i.  Basis of Preparation
 
 During the year ended 31st March 2012, the Revised Schedule VI notified
 under the Companies Act, 1956, has become applicable to the Company,
 for presentation of its financial statements. The adoption of Revised
 Schedule VI does not impact recognition and measurement principles
 followed for preparation of financial statements. However, it has
 significant impact on the presentation and disclosures made in the
 financial statements.
 
 ii.  Recognition of Income and Expenditure
 
 All revenues and expenditures are accounted for on accrual basis except
 wherever stated otherwise.  
 
 iii.  Sales
 
 Sales, other than export sales, are inclusive of Excise Duty and shown
 net of returns and discounts.
 
 The Company is engaged in the business of manufacturing & sales of
 various types of films of various dimensions and grades. As per the
 Company''s usual policy, the low graded/surplus stock of films are sold
 at special discounted prices and such discounts are adjusted in unit
 sale price.
 
 iv.  Tangible Assets
 
 Tangible Assets are stated at cost less depreciation.
 
 v.  Depreciation
 
 Depreciation on fixed assets has been calculated on Straight Line
 method on pro-rata basis at the rates specified in Schedule-XIV of the
 Companies Act, 1956. However, in case of plant and machineries where
 ever applicable, higher depreciation rates are charged based upon
 residual useful life.
 
 vi.  Investments
 
 Current Investments are valued at acquisition cost or market value
 whichever is lower. Non- Current investments(Long Term) are valued at
 acquisition cost. Diminution in value of Non-Current investment is
 provided only if such a diminution is other than temporary in the
 opinion of the management
 
 vii.  Inventories
 
 Items of inventories are measured at lower of cost and net realisable
 value after providing for obsolescence ,if any. Cost of inventories
 comprises of cost of purchase, cost of conversion and other costs
 including manufacturing overheads incurred in bringing them to their
 respective present location and condition. Cost of raw materials is
 determined on FIFO basis , cost of process chemicals, stores, packing
 materials are determined on weighted average basis. Non usable wastes
 .are valued at net realizable value.
 
 viii.  Excise Duty
 
 Excise duty is accounted for and included in the closing stock
 valuation of finished goods.
 
 ix.  Foreign Currency Transactions
 
 Exchange difference arising on repayment of foreign currency
 liabilities taken for the purpose of acquiring fixed assets, which are
 carried in terms of historical cost, are recognized as income or
 expenses for the year as the case may be.
 
 Exchange difference arising due to reinstatement of outstanding foreign
 currency loans taken for acquiring the fixed assets, by applying the
 closing rate of such foreign currency or the rate as per forward
 exchange contract if any, are recognized as income or expenses for the
 year as the case may be.
 
 Exchange difference arising on foreign currency transactions other than
 those relating to liabilities incurred for the purpose of acquiring
 fixed assets, are recognised as income or expenses for the year as the
 case may be. Any profit or loss arising on cancellation or renewal of a
 forward exchange contract in those cases is also recognised as income
 or expense for the year. All current assets and current liabilities in
 any foreign currency outstanding at the end of the year are translated
 by applying the closing rate or the rate as per forward exchange
 contract, if any.
 
 x.  Export Benefits
 
 Export incentives in the form of Duty Entitlement Passbook Scheme
 (DEPB) are accounted for on accrual basis and is credited to the raw
 material cost. Duty Draw Back benefit is also accounted for on accrual
 basis and treated as income from operations.
 
 Advance Licenses obtained against actual export made are being
 accounted on accrual basis based upon difference between domestic vs.
 imported raw material prices prevailing at the end of the period and is
 adjusted to raw material cost.
 
 xi.  Employee Benefits
 
 i.  Short term Employee Benefits
 
 All employee benefits payable only within twelve months of rendering
 the service are classified as short term employee benefits.  Benefits
 such as salaries, wages etc. and the expected cost of bonus, exgratia,
 incentives are recognized in the period during which the employee
 renders the related service.
 
 ii.  Post employment Benefits
 
 (a) Defined Contribution Plans
 
 State Government Provident Fund Scheme is a defined contribution plan.
 The contribution paid/payable under the scheme is recognized in the
 profit & loss account during the period which the employee renders the
 related service.
 
 (b) Defined Benefit Plans
 
 The employee Gratuity Fund Scheme managed by a trust is a defined
 benefit plan. The present value of obligation under such defined
 benefit plan is determined based on actuarial valuation under the
 projected unit credit method which recognizes each period of service as
 giving rise to additional unit of employees benefits entitlement and
 measures each unit separately to build up the final obligation.
 
 The obligation is measured at the present value of future cash flows.
 The discount rates used for determining the present value of the
 obligation under defined benefit plans is based on the market yields on
 government securities as at balance sheet date, having maturity periods
 approximated to the returns of related obligations.
 
 Actuarial gains and losses are recognized immediately in the profit &
 loss account.
 
 In case of funded plans the fair value of the planned assets is reduced
 from the gross obligation under the defined benefit plans to recognize
 the obligation on net basis.
 
 (c) The obligation for leave encashment is provided for and paid on
 yearly basis.
 
 xii.  Borrowing Costs
 
 Borrowing costs that are directly attributable to the acquisition of
 assets are being capitalized as part of the cost of that asset up to
 the date of such asset is ready for its intended use. All other
 borrowing costs are charged to revenue in the period when they are
 incurred.
 
 xiii.  Taxation
 
 a) Current Year Charge
 
 Provision for Income-tax is ascertained on the basis of assessable
 profits computed in accordance with the provisions of the Income-tax
 Act, 1961.
 
 b) Deferred Tax
 
 The company provides for deferred tax using the liability method, based
 on the tax effect of timing difference resulting from the recognition
 of items in the financial statements and in estimating its current
 income tax provision.
 
 xiv.  Earnings Per Share
 
 Earning per share is calculated by dividing the net profit for the year
 attributable to equity shareholders by the weighted average number of
 equity shares outstanding during the year.
 
 xv.  Miscellaneous Expenditure
 
 Preliminary expenditure/ share issue expenses are being written off
 over a period of five years.
 
 xvi.  Expenses during construction period
 
 Expenses incurred during construction period are capitalised as part of
 the cost of that asset up to the date of such asset is ready for its
 intended use, except where some expenditure paid during subsequent year
 pertaining to already installed Asset.
 
 xvii.  Impairment of Assets
 
 An Asset is treated as impaired when the carrying cost of asset exceeds
 its recoverable value. Impairment Loss is charged to Profit & Loss A/c
 in the year in which impairment is identified.
 
 xviii.  Income from investments/Deposit
 
 Income from investments is credited to revenue in the year in which it
 accrues. Income is stated in full with the tax thereon being accounted
 for Under Income tax deducted at source. Dividend income when the
 owner''s right to receive its investments payment in shares established.
 
 xix.  Contingent Liability
 
 Contingent Liabilities, if material, are disclosed by way of notes.  5
 Buyback -I Pursuant to the approval of the Board of Directors of the
 Company, for buyback of equity shares U/s 77A of the Companies Act,
 1956 less then 10% of Paid up capital and free reserve, during the
 financial year 2011-12 Company has bought back 3,020,421 equity shares
 and extinguished the same.A total of 3,020,421 equity shares buyback
 and extinguished during the year ended 31st March 2012 through open
 market for an aggregate amount of Rs. 528,148,502 by utilizing the
 security premium and general reserve to the extent of Rs. 497,944,292
 and Rs. 30,204,210 respectively. The Capital redemption reserve has
 been credited out of general reserve for Rs 30,204,210 being the
 nominal value of the share bought back U/s. 77A of he Companies act,
 1956.