1 ACCOUNTING CONCEPTS
 
 The financial statements are prepared underthe historical cost
 convention (except for fixed assets which are revalued) on an accrual
 basis and in accordance with the applicable mandatory Accounting
 Standards.
 
 2.  USE OF ESTIMATES
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumption that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of
 Financial Statements and the results of operation during the reporting
 period end. Although these estimates are based upon managements best
 knowledge of current event and actions, actual results could differ
 from these estimates.
 
 3.  FIXED ASSETS
 
 Fixed assets are stated at cost (including expenses related to
 acquisition and installation) adjusted by revaluation of fixed assets.
 
 4.  DEPRECIATION AMD AMORTIZATION
 
 I) TANGIBLE ASSETS:
 
 i) Depreciation is provided on straight line method at the rates
 specified in the Schedule XIV to the Companies Act, 1956.
 
 ii) Depreciation on additions/deductions to fixed assets is being
 provided on pro-rata basis from/to the month of acquisition/ disposal.
 
 iii) Depreciation on additional value of Revalued Assets is provided on
 the basis of life determined by the valuers. An amount equivalent to
 depreciation on additional values resulting from revaluation is
 withdrawn from Revaluation Reserve and credited to Profit & Loss
 Account.
 
 v) Leasehold land is amortised over the period of lease.
 
 II) INTANGIBLE ASSETS:
 
 i) Computer Software cost is amortised over a period of three years.  
 
 ii) Good will is amortised over a period often years.
 
 5.  IMPAIRMENT OF ASSETS
 
 The carrying amount of assets are reviewed at each balance-sheet date.
 If there is any indication of impairment based on internal external
 factor, an impairment loss is recognized wheneverthe carrying amount of
 an asset exceeds its recoverable amount.  The recoverable amount is the
 greater of the assets net selling price and value in use. In assessing
 value
 
 the estimated future cash flows are discounted to their present value
 at the weighted average cost of capital. For the purpose of accounting
 of impairment due consideration is given to revaluation of reserves, if
 any.
 
 After impairment depreciation is provided on the revised carrying
 amount of the assets over remaining useful life.
 
 6.  GOVERNMENT SUBSIDIES
 
 Government grants/subsidies are accounted for only when there is a
 certainty of receipt.
 
 7.  INVESTMENTS
 
 Current investments are stated at lower of cost or fair market value.
 Long term investments are stated at cost after deducting provisions
 made for permanent diminution in the value, if any.
 
 8.  IMVEMTORIES
 
 Inventories are valued at cost or net realizable value, whichever is
 lower. Cost comprises all cost of purchase, cost of conversion and
 other costs incurred in bringingthe inventories to their present
 location and condition. First-in-First-out or Average cost method
 is followed for determination of cost.
 
 9.  SALES
 
 Sale of goods is recognized at the point of sale to customer. Sale
 includes excise duty and value added tax/sales-tax. In order to comply
 with the accounting interpretation(ASI-14) issued by the Institute of
 Chartered Accountants of India, sales(including excise duty and
 sales-tax) and net sales(excluding excise duty and sales-tax) is
 disclosed in Profit &< Loss Account.
 
 10. SORROWING COST
 
 Interest and other costs in connection with the borrowing of the funds
 to the extent related/ attributed to the acquisition/construction of
 qualifying fixed assets are capitalized upto the date when such assets
 are ready for its intended use and other borrowing costs are charged to
 Profit &t Loss Account.
 
 11. RETIREMENT BENEFITS
 
 The Companys contributions to Provident Fund and Superannuation Fund
 are charged to Profit & Loss Account. Contribution to Gratuity Fund are
 made on actuarial valuation and Provision for Leave encashment are made
 on the basis of actuarial valuation and charged to Profit & Loss
 Account.
 
 12. FOREIGN EXCHANGE TRANSACTIONS
 
 Foreign currency transactions are accounted at equivalent rupee value
 earned/incurred. Year end balance in current assets/liabilities is
 accounted at applicable rates.  Exchange difference arising on account
 of fluctuation in the rate of exchange is recognized in the Profit &
 Loss Account.
 
 Investment in subsidiary company is expressed in Indian Rupees at the
 rate of exchange prevailing at the date of investment.
 
 13. MISCELLANEOUS EXPENDITURE
 
 Preliminary expenses are amortised over a period of five years from the
 year of commencement of manufacturing activity.
 
 Deferred Revenue Expenses:
 
 Expenses on Mines Development/overburden removal is deferred and
 amortised over a period of Lease/ extraction from Mines.
 
 14.  PROVISION FOR CURRENT AND DEFERRED TAX
 
 Provision for Current Tax is made on the basis of estimated taxable
 income for the current accounting period and in accordance with the
 provisions as per Income Tax Act, 1961.
 
 Deferred tax resulting from timing difference between book and
 taxable profit for the year is accounted for using the tax rates and
 laws that have been enacted or substantially enacted as on the balance
 sheet date. The deferred tax asset is recognized and carried forward
 only to the extent that there is a reasonable certainty that the assets
 will be adjusted in future.Permanent timing difference adjustments are
 not accounted for in provisions.
 
 15. CONTINGENT UABILITES
 
 Contingent liabilities are not provided and are disclosed in Notes on
 accounts.