(a) Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the mandatory Accounting Standards issued by the
 Institute of Chartered Accountants of India and the relevant provisions
 of the Companies Act, 1956. The financial statements have been prepared
 under the historical cost convention on an accrual basis.
 
 (b) Use of Estimates
 
 The preparation of financial statements in confirmatory with generally
 accepted accounting principles requires the management to make
 estimates and assumptions that effect the reported balances of assets
 and liabilities as of the date of the financial statements and reported
 amounts of income and expenses during the period. Management believes
 that the estimates used in the preparation of financial statements are
 prudent and reasonable, actual; results could differ from estimates
 
 (c) Employee Benefits:-
 
 i. Retirement benefits in the form of Provident Fund are a defined
 contribution scheme and the contributions are charged to the Profit and
 Loss Account of the year when the contributions to the respective funds
 are due. There are no other obligations other than the contribution
 payable to the respective trusts.
 
 ii.  Gratuity liability is defined benefit obligations and is provided
 for on payment basis.
 
 iii. Short term compensated absences are provided for on based on
 estimates. Long term compensated absences are provided for based on
 actuarial valuation on projected unit credit method carried by an
 independent actuary as at end of the year.
 
 iv.  Actuarial gains/losses are immediately taken to profit and loss
 account and are not deferred.
 
 v. Payments made under the Voluntary Retirement Scheme are charged to
 the Profit and Loss account immediately.
 
 (d) Fixed Assets
 
 Fixed assets are stated at cost (or revalued amounts, as the case may
 be), less accumulated depreciation and impairment losses if any. Fixed
 assets erected & commissioned have been capitalized at cost including
 other incidental expenses relating to acquisition and installation.
 
 (e) Depreciation
 
 i) Depreciation has been provided on written down value method
 corresponding to the rates prescribed under schedule XIV of the
 Companies Act 1956.
 
 ii) Depreciation on additions is being provided on pro-rata basis from
 the date of such additions.
 
 (f) Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the asset''s net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value at the weighted average cost of capital.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its y remaining useful life.
 
 (g) Leases
 
 Assets acquired under finance leases are recognised in accordance with
 the method recommended by the ICAI. Lease payments are apportioned
 between finance charge and reduction of outstanding liabilities. The
 finance charge is allocated to periods during lease term at a constant
 periodic rate of interest on the remaining balance of the liability.
 
 (h) Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis.  Long-term investments are carried at
 cost. However, provision for diminution in value is made to recognize a
 decline other than temporary in the value of the investments.
 
 (i) Inventories
 
 Raw materials, components, stores and spares:
 
 Lower of cost and net realizable value. However, materials and other
 items held for use, in the production of inventories are not written
 down below cost if the finished products in which they will be
 incorporated are expected to be sold at or above cost. Cost is
 determined on FIFO basis.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and estimated
 costs necessary to make the sale.
 
 (j) Revenue recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Dividend
 
 Dividend including Interim is accounted for when declared.
 
 All items of income/expenses are accounted for on accrual basis except
 for the following items which are accounted for on cash basis.
 
 1) Encashment of leave and gratuity payable to employees
 
 2) Custom/Excise Duty on Material in bond.
 
 3) Bonus
 
 (k) Foreign currency translation
 
 (i) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 (ii) Conversion
 
 Foreign currency monetary items are reported using the closing rate at
 the end of the reporting period. Non-monetary items which are carried
 in terms of historical cost denominated in a foreign currency are
 reported using the exchange rate at the date of the transaction; and
 non-monetary items which are carried at fair value or other similar
 valuation denominated in a foreign currency are reported using the
 exchange rates that existed when the values were determined.
 
 (iii) Exchange Differences
 
 Foreign currency monetary items are reported using the closing rate at
 the end of the reporting period. Non-monetary items which are carried
 in terms of historical cost denominated in a foreign currency are
 reported using the exchange rate at the date of the transaction; and
 non- monetary items which are carried at fair value or other similar
 valuation denominated in a foreign currency are reported using the
 exchange rates that existed when the values were determined.
 
 (l) Taxes on Income
 
 Income Tax expense comprise of Current Tax and Deferred Tax charge or
 credit. The current tax is determined as the amount of tax payable in
 respect of taxable income for the year, as per the provisions of Income
 Tax Act, 1961. The Company provides for Deferred Tax Liability based on
 the tax effect of Timing Differences resulting from the reorganization
 of item in the financial statements and estimating its current income
 tax provision. Where there are brought forward fiscal allowances,
 deferred tax asset is recognized only if there is virtual certainty of
 realization of such assets. Deferred tax assets and liabilities are
 reviewed as at each balance sheet date and restated as per current
 developments.
 
 (m) Borrowing Costs
 
 Borrowing Costs attributable to the fixed assets during their
 construction/renovation and modernization are capitalized in accordance
 with AS-16 issued by ICAI. Such borrowing costs are apportioned on the
 average balance of Capital Work-in-Progress for the year. Other
 borrowing costs are recognized as an expense in the period in which
 they are incurred.
 
 (n) Earnings per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting preference dividends and attributable taxes, if any) by the
 weighted average number of equity shares outstanding during the period.
 Partly paid equity shares are treated as a fraction of an equity share
 to the extent that they were entitled to participate in dividends
 relative to a fully paid equity share during the reporting period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during die period are
 adjusted for the effects of all dilutive potential equity shares.
 
 (o) Provisions
 
 Provisions involving a substantial degree of estimation in measurement
 are recognized 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 recognized but are disclosed in the
 notes. Contingent Assets are neither recognized nor disclosed in the
 financial statement
 
 (p) Segment Information
 
 The Company has only one business and geographical Segment viz. HDPE
 Tarpaulene and related products in India. Hence no further disclosures
 are required to be made as per AS-17 on segment reporting.
 
 (q) Indirect Taxes
 
 Excise Duty:
 
 I) Excise Duty payable on finished goods is accounted for on clearance
 of goods from the factory, no provision is made for Excise Duty in
 respect of Finished Goods lying the factory.
 
 II) Cenvat in respect of Excise Duty paid on purchase of Raw Materials,
 Stores and Capital goods is accounted for by reducing the purchase cost
 of the related goods
 
 Custom Duty:
 
 Custom Duty payable on Raw Materials, Stores, Spares and Components is
 accounted on clearance thereof from the boned warehouses.
 
 (r) Sales:
 
 Sales include excise duty and are net of sales tax.