1.1 Basis of Preparation
 
 The financial statements have been prepared to comply in all material
 respects with the Notified accounting standard issued by Companies
 (Accounting Standards) Rules, 2006, as amended, and the relevant
 provisions of the Companies Act, 1956. The accounting policies have
 been consistently applied by the company and are consistent with those
 used in the previous year.
 
 1.2 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
 
 1.3 Revenue Recognition
 
 Income and expenditure are accounted on accrual basis. Sales are
 accounted net of Sales Tax .Material consumption is net of Cenvat.
 Excise duty in respect of Goods manufactured other than what is in
 Stock at the close of the period is accounted at the time of removal of
 goods from the factory sales.
 
 1.4 Fixed Assets and depreciation
 
 Fixed assets are stated at cost net of CENVAT less accumulated
 depreciation and impairment losses, if any.
 
 Cost comprises the purchase price and any attributable cost of bringing
 the asset to its working condition for its intended use.
 
 Depreciation on fixed assets is provided using the straight-line method
 based on useful economic life as estimated by the management or at the
 rates prescribed under schedule XIV of the Companies Act, 1956.
 
 Individual assets costing Rs. 5,000 or less are depreciated in full in
 the year of purchase.
 
 Assets acquired under Hire Purchase agreements are capitalized and
 finance charges thereon are expensed over the period of agreements.
 
 1.5 Inventory valuation
 
 a) Finished goods are valued at lower of cost of production and net
 realizable value inclusive of excise duty
 
 b) Semi finished goods are valued at cost of raw materials and other
 manufacturing cost on historical basis
 
 c) Raw materials, components and stores and spares are valued at
 identifiable cost.
 
 1.6 Foreign Currency Transactions
 
 Foreign currency transactions are recorded at the rate of exchange
 prevailing on the date of respective transactions. Resultant gain/loss
 at the time of realization/payment are recognized separately. Carrying
 value of foreign currency assets and liabilities are restated at the
 year end rates
 
 1.7 Impairment of assets
 
 Impairment in the value of Fixed Assets is recognized to the extent
 that the recoverable amount of an asset is less than its carrying value
 and would be charged to Profit and Loss account as prescribed by ICAI
 in AS 28.
 
 1.8 Borrowing costs
 
 Borrowing costs that are directly attributable to the cost of
 acquisition, construction, or production of a qualifying asset is
 capitalized as part of that asset, other borrowing costs are recognized
 as expense in the period in which they are incurred.
 
 1.9 Employee benefits
 
 Gratuity liability is a defined benefit obligation and is provided for
 based on actuarial valuation performed in accordance with the projected
 unit redit method, as at the balance sheet date.
 
 Contributions to Provident fund, Employee pension fund and cost of
 other benefits are charged to the Profit and Loss Account of the year
 when the contributions to the respective funds are due. The Company has
 no further obligations under the plan beyond its monthly contributions.
 
 1.10 Segment Reporting
 
 a) The company has identified two business segment viz Paper and Power.
 Revenue and expenses have been identified to respective segments on the
 basis of operating activities of the enterprises.  Revenue and expenses
 which related to the enterprises as a whole and are not allocable to a
 segment on reasonable basis have been disclosed as unallocated revenue
 and expenses.
 
 b) Segment assets and liabilities represent assets and liabilities in
 respective segments. Other assets and liabilities that cannot be
 allocated to a segment on a reasonable basis have been disclosed as
 unallocated assets and liabilities.
 
 c) Inter segment revenue / expenditure is recognized at cost.
 
 1.11 Earnings per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.
 
 1.12 Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event; it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on best estimate required to
 settle the obligation at the balance sheet date. These are reviewed at
 each balance sheet date and adjusted to reflect the current best
 estimates.
 
 1.13 Expenditure on new projects and substantial expansion
 
 Expenditure directly relating to construction activity is capitalised.
 Indirect expenditure incurred during construction period is capitalised
 as part of the indirect construction cost to the extent to which the
 expenditure is indirectly related to construction or is incidental
 thereto. Other indirect expenditure incurred during the construction
 period which is neither related to the construction activity nor
 incidental thereto is charged to the Profit and Loss Account.
 
 1.14 There are no amounts payable to Micro, Small and Medium
 Enterprises as defined under the Micro, Small and Medium Enterprises
 Development Act, 2006 based on information available with the Company.
 Further, the Company has not paid any interest to any Micro, Small and
 Medium Enterprises during the current year. This information has been
 determined to the extent such parties have been identified on the basis
 of information available with the Company and relied upon by the
 Auditors.