1. System of Accounting the financial statements have been prepared to
 comply in all material respects with the mandatory accounting standards
 issued by the institute of Chartered accountants of india (''iCai'') and
 the relevant provisions of the Companies act, 1956. the financial
 statements have been prepared under the historical cost convention on
 an accrual basis. the accounting policies have been consistently
 applied by the Company and are consistent with those applied in the
 previous year.
 
 2. Revenue recognition revenue from sale of products are recognized on
 dispatch of goods to customers and are net of sales tax, discounts,
 rebates for price adjustments, rejections and shortages in transit.
 
 3. Fixed Assets
 
 Fixed assets are stated at cost, less accumulated depreciation.  Cost
 price includes purchase price, duties, levies and any other costs
 relating to the acquisition and installation of the assets.  interest
 and financing charges on borrowed funds, if any, used to finance the
 acquisition of fixed assets, until the date the assets are ready for use
 are capitalized and included in the cost of the asset.
 
 4. Depreciation
 
 Depreciation is provided on the straight line method at the rates
 specifed under schedule xiV of the Companies act, 1956 and on prorata
 basis on the additions made during the year.
 
 5. Inventories
 
 Valuation of inventories is at the lower of cost or market value as
 certified by the management. Cost of inventories are computed on a
 weighted average/FiFO basis.
 
 raw materials including stores and spares
 
 Valued at lower of cost and net realizable value
 
 Work in process
 
 Valued at lower of cost and net realizable value.  Work in process
 includes costs incurred up to the stage of completion
 
 Finished Goods
 
 Valued at lower of cost and net realizable value.  Finished goods
 include cost of conversion and cost incurred for bringing the same to
 the loca- tion or storage of completion
 
 6. Retirement benefits To Employees
 
 The Company''s liability towards retirement benefit in the form of
 provident fund is fully funded and charged to revenue expenditure.  the
 Company contributes to the employee provident fund maintained under the
 employees provident fund scheme run by the Central Government. the
 gratuity liability is provided and charged off as revenue expenditure
 based on actuarial valuation.  the Company has subscribed to the group
 gratuity scheme policy of LiC of india. unavailed encashable earned
 leave is accounted on accrual basis.
 
 7. Investments
 
 The investments are stated at cost.
 
 8. Deferred tax
 
 Deferred tax asset in the nature of unabsorbed depreciation and losses
 are recognized only if there is virtual certainty of realization.
 Other deferred tax assets are recognized if there is reasonable
 certainty of realization. tax expenses towards deferred tax asset for
 unit ii has been recognized and tax liability for the seZ unit do not
 arise as the income is covered under section 10aa of the income tax
 act, 1961. the effect on deferred tax asset & liabilities of a change
 in rates is recognized in the income statement in the period of
 enactment of the change.
 
 9. Foreign Currency Transactions
 
 Foreign currency transactions are recorded at the rates of exchange
 prevailing on the date of transaction. Foreign currency of assets &
 liabilities and realized gains and losses on foreign exchange
 transactions, other than those relating to fixed assets are recognized
 in the profit and loss account. exchange difference arising on
 liabilities incurred for the purpose of acquiring fixed assets are
 adjusted in the carrying value of the respective fixed assets.
 
 10. Provisions For Taxation
 
 A provision is made for income tax annually based on the tax liability
 computed after considering tax allowances and exemptions.  provisions
 are recorded when it is estimated that a liability due to disallowances
 or other matters is probable. minimum alternate tax (mat) paid in
 accordance with the tax laws, which gives rise to future economic
 benefits in the form of adjustment of future income tax liability is
 considered as asset if there is convincing evidence that the Company
 will pay normal tax after the tax holiday period.
 
 11. Earnings Per Share
 
 The basic earnings per share is computed by dividing net profit after
 tax by the number of equity shares outstanding for the period.