a) These Financial Statements are prepared under the historical cost
 convention on an accrual basis of accounting to comply in all material
 aspects with all the applicable accounting principles in India, the
 applicable accounting standards notified under Section 211 (3C) of the
 Companies Act, 1956 (the ''Act'') and the relevant provisions of the Act.
 
 b) Fixed Assets (including intangible items) are stated at cost less
 accumulated depreciation (including amortisation).  The Company
 capitalises all costs (net of CENVAT credit) relating to acquisition
 and installation of Fixed Assets. An impairment loss is recognised
 wherever the carrying value of the fixed assets exceeds its recoverable
 amount i.e.  net selling price or value in use, whichever is higher.
 
 Spares that can be used only with particular items of plant and
 machinery and such usage is expected to be irregular are capitalised.
 
 c) Depreciation on tangible assets (other than Leasehold Land and
 Computers) is calculated on straight-line method at applicable rates
 and the manner prescribed in Schedule XIV of the Companies Act, 1956.
 Leasehold Land is amortised over the period of lease. Computers are
 depreciated over a period of three years. Intangible assets (other than
 Goodwill arising on amalgamation fully amortised in earlier years and
 Computer Software which are amortised over a period of two to five
 years) are amortised on straight-line method over a period of five
 years.
 
 Spares capitalised are depreciated over a period not exceeding the
 useful lives of Plant and Machinery with which such spares can be used.
 
 Assets individually costing Rs. 5,000 or less are fully depreciated in
 the year of acquisition.
 
 d) Inventories are valued at lower of cost and net realisable value.
 Cost is determined on the weighted average basis.  Cost comprises
 expenditure incurred in the normal course of business in bringing such
 inventories to its present location and condition and includes, where
 applicable, appropriate overheads.
 
 e) Sales are exclusive of sales tax and returns and are recognised when
 significant risk and rewards of ownership of the goods is transferred
 to the buyer and the revenue is measurable at the time of sale and it
 is reasonable to expect ultimate collection of the sale consideration.
 
 Export incentive under Duty Entitlement Pass Book Scheme is recognised
 on accrual basis.
 
 Interest income is recognised on time proportion basis taking into
 account the amount outstanding and rate applicable.
 
 f) Current investments are stated at lower of cost and fair value. Long
 term investments are stated at cost less provision for diminution,
 other than temporary, if any, in value.
 
 g) Current tax is determined as the amount of tax payable in respect of
 taxable income for the year based on applicable tax rates and laws.
 Deferred tax is recognised, subject to consideration of prudence in
 respect of deferred tax asset, on timing differences, being the
 difference between taxable income and accounting income that originates
 in one period and are capable of reversal in one or more subsequent
 periods and is measured using tax rates and laws that have been enacted
 or substantively enacted by the Balance Sheet date. Deferred tax assets
 are periodically reviewed to reassess realisation thereof.
 
 h) Transactions in foreign currencies are recognised at the rates
 existing at the time of such transactions. Gain or losses resulting
 from the settlement of such transactions are recognised in the Profit
 and Loss Account. Year end balances of monetary assets and liabilities
 denominated in foreign currencies are translated at applicable year-end
 rates and the resultant differences is recognised in the Profit and
 Loss Account.
 
 In case of forward exchange contracts which are entered into to hedge
 the foreign currency risk of a receivable/ payable recognised in these
 financial statements, premium or discount on such contracts are
 amortised over the life of the contract and exchange differences
 arising thereon in the reporting period are recognised in the Profit
 and Loss Account.
 
 Forward exchange contracts which are arranged to hedge the foreign
 currency risk of a firm commitment or a highly probable forecast
 transaction is marked to market at the year-end and the resulting
 losses, if any, are charged to the profit and loss account. The net
 gain, if any, based on the above evaluation, is not accounted for.
 
 i) Borrowing cost that are attributable to acquisition, construction or
 production of qualifying assets (assets which require substantial
 period of time to get ready for its intended use) are capitalised as
 part of cost of such assets. All other borrowing costs are recognised
 as expenses in the period they are incurred.
 
 j) Employee Benefits:
 
 i) The undiscounted amount of Short-term Employee Benefits (i.e.
 benefits payable within one year) is recognised in the period in which
 employee services are rendered.
 
 ii) Contributions towards provident fund are recognised as expense.
 Provident fund contributions in respect of employees are made to Trust
 administered by the Company; the interest rate payable to the members
 of the Trust is not lower than the rate of interest declared annually
 by the Central Government under the Employees'' Provident Funds and
 Miscellaneous Provisions Act, 1952 and shortfall, if any, is to be made
 good by the Company.  (Also refer note 10A below).
 
 iii) Contribution under Employees'' Pension Scheme is made as per
 statutory requirements and charged as expenses for the year.
 
 iv) Contribution to Superannuation (Defined Contribution Plan) is made
 as per the approved Scheme and charged as expenses for the year (Refer
 Note 10C below).
 
 v) The Company also contributes to the Central Government administered
 Employees'' State Insurance Scheme for its eligible employees which is a
 defined contribution plan.
 
 vi) Liability towards Gratuity, Superannuation (Defined Benefit Plan)
 covering eligible employees, is provided and funded on the basis of
 year-end actuarial valuation (Refer Note 10B andl OC below).
 
 vii) Accrued liability towards leave encashment benefits, covering
 eligible employees, evaluated on the basis of year-end actuarial
 valuation is recognised as a charge.
 
 viii) Actuarial gains/losses arising under Defined Benefit Plans are
 recognised immediately in the Profit and Loss Account as income/expense
 for the year in which they occur.
 
 k) Provisions, Contingent Liabilities and Contingent Assets -
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 notes.  Contingent Assets are neither recognised nor disclosed in the
 financial statements.