a.  Accounting Convention: The accompanying financial statements are
 prepared under the historical cost convention on the accrued basis of
 accounting in accordance with generally accepted accounting principles
 to reflect the financial position & results of operation. These
 financial statements have been prepared on a going concern basis, which
 assumes the realization of assets and satisfaction of liabilities in
 the normal course of business.
 
 b.  Fixed Assets: Fixed Assets are stated at their original cost net of
 cenvat, comprising of purchase price and other attributable cost of
 bringing assets to working condition for their intended use less
 accumulated depreciation and impairment loss, if any.
 
 c.  Depreciation: Depreciation on Fixed Assets is provided on straight
 line method at the rates and in the manner as prescribed in Schedule
 XIV of the Companies Act, 1956 on prorata basis.
 
 d.  Impairment of Assets: The carrying amount of assets are reviewed at
 each balance sheet date to determine if there is any indication of
 impairment based on internal/external factors. An asset is treated as
 impaired when the carrying cost of the asset exceeds its recoverable
 value i.e. net selling price or value in use, whichever is higher. An
 impairment loss, if any, is charged to profit & loss account in the
 year in which an asset is identified as impaired.
 
 e.  Inventories:
 
 i. Raw Materials, Stores & Spares, Finished Goods and Work-in-process
 are valued at cost or net realisable value, whichever is lower. Closing
 Stock of Finished goods is inclusive of Excise Duty.  Cost is
 determined using FIFO method.
 
 ii.  Scrap is valued at estimated Realisable value.
 
 f.  Sales: Sales are net of Sales Tax.
 
 g.  Cenvat: Cenvat claimed on Capital Goods is reduced from the cost of
 Plant & Machinery. Cenvat claimed on purchase of raw materials is
 reduced from the cost of such materials.
 
 h. Employee Benefits: Defined Contribution Plans: Provident Fund &
 E.S.I: Contribution to Provident Fund and E.S.I to appropriate
 authorities is made periodically and is charged to Profit & Loss
 statement on accrual basis.
 
 Defined Benefit Plan: Gratuity is a defined benefit scheme and is
 accounted based on actuarial valuation at the balance sheet date,
 carried out once in three years by an independent actuary.
 
 Short Term Employee Benefits: All employee benefits which are wholly
 due within twelve months of rendering the services are recognised in
 the period in which the employee rendered the related services.
 
 i. Provisions, Contingent Liabilities and Contingent Assets: The
 Company creates a provision when there is a present obligation as a
 result of past events and it is probable that there will be outflow of
 resources and a reliable estimate of the obligation can be made of the
 amount of the obligation.
 
 Contingent liabilities are not recognised but are disclosed in the
 notes to the financial statements.  A disclosure for a contingent
 liability is made when there is a possible obligation or a present
 obligation that may, but probably will not, require an outflow of
 resources.
 
 Provisions are reviewed at each balance sheet date and adjusted to
 reflect the current best estimate.  If it is no longer probable that
 the outflow of resources would be required to settle the obligation,
 the provision is reversed.
 
 Contingent assets are neither recognised nor disclosed in the financial
 statements