(A) Basis of preparation
 
 These financial statements have been prepared in accordance with the
 generally accepted accounting principles in India under the historical
 cost convention on accrual basis. These financial statements have been
 prepared to comply in all material aspects with the accounting
 standards notified under section 211 (3C)[Companies(Accounting
 Standards) Rules,2006,as amended] and the other relevant provisions of
 the Companies Act, 1956.
 
 All assets and liabilities have been classified as current or
 non-current as per the Company''s normal operating cycle and other
 criteria set out in the Schedule VI to the Companies Act, 1956.
 
 (B) Tangible Assets
 
 Tangible Assets are stated at Cost which includes cost of acquisitions, 
 installaton, direct costs and borrowing cost incurred up to the date of 
 commissioning.
 
 (C) Depreciation
 
 (i) Depreciation has been provided at the SLM rates as prescribed by
 Schedule XIV of the Companies Act, 1956.
 
 (ii) Depreciation has been provided on Triple Shift Basis.
 
 (iii) Depreciation on additions and deletion during the year has been
 provided on pro rata basis with reference to the date of addition and
 deletion.
 
 (iv) Land & Site development has not been depreciated.
 
 (D) Foreign Currency Transactions
 
 (i) Cost of imported material is converted to Indian currency at the
 rates applied in Bill of Entry for Custom purposes.
 
 (ii) The expenditure in Foreign Currency is accounted at the rates
 prevailing on the date of transaction.
 
 (iii) The Export Sales are accounted for at the actual rates prevailing
 at the time of transaction.
 
 (iv) Exchange Fluctuation arising on repayment of Long Term Liability
 incurred for the purpose of acquiring Fixed Assets is charged to Profit
 & Loss Account as per the provisions of AS-11.
 
 (v) Balances of Monetary items in Foreign Currency outstanding at the
 close of the year are converted in Indian currency at the appropriate
 rates of exchange prevailing on the date of the Balance Sheet.
 
 (vi) Exchange rate difference between the prevailing rate on the date
 of transaction and on the date of settlement as also on conversion of
 monetary items in Current Assets and Current Liabilities at the end of
 the year are recognized as income & expense as the case may be in
 Profit & Loss Account.
 
 (E) Inventories
 
 (i) Raw material, stores, spares & maintenance items, consumable
 goods, work-in-process and other goods are valued at lower of landed
 cost and Net Realizable Value. The cost formula used is FIFO for all
 items except for maintenance items for which the cost formula used is
 weighted Average Cost.
 
 (ii) Finished goods are valued at Cost or Net Realizable value, 
 Whichever is lower.
 
 (iii) The cost of imported raw material includes custom duties and
 other direct expenditure.
 
 (iv) The cost of finished goods comprises of Raw material cost
 (proportionate of selling price), Manufacturing Expenses, payment to &
 provision for employees, Depreciation on Plant & Machinery and factory
 building (as cost per liner meter on production).
 
 (F) Revenue Recognition
 
 Revenue is recognized only when it can be reliably measured and it is
 reasonable to expect ultimate collection. Dividend income is recongnized
 when right to receive is established. interest income is recongnized on
 time proportion basis taking into account the amount outstanding and
 rate applicable. Sales Within India are exclusive of Sales Tax but
 inclusive of Excise Duty & net of Trade Discount .Cut off date for
 accounting Export Sales is based on the date of Bill of Lading. Export
 Sales are accounted for on FOB basis.
 
 (G) Employees Benefits
 
 (i) The Company has Defined Contribution Plan for its employees''
 retirement benefits comprising of Provident Fund & Employees'' State
 Insurance Fund. The Company and eligible employees make monthly
 contribution to the above mentioned funds at a specified percentage of
 the covered employees salary. The Company recognizes its contribution as
 expense of the year in which the liability is incurred.
 
 (ii) The Company has Defined Benefit Plan comprising of Gratuity Fund &
 Leave Encashment. The Company contributes to the Gratuity and leave
 encashment fund managed by the Life Insurance Corporation of India
 under its Group Gratuity (Cash Accumulation) Scheme and Group Leave
 Encashment Scheme .The liability for Gratuity & leave Encashment is
 determined on the basis of independent actuarial valuation done at year
 end. Plan assets are measured at fair value as at Balance Sheet Date.
 
 (H) Borrowing Costs
 
 General and specific borrowing costs directly attributable to the
 acquisition .construction or production of qualifying assets, which are
 assets that necessarily take a substantial period of time to get ready
 for their intended use or sale,  are added to the cost of those
 assets, until such time as the assets are substantially ready for their
 intended use or sale.AII other borrowing cost are recognised in
 statement of Profit and Loss in the period in which they are incurred.
 
 (I) Taxation
 
 Income Tax provision comprises Current Tax and Deferred Tax charge or
 credit. Provision for Current Tax is made on the assessable income at
 the tax rate applicable to the relevant Assessment Year. The Deferred
 Tax asset and liability is calculated by applying tax rate and tax laws
 that have been enacted or substantively enacted by the Balance Sheet
 date. Deferred Tax assets arising mainly on account of unabsorbed
 depreciation under tax laws are recognized, only if there is a virtual
 certainty of its realization, supported by convincing evidence. Deferred
 Tax assets on account of other timing differences are recognised, only
 to the extent there is a reasonable certainty of its realization. At
 each Balance Sheet date, the carrying amount of deferred assets is
 reviewed to reassure realization.
 
 (J) Impairment
 
 The Carrying amount of assets are reviewed at each Balance Sheet date
 if there is any indication of impairment based on internal as well as
 external factors.  An impairment loss will be recognised wherever the
 carrying amount of an Assets exceeds its Estimated recoverable amount.
 The recoverable amount is greater of the Assets net selling price and
 value in use. In assessing the value in use, the estimated future Cash
 Flows are discounted to the present value at the Weighted Average cost
 of capital. After impairment, depreciation is provided on the revised
 carrying amount of the assets over the remaining useful life. Previously
 recognized impairment loss is further provided or reversed depending on
 changes in circumstances.
 
 (K) Provisions, Contingent Liabilities and Contingent Assets
 
 The Company recognizes a provision where there is a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation .A Disclosure for a contingent liability is made when there
 is a possible obligation or a present obligation that may, but probably
 will not, require an outflow of resources. Where there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote. no provision or disclosure is made. Contingent
 assets are neither recognized nor disclosed. Provisions, contingent
 liabilities and contingent assets are reviewed at each balance sheet
 date.
 
 (L) Lease Transaction
 
 For assets taken on operating lease, lease rentals payable are charged
 to revenue.
 
 (M) Investments
 
 Investments are valued at cost, Provision for diminution in the value of
 long term investments is made, only if such decline is other than
 temporary.
 
 (N) Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of financial statements and the reported amount
 of revenues and expenses during the reporting period. Difference between
 the actual results and estimates are recognised in the period in which
 the results are known/materialised.
 
 (O) Cash and Cash Equivalents
 
 In the cash Flow statement, cash and cash equivalents includes cash in
 hand, demand deposits with banks, other short-term highly liquid
 investments with original maturities of three months or less.