1.  Basis of Accounting
 
 (a) The financial statement has been prepared under the historical cost
 convention and generally accepted accounting principles
 
 (b) Accrual method of accounting Is followed with regard to Income &
 expenses
 
 2.  Use of Estimates
 
 The presentation of financial statements requires estimates and
 assumption to be made that affect the reported amount of assets and
 liabilities on the date of the financial statement and the reported
 amount of revenues and expenses during the reporting period.
 Difference between the actual results and estimates are recognized In
 the period In which the results are known / materialized.
 
 3.  Fixed Assets
 
 Fixed assets are stated at cost of acquisition (Inclusive of freight)
 or construction net of Cenvat /Tax credit, less accumulated
 depreciation. All costs. Including financial costs till commencement of
 commercial production and adjustment arising from exchange rate
 variations attributable to the fixed assets are capitalized.
 
 4.  Capital Work- In- progress
 
 Project under commissioning and other capital work-in- progress are
 carried at cost, comprising direct cost, related Incidental expenses
 and attributable Interest
 
 5.  Depreciation
 
 a) Depredation on fixed assets has been provided on Straight Line
 Method at the rates and In the manners prescribed In Schedule XIV of
 the Companies Act, 1956.
 
 b) Depredation on addition to / dedudion from fixed assets Is being
 provided on pro-rata basis from/ to the date of acquisition/ disposal.
 
 6.  Inventories
 
 Inventories I.e. stores consumables are valued at cost (exclusive of
 excise). By Products are valued at estimated realizable value.  Raw
 Materials are valued at cost plus freight using Weighted Average Cost
 (WAC) method. Finished Goods are valued at cost or net realizable value
 (NRV) whichever Is lower. Finished goods Include cost of conversion and
 other cost for bringing It In the present location and condition
 Including depredation.
 
 7.  Revenue Recognition
 
 Mercantile method of accounting Is employed unless otherwise
 specifically stated elsewhere In this schedule. However, where the
 amount Is Immaterial / negligible and/or establishment of accruals /
 determination of amount Is not possible no entries are made for the
 accrual. Sales are exclusive of excise duty, sales tax & sales returns.
 
 An asset Is treated as Impaired when the carrying cost of assets
 exceeds Its recoverable value. An Impairment loss Is normally charged
 to Profit & Loss account In the year In which an asset Is Identified as
 Impaired. The Impairment loss recognized In prior accounting period Is
 reversed If there has been a change In the estimate of recoverable
 amount
 
 9.  Investment
 
 Long term Investments are carried out at cost less any other temporary
 diminution In value, determined on the specific Identification basis.
 Current Investments are carried at the lower of cost and fair value.
 Profit & Loss on sale of Investment Is determined on specific
 Identification basis.
 
 10.  Other Income
 
 Interest Income Is accounted on an accrual basis. Dividend Income Is
 accounted for when the right to receive Income Is established.
 
 11.  Borrowing Cost
 
 The Borrowing costs that are attributable to the acquisition or
 construction or production of the qualifying assets are capitalized as
 per the cost of such assets up to the date when such assets are ready
 for Its Intended use. All other borrowing costs are charged to the
 Profit & Loss A/c.
 
 12.  Accounting for Taxes on Income
 
 Current tax Is determined as the tax payable In respect of taxable
 Income for the year and Is computed In accordance with relevant tax
 regulations.
 
 Deferred tax assets and liabilities are recognized for future tax
 consequences attributable to the timing differences that result between
 taxable profit and the profit as per the financial statement. Deferred
 tax assets & liabilities are measured using the tax rates and the tax
 laws enacted or substantially enacted as on the Balance Sheet date.
 Deferred tax assets are recognized only to the extent there Is
 reasonable certainty for Its realization.
 
 The taxable Income of the company being lower than the book profits
 under the provision of the Income tax act 1961. The company Is liable
 to pay Minimum Alternate tax (MAT) on Its Income.
 
 Considering the future profitability & taxable position In the
 subsequent years the company has recognized MAT Credit as an assets by
 crediting the provision for Income tax & Including the same under Loans
 & advances In accordance with the Guidance note on  Accounting for
 Credit available In respect of MAT under Income Tax Act 1961'' Issued by
 the Institute of Chartered Accountant of India.
 
 13.  Cash Flow Statement
 
 The cash flow statement Is prepared as per the Indirect method
 prescribed under ''Accounting Standard - 3'' Cash Flow Statement Issued
 by the Institute of Chartered Accountants of India.
 
 14.  Foreign Currency Transactions
 
 Transactions In foreign currency are recorded In Rupees by applying the
 exchange rate prevailing on the date of transaction.  Transactions
 remaining unsettled are translated at the rate of exchange ruling at
 the end of the year. Exchange gain or loss arising on settlement shall
 be adjusted In the carrying amount of the respective fixed assets In
 case of loans acquired for acquisition of fixed assets.
 
 15.  Provision and Contingencies
 
 Provision Involving substantial degree of estimation In measurement Is
 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.
 
 16.  Employee Benefits;-
 
 a.  Provident Fund Is a defined contribution scheme and the
 contribution Is charged to the Profit & Loss A/c of the year when the
 contributions to the Government Funds Is due.
 
 b.  Gratuity Liability Is defined benefit obligations and Is provided
 for on the basis of following formula:-
 
 = Last drawn Salary * 15/26 * No. of Completed year of Services The
 above calculation Is done only for those employees who have completed
 continuous five year of services. However, the above calculation of
 Gratuity Is not as per Actuary Valuation.
 
 c.  Short Term Compensated absences are provided for based on
 estimates. Long Term compensated absences are provided for based on
 actuarial valuation.
 
 d.  Actuarial gains / losses are Immediate taken to the profit & loss
 account and are not deferred.
 
 17.  Segment Reporting;-
 
 a) Business Segment : - The accounting policies adopted for segment
 reporting are In the line with the accounting policies of the company.
 Segment Revenue, Segment expenses, segment assets and segment
 liabilities have been Identified to segments on the basis of their
 relationship to the operating activities of the segment. Revenue,
 Expenses, Assets, Liabilities which relates to the company as whole and
 not allocable to segment on reasonable basis have been Included under
 Unallocated revenue/ expenses/ assets/ liabilities''.
 
 b) Geographical Segment The company sell Its products within India. The
 condition prevailing In India being uniform. So no separate
 geographical segment disclosure Is considered necessary.
 
 18.  Research a Development Expenditure
 
 Revenue expenditure Is charged to the Profit and Loss A/c and Capital
 Expenditure Is added to the cost of Fixed Assets In the year In which
 It Is Incurred and depreciation thereon Is provided as per the rates
 prescribed In Schedule XIV of the Companies Act, 1956.
 
 19.  Intangible assets-
 
 Cost Incurred on Intangible assets, resulting In future economic
 benefits are capitalized as Intangible assets and amortized on equated
 basis over the estimated useful life of such assets.