1.  BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 2.  USE OF ESTIMATES
 
 3.  FIXEDASSETS
 
 (b) Capital work in progress is stated at cost and includes advances
 for capital items.
 
 4.  DEPRECIATION
 
 5.  IMPAIRMENT OF ASSETS
 
 6.  INVESTMENTS
 
 Investments are valued atCost.
 
 7.  INVENTORY
 
 (a) Inventory of Raw material is valued at weighted average cost or net
 realizable value which ever is lower,Cost being net of excise duty.
 
 (b) Inventory of store & spares is valued at cost,exclusive of excise
     duty.
 
 (c) Scrap is valued at net realizable value.
 
 8.  BORROWING COSTS
 
 9.  SALES
 
 Sales are netof Sale tax and trade discounts, wherever applicable.
 
 10. PURCHASE OF RAW MATERIAL
 
 11. FOREIGN EXCHANGE TRANSACTIONS
 
 (a) Transactions in the foreign currencies are normally recorded at the
 exchange rate prevailing at
 
 12.  EXPORT INCENTIVES
 
 Export incentives are accounted for on the basis of exports sales
 affected during the period.
 
 13.  EMPLOYEE BENEFITS
 
 a) Short term employee benefits are charged off at the undiscounted
 amount in the year in which
 
 14.  DERIVATIVE TRANSACTIONS
 
 In respect of Derivative Contracts, Premium paid, gains/ losses on
 settlement are recognized and
 
 15.  MODVAT/CENVAT/VAT
 
 16.  PROPOSED DIVIDEND
 
 No Dividend has been proposed to declare by the Board.
 
 17.  CONTINGENT LIABILITIES
 
 (b) Contingent liability under various fiscal laws includes those in
 respect of which the company/
 
 (c) Contingent liabilities are disclosed by way of notes.
 
 18.  TAXATION
 
 19.  MISCELLANEOUS EXPENDITURE
 
 Miscellaneous Expenditure included amalgamation Expenses and are
 amortized over a period of 10