A) Basis of Accounting
 
 The financial statements are prepared under the historical cost
 convention and in accordance with the requirement of the Companies Act,
 1956 and Accounting Standards referred to in Section 211(3C) of the
 Act.
 
 B) Fixed Assets
 
 Fixed assets are stated at cost less depreciation. Cost of acquisition
 and fabrication or construction are inclusive of freight, duties and
 other incidental expenses during construction period. Incidental
 expenses includes establishment expenses, interest on fund used for
 Capital expenditure and other Administrative expenses.
 
 Consideration is given at each balance sheet date to determine whether
 there is any indication of impairment of the carrying amount of the
 company''s fixed assets. If any indication exists, an asset''s
 recoverable amount is estimated. An impairment loss is recognized
 whenever the carrying amount of an asset exceeds its recoverable
 amount.
 
 C) Depreciation
 
 Depreciation on assets other than leased assets has been provided on
 Straight Line Method at the rates prescribed in Schedule XIV of the
 Companies Act, 1956. In respect of leased out assets, the cost of the
 same is being amortized fully during the primary period of lease.
 
 D) Revenue Recognition
 
 i) All revenues, costs, duties, assets & liabilities are accounted for
 on accrual basis.
 
 ii) Income from investment is credited to revenue in the year in which
 it accrues. Income is stated in full with the tax thereon being
 accounted for under income Tax deducted at source. Dividend income when
 the owner''s right to receive its investments payment in shares is
 established.
 
 E) Borrowing Costs
 
 Borrowing costs attributable to the acquisition and construction of
 asset are capitalised as part of the cost of such asset upto the date
 when such asset is ready for its intended use. Other borrowing costs
 are treated as revenue/deferred revenue expenditure as considered
 appropriate by the Management.
 
 F) Investments
 
 Investments are classified as non-current or current, based on the
 Management intention at the time of purchase. Non-current investments
 are valued at their acquisition cost. Current investments are stated at
 lower of cost or net realiasble value. The provision for diminution in
 the value of non-current investments is made only if such a decline is
 other than temporary in the opinion of the management. Investment in
 the units of Mutual funds are valued at cost or market value which ever
 is lower, depreciation, if any is fully provided for and appreciation
 if any is ignored.
 
 G) Employee Benefits
 
 i) Short term Employees benefits
 
 All employee benefits payable only within twelve months of rendering
 the service are classified as short term employee benefits. Benefits
 such as salaries, Wages etc, and the expected cost of bonus, exgratia,
 incentives are recognized in the period during which the employee
 renders the related service.
 
 ii) Post employment and other long term employees benefits are
 recognised as an expense in the profit and loss account for the year in
 which the employee has rendered services. The expense is recognised at
 the present value of the amount payable determined using acturial
 valuation techniques. Acturial gains and losses in respect of post
 employment and other term benefits are charges to the profit and loss
 account.
 
 H) Inventories
 
 The Method of Inventories valuation has been adopted as follows:
 
 Raw Material      :  At cost (FIFO Basis)
 
 Finished Good     :  At Cost or Net Realisable Value whichever is 
                      lower.
 
 Work-in-Process   :  At estimated cost
 
 Trading Goods     :  At Cost or Net Realisable Value whichever is 
                      lower.
 
 Stores & Spares   :  At Cost or Net Realisable Value whichever is 
                      lower.
 
 Packing Material  :  At Cost or Net Realisable Value whichever is 
                      lower.
 
 I) Taxation
 
 The Current tax payable in respect of taxable income for the year has
 been charged to revenue. Deferred tax is recognised, subject to the
 consideration of 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 previous
 periods. Deferred tax assets are recognised on unabsorbed depreciation
 and carry forward of losses based on virtual certainty that sufficient
 future taxable income will be available against which such deferred tax
 assets can be realised. Fringe Benefit Tax has been provided for as per
 the applicable provisions of the Income Tax Act, 1961.