a) System of Accounting
 
 The Accounts have been prepared using historical coast convention and
 on the basis of a going concern, with revenues Recognised and expenses
 accounted on accrual basis.
 
 b) Fixed Assets
 
 Fixed Assets are stated at cost less accumulated depreciation in the
 books of accounts. The Fixed Assets are capitalized at cost inclusive
 of legal and/ or Installation expenses.
 
 c) Depreciation
 
 The Depreciation of Fixed Assets is charged on straight line method and
 as per the rates prescribed in Schedule XIV of the Companies Act, 1956
 
 d) Valuation of Investments
 
 Inventories of raw material, goods in process, stores and spares,
 finished goods and merchanting goods are stated at cost or net
 realizable value, whichever is lower'', Goods -in-transit are stated ''at
 cost''. Cost Comprise all cost of purchase, cost of conversion and other
 cost incurred in bringing the inventories to their present location and
 Condition Cost formula e used are '' First-in-first out''. Average cost''
 or ''Specific identification'', as applicable. Due allowances is
 estimated and made for defective and absolute items, wherever
 necessary, based on the past experience of the company.
 
 e) Investments
 
 Investments are classified into long term investments.  Long term
 investments are stated at cost. A provision for dimunition is made to
 recognize a decline other than temporary, in the value of long term
 investments.
 
 f) Employee Benefits
 
 Defined Benefits Plans: The present value of the obligation under such
 plan is determined based on an actuarial valuation using Projected unit
 Credit Method. Actuarial gains and losses arising on such valuation are
 recognised immediately in the Profit & Loss Account. In case of funded
 defined benefit plans, the fair value of the plan assets is reduced
 from the gross obligation under the defined benefit plans, to recognise
 the obligation on net basis.
 
 g) Borrowing Cost:
 
 Interest and other borrowing cost attributable to qualifying assets are
 capitalised. Other interest and borrowing Costs are charged to revenue.
 
 h) Government Grant:
 
 Grant received against specific fixed assets are adjusted to the
 assets. Revenue Grant are recognised in the profit & loss Account in
 accordance with the related scheme and in the period in which these are
 accrued.
 
 i) Taxation:
 
 Income-tax expenses comprise current tax and deferred tax charged on
 credit. Provision for Current tax is made on the basis of assessable
 income at the tax rate applicable to the relevant assessment year. The
 deferred tax asset and deferred tax liability is calculated by applying
 tax rates and tax laws that have been enacted or substantively enacted
 by the Balance Sheet Date. Deferred tax assets arising mainly on
 account of brought forwarded losses and unabsorbed depreciation under
 tax laws, are recognised, only if there is a virtual certainty of its
 realisation, supported by Convincing evidence.  Deferred tax assets on
 account of other timing differences are recognised only to the extent
 there is a reasonable certainty of its realisation. At each balance
 sheet date, the carrying amount of deferred tax assets are reviewed to
 reassure realisation.
 
 j) Impairment of Assets:
 
 The carrying amounts of assets are reviewed at each Balance Sheet date
 if there is any indication of impairment based on internal/external
 factors. An asset is impaired when the carrying amount of the assets
 exceed the recoverable amount. An impairment loss is charged to the
 profit and loss account in the year in which an asset is identified as
 impaired. An impairment loss recognised in prior accounting periods is
 reversed if there has been change in the estimate of the recoverable
 amount.