a.  Basis of Accounting
 
 The company prepares its financial statements under the historical cost
 convention in accordance with generally accepted accounting principles
 and in accordance with the provisions of Companies Act, 1956.
 
 b) Fixed Assets
 
 The fixed assets are stated at historical cost inclusive of
 installation expenses & interest upto the date of commissioning of the
 assets.
 
 c) Depreciation
 
 Depreciation has been provided on fixed assets under straight-line
 method at the rates Specified in schedule XIV of the Companies act,
 1956.
 
 d) Investments
 
 Investments are valued at cost.
 
 e) Inventories
 
 i) Raw material is valued at cost
 
 ii) Work in process has been valued at cost plus expenses as per stage
 of completion.
 
 iii) Finished goods have been valued at estimated cost or net
 realizable value which ever is lower.
 
 iv) Stores and spares have been valued at cost or realizable value
 which ever is lower
 
 f) Sales
 
 Sales include excise duty.
 
 g) Revenue Recognition
 
 All expenses and revenue are accounted for on accrual basis.
 
 h) Gratuity and leave encashment
 
 Gratuity and leave encashment is accounted for on cash basis.
 
 i) Research & Development
 
 Revenue expenditure on research and development on going research
 project is charged in the year in which it is incurred.  Expenditure
 which results in developing the new product or process where the
 management is of the opinion that products will be/are commercially
 viable are deferred and charged to the future accounting periods over a
 period of five years commencing from the following year to the initial
 year in which these are incurred.