a) Basis of preparation of financial statements
 
 The financial statements have been prepared under the historical cost
 convention in accordance with the generally accepted accounting
 principles as adopted consistently by the Company and the provisions of
 the Companies Act, 1956.  Accounting policies not specifically referred
 to otherwise are consistent with generally accepted accounting
 principles.
 
 b) Use of Estimates
 
 The presentation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of financial statements and the reported amount
 of revenues and expenses during the reporting period. Difference
 between the actual results and the estimates are recognized in the
 period in which the results are known/materialized.
 
 c) Fixed Assets:
 
 Fixed assets are stated at historical cost including directly
 attributable costs of bringing the assets to their working condition
 and are net of credit under the CENVAT/VAT scheme where applicable.
 
 Fixed assets under construction is categorised as capital
 work-in-progress. Pre-operative expenditure during construction/trial
 run of new project net of sales during trial runs and income earned by
 way of interest for temporary parking of funds earmarked for
 construction of an asset, are separated from normal revenue heads and
 allocated to the appropriate assets head under construction and shown
 as capital work-in-progress and allocated on an appropriate basis to
 fixed assets on commissioning.
 
 d) Depreciation:
 
 Depreciation on Fixed Assets is provided on the straight line method in
 accordance with the rates prescribed in Schedule XIV of the Companies
 Act, 1956 on pro-rata basis.
 
 e) Leases
 
 Operating Leases: Rental are expensed with reference to lease terms and
 other considerations.
 
 The Company has taken commercial/residential premises under cancelable
 operating leases. The lease agreements are usually renewable by mutual
 consent on mutually agreeable terms.
 
 The expenses in respect of operating leases are accounted for in Other
 Expenses under Note-22 of the Balance Sheet.
 
 f) Revenue Recognition:
 
 Sales of products are recognized when the products are shipped and are
 stated inclusive of excise duty but net of sales tax, trade discounts
 and sales returns.
 
 Revenue is recognized when no significant uncertainties exist in
 relation to the amount of eventual receipt.
 
 The Company generally follows mercantile system of accounting and all
 income and expenditure items having a material bearing on the financial
 statements are recognized on accrual basis.
 
 g) Foreign Currency Transactions:
 
 (i) Foreign currency transactions are recorded at the exchange rate
 prevailing on the date of the transaction.
 
 (ii) Gains/losses arising out of fluctuation in the exchange rates are
 recognized in the period in which they arise.
 
 (iii) Moneterary assets and liabilities denominated in foreign currency
 are translated at the relevant rates of exchange prevailing at the year
 end resultant gain or loss is recognised in the Statement of Profit &
 Loss, except in the case of gain where significant uncertainties exist
 in relation to the actual realisation.  
 
 (iv) Premium/discount on forward exchange contracts (including
 options), which are not intended for trading or speculation purposes,
 are amortized over the period of the contract. There are no outstanding
 forward exchange contracts (including options) as at the Balance Sheet
 date.
 
 (v) Any profit or loss arising on cancellation or settlement of forward
 exchange contracts (including options) is recognized as income or
 expense of the year.
 
 h) Excise Duty
 
 Excise Duty is accounted for as and when paid on the clearance of the
 goods from the factory.
 
 i) Employees'' Retirement and Other Benefits
 
 Company''s contribution to provident and other funds is accounted for on
 accrual basis and charged to Profit and Loss Account. Provident Fund is
 accrued on monthly basis and is deposited with the Statutory Provident
 Fund. The Company''s contribution is charged to the Profit and Loss
 account.
 
 Provision for unutilised leave benefits is made on accrual basis.
 Liability for leave encashment benefit is accounted for on the
 assumption that such benefit are payable to all employees at the end of
 accounting year.
 
 Gratuity liability is provided for on the basis of Acturial Valuation.
 Acturial gains and losses are recognized in full in the Profit and Loss
 Account for the period in which they occur.
 
 j) Borrowing Costs
 
 Borrowing Costs that are attributable to the acquisition or
 construction of qualifying assets prior to commencement of commercial
 production are capitalized as a part of the cost of such assets. A
 qualifying asset is one that necessarily takes substantial period of
 time to get ready for intended use. All other borrowing costs are
 charged to revenue.
 
 k) Miscellaneous Expenditure (to the extent not written off of
 adjusted)
 
 Mines Development Expenses shall be amortized over a period of five
 years from the year of the commencement of commercial production.
 
 l) Events occurring after Balance Sheet date:
 
 Significant events occurring after the Balance Sheet date have been
 considered in the preparation of financial statements.
 
 m) Taxes on Income
 
 Provision for Current tax has been determined as per provisions of the
 Income Ta x Act, 1961.  Deferred tax is recognized, subject to the
 consideration of prudence, 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.
 
 Minimum Alternate Ta x (MAT) credit is recognised as an assets only
 when and to the extent there is convincing evidence that the Company
 will play normal Income Ta x during the specified period. In the year
 in which MAT credit becomes eligible to be recognised as an asset in
 accordance with the recommendations contained in guidance note issued
 by the Institute of Chartered Accountants of India, the said asset is
 created by way of a credit to the statement of profit and loss and
 shown as MAT Credit entitlement. The Company reviews the same at each
 Balance Sheet date and writes down the carrying amount of MAT credit
 entitlement to the extent it is not reasonable certain that the Company
 will pay normal income tax during the specified period.
 
 n) Impairment of Fixed Assets
 
 At the end of each year, the Company determines whether a provision
 should be made for impairment loss on fixed assets by considering the
 indications that an impairment loss may have occurred in accordance
 with Accounting Standard 28 on Impairment of Assets issued by the
 Institute of Chartered Accountants of India. An impairment loss is
 charged to the Profit and Loss Account in the year in which, an asset
 is identified as impaired, when the carrying value of the asset exceeds
 its recoverable value. The impairment loss recognized in prior
 accounting periods is reversed, if there has been a change in the
 estimate of recoverable amount.
 
 o) Contingent Liabilities and Provisions
 
 The Company makes a provision when there is a present obligation as a
 result of a past event where the outflow of economic resources is
 probable and a reliable estimate of the amount of the obligation can be
 made.