1.  ACCOUNTING CONCEPTS
 
 The financial statements are prepared under the 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 management''s best
 knowledge of current event and actions, actual results could differ
 from these estimates.
 
 3.  FIXED ASSETS
 
 Fixed assets are stated at cost adjusted by revaluation of fixed
 assets. Cost comprises the purchase price and attributable cost of
 bringing the asset to its working condition for its intended use.
 
 4.  DEPRECIATION AND AMORTISATION
 
 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 to fixed assets is being provided on
 pro-rata basis from the month of acquisition.
 
 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 from revaluation is withdrawn from Revaluation Reserve and credited to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.
 
 iv) Leasehold land is amortised over the period of lease.
 
 II) Intangible Assets
 
 i) computer software cost is amortised over
 
 ii) Good will is amortised over a period of ten years.
 
 5.  IMPAIRMENT OF ASSETS
 
 The carrying amount of assets is reviewed at each balance-sheet date.
 If there is any indication of impairment based on internal and external
 factor, an impairment loss is recognised whenever the carrying amount
 of an asset exceeds its recoverable amount.The recoverable amount is
 the greater of the asset''s 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 in 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 other than temporary diminution in the value, if any.
 
 8.  INVENTORIES
 
 Inventories are valued at cost or net realisable value, whichever is
 lower. cost comprises all cost of purchase, cost of conversion and
 other costs incurred in bringing the inventories to their present
 location and condition. cost is determined on a moving weighted average
 basis(store spare parts etc and Raw materials). In respect of work in
 process and finished goods cost is determined on a monthly moving
 weighted average basis.
 
 9.  SALES
 
 sale of goods is recognized at the point of sale to customer. sale
 includes excise duty. In order to comply with the accounting
 interpretation(Asi-14) issued by the Institute of chartered Accountants
 of india, sales(including excise duty ) and net sales(excluding excise
 duty) is disclosed in Profit & Loss Account.
 
 10.  BORROWING 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 capitalised upto the date when such assets
 are ready for its intended use and other borrowing costs are charged to
 Profit & Loss Account.
 
 11.  RETIREMENT BENEFITS
 
 The company''s contributions to Provident Fund and Superannuation Fund
 are charged to Profit & Loss Account. contributions 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 recognised 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.  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 recognised 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.
 
 14.  MINES RESTORATION EXPENDITURE
 
 The expenditure on restoration of the mines based on technical
 estimates by internal/ External specialists is recognised in the 
 accounts.  The total estimated restoration expenditure is apportioned 
 over the estimated quantity of mineral resources(likely to be made 
 available) and provision is made in the accounts based on minerals 
 mined during the year.
 
 15.  OPERATING LEASES
 
 Leases where significant portion of risk and reward of ownership are
 retained by the lessor are classified as operating leases and lease
 rentals thereon are charged to the Profit & Loss Account.
 
 16.  PROVISION/CONTINGENCY
 
 A provision is recognised when there is a present obligation as a
 result of past event and it is probable that an outflow of resources
 embodying economic benefit will be required to settle the obligation in
 respect of which a reliable estimate can be made.  These are reviewed
 at each Balance-sheet date and adjusted to reflect the current best
 estimates.  contingent Liabilities are disclosed.