a) Accounting Concepts
 
 The accounts are prepared under historical cost convention in
 accordance with generally accepted accounting principles and applicable
 Accounting Standards.
 
 b) Use of Estimates
 
 Estimates and assumptions made by Management in the preparation of
 Financial Statements have a bearing on reported amounts of Financial
 Results, Assets & Liabilities and the disclosure of Contingent
 Liabilities. Actual results could differ from those estimates.  Any
 revision to accounting estimate is recognized prospectively.
 
 c) Revenue Recognition
 
 Revenue is recognized and expenditure is accounted for on their
 accrual. Excise duty recovery from customer is deducted from Gross
 Turnover .Excise duty differential between closing and opening stock of
 excisable goods is included under other expenses.  Revenue from
 domestic sale is recognized on delivery to the carrier, when risk and
 rewards of ownership pass on to the customer.
 
 Revenue from Export sales is recognized when risk and rewards are
 passed on to the customer in accordance with the terms of the contract.
 
 Dividend income is recognized when the right to receive payment is
 established.
 
 Other items of income are recognized when there is no significant
 uncertainty as to measurability or collectability.
 
 
 
 d) Fixed Assets
 
 Fixed Assets are stated at cost less depreciation. Cost includes, taxes
 and duties (but does not include taxes and duties for which CENVAT /
 VAT credit is available), freight and other direct or allocated
 expenses and interest and finance charges on related borrowings during
 construction period.
 
 Any income earned during construction period is netted against cost of
 the Project.
 
 e) Depreciation
 
 The assets, with the exception of plant and machinery, are depreciated
 on written down value basis. Plant and Machinery are depreciated on
 straight-line method. Depreciation is provided in accordance with
 Schedule XIV of the Companies Act 1956.
 
 f) Inventories
 
 Inventories are stated at lower of cost and net realizable value. Cost
 includes all costs of purchase, cost of conversion and other costs
 incurred in bringing the Inventories to their present location and
 condition net off CENVAT/VAT credit entitlement. The cost is arrived on
 weighted average basis. Tools cost is written off over a period of
 three years.
 
 g) Investment
 
 Long term investments are stated at cost. Any diminution in the value
 of Long term investments is charged to Profit and Loss Account, if such
 a decline is other than temporary in the opinion of the Management.
 
 h) Research and Development Expenditure
 
 Expenditure incurred on Scientific Research, other than Capital
 Expenditure, are written off to revenue in the year when they are
 incurred. Capital Expenditure is added to the Cost of Fixed Assets and
 depreciated accordingly.
 
 i) Employee Benefits
 
 Short term Employee benefits are charged at the undiscounted amount to
 Profit and Loss account in the year in which related service is
 rendered.
 
 Contributions to defined contribution schemes towards retirement
 benefits in the form of provident fund and super annotation fund for the
 year are charged to profit and loss account as incurred.
 
 Liabilities in respect of defined benefit plans are determined based on
 actuarial valuation made by an independent actuary using Projected Unit
 Credit Method as at the balance sheet date. Actuarial gains or losses
 are recognized immediately in the profit and loss account. Obligation
 for leave encashment is recognized in the same manner.
 
 Other Terminal benefits are recognized as an expense as and when
 incurred, j) Provision, Contingent Liabilities and Contingent Assets
 Provisions are recognized when there is a present obligation as a
 result of a past event it is probable that an outflow of resources will
 be required to settle the obligation and in respect of which reliable
 estimate can be made. Contingent Liabilities are disclosed, in the
 notes on Accounts, unless the possibility of any outflow in settlement
 is remote, contingent assets are neither recognized nor disclosed.
 
 k) Taxes on Income
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of Income Tax Act,
 1961. Deferred Tax is recognized, on timing difference, being the
 difference between taxable income and accounting income that originate
 in one period and are capable of reversal in one or more subsequent
 periods.  Deferred Tax assets in respect of unabsorbed depreciation and
 carry forward of losses are recognized if there is virtual certainty
 that there will be sufficient future taxable income available to
 realize such losses.
 
 I) Foreign Exchange Transactions
 
 Transactions in foreign exchange are initially recognized at the rates
 prevailing on the dates of transactions.
 
 Premium or discount arising at the inception of forward contract is
 amortized as income or expense over the life of the contract. Exchange
 difference on such contract is recognized in the reporting period in
 which exchange rates change.
 
 Foreign Currency Liabilities/ assets at the close of the year are
 restated, adopting the contracted/year-end rates, as applicable.
 Resultant exchange difference is recognized as income or expense in
 that period.
 
 m) Insurance Claims
 
 Insurance claims are accounted on the basis of claims lodged and
 accepted, n) Borrowing Costs Borrowing Costs that are directly
 attributable to the acquisition, construction or production of
 qualifying assets are capitalized as part of the cost of that asset.
 Other borrowing costs are recognized as an expense in the period in
 which they are incurred.
 
 o) Impairment of Assets
 
 Impairment loss, if any, is provided to the extent the carrying amount
 of assets exceeds their recoverable amount.
 
 p) Earnings per share
 
 Earnings per share is calculated by dividing the net profit or loss for
 the year attributable to equity shareholders by the weighted average
 number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 q) Segment Reporting
 
 The accounting policies adopted for segment reporting are in line with
 the accounting policy of the company.
 
 Revenue and expenses are identified to segments on the basis of their
 relationship to the operating activities of the segment. Revenue,
 expenses, assets and liabilities which relate to the enterprise as a
 whole and are not allocable to segments on a reasonable basis have been
 included under unallowable.
 
 There are no inter segment revenue and therefore their basis of
 measurement does not arise.
 
 r) Derivatives
 
 The Company enters into Futures Contracts in Silver to hedge the price
 risk consistent with its Risk Management Policy. The Company does not
 use these contracts for speculative purpose.
 
 Losses in respect of the Futures Contracts as at the Balance Sheet
 date are charged to Statement of Profit and Loss by marking them to
 market, while gains are ignored.
 
 The Rupee Term Loan including current maturities (Vide Note No 10) are
 secured by First charge on movable and immovable fixed assets of the
 Lead Acid Battery Facility and Second charge on all other existing
 movable and immovable fixed assets of the Company.