i) Basis of Preparation of Financial Statements
 
 The financial statements are prepared under the historical cost
 convention, on accrual basis of accounting, in accordance with the
 generally accepted accounting principles as applicable, accounting
 standards issued by the Institute of Chartered Accountants of India and
 the relevant provisions of the Companies Act, 1956.
 
 ii) Use of Estimates
 
 The preparation of financial statements requires use of estimates and
 assumptions to be made that affect the reported amounts of assets,
 liabilities and disclosure of contingent liabilities on the date of
 financial statements and the reported amounts of revenues and expenses
 during the reporting period. Difference between the actual results and
 estimates are recognized in the period in which the results are known /
 materialized.
 
 iii) A) Fixed Assets & Depreciation
 
 a) Fixed Assets
 
 Fixed Assets are stated at their cost of acquisition / construction
 less accumulated depreciation and impairment losses. Cost comprises of
 all cost, net of income (if any), incurred to bring the assets to their
 present location and working condition and other related overheads till
 such assets are ready for intended use. Assets vested in the company
 pursuant to the scheme of Arrangement & De-merger are stated at their
 fair market values based on the valuation report of financial
 consultant.
 
 b) Depreciation & Amortisation
 
 Depreciation on Fixed Assets is provided on Straight Line Method basis
 at the rates and in the manner specified in Schedule XIV of the
 Companies Act, 1956. For assets acquired pursuant to the Scheme of
 Arrangement and Demerger where the residual life of assets are
 estimated at less than that worked out on the basis of rates under
 Schedule XIV, the same are depreciated over their respective residual
 lives.
 
 c) Assets not owned by the Company are amortised over a period of ten
 years.
 
 d) Lease Hold Assets are amortised over the period of lease.
 
 e) Classification of plant & machinery into continuous and
 non-continuous is made on the basis of technical assessment and
 depreciation is provided for accordingly.
 
 B) Intangible Assets
 
 Intangible Assets are stated at cost which includes any directly
 attributable expenditure on making the asset ready for its intended
 use.
 
 Intangible Assets are amortised over the expected duration of benefit
 or 10 years, whichever is lower.
 
 C) Impairment
 
 Impairment loss is recognized wherever the carrying amount of an asset
 is in excess of its recoverable amount and the same is recognized as an
 expense in the statement of profit and loss and carrying amount of the
 asset is reduced to its recoverable amount. Post impairment,
 depreciation is provided on the revised carrying value of the asset
 over its remaining useful life.
 
 Reversal of impairment losses recognized in prior years is recorded
 when there is an indication that the impairment losses recognized for
 the asset no longer exist or have decreased.
 
 iv) Revenue Recognition
 
 Revenue is recognized when it is earned and no significant uncertainty
 exists to its realization or collection.  Revenue from sale of goods:
 is recognized on delivery of the products, when all significant
 contractual obligations have been satisfied, the property in the goods
 is transferred for a price, significant risks and rewards of ownership
 are transferred and no effective ownership is retained.
 
 Revenue from other activities: is recognized based on the nature of
 activity, when consideration can be reasonably measured. Certain claims
 like those relating to Railways, Insurance, Electricity, Customs, and
 Excise are accounted for on acceptance basis on account of
 uncertainties.
 
 v) Borrowing Costs
 
 Borrowing costs attributable to the acquisition /construction of
 qualifying assets are capitalized as part of cost of such assets and
 other borrowing costs are recognized as expense in the period in which
 these are incurred.
 
 vi) Foreign Currency Transactions
 
 Foreign currency transactions are recorded at the rate of exchange
 prevailing on the date of the transactions. Monetary assets and
 liabilities related to foreign currency transactions remaining
 unsettled are translated at year end rate.
 
 The difference in translation of Monetary assets and liabilities and
 realized gains and losses on foreign exchange transaction are
 recognized in profit & loss account.
 
 Foreign currency gain/loss relating to translation of net investment in
 non-integral foreign operation is recognized in the foreign currency
 translation reserve.
 
 Premium/Discount on forward foreign exchange contracts are pro-rated
 over the period of contract.
 
 vii) Investments
 
 Long term investments are carried at cost. When there is a decline
 other than temporary in their value, the carrying amount is reduced on
 an individual investment basis and decline is charged to the Profit &
 Loss Account. Appropriate adjustment is made in carrying cost of
 investment in case of subsequent rise in value of investments.  Current
 Investments are carried at lower of cost or market value.
 
 viii) Valuation of Inventories
 
 Inventories are valued at the lower of cost and net realisable value
 except scrap which is valued at net realisable value.  The cost is
 computed on Weighted Average basis. Finished goods and Work in Progress
 includes cost of conversion and other overheads incurred in bringing
 the inventories to their present location and condition.
 
 ix) Employee Benefits
 
 a) Short term Employee Benefits
 
 Short term employee benefits are recognized during the year in which
 the services have been rendered and are measured at cost.
 
 b) Defined Contribution Plans
 
 The Provident Fund and Employee''s State Insurance are defined
 contribution plans and the contributions to the same are expensed in
 the Profit and Loss Account during the year in which the services have
 been rendered and are measured at cost.
 
 c) Defined Benefit Plans
 
 The Provident Fund (Funded), Leave Encashment and Gratuity are defined
 benefit plans. The Company has provided for the liability at year end
 based on actuarial valuation using the Projected Unit Credit Method.
 Actuarial gains and losses are recognized as and when incurred.
 
 d) Employee Stock Option Scheme
 
 The excess of market price on the date of grant over the exercise price
 is recognized as deferred compensation expenses amortized over the
 vesting period on a straight- line basis, as per the accounting
 treatment prescribed by the Employee Stock Option Scheme and Employee
 Stock Purchase Scheme Guidelines, 1999 issued by the Securities and
 Exchange Board of India.
 
 x) Miscellaneous Expenditure
 
 a) Preliminary expenses are written off over the period of ten years.
 
 b) Bonds issue expenses and premium on redemption are written off over
 the expected duration of benefit or life of the bonds, whichever is
 earlier.
 
 c) Mines development expenses incurred for developing and preparing new
 mines are written off over the period of expected duration of benefits
 or ten years, whichever is earlier.
 
 xi) Taxation
 
 Provision is made for income-tax liability in accordance with the
 provisions of Income-Tax Act, 1961.
 
 Deferred tax resulting from timing differences between book profits and
 tax profits is accounted for applying the tax rates and laws that have
 been enacted or substantively enacted till the Balance Sheet date.
 
 Deferred Tax Assets arising from timing differences are recognized to
 the extent there is a reasonable/virtual certainty that the assets can
 be realized in future.
 
 xii) Management of Metal Price Risk/ Derivatives
 
 Risks associated with fluctuations in the price of the precious raw
 material metal are mitigated by hedging on futures/ option market. The
 results of metal hedging contracts/transactions are recorded upon their
 settlement as part of raw material cost.
 
 Risk of movements in the interest rates, foreign currencies are hedged
 by derivatives contract such as Interest Rate Swaps, Currency Swaps,
 Forward Contracts and Currency Options.
 
 All outstanding derivative instruments at year end are marked-to-market
 by type of risk and the resultant losses, if any, are recognized in the
 Profit & Loss Account/Pre-operative expenses, gains are ignored.
 
 xiii) Contingent Liabilities
 
 Contingent liabilities, if material, are disclosed by way of notes.