a) Accounting Convention
 
 The financial statements, other than the cash flow statement, are
 prepared on accrual basis under the historical cost convention treating
 the entity as a going concern and in accordance with the applicable
 Accounting Standards referred to in Section 211 (3C) of the Companies
 Act, 1956.
 
 b) Fixed Assets
 
 Fixed assets are stated at cost of acquisition or construction less
 accumulated depreciation and impairment loss, if any. The cost
 comprises purchase price/construction cost and any directly
 attributable cost of bringing the asset to its working condition for
 its intended use. The borrowing costs in respect of qualifying assets
 incurred till the asset is ready for its intended use are capitalized
 
 c) Depreciation
 
 Depreciation on fixed assets is charged on the written down value
 method at the rates and in the manner prescribed under Schedule XIV to
 the Companies Act, 1956.
 
 d) Impairment of Assets
 
 At each balance sheet date, an assessment is made whether any
 indication exists that an asset has been impaired in terms of
 Accounting Standard 28 issued by Institute of Chartered Accountants of
 India (ICAI). If such an indication exists, an impairment loss i.e. the
 amount by which the carrying amount of an asset exceeds its recoverable
 amount is provided in the books of account and charged to the Profit &
 Loss Account. The impairment loss recognized in prior accounting
 periods is reversed if there is a change in the estimate of recoverable
 amount of an asset.
 
 e) Revenue Recognition
 
 a) Revenue from sale of goods is recognized at the point of passing of
 title of the goods to the customer which generally coincides with
 delivery.
 
 b) Sale value is inclusive of excise duty paid at the time of clearance
 of goods but exclusive of sales tax.
 
 c) Export sales are accounted for on the basis of the Let Export
 date.
 
 d) Revenue in respect of export incentives is recognized when such
 incentives accrue upon export of goods.
 
 f) Inventories
 
 Inventories are valued at cost or net realizable value, whichever is
 lower after providing obsolescence, if any. The cost in respect of
 various items of inventory is determined as under:
 
 a) In case of raw materials, stores and spares, at weighted average
 cost;
 
 b) In case of work in process, at the raw material cost plus conversion
 cost depending upon the stage of completion of goods;
 
 c) In case of finished goods at the raw material cost, conversion cost
 and other overheads incurred to bring the goods to their present
 location and condition
 
 g) Investments
 
 Long-term investments are carried at cost less provisions, if any, for
 permanent diminution in value.  Current investments are carried at
 lower of cost or fair value.
 
 h) Foreign Exchange Transactions
 
 Transactions in foreign currency are recorded at the exchange rates
 prevalent at the time of transaction.  Foreign Currency assets and
 liabilities are stated at the exchange rates prevailing at the date of
 Balance Sheet or at forward contract rates, wherever so covered.
 Realized gains or losses on foreign exchange transactions, other than
 those relating to fixed assets, are recognized in the Profit and Loss
 Account.  The difference in foreign exchange rates in the case of fixed
 assets is adjusted to the cost of fixed assets.
 
 i) Accounting for taxes on Income
 
 Provision for current tax is made on the basis of aggregate amount of
 income tax actually payable for the year on the estimated taxable
 income computed in accordance with the provisions of the Income Tax
 Act, 1961.
 
 Deferred Tax resulting from the timing differences between book profit
 and tax profit is accounted for at the enacted rate of tax to the
 extent that the timing differences are expected to reverse in future.
 Deferred Tax assets are recognized only to the extent there is
 reasonable certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realized.
 Deferred tax assets in respect of unabsorbed depreciation and carried
 forward losses are recognized only to the extent there is a virtual
 certainty that future taxable income will be available to realize these
 assets.
 
 j) Employee benefits
 
 1.  Short-term employee benefits
 
 Short-term employee benefits are recognized as an expense in the Profit
 & Loss account in the year in which the related services are rendered
 by the employees.
 
 2.  Retirement benefits Defined contribution plans
 
 Contributions to the employees'' provident fund are made in accordance
 with the provisions of the Employees'' Provident Fund and Miscellaneous
 Provisions Act, 1952. Such contributions are charged to the Profit &
 Loss account of the year in which the related services are rendered by
 the employees.
 
 Defined benefit plans Gratuity
 
 Liability in respect of gratuity is accounted for on the basis of an
 actuarial valuation. The present value of defined benefit obligation as
 at the end of the year is determined using the Projected Unit Credit
 method i.e. each period of service rendered by the employee is
 considered to give rise to an additional unit of benefit entitlement,
 gradually building up the final obligation.
 
 k) Contingent Liabilities
 
 No provision is made for liabilities that are contingent in nature,
 unless it is probable that future events will confirm that an asset has
 been impaired or a liability incurred as at the balance sheet date and
 a reasonable estimate of the resulting loss can be made. However, all
 known, material contingent liabilities are disclosed by way of separate
 notes.