1.  Basis of Accounting
 
 The financial statements have been prepared under historical cost
 convention on accrual basis of accounting in accordance with accounting
 principles generally accepted in India, the applicable Accounting
 Standards (AS) and the relevant provisions of the Companies Act, 1956.
 
 2.  Valuation of Inventories
 
 -Raw Material At cost -Material in Process
 
 At estimated process cost.
 
 - Finished Goods
 
 At cost or market price whichever is lower.
 
 (inclusive of Excise Duty)
 
 - Stores Et Spares etc.
 
 At estimated realisable value.
 
 3.  Excise Duty/Cenvat
 
 - Excise Duty in respect of goods lying in the factory, at the close of
 the year, is accounted for at the prevalent applicable rate of duty.
 
 - Cenvat on capital goods is credited to respective assets.
 
 - Cenvat on purchase of raw material and other material is deducted
 from the cost of such material.
 
 - Cenvat on Input Service is credited to respective expense.
 
 4.  Prior Period Items/Extra-ordinary Items
 
 Prior period items/Extra-ordinary items, having material impact on the
 financial affairs of the Company, are disclosed separately.
 
 5.  Depreciation
 
 - Depreciation on fixed assets is provided, on the basis of actual
 working days/utilisation, on written down value method, as per the
 rates prescribed in Schedule XIV of the Companies Act, 1956.
 
 - Depredation on additions to fixed assets is calculated on month-end
 balances.
 
 - Depreciation on assets sold & scrapped, during the year, is provided
 upto the month in which such fixed assets are sold or scrapped.
 
 6.  Revenue Recognition
 
 - Revenue from sales of goods is recognised when risk and rewards of
 ownership are transferred to the customers.
 
 - Revenue from services is recognised as and when services are rendered
 and related costs incurred.
 
 - Other income is recognised on accrual basis unless otherwise stated.
 
 - Sales are shown net of Excise Duty and other taxes, as applicable.
 
 7.  Fixed Assets
 
 Tangible assets
 
 - Fixed Assets are stated at their cost of acquisition or construction
 less accumulated depreciation and impairment of assets, if any.
 
 - Cost comprises of purchase price and any attributable cost of
 bringing the asset to its working condition for its intended use.
 
 Capital Work-in-Progress ''
 
 Expenses incurred during construction/installation period are included
 under capital work-in-progress and allocated to relevant fixed assets
 in the ratio of cost of the respective assets on completion of
 construction/installation.
 
 8.  Foreign Currency Transactions
 
 - Foreign currency transactions are recorded at the exchange rate
 prevailing on the date of transaction.
 
 - Gains or losses, if any, arising due to exchange differences at the
 time of transaction or settlement are accounted for in the Statement of
 Profit & Loss.
 
 9.  Investments
 
 - Current Investments are carried at cost or fair value whichever is
 lower.
 
 - Long-term investments are carried at cost. Provision for diminution
 in value of long term investments is made only, if a decline is other
 than temporary.
 
 10.  Employee Benefits
 
 - Contributions as required under the Statute/Rule are made to
 Provident Fund and charged to the Statement of Profit 6t Loss of the
 year when the contributions to the fund are due.
 
 - Provisions of Employees State Insurance are not applicable.
 
 - Leave Encashment and Bonus are accounted for on accrual basis.
 
 - Gratuity is accounted for on accrual basis - the Company has not
 opted for any policy for Group Gratuity Scheme from Life Insurance
 Corporation of India or any other insurer covered under the specified
 provisions of the Income Tax Act, 1961.
 
 - Termination benefits are recognised as an expense as and when
 incurred.
 
 11.  Borrowing Costs
 
 Borrowing costs which are directly attributable to acquisition,
 construction or production of a qualifying asset are capitalised as a
 part of the cost of such assets. Other borrowing costs are recognised
 as an expense in the period in which they are incurred.
 
 12.  Operating Lease
 
 Leases where significant portion of reward and ownership are retained
 by the lessor is classified as Operating Lease Et lease rentals,
 thereon, are charged to Statement of Profit & Loss.
 
 13.  Earning Per Share (EPS)
 
 Annualised basic earning per equity share is arrived at based on net
 profit/(loss) attributable to equity shareholders to the basic weighted
 average number of equity shares.
 
 14.  Taxeson Income
 
 - Current Tax is measured at the amount expected to be paid to the tax
 authorities in accordance with the Indian Income TaxAct, 1961.
 
 - Deferred tax is recognised, subject to the consideration of prudence
 in respect of deferred tax assets/liabilities, on timing differences,
 being the difference between taxable income and accounting income that
 originate in one period and are capable of reversal in one or more
 subsequent periods.
 
 15.  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 treated as impaired when the carrying cost of the
 assets exceeds its recoverable value. An impairment loss, if any, is
 charged to the Statement of Profit and Loss in the year in which an
 asset is identified as impaired. Reversal of impairment losses
 recognised in prior years is recorded when there is an indication that
 the impairment losses recognised for the assets no longer exist or have
 decreased.
 
 16.  Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are 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 to Accounts.
 
 Contingent assets are neither recognised nor disclosed in the financial
 statements.
 
 17.  Insurance and other claims
 
 Insurance claims are accounted for on settlement of claims/on receipt.
 
 18.  Miscellaneous Expenditure
 
 The Company follows the policy of treating some expenditure, the
 benefits of which accrue to the Company over an extended period as
 miscellaneous or deferred revenue expenditure and amortises such
 expenditure over a period of upto five years depending on the nature &
 expected future benefits of such expenditure.