a) Accounting Convention
 
 The financial statements are prepared under the historical cost
 convention, on accrual basis in accordance with the generally accepted
 accounting principles in India, the Accounting Standards issued by the
 Institute of Chartered Accountants of India and the applicable
 Accounting standards notified under Section 211 (3c) of the Companies
 Act, 1956.
 
 b) Fixed Asset
 
 (i) Fixed Assets are stated at cost less accumulated depreciation. Cost
 includes all expenses related to acquisition and installation of the
 concerned asset.
 
 (ii) Depreciation on Fixed Assets is being charged on straight-line
 method at the rate prescribed under schedule XIV to the Companies Act,
 1956.
 
 (iii) Leased land value is not amortised in view of the long tenure of
 unexpired lease period.
 
 c) Inventories :
 
 (i) Raw Material          : At cost on FIFO
 
 (ii) Finished Goods         Lower of estimated cost or realizable
                             value(Estimated
                             Cost comprises of material cost and 
                             direct overheads)
 
 (iii) Semi Finished Goods : At estimated cost (Estimated cost comprises
                             of material
 
                           : Cost and related direct overheads)
 
 (iv) Scrap                : At net realizable value
 
 (v) Sundry Materials      : At cost on FIFO basis
 
 
 d) Asset Impairment
 
 The Company reviews the carrying values of tangible and intangible
 assets for any possible impairment at each balance sheet date. An
 impairment loss is recognized when the carrying amount of an asset
 exceeds its recoverable amount. In assessing the recoverable amount,
 the estimated future cash flows are discounted to their present value
 at appropriate discount rate.
 
 e) Investments
 
 Long-term investments are carried at cost. Provision for diminution, if
 any, in the value of each long-term investment is made to recognize a
 decline, other than that of a temporary nature. The fair value of a
 long-term investment is ascertained with reference to its market value,
 the investee''s assets and results and the expected cash flows from the
 investments. Current investments are carried at lower of cost and fair
 value.
 
 f) Provisions And Contingent Liabilities
 
 Provisions are recognized in the accounts in respect of present
 probable obligations, the amount of which can be reliably estimated.
 
 Contingent Liabilities are disclosed in respect of possible obligations
 that arise from past events but their existence is confirmed by the
 occurrence or non-occurrence of one or more uncertain future events not
 wholly within the control of the company.
 
 g) Revenue Recognition
 
 Sales are recognized when bills are raised and recorded net of
 discounts, sales Taxes.
 
 Income from dispatch of goods is recorded net of returns after trade
 discounts.
 
 Dividend income is recognized when the right to receive the same is
 established.
 
 Interest income is recognized on a time proportion basis.
 
 h) Employee Benefits
 
 Obligations pertaining to short term employee benefits are recognized
 as cost in the period in which the employee renders the related
 service.
 
 The cost of accumulating compensated absences is recognized in the
 period in which such absences occur. The cost of '' accumulating
 compensated absences is recognized in the period in which the employee
 renders the service that increases his entitlement to future
 compensated absences.
 
 The amount of contribution payable toward define contribution plan in
 exchange for service rendered by an employee is recognized as a cost,
 in the period in which such service was rendered. However if the said
 contribution falls due 12 months after the period in which the employee
 has rendered the related service, the amount of contribution to be
 recognized as above is discounted at appropriate rate.
 
 In case of defined benefit plans actuarial techniques are used to make
 a reliable estimate of the amount of benefits that the employees has
 earned in return for the services in the current and past period. These
 estimates are based on certain actuarial assumption about demographic
 and financial variable, which influence the cost of benefits.
 
 The rate used to discount post-employment benefit obligation are
 determined by reference to market yield at balance sheet date on
 government bond of appropriate currency and term.
 
 i) Taxed on Income
 
 Provision for current tax is ascertained on the basis of the taxable
 income for the year determined in accordance with the provision of
 Income Tax Act, 1961.
 
 Deferred tax is recognized on timing differences; being the difference
 between the taxable incomes and accounting income that originate in one
 period and are capable of reversal in one or more accounting periods.
 Deferred tax assets subject to the consideration of prudence are
 recognized and carried forward only to the extent that there is
 reasonable certainty that sufficient difference at the year end and
 based on the tax rate and laws enacted on substantially enacted on the
 balance sheet date.
 
 j) Foreign Currency Transactions
 
 Transactions in foreign currency are recorded at the exchange rates
 prevailing on the date of the transaction. Monetary Assets and
 Liabilities denominated in foreign currency are translated at the
 period end exchange rates. Exchange gain/losses are recognized in the
 profit and loss account except for exchange differences related to
 fixed assets, which are adjusted in the cost of the assets.  Non
 Monetary foreign currency items like investments in foreign
 subsidiaries are carried at cost and expressed in Indian currency at
 the rate of exchange prevailing at the time of making the original
 investment.
 
 k) Export Benefits /Incentives
 
 Export benefits/Incentives on export are accounted on accrual basis
 taking into Account the present realizable value of DEPB License.
 
 I) Turnover:
 
 Turnover includes Sale of goods, Scrap, Service Charges, and excludes
 Export Incentives And Excise Duties, Sales Tax, Value Added Tax,
 Discounts.
 
 j) Miscellaneous Expenditure:
 
 Share issue expenses are amortised equally over a period of Ten years