a.  Change in Presentation of financial statement:
 
 During the year ended 31st march 2012, the revised schedule VI notified
 under the Companies Act1956, has become applicable to the company, for
 preparation and presentation of its financial statements. The adoption
 of revised Schedule VI does not impact recognition and measurement
 principals followed for preparation of financial statements, however it
 has significant impact on presentation and disclosures made in the
 financial statements. The company has also reclassified the previous
 year figures in accordance with the requirement applicable in the
 current year.
 
 b. Basis of Preparation of Financial Statements
 
 The financial statement are prepared under historical cost
 conversion,in accordance with the generally accepted accounting
 principles in Indian and the provisions of the Companies Act, 1956.
 
 c. Use of estimates.
 
 The preparation of financial statements in conformity with Indian GAAP
 requires the management to make estimates and assumptions that affect
 the reported amounts of revenues, expenses, assets and liabilities and
 the disclosure of contigent liabilities, at the end of the reporting
 period. Although these estimates are based upon the management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates. Uncertainty about these assumptions and estimates
 could result in the outcomes requiring a material adjustment to the
 carrying amounts of assets or liabilities in future periods.
 
 d.  Tangible fixed assets.
 
 Fixed assets, acquired are stated at cost, net of accumulated
 depreciation and accumulated impairment losses, if any. The cost
 comprises purchase price, borrowing costs if capitalization criteria
 are met and directly attributable of bringing the asset to its working
 condition for the intended use. Any trade discounts and rebates are
 deducted in arriving at the purchase price.
 
 Subsequent expenditure related to an item of fixed assets is added to
 its book value only if it increases the future benefits from the
 existing asset beyond its previously assessed standard performance. All
 other expenses on existing fixed assets, including day to day repair
 and maintenance expenditure and cost of replacing parts, are charged to
 the statement of profit and loss for the period during which such
 expenses are incurred.
 
 e.  Depreciation on tangible fixed assets
 
 Depreciation on fixed assets is calculated pro rata from the date of
 addition using Straight Line Method (SLM) based upon the useful lives
 estimated by the management or those prescribed under the Schedule XIV
 to the Companies Act, 1956.
 
 f.  Borrowing costs
 
 Borrowing cost includes interest. Borrowing costs directly attribute to
 the acquisition, construction or production of an asset that
 necessarily takes a substantial period of time to get ready for its
 intended use or sale are capitalized as part of the cost of the
 respective asset. All other borrowing costs are expensed in the period
 they occur.
 
 g.  Inventories
 
 Raw materials, components, store and spares are valued at lower of cost
 and net realizable value.  However, materials and other items held for
 use in the production of inventories are not written down below cost if
 the finished products in which they will be incorporated are expected
 to be sold at or above cost. Cost of raw materials, components and
 stores and spares is determined on a weighted average basis.
 
 Work in progress and finished goods are valued at lower of cost and net
 realizable value. Cost includes direct materials and labour and a
 proportion of manufacturing overheads based on normal operating
 capacity.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and estimated
 costs necessary to make the site.
 
 h.  Revenue Recognition
 
 Revenue from sale of products is recognized when practically all
 significant risks and rewards of ownership of the goods have been
 passed to the buyer, usually on delivery of the goods. The Company
 collects central sales taxes and value added taxes (VAT) on behalf of
 the government and, therefore, these are not economic benefits
 following to the Company. Hence, they are excluded from revenue.
 Excise duty deducted from revenue (gross) is the amount that is
 included in the revenue (gross) and not the entire amount of liability
 arising during the year. This usually occurs upon dispatch and
 collection of the receivable is reasonably certain.
 
