1.01 Basis of Preparation of Financial Statements
 
 The financial statements are prepared under historical cost convention
 , in accordance with the generally accepted accounting principles in
 India and provisions of the Companies Act,1956 read with the Companies
 (Accounting Standards),Rules 2006 (Accounting Standards Rule) as well
 as applicable pronouncements of the Institute of Chartered Accountants
 of India.(the ICAI). 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 Revised Schedule VI to the Companies Act,
 1956. Based on the nature of the services and their realisation in cash
 & cash equivalents, the Company has ascertained its operating cycle as
 twelve months for the purpose of current or non- current classification
 of assets and liabilities.
 
 1.02 Recognition of Income an Expenditure
 
 Items of income and expenditure are generally recognised on accrual
 basis except, certain items of income and expenditure in respect of
 which the amounts remain unascertained till the receipt or payment such
 as scrap sales, insurance claims, octroi refund, bank commission, bank
 charges and sales tax assessement dues.
 
 1.03 Fixed Assets
 
 Fixed assets are stated at cost of acquisition or construction less,
 accumulated depreciation /amortisation and impairment loss if any.
 
 1.04 Intangible Assets
 
 Intangible assets, namely software is amortised equally over the period
 of 36 months from the date of put to use.
 
 1.05 Depreciation and Amortisation
 
 a) Depreciation is provided on the Straight Line Method and at the
 rates and in the manner specified in Schedule XIV to the Companies Act,
 1956.
 
 b) No write off has been made in respect of lease premium paid for
 leasehold land since the lease is granted for a long period.
 
 1.06 Inventories:
 
 a) Basis of valuation:
 
 Raw Materials: : At Cost on FIFO Basis
 
 Stores and Spare parts : At Cost on FIFO Basis Work-in-Progress : : At
 Cost or net realisation
 
 Value whichever is lower
 
 Finished Goods : At Cost or net realisation
 
 value whichever is lower
 
 b) Cost of inventories comprises of all cost of purchase, cost of
 conversion and other costs incurred in bringing them to their present
 location and condition.
 
 c) The finished goods are inclusive of excise duty
 
 1.07 Sales & Services
 
 Sales are inclusive of Excise duty and exclusive of Sales Tax.  And Job
 work Income are inclusive of Service Tax.
 
 1.08 Excise Duty
 
 Excise duty has been accounted on the basis of both payment made in
 respect of goods cleared. And also provision made for lying in bonded
 warehouses.
 
 1.09 Foreign Currency Transactions
 
 a) Transactions denominated in foreign currencies are normally recorded
 at the exchange rate prevailing on the date of the transaction.
 
 b) Monetary items denominated in foreign currencies at the year end are
 restated at the year end rates. In case of monetary items which are
 covered by forward exchange contracts, the difference between the year
 end rate and rate on the date of the contract is recognised as exchange
 difference and the premium paid on forward contracts is recognised over
 the life of the contract.
 
 c) Non-Monetary foreign currency items are carried at cost.
 
 d) Any income or expense on account of exchange difference either on
 settlement or on translation, is recognised in the profit and loss
 account.
 
 1.10 Employee Retirement
 
 Benefits
 
 a) Gratuity and Leave Encashment liability are provided on actuarial
 basis.
 
 b) Employer''s contribution to Provided Fund is charged to Profit & Loss
 A/c.
 
 1.11 Borrowing Cost
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets. All other borrowing costs are charged to revenue.
 
 1.12 Impairment of Assets
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 profit and loss account in the year in which an asset is identifined as
 impaired. The impairment loss recognised in prior accounting periods is
 reversed if there has been change in the estimate of the recoverable
 amount.
 
 1.13 Provision for Current Tax. Deferred Tax
 
 a) Income tax expense comprises current tax i.e.  amount of tax for the
 period determined in accordance with the income tax law and deferred
 tax charge or credit reflect the tax effects of timing difference
 between accounting income and taxable income for the period. The
 deferred tax charge or credit and the corresponding deferred tax
 liabilities or assets are recognised using the tax rates that have been
 enacted or sustantialy enacted by the balance sheet date. Deferred tax
 assets are recognised only to the extent there is reasonable certainly
 that the assets can be realised in future; However.where there is
 unabsorbed depreciation or carried forward loss under taxation laws,
 deferred tax assets are recognised only if there is virtual certainty
 of realisation of such assets. Deferred tax assets are reviewed as at
 each balance sheet date and written down or written up to reflect the
 amount that is reasonably/ virtually certain(as the case may be) to be
 realised.
 
 1.14 Provision.  Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent liabilities are not recognised but are disclosed in the
 notes to accounts Contingent assets are neither recognised nor