1.  Basis for preparation of Financial Statements:
 
 The Financial statements have been prepared under the historical cost
 conventions in accordance with the generally accepted accounting
 principles in India and the provisions of the Companies Act, 1956 as
 adopted consistently by the Company. All income and expenditure having
 a material bearing on the financial statements are recognised on
 accrual basis.
 
 2.  (A) Fixed Assets:
 
 Fixed assets are recorded at historical cost of purchase and do not
 reflect current values. Cost includes interest and other financial
 charges attributable to the acquisitions of fixed assets.
 
 B.  Intangible Assets:
 
 The IPO Expenditure incurred is amortised over the period of 10 years.
 
 3.  Investments:
 
 Long Term Investments are stated at cost.
 
 4.  Inventories :
 
 Inventories have been valued as under:
 
 i) Raw materials, work-in-progress, stores and spares and finished
 goods have been valued at cost or net realisable value whichever is
 lower.
 
 5.  Foreign Exchange Transactions:
 
 All the Foreign exchange transactions entered into during the current
 period are accounted at the exchange rate prevailing on the date of
 contract/documentation. Foreign Exchange fluctuations on transactions
 entered into during the period and received/paid during the period are
 accounted in the current financial year. The out standing accounts in
 foreign currency are restated at the end of the year at the foreign
 currency rate prevailing on that date and any fluctuation on the same
 is recognised and accounted at the end of the period
 
 6.  Revenue Recognition:
 
 Revenue from the sale of goods is recognised when the significant risks
 and rewards of ownership have been transferred to the buyer.
 
 Revenue from Works Contracts is recognised by reference to the
 completion of the contract activity at the reporting date, where the
 contract activity extended beyond the reporting date, on the basis of
 percentage of the completion method.
 
 7.  Employee Benefits:
 
 i) Provident Fund:
 
 The Company contributes to the Employee Provident Fund maintained by
 the Central Government under the Employees Fund Scheme. Both Employee
 and Company made make monthly contributions to this Provident Fund plan
 to a specified percentage of the employees'' salary.
 
 ii) Gratuity:
 
 Provision has been made in the financial statements of the Company, in
 respect of gratuity on accrual basis.
 
 8.  Borrowing Costs:
 
 Borrowing costs that are directly attributable or constructions of
 qualifying assets are capitalised as part of the cost of such assets. A
 qualifying asset is one that necessarily takes substantial period of
 time to get ready for its intended use. All other borrowings costs are
 charged to Profit and Loss Account.
 
 9.  Provision for Current & Deferred Tax:
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the year. Deferred tax assets and liabilities are
 recognised, subject to consideration of prudence, on timing
 differences, being the difference between taxable incomes and
 accounting income, that originate in one period and are capable of
 reversal in one or more subsequent periods. Deferred tax assets arising
 on account of unabsorbed depreciation or carry forward of losses under
 tax laws are recognised only to the extent that there is virtual
 certainty supported by convincing evidence that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realised. Deferred tax assets on account of other timing
 differences are recognised to the extent that there is a reasonable
 certainty of its realisaton
 
 10.  Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving substantial degree if estimation in measurement is
 recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 notes. Contingent Assets are neither recognised nor disclosed in the
 financial statements