cost.
 
 (ii) Inventories of Work in Process are valued at lower of cost and net
 realizable value.
 
 (iii) Inventories of Finished Goods are valued at cost or market value
 whichever is lower.
 
 (iv) Saleable dust and scrap are valued at estimated realizable value.
 
 (g) Foreign currency translation
 
 Initial recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.  
 
 Conversion
 
 Foreign currency monetary items are retranslated using the exchange
 rate prevailing at the reporting date.  Exchange differences
 
 The company accounts for exchange differences arising on
 translation/settlement of foreign currency monetary items as below:
 
 (i) Transactions reported in foreign currencies are recorded at the
 exchange rate prevailing on the date of transaction or that
 approximates the actual rate at the date of transaction.
 
 (ii) Monetary items denominated in foreign currencies at the year end
 are restated at year end rates.
 
 (iii) Any income or expenditure on account of foreign exchange
 difference either on settlement or on translation is recognized in the
 profit and loss account
 
 (h) Contingent Liabilities
 
 Contingent liabilities are not provided for in the books of accounts
 and are disclosed by way of note to the accounts.
 
 (i) Taxes on Income
 
 Current tax is determined as the amount of tax payable in respect of
 taxable Income for the period. Deferred Tax is recognized subject to
 considering prudence on timing differences being the differences
 between taxable Income and Accounting Income that originate in one
 period and are capable of reversal in one or more subsequent period.
 Deferred Tax Asset for the current year has been created taking into
 account the unabsorbed depreciation and carry forward of losses of
 earlier years.