a) Accounting Conventions
 
 The financial statements are prepared under the historical cost
 convention in accordance with the applicable Accounting Standards
 referred to in sub section (3C) oŁ Section 211 of the Companies Act,
 1956 and relevant provisions of the said Act.
 
 b) Fixed Assets
 
 Fixed Assets are stated at cost of acquisition less accumulated
 depreciation. Cost is inclusive of purchase price and any other
 directly attributable cost to bring the asset to their working
 condition for intended use.
 
 Fixed Assets are reviewed for impairment losses whenever events or
 changes in circumstances indicate that carrying amount may not be
 recoverable. An impairment loss is then recognised for the amount by
 which the carrying amount of assets exceeds its recoverable amount,
 which is the higher of an asset''s net selling price and value in use.
 For the purpose of assessing impairment, assets are grouped at the
 lowest levels for which there are separately identifiable cash flows.
 
 c) Depreciation
 
 Depreciation on fixed assets has been provided on pro-rata basis at the
 STRAIGHT LINE METHOD in accordance with the Schedule XIV of the
 Companies Act, 1956.
 
 d) Inventor i es
 
 Inventories are valued at cost or net realisable value whichever is
 lower.  The cost in respect of the following items is computed as
 under:
 
 Raw Material : At FIFO Basis plus Direct Expenses.
 
 Stores & Spares : At FIFO Basis plus Direct Expenses.
 
 Finished Goods : At Raw Material Cost plus Conversion Cost
 
 By Products : At Net Realisable Value.
 
 e) CENVAT/VAT
 
 CENVAT/VAT credit, wherever available, on Excise Duty/VAT paid inputs
 and capital assets is accounted for by reducing the purchase cost of
 the related inputs or the capital assets, as the case may be.
 
 f) Sales
 
 Sales are Net of returns, Value Added Tax and Excise Duty.
 
 g) Investments
 
 Investments are stated at cost and where there is permanent diminution
 in the value of investments, a provision is made, wherever applicable.
 Dividend is accounted for as and when received.
 
 h) Revenue Recognition
 
 Revenue on sale of products is recognized at the point of dispatch of
 goods to the customers.
 
 i)  Employee Benefits :
 
 i) Short Term Employee Benefits:
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short term employee benefits.  Short Term
 Employee Benefits are recognized as an expense on an undiscounted basis
 in the profit and loss account: of the: year in which the related
 services is rendered.
 
 li) Post Employment Benefits:
 
 DEFINED CONTRIBUTION PLANS :
 
 Provident Fund :
 
 Contribution to Provident Fund Is made in accordance with the
 provisions of the Employees Provident Fund & Miscellaneous Provisions
 Act, 1952 and is charged to the Profit & Loss Account.
 
 DEFINED BENEFIT PLANS :
 
 Gratuity :
 
 Provision Lot. Gratuity Liability to Employees is made on the basis of
 Actuarial Valuat ion made at the end ot the each financial year. The
 actuarial valuation, is made on Projected Unit Credit Method.
 
 i '' Foreign Currency Transcations
 
 i) Monetary Assets and Liabilities related to Foreign Currency
 Transactions and outstanding, except assets and liabilities hedged by a
 hedge contract, at the close of the year, are expressed in Indian
 rupees at the rate of exchange prevailing on the dale of the Balance
 Sheet.
 
 ii) Monetary Assets and Liabilities hedged by a hedge contract are
 expressed in Indian rupees at the rate of exchange prevailing on the
 date of the Balance Sheet adjusted to the rates in the hedge contracts.
 The exchange difference arising either on settlement; or at reporting
 date is recognized in the profit and loss account except in cases where
 they relate to acquisition of fixed assets, in which case they are
 adjusted to the carrying cost of such asset.
 
 iii) Transactions in foreign currency are recorded in the books of
 account in Indian rupees at the rate of exchange prevailing on the date
 of transact i on.
 
 k) Borrowing Cost
 
 Borrowing cost that ate directly a I 11 i billable to the acqulsi
 tion, construction or production of a qualifying asset are capitalised
 as a part of the cost ot the assets. Other borrowing costs are
 recognised as an expense in the year in which they are incurred.
 
 1) Accounting for Taxes on Income
 
 Provision for taxation for the year comprises of current tax and
 deferred tax.
 
 i) Current tax is the amount of Income Tax ascertained on the basis of
 assessable profit computed in accordance with the provision of Income
 Tax Act, 196L.
 
 Deferred tax is recognized, subject to the 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.
 
 m) Provisions and Contingent Liabilities
 
 Provisions are recognised in the accounts in respect of present
 probable obligations, the amount of which can be reliably estimated.
 
 Contingent liabilities are disclosed in respect of possible obligations
 that arise from past events but their existence is confirmed by the
 occurrence or non-occurrence of one or more uncertain future events not
 wholly within the control of the company.