(1)  Basis of Preparation of Financial Statements :
 
 (a) The financial statements have been prepared under the historical
 cost convention in accordance with the generally accepted accounting
 principles and the provisions of the companies Act, 1956 as adopted
 consistently by the Company except for certain fixed assets which are
 revalued.
 
 (b) The Company generally follows mercantile system of accounting and
 recognizes significant items of income and expenditure on accrual
 basis.
 
 (2) Fixed Assets:
 
 (a) All the fixed assets of the Company as on16lh April, 1994 had been
 revalued. The original cost of these assets is replaced by revalued
 amount.
 
 (b) Other fixed assets , acquired after 16-04-94 are stated at their
 original cost.
 
 (3) Depreciation :
 
 1) The Company provides depreciation on all the fixed Assets acquired
 before 01-04-96 including revalued assets on straight line Method at
 the rates specified in the schedule XIV of the Companies Act, 1956, as
 amended vide Notification GSR No. 766 (756) (E) dated 16-12-93 of
 Government of India.
 
 2) The Company has calculated depreciation on assets acquired after
 01-04-96 on W.D.V method at the rates specified in the schedule XIV of
 the Companies Act, 1956.
 
 3) The Company has started new division for manufacturing aluminum
 sheets and coils. The commercial production of the same was started
 from 15/1/2008. The Depreciation on this plant is calculated W.D.V.
 method on pro-rata basis at the rates specified in the schedule XIV of
 the Companies Act, 1956.
 
 (4) Investments:
 
 Investments are stated in the books at cost.
 
 (5) Inventories:
 
 Inventories are valued at cost or market price whichever is lower.
 
 (6) Treatment of retirement benefits :
 
 Retirement benefits are recorded on cash basis.
 
 (7) Revenue Recognition :
 
 Revenue Income is recognised on accrual basis.