a) Accounting Concepts
 
 The financial statements are presented on going concern concept and in
 accordance with Indian Generally Accepted Accounting Principles (GAAP).
 
 b) Fixed Assets and Depreciation
 
 Fixed Assets are stated at the cost of acquisition or construction and
 putting it to working condition
 
 Depreciation on Buildings and Plant & Machinery is charged on straight
 line method and other assets on Written Down Value method, except
 Assets of Energy Division.
 
 Depreciation on fixed assets of Energy Division is provided on straight
 line method at the rates and in the manner prescribed as per
 notification no.151 dated 29.03.1994 issued by Ministry of Power
 (Department of Power).
 
 c) Inventories
 
 i) Raw Materials and other Materials are valued at weighted average
 cost.
 
 ii) Stores and Spares at Cost
 
 iii) Work - in - Process at cost of material plus labour and other
 overheads and
 
 iv) Finished Goods at Cost or net realizable value whichever is lower.
 
 d) Employee Benefits
 
 Employee Retirement Benefits being Gratuity and Privilege Leave
 Encashment are provided on actuarial valuation as envisaged in
 Accounting Standard 15.
 
 e) Income Tax Expense
 
 Deferred (Income Tax) is provided as envisaged in Accounting Standard
 22
 
 f) Foreign Currency Transactions
 
 Loss or gain due to fluctuations in foreign currency exchange rates is
 recognized as envisaged in Accounting Standard 11.
 
 1.  The Company has only one class of equity shares having a par value
 of Rs. 10/- per share. Each holder of Equity shares is entitled to one
 vote per share. The company declares and pays dividends in Indian
 rupees. The dividend proposed by the Board of Directors is subject to
 the approval of the shareholders in the ensuing Annual general Meeting.
 
 2.  For the Year Ended 31st March,2012, the amount of per share
 dividend recognized as distribution to equity share holders was Rs.2/-
 (31st March 2011: Rs.1.50 per share)
 
 As per records of the company, including its register of
 shareholders/members and other declarations received from shareholders
 regarding beneficial interest, the above shareholding represents both
 legal and beneficial ownerships of shares.
 
 3.  In the event of liquidation of the company, the holders of equity
 shares will be entitled to receive remaining assets of the company,
 after distribution of all preferential amounts. The distribution will
 be in proportion to the number of equity shares held by the
 shareholders.