1 The Accounts are prepared on the Historical Cost Convention and
 materially comply with the mandatory Accounting Standards issued by the
 Institute of Chartered Accountants of India.  The significant
 Accounting Policies followed by the company are as stated below:
 
 a) Fixed Assets: Capitalised at acquisition cost including directly
 attributable cost of bringing the assets to their working condition for
 intended use and also including an appropriate share of incidental
 expenditure during construction.
 
 b) Depreciation: Depreciation has been provided on the Straight Line
 Method in accordance with Schedule X,V to the Companies Act, 1956 on
 prorata basis from the month of addition of individual assets.
 
 c) Foreign Currency Transaction: Transactions in Foreign Currency are
 recorded at the Exchange rates prevailing at the time of transaction.
 Material gain or loss on account of fluctuation in Exchange rate is
 treated as Income or Expenditure during the year.
 
 d) Inventories: Inventories are valued at cost or Net Realisable Value
 whichever is lower. Cost is determined on First in First Out method.
 Cost of Semi Finished goods includes conversion cost and other cost
 incurred in bringing the inventories to their present location.
 
 i) Raw Materials At Cost
 
 ii) WIP At lower cost and net realisable value
 
 iii) Finished Goods At lower cost and net realisable value
 
 iv) Consumables Spares & Stores At Cost
 
 e) Sales : Sales is exclusive of VAT.
 
 f) Retirement Benefits: Contribution to Provident Fund is charged to
 revenue on accrual basis.  The Company has provided gratuity to all the
 employees who had completed the minimum service, entitling them for
 gratuity. Provision for gratuity has been calculated as if all the
 employees are to leave the service as of the Balance Sheet date.
 
 Leave Encashment is accounted on accrual basis as required by
 Accounting Standard -15 issued by the Institute of Chartered
 Accountants of India.
 
 g) Investments: Long Term Investments are stated at cost and Income
 there on accounted for on accrual. Provisions towards decline in the
 value of Long Term Investments is made only when such decline is other
 other than temporary.
 
 i) Treatment of Contingent Liabilities: Liabilities which may or may
 not arise and not crystalised as at the year end have been taken as
 contingent liabilities.