 Interest income is recognized on a time proportion basis, taking into
 account the amount outstanding and the applicable interest rate.
 Interest income is included under the head ''other income'' in the
 statement of profit and loss.
 
 i.  Employee Benefits
 
 Liability for employee benefits, both short and long term, which are
 due as per the terms of employment, are recorded in accordance with
 Accounting Standard -15(Revised) Employee Benefits notified by the
 Companies (Accounting Standards) Rules,2006.
 
 a.  In respect of Gratuity, the Company offers a non contributory
 defined benefit plan to its employees. Year end accrued liabilities of
 gratuity payable to employees are provided for Rs 3,82,800/ - based on
 the liability as estimated by the management. This policy is not in
 accordance with the Revised Accounting Standard AS-15 Employees
 Benefits.
 
 b.  Contribution to Provident Fund and other recognized fund is charged
 to profit and loss account.
 
 c.  Provision for Leave Encashment is not made as per Revised
 Accounting Standard AS-15 Employees Benefits.
 
 j.  Income Taxes
 
 Current Tax
 
 Current tax is determined in accordance with the provisions of Income
 Tax Act, 1961.
 
 Deferred Tax
 
 Deferred tax resulting from timing difference between taxable and
 accounting income is accounted for using the tax rates and laws that
 are enacted or substantively enacted as on the balance sheet date.
 Deferred tax asset is recognized and carried forward only to the extent
 that there is a virtual certainty that the assets will be realized in
 future.
 
 k.  Segment reporting
 
 The accounting policies adopted for segment reporting are in line with
 the accounting policies of the Company. The company primarily operates
 in single business segment which is Steel Tube (Skelp, Black pipe and
 GI pipe), and accordingly there are no primary segments to be reported
 as per Accounting Standard 17 Segment Reporting.
 
 l.  Earning per share
 
 Basic earnings per equity share is computed by dividing the net profit
 or loss for the period attributable to the equity shareholders by the
 weighted average number of equity shares outstanding during the
 reporting period .
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity share holders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 m.  Foreign currency transactions
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency on the date of the
 transaction.
 
 Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction and non-monetary items which are carried
 at fair value or other similar valuation denominated in a foreign
 currency are reported using the exchange rates that existed when the
 values were determined.
 
 Exchange Difference
 
 Exchange differences arising on the settlement of monetary items or on
 reporting company''s monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 previous financial statements, are recognized as income or as expenses
 in the year in which they arise.
 
 n.  Custom & Excise Duty
 
 Excise Duty on finished goods lying at the factory is accounted at
 point of sale or dispatch. Custom Duty on imported material lying in
 bonded warehouse is accounted for at the time of bonding materials.
 
 o.  Provisions
 
 A provision is recognized when the Company has a present obligation as
 a result of past event, it is probable that an outflow of resources
 embodying economic benefits will be required to settle the obligation
 and a reliable estimate can be made of the amount of the obligation.
 Provisions are not discounted to their present value and are determined
 based on the best estimate required to settle the obligation at the
 reporting date. These estimates are reviewed at each reporting date and
 adjusted to reflect the current best estimates.
 
 p.  Contingent Liabilities
 
 A contingent liability is a possible obligation that arises from past
 events whose existence will be
 
 confirmed by the occurrence or non-occurrence of one or more uncertain
 future events beyond the control of the Company or a present obligation
 that is not recognised because it is not probable that an outflow of
 resources will be required to settle the obligation. A contingent
 liability also arises in extremely rare cases where there is a
 liability that cannot be recognized because it cannot be measured
 reliably. The Company does not recognize a contingent liability but
 discloses its existence in the final statement.
 
 q.  Cash and cash equivalents
 
 Cash and cash equivalents for the purpose of cash flow statement
 comprises cash at bank and in hand and short-term investments with an
 original maturity of three months or less.
 
 r.  Measurement of EBITDA
 
 As permitted by the Guidance Note on the Revised Schedule VI to the
 Companies Act, 1956, the company has elected to present earnings before
 interest, tax, depreciation and amortization (EBITDA) as a separate
 line item on the face of the statement of profit and loss.  The company
 measures EBITDA on the basis of profit/ (loss) from continuing
 operations. In its measurement, the company does not include
 depreciation and amortization expense, finance cost and tax expense.