I.  BASIS OF PREPARATION:
 
 The financial statements are prepared and presented under the
 historical cost convention on the accrual basis of accounting in
 accordance with the accounting principles and generally accepted in
 India and comply with mandatory Accounting Standards issued by the
 Institute of Chartered Accountants of India to the extent applicable
 and the relevant provisions of the Companies Act, 1956, except in
 respect of mineral deposits and rights which are recorded at estimated
 realizable value.
 
 II.  USE OF ESTIMATES:
 
 The preparation of financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities and disclosure of contingent
 liabilities on the date of the financial statements and reported
 amounts of revenues and expenses for the period. Actual results could
 differ from these estimates. Any revision to accounting estimates is
 recognized prospectively in the current and future periods.
 
 III. FIXED ASSETS:
 
 Fixed Assets are stated at acquisition cost (net of taxes which are
 claimed as input credits) less depreciation. Capital work-in-progress
 is stated at Cost. Cost includes installation and expenditure during
 construction period including interest on borrowings till the date of
 capitalization. The mineral deposits and mining rights are stated at
 the estimated realizable value, based on a valuation by an independent
 valuer.
 
 Depreciation on fixed assets other than those mentioned hereunder has
 been calculated using the straight-line method at the rates arrived on
 the basis of useful lives of the assets as estimated by the Management.
 Assets costing less than Rs. 0.05 are depreciated fully in the year of
 acquisition.
 
 Depreciation on the mineral deposits and mineral rights has been
 provided, based on the estimated present value of the consumption over
 the remaining estimated useful period, at an equated amount of the
 total consumption so arrived at.
 
 IV.  INVENTORIES:
 
 Inventories are valued at the lower of cost and net realizable value.
 Cost of inventories comprises all costs of purchase, costs of
 conversion and other costs incurred in bringing the inventories to
 their present location and condition. The costs of Stores and Spares
 and Raw materials are arrived on FIFO basis.
 
 V.  INVESTMENTS
 
 Investments are classified into Long Term and are carried at cost.
 Provision for diminution, if any, in the value of each Long Term
 Investment is made only if such a decline is other than temporary in
 nature in the opinion of the management.
 
 VI.  EMPLOYEE BENEFITS:
 
 The Company contributes to the funds administered by the Regional
 Provident Fund Commissioner towards Provident Fund. Contributions
 payable to an approved Gratuity Fund (a defined benefit plan),
 determined by an independent actuary at the Balance Sheet date, are
 charged to the Profit & Loss Account. Provision for leave encashment
 cost is made on the basis of actuarial valuation at the Balance Sheet
 date, carried out by an independent actuary.
 
 VI. FOREIGN EXCHANGE TRANSACTIONS:
 
 Foreign currency transactions are recorded using the exchange rates
 prevailing on the dates of the respective transactions. Exchange
 differences arising on the foreign currency transactions settled during
 the year are recognized in the profit & Loss A/c except that the
 exchange differences related to acquisition of fixed assets from a
 country outside India are adjusted in the carrying amount of the
 related fixed assets.
 
 VIII.  REVENUE RECOGNITION:
 
 i) All income and expenditure are accounted on accrual basis, except
 otherwise stated.
 
 ii) In respect of derivative contracts, gain/loss is recognized on
 actual settlement of respective contracts.
 
 Internal Consumption of the Company''s end product, which is other wise
 marketable, is accounted for at a transfer price and is included under
 sales.
 
 IX.  IMPAIRMENT OF ASSETS:
 
 An Asset is treated as Impaired when the carrying of cost of Assets
 exceeds its receivable value. An impairment loss is charged for when
 the asset is identified as impaired. The impairment loss received in
 prior accounting period is reversed if there has been a change in the
 estimate of recoverable amount.
 
 X.  PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
 
 Provisions involving Substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes.  Contingent assets are neither recognized nor disclosed in the
 financial statements.
 
 XI.  DEFERRED INCOME TAXES:
 
 Deferred Tax charge or credit reflects that tax effects of timing
 differences between accounting income and taxable income for the
 period. The deferred tax charge or credit and the corresponding
 deferred tax liability or asset are recognized using the tax rates that
 have been enacted or substantial enacted by the Balance Sheet date.
 Deferred Tax assets recognized only to that extent there is reasonable
 certainty that the assets can be realized in future, however, where
 there is unabsorbed depreciation or carry forward losses, deferred tax
 assets are recognized only if there is virtual certainty of realization
 of such assets. Deferred tax assets are reviewed at each balance sheet
 date and written down or written up to reflect the amount that is
 reasonable/virtual certainty (as the case may be) to be realized.