A. Significant Accounting Policies
 
 1. Accounts are maintained on accrual basis. Claims/Refunds not
 ascertainable with reasonable certainly are accounted for on settlement
 basis.
 
 2. Fixed Assets are stated at cost.
 
 3. Expenditure during construction/erection period is included in
 Capital Work-in-Progress and is allocated to the respective fixed
 assets on commencement of Commercial Production.
 
 4. Depreciation on Fixed Assets in use is provided on Straight Line
 Method as per the rates specified in Schedule XIV of the Companies Act
 1956. No depreciation is provided on Fixed Assets if not in use.
 Leasehold land is amortised over the period of lease. Software is
 amortised over a period of five years.
 
 5. Inventories are valued at the lower of cost and net realisable
 value. The cost is computed on weighted average basis. Finished Goods
 and Process stock include cost of conversion and other costs incurred
 in bringing the inventories to their present location and condition.
 
 6. Retirement benefits are accounted on accrual basis.
 
 7. Duty drawback and other export benefits on Revenue account are
 recognised in the Profit & Loss account and on Capital Account are
 reduced from Gross Value of Fixed Assets. Project subsidy is credited
 to Capital Reserve.
 
 8. Expenditure incurred against which benefit is expected to flow into
 future periods are treated as Deferred Revenue Expenditure and charged
 to revenue accounts over expected duration of benefit.
 
 9. Long-term investments are stated at cost.
 
 10. Foreign currencies outstanding are converted to Rupees at the
 Exchange rate prevailing at the year-end or at forward contracted
 rates. Exchange difference in respect of fixed assets is adjusted to
 the carrying cost of fixed assets and in respect of others is charged
 to Profit and Loss Account.
 
 11. Borrowing cost is charged to profit & loss account except for
 acquisition of qualifying assets, which is capitalised till the date of
 commercial use of the asset.
 
 12. Current Tax is the amount of tax payable on the estimated taxable
 income for the current year as per the provisions of Income Tax.  Act
 1961. Deferred Tax Assets and Liabilities are recognised in accordance
 with AS 22. Deferred Tax Asset is recognised on the basis of
 reasonable/virtual certainty that sufficient future taxable income will
 be available against which the same can be realised.