Set out hereunder are the significant accounting policies adopted by
 the company in the prepration of the accounts for the year ended 31st
 March, 2012. There is no material change in accounting policies of the
 Company
 
 Method of Accounting
 
 The company follows Mercantile System of accounting
 
 Inventory Valuation
 
 Stock of Raw Material, Stores, Spare & Packing Material Stated at cost.
 Finished goods, work in Progress and Scrap are valued at estimated cost
 (excluding excise duty) or realizable value, whichever is lower.
 
 Depreciation
 
 Depreciation has been calculated on written down value method at the
 rates given in schedule XIV of the Company Acts, 1956.
 
 Gratuity
 
 Provision has been made in the books for accruing liability under the
 payment of gratuity act 1972 to the employees on their future
 retirement or termination of service.
 
 Insurance/Claim
 
 The premium pertaining to the year is charged against the revenue of
 the year. Insurance Claim lodged by the company will be adjusted as and
 when the final amount will be determined by the insurance companies.
 
 Revenue Recognition
 
 a) Sales are stated net of return, rebate & discount and excluding
 Sales Tax.
 
 b) Services income is recognized when the services are rendered.
 
 c) Scrap is accounted for on sales basis.
 
 d) Interest income is recognized on accrual basis.