1.  Nature of Operations
 
 The Company was established in 1989 and is engaged in manufacturing of
 speciality organic intermediates and monomers, namely IBB (Isobutyl
 Benzene], ATBS (2 Acrylamido 2Methylpropane Sulphonic Acid), NaATBS
 (Sodium Salt of 2 Acrylamido 2Methylpropane Sulphonic Acid and
 Isobutylene. The manufacturing facilities are located at Mahad and Lote
 Parashuram, Maharashtra.
 
 2.  Basis of Preparation
 
 a) The financial statement have been prepared to comply in all material
 aspects in respect with the Notified Accounting Standard by Companies
 Accounting Standards Rules, 2006 and the relevant provisions of the
 Companies Act, 1956.
 
 b) Financial statement are based on historical cost and are prepared on
 accrual basis, except where impairment is made.
 
 c) Accounting policies have been consistently applied by the Company
 and are consistent with those used in the previous year.
 
 3.  Use of Estimates
 
 The preparation of financial statement in conformity with generally
 accepted accounting principles requires management to make estimate and
 assumption that affect the reported amounts of assets and liabilities
 and disclosure of contingent liabilities at the date of financial
 statement and the result of operation during the reporting period end.
 Although these estimate are based upon managements best knowledge of
 current events and action, actual result could differ from these
 estimates.
 
 4.  Revenue Recognition
 
 a) Revenue/Income and Cost/Expenditure are generally accounted on
 accrual basis as they are earned or incurred.
 
 b) Export entitlement by the way of Duty Draw back/ DEPB are recognised
 as income of the year on accrual basis. In case of utilisation for
 Import purpose the same is recognised as raw material cost in the year
 of import.
 
 5.  Fixed Assets
 
 a) All Fixed Assets are stated at cost (net of Cenvat) less accumulated
 depreciation.
 
 b] Leasehold land is amortised equally over the period of lease.
 
 c] The carrying amount of cash generating unit/assets are reviewed at
 Balance Sheet date to determine whether there is any indication of
 impairment. If any such indication exist, the recoverable amount is
 estimated as the higher of net selling price and value in use.
 Impairment loss is recognised wherever carrying amount exceeds
 recoverable amount.
 
 d) All costs including borrowing costs & exchange gain or loss on
 foreign currency loan utilised for the acquisition and installation of
 fixed assets, till commencement of commercial production, are
 capitalised.
 
 6.  Depreciation
 
 Tangible Asset
 
 Depreciation on Fixed Assets is provided on Straight Line Method at the
 rates and the manner prescribed under Schedule XIV of the Companies
 Act,1956. Fixed Assets except Plant & Machinery whose Written Down
 Value as at the beginning of the year is less than 5% of the cost are
 not depreciated intangible Asset
 
 a) Technical Know-how fees is amortised prorata, on straight line basis
 over the estimated useful life of the asset of 10 years.
 
 b) Licensed Software is amortised prorata, on straight line basis over
 the estimated useful life of the asset of 6 years.
 
 7.  Borrowing Cost
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of an qualifying assets are capitalised as
 part of the cost of that asset. A qualifying asset is one that
 necessarily takes substantial period of time to get ready for intended
 use. Other borrowing costs are recongnised as an expense in the period
 in which they are incurred.
 
 8.  Research & Development Expenditure
 
 Expenditure on Research & Development is charged as expense in the year
 in which it is incurred.
 
 9.  Inventories
 
 All Inventories other than finished goods are valued at cost. Finished
 goods are valued at the lower of cost or estimated net realisable
 value. Cost includes an appropriate proportion of overheads and excise
 duty, where applicable.
 
 Provision for obsolescence is made wherever necessary.  Cost is
 determined using first in first out (FIFO) method.
 
 10.  Cenvat/Value Added Tax/Service Tax
 
 Cenvat/Value Added Tax/Service Tax Benefit is accounted for by reducing
 the purchase cost of the materials/fixed assets and services.
 
 11.  Foreign Currency Transactions
 
 Export/Import transactions during the year are accounted on the basis
 of prevailing exchange rate (as declared/ assessed by Customs
 Department] on the date of export/ import. The difference between the
 amount realised/ paid and the amount already booked is accounted for as
 Exchange fluctuation difference in the year of realisation/payment.
 Current assets and current liabilities, term loans are translated at
 forward cover rate, if applicable, or at the year end exchange rates
 and exchange gains and losses are fully recognised in the Profit and
 Loss Account and those arising on account of forward cover, if any, are
 amortised over the life of the forward cover.
 
 12.  Retirement Benefits
 
 Contributions to the Provident Fund are made at a pre- determined rate
 and charged to the Profit and Loss Account.
 
 Gratuity liability is defined benefit obligation and is provided for on
 the basis of an actuarial valuation on projected unit credit method
 made at the end of each financial year. The liability so provided is
 represented substantially by creation of separate fund and is
 considered sufficient to meet the liability as and when it accrues for
 payment in future.
 
 13.  Leave Encashment
 
 Provision for Leave encashment is made on accrual basis on estimates as
 at the year end and is charged to the Profit and Loss Account.
 
 Mt.  Leases
 
 Leases, where the lessor effectively retains substantially all the
 risks and benefits of ownership of the leased item, are classified as
 operating leases. Operating lease payments are recognised as an expense
 in the Profit & Loss Account on a straight-line basis over the lease
 term.
 
 15.  Provision for Current and Deferred Tax
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of the Income-tax Act, 1961.
 Deferred tax resulting from timing difference between book and
 taxable profit is accounted for using the tax rates and laws that have
 been enacted or substantively enacted as on the balance sheet date or
 as on date of approval of Statement of Accounts whichever is later. The
 deferred tax assets are recognised and carried forward only to the
 extent that there is a reasonable certainty that the assets will be
 realised in future.
 
 16.  Provision, Contingent Liabilities and Contingent Assets (AS-29)
 
 Provision involving substantial degree of estimates in measurement are
 recognised when there is a present obligation as a result of past event
 and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 notes. Contingent assets are neither recognised nor disclosed in the
 financial statements.