a.  Revenue Recognition
 
 a.  Domestic sales of finished goods and scraps are accounted for on
 dispatch of goods to customers.  Gross Sales are net of sales returns.
 
 b.  Export sales are accounted for on the basis of dates of Bill of
 Lading.
 
 Gross Sales are inclusive of incentives / benefits and net of sales
 returns.
 
 c.  Revenue from Job work is recognized when services are rendered.
 
 b.  Fixed Assets:
 
 Fixed assets are stated at cost of acquisition less depreciation. Cost
 includes taxes, duties, freight, installation and other direct or
 allocated expenses up to the date of commercial production and net of
 CENVAT credit and Subsidy received, if any.
 
 c.  Depreciation on Fixed Assets:
 
 i.  Depreciation on Fixed Assets is provided on ''Straight Line Method''
 at rates prescribed in Schedule - XIV to the Companies Act, 1956.
 
 ii.  Depreciation on fixed assets added /disposed off during the year
 is provided on prorata basis.
 
 d.  Impairment of Assets:
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 profit & loss account as and when an asset is identified as impaired.
 The impairment loss recognized in prior accounting period is reversed
 if there has been a change in the estimate of recoverable amount.
 
 e.  Investments:
 
 Current investments are carried at the lower of cost and quoted / fair
 value, computed category wise. 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 in the opinion
 of the management.
 
 Cost of Work in Process and Manufactured Goods includes material,
 labour & other appropriate overheads wherever applicable.
 
 g.  Foreign Currency:
 
 Transactions in foreign currencies are recorded at the exchange rates
 notified by CBEC or at the exchange rate under related forward exchange
 contracts. The realized exchange gains / losses are recognized in the
 Profit & Loss account. All foreign currency current assets and
 liabilities are translated in rupees at the rates prevailing on the
 date of balance sheet.
 
 h.  Employee Benefits:
 
 i.  Short Term Employee Benefits are recognized as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 ii.  Post employment benefits are recognized as an expense in the
 Profit and Loss account for the year in which the employee has rendered
 services. The expense is recognized based upon the premium amount
 determined by LIC Group Gratuity Scheme.
 
 iii. Long Term employee benefits are recognized as an expense in the
 Profit and Loss account for the year in which the employee has rendered
 services. The liabilities on account of leave encashment have been
 provided on the basis of actuarial valuation, using projected unit
 credit method, as at the balance sheet date.
 
 i.  Taxation:
 
 i.  Provision for current tax is made with reference to taxable income
 computed for the accounting period, for which the financial statements
 are prepared by applying the tax rates as applicable.
 
 ii.  Deferred tax is recognised subject to the consideration of
 prudence, on timing differences being the difference between taxable
 income and accounting income that originate in one period and are
 capable of reversal in one or more subsequent periods. Such deferred
 tax is quantified using the tax rates and laws enacted or substantively
 enacted as on the Balance Sheet date.  Deferred tax assets are
 recognized and carried forward to extent that there is a reasonable
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realised.
 
 j. Borrowing Cost:
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowing costs are charged to revenue.
 
 k. Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognised 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 recognised but are disclosed in the
 notes.  Contingent Assets are neither recognised nor disclosed in the
 financial statements.
 
 l. Expenditure during construction period:
 
 The expenditure incurred and attributable interest & financing costs
 incurred prior to commencement of commercial production including Trial
 Run Expenses in respect of new project & substantial expansion of
 existing facilities are capitalised.