1.  Accounting Concepts The financial statements have been prepared in
 compliance with all material aspects with the notified accounting
 standard by the Companies Accounting Standard Rules, 2006 (as amended)
 and the relevant provisions of the Companies Act, 1956. These accounts
 are prepared on the historical cost basis adjusted by revaluation of
 certain fixed assets and on the accounting principles of going concern.
 The accounting policies are consistent with those used in the previous
 year.
 
 2.  Recognition Of Income And Expenditure Expenses and income
 considered payable and receivable respectively are accounted for on
 accrual basis.
 
 3.  Inventories Inventories are valued at lower of cost and net
 realisable value. Cost for the purpose of valuation of Raw Materials
 and Stores and Spare Parts has been computed on weighted average
 method. Cost for the purpose of valuation of Finished Goods and
 Materials-in-Process is computed on the basis of cost of material,
 labour and other costs incurred in bringing the inventories to their
 present location and condition. Scrap and Waste have been valued at net
 realisable value.
 
 4.  Investments Long Term Investments are stated at cost. Provision is
 made for diminution, other than temporary in the value of such
 investments. Current Investments are stated at cost or fair value,
 whichever is lower computed category wise.
 
 5.  Fixed Assets Fixed assets are stated at their original cost of
 acquisition/installation adjusted by revaluation of certain fixed
 assets, net of accumulated depreciation, amortization and impairment
 losses, except freehold land which is carried at cost. Leasehold land
 is amortised over the lease period.
 
 6.  Expenditure During Construction Period
 
 Expenditure during construction period are included under capital work
 in progress and the same is allocated to the respective fixed assets on
 the completion of the construction /erection/installation period.
 
 7.  Impairment Of Assets
 
 The Management periodically assesses using external and internal
 sources whether there is any indication that an asset may be impaired.
 Impairment of an asset occurs where the carrying value exceeds the
 present value of cash flow expected to arise from the continuing use of
 the asset and its eventual disposal.  The provision for impairment loss
 is made when recoverable amount of the asset is lower than the carrying
 amount.
 
 8.  Depreciation
 
 I.  Tangible Assets
 
 Depreciation is provided on the straight line method at the rates and
 in the manner specified in Schedule XIV to the Companies Act, 1956.
 Continuous process plants as defined therein have been taken on
 technical assessment and depreciation is provided accordingly.
 Depreciation on increase in value of fixed assets due to revaluation of
 fixed assets is computed on the basis of remaining useful life as
 estimated by the valuer on straight line method. Depreciation of Fixed
 Assets on which ownership belongs to KSTPS, Kota is amortised over the
 period of agreement.
 
 II.  Intangible Assets
 
 (a) Mining right is amortized over the period of lease.
 
 (b) Computer software is amortised over a period of 5 years.
 
 9.  Employee Benefit
 
 (i) Defined contribution plan:
 
 Employee benefits in the form of superannuation fund, state governed
 provident fund scheme are defined contribution plan. The contribution
 under the scheme is recognised during the period in which the employee
 renders the related services.
 
 (ii) Defined Benefit Plan :
 
 The employees gratuity fund and leave encashment schemes are the
 companys defined benefit plan. The present value of the obligation
 under such defined benefit plan is determined based on actuarial
 valuation using the Projected Unit Credit Method.
 
 10.  Exchange Fluctuation
 
 Foreign Currency transactions are recorded at the rate of exchange
 prevailing on the date of transactions.  Foreign Currency
 Loans/Liabilities are restated at the rates prevailing at the year end.
 Exchange differences are adjusted in the Profit & Loss Account.
 
 11.  Government Grants
 
 Government grants are accounted for where there is reasonably certainty
 that the ultimate collection will be made. Government grants of the
 nature of Project Subsidy are credited to Capital Reserve. Other
 Revenue grants are credited to Profit & Loss Account or deducted from
 related expenses.
 
 12.  Borrowing Costs
 
 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 up to the date when such assets
 are ready for its intended use and other borrowing costs are charged to
 Profit & Loss Account.
 
 13.  Provisions And Contingent Liabilities/Assets Provision in respect
 of present obligations arising out of past events are made in the
 accounts when reliable estimate can be made of the amount of the
 obligations.  Contingent liabilities, if material, are disclosed by way
 of notes to accounts. Contingent assets are not recognised or disclosed
 in the financial statements.
 
 14 Taxation
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provision of the Income Tax Act, 1961.
 Deferred tax resulting from timing differences 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 assets is recognised as income and carried
 forward only to the extent there is a virtual certainty that the assets
 will
 
 be adjusted in future. Pursuant to the approval of the shareholders and
 Honble Rajasthan High Courts order dated 30th November, 2007 deferred
 tax liabilities from the year 2007-08 and onwards are met from
 Securities Premium Account as disclosed in note no. 5.