a) BASIS OF ACCOUNTS
 
 The financial statements are prepared in accordance with the historical
 cost convention on accrual basis of accounting and in accordance with
 generally accepted accounting practices in India and confirm to the
 applicable Accounting standards issued by the Institute of Chartered
 Accountants of India and relevant provisions of the Companies Act,
 1956.
 
 b) FIXED ASSETS
 
 Fixed assets are stated at cost of acquisition, inclusive of inward
 freight, duties & taxes and incidental expenses related to acquisition
 
 c) INVENTORIES
 
 Raw materials,stores,spares & consumables are valued at cost net of
 cenvat credit. Stock in process & finished goods and Traded Goods are
 valued at lower of cost or estimated net realisable value.  Scrip''s are
 valued, scrip wise, at lower of cost or market price.
 
 d) INVESTMENTS
 
 Long term Investments are stated at cost of acquisition inclusive of
 expenditure incidental to acquisition. A provision for diminution is
 made to recognise a decline, other than temporary in the value of long
 term investment. Current Investments are stated at lower of cost or
 fair value determined on an individual basis.
 
 e) MISCELLANEOUS EXPENDITURE
 
 Expenditure in respect of issue of shares, pre-incorporation and other
 preliminary expenses, are written-off over a period of 10 years from
 the year in which these are incurred.
 
 f) DEPRECIATION
 
 Depreciation is calculated on fixed assets on Straight line method in
 accordance with schedule XIV of the Companies Act,1956 prorata from the
 month in which assets are acquired & put to use and in respect of
 deductions, upto and including the month in which such deductions are
 made.
 
 g) INCOME FROM INVESTMENTS
 
 Income from investments is credited to revenue in the year in which it
 received.  
 
 h) REVENUE RECOGNITION Revenue is recognised on dispatch of materials
 to customers from the plant.  
 
 I) CONTINGENT LIABILITIES
 
 Unprovided contingent liabilities are disclosed in the accounts by way
 of notes giving nature and quantum of such liabilities.  
 
 j) FOREIGN CURRENCY TRANSACTION
 
 Foreign currency transaction are recorded by applying the prevailing
 exchange rate on TRANSACTION date. All exchange rate differences are
 dealt with in Profit and Loss Account.
 
 k) RETIREMENT BENEFITS
 
 1.  Short term benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 2.  Post employment and other long term employee benefits are
 recognised as an expense in the profit and loss account for the year in
 which the employee has rendered service. The expense is recognised at
 the present value of the amount payable determined on the basis of
 calculating the accrual amount it self, as number of employees is very
 less.
 
 3.  Compensation paid under the company''s Voluntary Retirement scheme
 is charged to the profit and loss account in the year of payment.
 
 l) TAXATION
 
 Tax expense for the period, comprising current tax and deferreed tax,
 is included in determining the net profit/(loss) for the year.
 
 The Company provides for deferred tax using the net liability method
 based on the tax effect of timing differences resulting from
 recognition of items in the financial statements. The deferred tax
 charge or credit is recognised using the tax rates and tax laws that
 have been enacted or substantially enacted by the balance sheet date.
 m) Purchases are net of Cenvat Credit. Sales are net of excise duty &
 sales tax.There is no impact on Profit & Loss Account for Duty & Taxes.