1) Basis of Accounting
 
 The financial statements are prepared under historical cost convention
 on the accrual basis of accounting in accordance with the Companies
 Act,1956 (the Act) and the Accounting Principles Generally Accepted
 in India (''Indian GAAP'') and to comply with the Accounting standards
 prescribed in companies (Accounting Standard) Rules 2006 issued by the
 Central Government in excercise of power conferred under Section
 642(1)(a) and relevent provisions of the Act.
 
 2) Use of Estimates
 
 The preparation of financial statements requires management to mke
 certain estimates and assumptions that affect the amount reported in
 the financial statement and notes thereto. Differences between actual
 and estimates are recognized in the period in which the results are
 known/ materialized.
 
 3) Fixed Assets
 
 a) Valuation of Fixed Assets
 
 Fixed Assets are stated at cost of acquisition (net of cenvat / vat)
 inclusive of all incidental expenses related thereto.
 
 b) Depreciation
 
 Depreciation on fixed assets is provided on straight-line method at the
 rate prescribed under Schedule XIV of the Companies Act,1956 as amended
 time to time on pro-rata and actual shift working basis, wherever
 applicable.
 
 c) Expenditure during construction period for new projects/expansions
 
 Expenditure which are directly attributable to idenied assets and
 incurred during the construction period are included under capital work
 in progress till the completion of the project. Expenditure which are
 not directly attributable to an unidentified assets forming part of a
 project are carried to pre-operative expenses till the completion of
 the project, On completion of the project, capital work in progress
 along with pre-operative expenses is carried to respective fixed
 assets.
 
 d) Impairment of Assets
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value.An impairment loss is charged to the
 Profit & Loss Account in the year in which as asset is identified as
 impaired.The impairment loss recognised in prior accounting period is
 reversed if there has been a change in the estimate of recoverable
 amount.
 
 4) Investment
 
 Current Investments are valued at lower of cost and market value. Long
 Term Investments are stated at cost. Provision for diminution in the
 value of investment is made, if such diminution, in the opinion of the
 management, is other than of temporary in nature.
 
 5) Inventories
 
 (a) Raw Materials, Stores & Spares, Packing Materials, Fuels, Finished
 Goods and Stock in process are valued at cost or net realizable value,
 whichever is less.
 
 (b) Waste Scrap and Runner Riser are valued at net realizable value.
 
 6) Sales
 
 Sales are stated inclusive of excise duty and net of rebates, trade
 discounts, sales tax/vat, sales return etc.
 
 7) Revenue Recognition
 
 i) Sales are recognized on accrual basis.
 
 ii) Interest income is recognized on time proportion basis.
 
 iii) Revenue from royalty are recognized as and when goods are sold by
 the franchisee units.
 
 iv) Discounts and schemes are recognized as and when crystalized.
 
 v) Insurance claims are recognized on certaintity of its realization.
 
 8) Government Grants
 
 Government grants related to revenues are recognised on systematic
 basis in Profit & Loss Account over the period necessary to match them
 with related cost which they intend to compensate and recuring nature
 of grants being ordinary items are shown by way of deduction in related
 expenses.
 
 9) Research & development
 
 Capital expenditure on research & development is treated in the same
 way as expenditure on fixed assets. Revenue expenditure on research &
 development is charged to the Profit & Loss account under the
 respective heads of expenses in the year in which it is incurred.
 
 10) Excise Duty/ Cenvat / VAT
 
 Excise Duty is accounted for on the basis of both payments made in
 respect of goods cleared and also provisions made for goods lying in
 stock. Cenvat / VAT claimed on plant & machinery is reduced from the
 cost of plant & machinery. Cenvat/VAT claimed on purchase of raw
 materials, input services and other materials is reduced from the cost
 of such materials.
 
 11) Employee Retirement Benefit
 
 (i) Company’s contribution to Provident Fund and Employee State
 Insurance are charged to Profit & Loss Account.
 
 (ii) Liability on account of gratuity and leave encashment are provided
 for on the basis of acturial valuation made at the end of each
 financial year.
 
 12) Provisions for Current and Deferred Tax
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of the Income Tax Act, 1961.
 Deferred tax resulting from “timing difference” between book profit and
 taxable profit is accounted for using the tax rates and laws that have
 been enacted or substantively enacted as on the date of balance
 sheet.The deferred tax assets is recognized and carried forward only to
 the extent that there is a reasonable certainty that the same will be
 realized in future.
 
 13) Miscellaneous Expenditure
 
 Preliminary and Authorised Share Capital increase expenses will be
 written off over a period of five years.
 
 14) Borrowing Cost
 
 Borrowing cost that are attributable to the acquisition or construction
 of qualifying assets are capitalised as part of the cost of such
 assets. A qualifying assets is one that takes necessarily substantial
 period of time to get ready for its intended use. All other borrowing
 costs are charged to Profit & Loss Account.
 
 15) Provision, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Labilities are not recognized but are disclosed in the
 notes.  Contingent assets are neither recognized nor disclosed in the
 financial statements.