1. Basis of preparation of financial statements
 
 The Financial statements are prepared under the historical cost
 convention, on accrual basis, in accordance with applicable mandatory
 accounting standards issued by the Institute of Chartered Accountants
 of India and the relevant provisions of the Companies Act, 1956.
 
 2. Revenue recognition
 
 Revenue in respect of sales includes excise duty wherever applicable,
 other taxes, job charges and net of returns, claims and rate
 differences.
 
 3. Fixed assets and capital work-in-progress
 
 Fixed Assets are stated at cost of acquisition or construction after
 reducing accumulated depreciation. Cost is inclusive of freight,
 duties, levies, interest, installation charges and other incidental
 expenses incurred for bringing the assets to their working condition
 for intended use. Capital work-in-progress includes the cost of fixed
 assets that are not yet ready for their intended use, including
 pre-operative expenses pending capitalization.
 
 4. Depreciation
 
 Depreciation is provided on fixed assets as per the Straight Line
 Method at rates provided in Schedule XIV of the Companies Act, 1956 on
 pro-rata basis from the date assets have been put to use.
 
 5. Inventories
 
 The inventories are valued at cost or net realizable value, whichever
 is lower and the cost is arrived as follows:
 
 Raw material cost is at landing cost inclusive of all attributable
 expenses and is computed on First In First Out basis.
 
 Work-in-progress and finished goods cost include material cost and
 appropriate production overheads and excise duty, wherever applicable.
 
 7. Retirement benefits
 
 The Company makes regular contribution to Provident Fund and
 contributions are charged to Profit & Loss Account.
 
 The Company does not have any specified laid down scheme for retirement
 benefits. However the same is accounted for as and when become
 payable.
 
 8. Borrowing Cost
 
 Interest and other costs in connection with the borrowing of the funds
 to the extent related/attributed to the acquisition/construction of
 qualifying fixed assets, if any are capitalized up to the date when
 such assets are ready for its intended use and other borrowing costs
 are charged to Profit & Loss Account.
 
 9. Foreign currency transactions
 
 Transactions in foreign currency are recorded at the exchange rates
 prevailing on the date of transactions. In case of liabilities incurred
 for the acquisition of fixed assets the loss or gain is included in
 carrying amount of related fixed assets. In other cases, the difference
 between year-end rate and exchange rate at the date of the transaction
 is recognized as income or expense in the profit and loss account.
 
 10. Preliminary Expenditure
 
 Preliminary expenses and public issue expenses are amortized over a
 period of ten years.
 
 11. Taxation
 
 The Income-tax liability is provided in accordance with the provisions
 of the Income-tax Act, 1961.
 
 Deferred tax is recognized, subject to the consideration of prudence,
 on timing differences, being the difference between taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods.