1.1 Basis of preparation of financial statements
 
 The financial statements have been prepared and presented under the
 historical cost convention in accordance with generally accepted
 accounting principles (GAAP) in India, the relevant provisions of The
 Companies Act, 1956 and the applicable Accounting Standards issued by
 the Institute of Chartered Accountants of India unless otherwise stated
 elsewhere.
 
 During the year ended March 31, 2012 the revised schedule notified
 under companies act 1956 has become applicable to the company for
 preparation and presentation of the financial statement. The adoption
 of revised schedule -VI does not impact recognition and measurement
 principles followed for preparation of the financial statement. The
 company has also reclassified the previous year figure in accordance
 with requirement applicable in the current year.
 
 1.2 Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles (GAAP) requires management to make
 estimates and assumptions that affect the reporting amounts of assets
 and liabilities and the disclosure of contingent liabilities as at the
 date of financial statements and reported amounts of revenues and
 expenses during reporting period. Actual results could differ from
 these estimates. Any revision to accounting estimates is recognised
 prospectively in current and future periods
 
 1.3 Fixed Assets
 
 1.3.1 Own Fixed Assets
 
 Fixed assets are stated at cost of acquisition which includes all
 related expenses (net of Cenvat and sales- tax set-off) less
 accumulated depreciation. All related expenses other than carrying
 cost, include finance cost till commencement of commercial production
 and exchange loss on the external commercial borrowing.
 
 The company has adopted the companies (Accounting Standards) amendment
 rules,2009 relating to accounting Standard -11 notified by the
 government of India as on 31 st March, 2009 (as amend by notification
 on 29th Dec,2011) which allowed foreign exchange on long term monetary
 item to be capitalized to the extent they relate to acquisition of the
 depreciable assets.
 
 1.3.2 Lease Fixed Assets
 
 Operating Lease:- Rental are expensed with reference to lease term and
 other consideration
 
 1.3.3 Intangible Fixed Assets
 
 Intangible Assets (Patent, Trademark) are stated at cost of acquisition
 net of cenvat and sales tax less accumulated depreciation.
 
 1.4 Depreciation
 
 Depreciation on fixed assets except Leasehold Lands have been provided
 on straight line method at the rates and manner as provided in Schedule
 XIV of the Companies Act, 1956. Amount paid on Leasehold land has been
 spread over to remaining period of lease and has been written off
 proportionately.
 
 1.5 Impairment of Assets
 
 In pursuance to Accounting Standard -28 issued by the Institute of
 Chartered Accountants of India, the company has assessed no impairment
 of assets as on 31st March, 2012, hence no provision has been made in
 the books of accounts.
 
 1.6 Investments
 
 Long term investments are stated at cost and short term investments are
 stated at lower of cost or market value. Provision for diminution in
 the value of Long Term Investment is made only if such a decline is
 other than temporary.
 
 1.7 Retirement Benefits
 
 Annual Contribution towards the gratuity liability is funded with the
 Life Insurance Corporation of India in accordance with their gratuity
 scheme. The liability in respect of Leave encashment payable to
 employees at the year end is provided for.
 
 1.8 Inventories
 
 Items of inventories are valued on the basis given below:
 
 - Raw materials
 
 I. At factory landed cost: FIFO basis
 
 ii.  In transit: Cost
 
 - - Finished goods
 
 I. Lying atfactory: Lowerofcoston FIFO basis or net realizable value.
 
 ii.  Lying at branches: Lower of landed cost at respective branch on
 FIFO basis or net realizable value.
 
 - Traded goods: At cost on FIFO basis.
 
 - Work-in-Process: At cost of such goods arrived at on FIFO basis.
 
 - Scraps (reusable): At cost of such goods arrived at on FIFO basis.
 
 - Scrap (Other): Lower of cost ornet realizable value.
 
 - Stores, Spares and Packing Materials: At cost of such goods arrived
 at on FI FO basis.
 
 Cost of Inventories comprises of the cost of purchases, cost of
 conversion and other cost including manufacturing overhead incurred in
 bringing them to their respective present location and condition.
 
 1.9 Revenue Recognition
 
 Revenue from operation includes Sales of goods adjusted forthe Excise
 duty, value added tax, central Sales Tax and discounts if any as per
 approved by the management.
 
 Dividend income is recognised when right to receive is established.
 Interest income is recognised on time proportion basis into accounts
 the amount outstanding and rate applicable
 
 1.10 Purchase of raw materials, stores, spares and packing materials
 
 Purchase is net of discount, VAT, excise duty, but includes custom
 duty, clearing & forwarding charges, commission on purchases, cartage
 inwards, interest on LC & transit insurance.
 
 1.11 Excise Duty
 
 Excise duty represents finished goods dispatched through Personal
 Ledger Account (PLA) and out of Cenvat on capital goods Account
 (RG23C-Part II) but net of unutilized amount in raw material cenvat
 Account (RG23A-Part II).
 
 1.12 Provision for Current tax and Deferred tax
 
 Income taxes comprise of current tax, deferred tax charges and short
 excess provision of the last year.  Provision for current tax is made
 after taking into consideration benefit admissible under the provision
 of income tax act, 1961. Deferred tax resulting from the timing
 difference between taxable and accounting income is accounted for
 using the tax rate and laws that are enacted or substantively enacted
 as on the balance sheet date
 
 1.13 Provisions, Contingent Liabilities and Contingent Assets
 
 A provision is recognized when the Company has a present obligation as
 a result of past event and is probable that on out flow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made based on technical evaluation and past
 experience. These are reviewed at each balance sheet date and adjusted
 to reflect the current management estimates. Contingent Liabilities are
 not recognised but are disclosed in the notes. Contingent Assets are
 neither recognised nor disclosed in the financial statements.
 
 1.14 Foreign currency Transaction
 
 The Company has elected to account for exchange differences arising on
 reporting of long term foreign currency monetary item in accordance
 with Companies (accounting Standards) amendment Rules ,2009 pertaining
 to accounting standards 11 (AS-11) notified by government of India on
 31st march 2009 (as amended on 29th December,2011). Accordingly, the
 effect of exchange difference on foreign currency loan of the company
 is accounted by addition or deduction to the cost of the assets so far
 it relates to depreciable capital assets.