i) Recognisation of Income and Expenditure :
 
 Income and Expenditure are accounted for on accrual basis except
 interest from customers and insurance claim lodged with insurance
 company pending for settlement due to uncertainly in realisation are
 accounted for as and when received/settled.
 
 ii) Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liablities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual results and estimates are recognised in the period
 in which the results are known/materialised.
 
 iii) Fixed Assets
 
 a) Fixed Assets are stated at their original cost(excluding cenvat,
 wherever taken) which includes acquisition, construction/installation
 and pre-operational expenses for new project as applicable.Impairment
 of Assets are assessed at Balance Sheet date and if any indicators of
 impairment exists, the same is assessed and provided for.
 
 b) Depreciation has been provided on all fixed assets as per Straight
 Line Method at rates and manner prescribed in Schedule XIV of the
 Companies Act, 1956 (as amended).
 
 c) Leasehold land is amortised over the period of the lease.
 
 iv) Investments :
 
 Long term investments are stated at cost less provision for permanent
 diminution in value of such investment, if any.
 
 v) Valuation of Inventories :
 
 Inventories are valued at cost or net realisable value whichever is
 lower except waste/scrap which is valued at estimated net realisable
 value .In case of Raw Materials and Stores and Spare parts cost is
 determined on FIFO method.
 
 Cost in respect of work in progress and Finished Goods includes cost of
 purchase,cost of conversion and other appropriate overheads (including
 depreciation but excludes intrest cost) incurred in bringing the
 inventories to their present location.However, materials and other
 items held for use in the production of inventories are not written
 down below cost if finished product in which they will be incorporated
 are expected to sold at or above cost. In view of susbantially large
 number of items in work in progress, it is not feasible to maintain the
 status of movement of each item at shop floor on perpetual basis. The
 Company, however, physically verifies such stocks at the end of every
 month and valuation is made on the basis of such physical verification.
 
 vi) Foreign Currencies
 
 Foreign currency transactions are recorded in the reporting currnecy,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction. Monetary items related to foreign currencies transaction
 are restated at year end exchange rate. All exchange differences
 arising from such conversion including gain or loss on cancellation of
 foreign currency forward covers are included in the Profit & Loss
 Account. Premum/ Discount on Forward Covers in recognised over the
 length of the contract.
 
 vii) Retirement Benefits :
 
 a) Year end Liability in respect of Gratuity to Employees is provided
 on the basis of actuarial valuation.
 
 b) Year end leave encashment benefit is provided for on the basis of
 acturial valuation.
 
 viii) Stores and Spares issued for repairs and maintenance of assets is
 charged directly to Stores and Spares Consumed Account.
 
 ix) Revenue Recognition
 
 a) Revenue from sales is recognised when the significant risks and
 rewards of ownership of the goods have passed to the buyer, which
 generally coincides with the delivery.
 
 b) Net sales are exclusive of excise duty and net of sales returns,
 discounts, claims and rebates.
 
 c) Revenue (other than sale) is recognised to the extent that it is
 probable that the economic benefits will flow to the Company and the
 revenue can be reliably measured.
 
 x) Carbon Credit
 
 Sale of Certified Emission Reductions (CERs) is recognized as income on
 the delivery of the CERs to the buyers''s account as evidenced by the
 receipt of confirmation of execution of delivery instructions.
 
 xi) Provisions
 
 A provision is recognised when an enterprises has a present obligation
 as a result of past event and it is probable that an outflow of
 resources will be required to settle the obligation ,in respect of
 which a reliable estimate can be made.Provisions except those disclosed
 elsewhere in the notes to the financial statements, are not discounted
 to its present value and are determined based on the best estimate
 required to settle the obligation at the balance sheet date . These are
 reviewed at each balance sheet date and adjusted to reflect the current
 best estimates.
 
 xii) Borrowing Cost :
 
 Borrowing costs directly attributable to the acquisition or
 construction of qualifying assets are capitalised. Other borrowing
 costs are recognised as expenses in the period in which they are
 incurred.
 
 xiii) Taxation :
 
 Current tax is measured at the amount expected to be paid to the
 revenue authorties, using the applicable tax rates and laws. Deferred
 tax for timing differences between the book and taxable income for the
 year is accounted for by using the tax rates and laws that have been
 enacted or substantively enacted as of the balance sheet date. Deferred
 Tax Assets arising from temporary timing differences are recognised to
 the extent there is reasonable certainty that the assets can be
 realised in future and the same is reviewed at each Balance Sheet date.