BASIS OF PREPARATION:
 
 The financial statements have been prepared to comply in all material
 respects with the accounting standards notified by Companies Accounting
 Standards Rules, 2006 and the relevant provisions of the Companies Act,
 1956 (‘the Act''). The financial statements have been prepared under
 historical cost convention on an accrual basis in accordance with
 accounting principles generally accepted in India. The accounting
 policies have been consistently applied by the Company and are
 consistent with those used in the previous year
 
 USE OF ESTIMATES:
 
 The preparation of financial statements is in conformity with generally
 accepted accounting principles require the management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the result of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates. Significant estimates used by the management in
 the preparation of these financial statements include estimates of the
 economic useful lives of fixed assets and provisions for bad and
 doubtful debts. Any revision to accounting estimates is recognized
 prospectively.
 
 (a) Accounting Convention and Revenue Recognition:
 
 The Financial Statements have been prepared on a going concern basis.
 The Company follows the mercantile system of accounting and recognizes
 income and expenditure on accrual basis.
 
 Sales are accounted inclusive of Excise duty and Sales tax and net of
 sales returns.
 
 (b) Cash Flow Statement : AS-3
 
 The Company has prepared Cash Flow Statement as per the AS-3.
 
 (c) Retirements Benefits:
 
 The Company has not made any provision for Gratuity to its employees.
 It is recognizing the gratuity expenditure on payment basis which is
 not in accordance with AS-15.
 
 (d) Fixed Assets:
 
 Fixed Assets are stated at cost less accumulated depreciation. Cost of
 acquisition of Fixed Assets is inclusive of freight, duties, taxes and
 incidental expenses there to. Capital Work-in- Progress includes cost
 of Fixed Assets under installation /construction on the date of Balance
 sheet, any unallocated expenditure and Interest during construction
 period on loans taken to finance the Fixed Assets. Advances paid
 towards acquisition of assets are also included under capital work in
 progress.
 
 (e) Depreciation and amortization:
 
 Depreciation on Fixed Assets is provided on straight-line method as per
 the rates specified in Schedule XIV of the Companies Act, 1956. This is
 in accordance with the AS-6 and there is no change in the method of
 Depreciation during the year
 
 Preliminary expenses are amortized over a period of 10 years.
 
 (f) Investments:
 
 Long term investments are stated at cost. However, provision for
 diminution is made to recognise any decline, other than temporary, in
 the value of long term investments. Current Investments are stated at
 the lower of cost and fair value.
 
 (g) Borrowing Cost :
 
 Borrowing cost relating to acquisition/ construction of qualifying
 assets are capitalized until the time all substantial activities
 necessary to prepare the qualifying assets for their intended use are
 complete. A qualifying asset is one that necessarily takes substantial
 period of time to get ready for its intended use/sale. Borrowing cost
 that are attributable to the projects are charged to the respective
 projects. All other borrowing costs, not eligible for inventorisation/
 capitalisation, are charged to revenue.
 
 (h) Inventories:
 
 Inventories are valued as under.
 
 i) Raw materials, stores and spares - at cost.
 
 ii) Finished Goods and work-in-progress - at cost or net realizable
 value whichever is lower. Cost includes cost of direct material, labor,
 Factory overhead.
 
 iii) Scrap - at net realizable value.
 
 (i) Taxes on Income :
 
 a) Provision for tax for the year comprises current Income Tax and
 Deferred Tax and is provided as per the Income Tax Act, 1961.
 
 b) Provision for current income tax is made on the tax liability
 calculated on taxable income after considering tax allowances,
 deductions and exemptions determined in accordance with the prevailing
 Tax Laws
 
 c) Deferred tax resulting from timing differences between the book and
 the tax profits is accounted for, at the current rate of tax, to the
 extent that the timing differences are expected to crystallize.
 Deferred tax assets are recognized only to the extent there is
 reasonable certainty that the assets can be realized in the future;
 however where there is unabsorbed depreciation or carried forward loss
 under taxation laws, deferred tax assets are recognized only if there
 is a virtual certainty of realization of such assets. Deferred tax
 assets/ liabilities are reviewed as at each balance sheet date.
 
 (j) Provisions, Contingent liabilities and contingent Assets:
 
 Provisions are recognized only when there is a present obligation as a
 result of past events and when a reliable estimate of the amount of the
 obligation can be made. Contingent liability is disclosed for present
 obligations arising from past events where it is not probable that an
 outflow of resources will be required to settle the obligation or a
 reliable estimate of the amount of the obligation cannot be made.
 Contingent assets are not recognized in the financial statements since
 this may result in the recognition of income that may never be
 realized. (In line with AS-29)
 
 (k) Earnings per Share:
 
 The earnings considered in ascertaining the Earning Per Share comprise
 of Net Profit after Tax. The number of shares used in computing Basic
 Earnings Per Share is the Weighted Average number of shares outstanding
 during the year, as per AS-20.
 
 (l) Impairment of Assets:
 
 Management periodically assesses using external and internal sources
 whether there is an indication that an asset may be impaired.
 Impairment occurs where the carrying value exceeds the present value of
 future cash flows expected to arise from the continuing use of the
 asset and its eventual disposal. The impairment loss to be expensed is
 determined as the excess of the carrying amount over the higher of the
 asset''s net sale price or present value as determined above.
 
 (m) Related Party Disclosures:
 
 The Company as required by AS-18 furnishes the details of Related Party
 Disclosures in schedule 11.