Basic of Preparation of Financial Statements.
 
 The financial statements accounts of the Company are prepared on the
 basis of historical cost convention expect for certain fi>ed assets
 which are revalued, in accordance with the generally accepted
 principles in india, Accounting Standards notified under Section.211
 (3C) of the Companies Act, 1956 and the relevant provisions thereof.
 
 Fixed Assets
 
 Fixed Assets are stated at cost net of cenvat/value added tax and
 includes amounts added on revaluations, less accumulated depreciation
 and impairment loss, if any. All costs, including financing till
 commencements of commercial production, net charges on foreign
 exchanges contracts and adjustments arising from exchanges rate
 variations attributable to the fixed assets are capitalised.
 
 Depreciation
 
 Depreciation on Fixed Assets is provided on Straight Line Method as per
 the classification and in the manner specified in Schedile- XIV to the
 Companies Act, 1956 Depreciation on Plant & Machinery is provided on
 Straight Line Method basis as the plant is in a continuous process.
 
 Use of Estimates.
 
 The preparation of financial statements require estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting periods.
 Difference between the actual results and estimates are recognised in
 the period in which the results are known/materialised.
 
 Inventories
 
 Inventories are valued as follows:
 
 a) Finished Products produced and purchased by the Company are carried
 at lower of cost and net realizable value.
 
 b) Raw Material produced and purchases by the Company are carried at
 lower of cost and net realizable value.
 
 c) Work in Progress is carried at lower of cost and net realizable
 value.
 
 d) Scrap is carried at lower of cost and net realizable value.
 
 e) Stores and spare parts are carried at cost.
 
 Cenvat
 
 Cenvat credit on Excise Duty paid goods is accounted for by reducing
 the purchase cost of related goods.
 
 Foreign Currency Transactions
 
 (a) Transactions denominated in foreign currencies are recorded at the
 exchanges rate prevailing on the date of transaction.
 
 (b) Monetary items denominated in foreign currencies at the year end
 are restated at year ends rates. In case of items which are covered by
 forward exchanges contracts, the difference between the year end rate
 and rate on the date of the contracts is recognised as exchange
 difference and the premium paid on forward contracts is recognised over
 the life of the contract.