Basis of Prepartation of Financial Statement
 
 The Financial Statements are prepared at historical costs convention on
 the basis of going concern in accordance with the generally accepted
 accounting principles in India and the provision of the Companies Act,
 1956.
 
 Figures for the previous year have been re-grouped and rearranged
 wherever considered necessary.
 
 Figures in bracket represent corresponding previous year unless
 otherwise stated.
 
 Separate sets of books of accounts are maintained for separate units of
 production, as required by law.
 
 Fixed Assets
 
 Fixed Assets are stated at historical cost net of recoverable taxes,
 less accumulated depreciation and impairment loss, if any and the
 assets prior to 1993-94 are at value adjusted by revaluation, which
 includes expenditure incurred on the acquisition fabrication and/or
 installation. Pre-operative expenditure comprising revenue expenses
 incurred in connection with project implementation during the period
 upto commencement of commercial production are treated as part of
 project cost and are capitalized.
 
 Depreciation and amortisation
 
 Depreciation on fixed assets has been calculated on straight line
 method at the rates prescribed in schedule XIV of the Companies Act
 1956. No Depreciation has been provided on Capital Work in Progress.
 Capital subsidy received has been reduced from the cost of fixed assets
 for purpose of calculating depreciation.
 
 Foreign Exchange Transactions
 
 Transactions in Foreign Currency are recorded in financial statements
 based on the exchange rate existing at the time of the transactions.
 Monetary items denominated in foreign currencies at the year end are
 restated at year end rates.
 
 Investments
 
 Long term Investments are stated at cost. Provision for diminution in
 the value of long term investments is made only if such a decline is
 other than temporary.
 
 Inventories
 
 Inventories are measured at lower of cost or net realisable value. Cost
 of Finished goods include cost of purchase, cost of conversion and
 other cost including manufacturing overhead in bringing them to their
 respective present location and condition. Cost of raw material,
 packing material and spares are determined on first in first out basis.
 
 Impairment of Assets
 
 An asset is treated as impaired when the carrying cost of asset exceeds
 its recoverable value. As impairment loss is charged to the Profit and
 Loss Account in the year in which an asset is identified as impaired.
 The impairement loss recognised in prior accounting period is reversed
 if there has been a change in the estimate of recoverable amount.
 
 Recognition of Revenue and Expenditure
 
 All revenue and expenditure are recognised and accounted for on accrual
 basis. Processing Charges also includes labour charges.  Taxation
 
 Provision for taxation of income tax is made on the basis of the
 taxable profit computed for current accounting year in accordance with
 the Income Tax Act 1961. Deferred Tax resulting from timing differences
 between Book Profits and Tax Profits is accounted for at the current
 rates of tax to the extent the timing difference are expected to
 crystallise, in case of Deferred Tax Liabilities with reasonable
 certainty and in case of Deferred Tax Assets with virtual certainty
 that there would be adequate future taxable income against which such
 Deferred Tax Assets can be realised.
 
 Employee Benefits
 
 Short term employee benefits are recognised as expense at the
 undiscounted amount in the Profit and Loss Account of the year in which
 the related service is rendered. In case of provision of gratuity the
 Company has entered into an agreement with the SBI Life Insurance
 company to administer its gratuity scheme, current year amount payable
 on the basis of actural valuation is provide and premium paid is
 charged to Profit and Loss Account. Provision for leave encashment is
 recognised as expense in the Profit and Loss Account for the year in
 which employee has rendered services.
 
 Borrowing Cost
 
 Interest and other costs in connection with the borrowing of the funds
 to the extent related/attributed to the acquisition/construction of
 qualifying fixed assets are capitalized upto the date when such assets
 are ready for its intended use and other borrowing costs are charged to
 Profit & Loss Account.
 
 Provision, Contingent Liabilities and Contingent Assets
 
 Provision involving substantial degree of estimation in measurement are
 recognized 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 recognized but are disclosed in the
 notes. Contingent Assets are neither recognized nor disclosed in the
 financial statement.