1) BASIS OF ACCOUNTING
 
 The accompanying financial statements are prepared under the historical
 cost conventions following accrual basis of accounting. Accounting
 policies not specifically referred to otherwise are consistent and is
 consonance with generally accepted accounting principles.
 
 2) REVENUES RECOGNITION
 
 The incomes and expenditures are accounted for on accrual basis. The
 sales are net of returns and inclusive of applicable excise duties.
 
 3) FIXED ASSETS AND DEPRECIATION
 
 The fixed assets are stated at historical cost less depreciation. The
 cost includes the cost of purchase or construction together with
 interest of borrowing for the purpose of acquiring fixed assets up to
 the date of commissioning of fixed assets and other incidental expenses
 incurred up to that date. Depreciation has been provided on
 straight-line method, on single shift basis, at the rates provided in
 Schedule XIV of the Companies Act, 1956.
 
 4) EXCISE DUTY
 
 CENVAT credits are taken into account at the time of purchase of
 Capital Goods and Raw Materials, to the credit of respective purchases
 and utilised for the clearance of goods manufactured.  Expenditure in
 respect of excise duty on finished products is accounted for as and
 when the clearance is made from factory premises. The amount of excise
 duty payable on the finished goods, not cleared from the factory as at
 31st March 2012, has not been added to the value of closing stocks of
 finished goods. However, the non-provision of such excise duty will not
 effect the profits for the year.
 
 5) BORROWING COSTS
 
 Borrowing costs attributable to the acquisition, construction or
 production of an asset is capitalized as part of the cost of that
 asset. The borrowing costs, which are not related to fixed assets, are
 recognized as an expense in the period in which they are incurred.
 
 6) INVENTORIES
 
 The stocks of Raw Material and Stores & Spares are valued at cost
 price. The Finished Goods have been valued at cost or net realizable
 value whichever is less, work- in process is valued at estimated cost
 as certified by management. Goods in transit are carried at cost.
 
 7) EMPLOYEE TERMINAL BENEFITS
 
 The contribution to provident fund, under the defined contribution
 plans is charged to revenue. The Company has also provided towards the
 Gratuity benefits and Leave Encashment, of the eligible employees. No
 provision is made towards bonus during the year. The provisions for the
 above benefit relating to the current year are charged to the revenue.
 
 8) INCOME TAXES
 
 a.  Provision for taxation has been made on the basis of taxable
 profits computed for the current accounting year in accordance with the
 provisions ofthe Income Tax Act, 1961.
 
 b.  Deferred Income Tax is provided using the asset method on all
 timing differences at the balance sheet date between the tax base of
 assets all liabilities and their carrying amounts for financial
 reporting purposes.
 
 c.  Deferred Tax Assets are recognized only to the extent that there is
 reasonable / virtual certainty of their realization.
 
 d.  Deferred Tax Assets and Liabilities are measured using the tax laws
 that have been enacted or subsequently enacted at the balance sheet
 date.