The accounts have been prepared in accordance with the accounting
 principles generally accepted in India and are in line with the
 relevant provisions of the Companies Act, 1956.
 
 (i) Basis of Accounting:
 
 The financial statements are prepared to comply in all material aspects
 with all the applicable accounting principles in India, the applicable
 Accounting Standards notified u/s 211(3C) of the Companies Act, 1956
 and relevant provisions of the Companies Act, 1956.
 
 The Company adopts the accrual basis in the preparation of the accounts
 except insurance claims and sales tax refunds.
 
 (ii) Revenue recognition:
 
 Sales of goods are recognized on dispatch of goods to customers, or
 when substantial risks and rewards of ownership are transferred by the
 Company. Sales are inclusive of excise duty and exclude sales tax/VAT.
 
 (iii) Fixed Assets:
 
 All fixed assets (including assets taken on hire purchase) are carried
 at cost. The cost of fixed assets includes expenses incidental to
 acquisition. Interest on specific borrowings, obtained for the purposes
 of acquiring fixed assets is capitalised upto the date of commissioning
 of the assets.
 
 (iv) Capital Work-in-progress:
 
 Capital Work-in-progress is carried at cost, comprising of direct cost,
 related incidental expenses and interest on borrowings there against.
 
 (v) Investments:
 
 Long term Investments are valued at cost less provision for permanent
 diminution in value of such investments.
 
 (vi) Inventories:
 
 Stores and spare parts are valued at cost. Process stock is valued at
 estimated cost. Raw materials are valued at cost or market rate,
 whichever is lower. Finished products and waste are valued at cost or
 market rate whichever is lower, whereas the sold quantity is valued at
 contract rates. (Cost includes direct cost and overheads). Cost of
 finished goods and work in process is ascertained by applying the
 absorption cost basis.
 
 (vii) Borrowing Costs:
 
 Borrowing costs attributable to the acquisition, construction or
 production of qualifying assets are capitalized as part of the cost of
 such assets. A qualifying asset is one that necessarily takes a
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to revenue.
 
 (viii) Export Sales:
 
 Export sales in foreign currency are accounted at the exchange rates
 prevailing on the dates of the transactions.
 
 (ix) Foreign Exchange Transactions:
 
 Transactions in foreign currency are recorded at the exchange rate
 prevailing at the time of the transaction. As at the balance sheet
 date, monetary assets and liabilities denominated in foreign currency
 are reported at closing rates. Gains or losses on settlement /
 restatement of foreign currency transactions are recognized in the
 Profit and Loss account in the period in which they arise.
 
 (x) Depreciation:
 
 Depreciation has been provided on all fixed assets (excluding
 Furniture, Fixtures and Equipments) on straight- line method and on
 Furniture, Fixtures and Equipments on the written down value basis at
 rates prescribed in Schedule XIV to the Companies Act, 1956.
 
 (xi) Retirement Benefits:
 
 The liability on account of gratuity and leave encashment is based on
 actuarial valuation. The Company''s contribution to provident fund,
 family pension fund and superannuation fund are charged to Profit and
 Loss account as incurred.
 
 (xii) Deferred Taxation:
 
 Deferred tax on timing differences between taxable income and
 accounting income is accounted for, using the tax rates and the tax
 laws enacted or substantively enacted as on the balance sheet date.
 Deferred tax assets are recognized only to the extent there is a
 reasonable certainty of realization, except for unabsorbed depreciation
 and business loss, in respect of which deferred tax is recognized only
 if the Company is virtually certain of having sufficient taxable income
 in future against which the loss/depreciation can be set off.
 
 (xiii) Impairment of Assets:
 
 Impairment loss, if any, is provided to the extent, the carrying amount
 of assets exceeds their recoverable amount. Recoverable amount is
 higher of an asset''s net selling price and its value in use. Value in
 use is the present value of estimated future cash flows expected to
 arise from the continuing use of an asset and from its disposal at the
 end of its useful life.
 
 (xiv) Provisions & Contingent Liabilities:
 
 Provisions are recognised in respect of 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.
 
 (xv) Use of Estimates:
 
 The preparation of financial statements in accordance with the
 generally accepted accounting principles requires the Management to
 make estimates and assumptions that affect the reported amount of
 assets and liabilities as of the date of financial statements and the
 reported amount of expenses of the year. Actual results could differ
 from these estimates. Any revision to such accounting estimates is
 recognized in the accounting period in which such revision takes place.