I.  Basis of preparation of financial statements
 
 The financial statemets are prepared on accrual basis under the
 historical cost convention, in accordance with the Indian Generally
 Accepted Accounting Principles (GAPP). Financial statements with the
 applicable Accounting Standards (AS) specified in Companies (Accounting
 Standard) Rules, 2006 and presentational requirement of the Companies
 Act, 1956.
 
 II.  Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted acounting principles in India (GAAP) requires management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities and the disclosure of contingent liabilities and
 commitments on the date of financial statements and the result of
 operations during the year. Differences between actual results and
 estimates are recognized in the year in which the results are known or
 materailized.  Actual results could differ from those estimates. Any
 revision to accounting estimates is recognized prospectively in current
 and future periods.
 
 III.  Fixed Assets /Depreciation
 
 Fixed assets are stated at cost or at revalued amounts less accumulated
 depreciation. Cost of fixed assets includes all incidental expenses and
 interest costs on borrowings, attributable to the acquistion of the
 assets, upto the date of commissioning of the assets. Depreciation for
 the year is computed on the straight line method, as per the rates
 prescribed in Schedule XIV to the Companies Act, 1956. Additional
 charge of depreciation on amount added on revaluation is adjusted
 against revaluation reserve.
 
 Fixed assets are reviewed for impairment on each Balance Sheet date, in
 accordance with AS 28 Impairment of Assets.
 
 IV.  Revenue Recognition
 
 Revenue from sale of products is recognized when the products are
 dispatched against orders from customers.
 
 Sales are stated inclusive of excise duty but net of VAT, CST and Entry
 Tax.
 
 V.  Investments
 
 Investments held by the Company which are long term in nature are stated
 at cost.
 
 VI.   Inventories
 
 Items of inventories are measured at lower of cost and net ralizable
 value after providing for obsole-scence, if any. Cost of inventories
 comprises of cost of purchase, cost of conversion and other costs
 including manufacturing overheads incurred in bringing them to the
 respective present location and condition. Cost of raw material, stores
 and spares, packing materials and coal have been valued at cost
 comprising of purchase price, taxes, duties (other than those which are
 subsequently recoverable by the Company.
 
 [VIM Foreign Currency transaction
 
 Transaction in Foreign Currency are recorded at excahnge rate prevailing
 on the date of transaction,
 
 VIII   Retirement Benefits and Employee Benefits Scheme
 
 The Company has various schemes of retirement benefit such as Provident
 Fund, Gratuity and Leave encashment benefit.
 
 Further, provision for Gratuity and Leave encashment has been provided in
 the Books of Account as below:
 
 i)   Leave Encashment
 
 The Employees will get one day earned leave after working of 20 days.
 
 ii) Gratuity
 
 The Employees will get gratuity after completion of 5 years and the
 basis of calcultion is 15 days salary out of 26 working days of each
 completed year of service of last salary drawn.
 
 IX Taxation
 
 a) Current Taxes:
 
 Provision for current taxes is determined on the basis of taxable
 income and tax credits as per provision of the Income Tax Act, 1961.
 
 b) Deferred Taxes
 
 Provision for deferred tax is made at the current rates of taxation, on
 all timing differences to the extent that it is probable that a
 liability or asset will crystalize.
 
 X Borrowing Cost
 
 Borrowing Cost directly attributable to the acquisition or construction
 of Fixed Assets are capitalized as part of the cost of the Assets upto
 the date the asset is put to use. Other borrowing costs are charged to
 revenue in the year in which it is incurred.
 
 XI Contingent Liabilities
 
 All liabilities have been provided for in the accounts except
 liabilities of contingent nature, which has been disclosed in the notes
 on Financial Statements.