i.  Basis of Accounting:
 
 The financial statements are prepared under historical cost convention
 on an accrual basis.
 
 ii.  Inventories
 
 Inventories are valued as under:
 
 Raw Material and Packing Material : At cost or net realisable value,
 whichever is lower
 
 Work In Process                   : At cost or net realisable value,
                                     whichever is lower
 
 Finished goods                    : At cost or net realisable value, 
                                     whichever is lower
 
 Stores & spares                   : At cost
 
 By products/Scrap                 : At Net Realisable Value
 
 Fuel                              : At cost
 
 Cost of Raw Material and Packing Material is determined on First in
 First out basis.
 
 Cost of Finished goods and work in process include costs of conversion
 and other costs incurred in bringing the inventories to their present
 location and condition.
 
 iii.  Fixed Assets and Depreciation :
 
 Fixed assets are stated at historical cost less accumulated
 depreciation.
 
 Depreciation has been provided for by the straight line method at the
 rates specified in ScheduleXIV of the Companies Act, 1956.
 
 Depreciation on additions during the year is charged on pro rata basis.
 
 The amortization of the value of the Leasehold Premises has not been
 provided for. The Company does not not follow the procedure of
 amortizing its leasehold assets over the period of the lease.
 
 iv.  Revenue Recognition :
 
 Sales are recognised when the goods are invoiced or despatched to the
 customers and are recorded exclusive of excise duty and net of trade
 discount and sales tax.
 
 Export sales are recognised on the date of Shipping bill.
 
 Duty Drawback is accounted in the year in which it is received.
 
 v.  Long Term investments are valued at cost.
 
 vi.  Foreign currency Transactions
 
 Transactions in foreign currency are recorded at the exchange rate
 prevailing on the date of the transaction. All foreign currency assets
 and liabilities (except those towards fixed assets) are translated at
 year end exchange rate and related exchange gain/loss is recognised in
 Profit and Loss Account.  Adjustmenmt in respect of liabilities
 incurred for acquisition of fixed assets are adjusted in the carrying
 amount of fixed assets.
 
 vii The following are the observations during the course of Audit under
 review and brought to the notice of the members of the Company : 
 
 1) Due to the complexities of business the value of the Inventory has
 been considered as has been verified, valued and certified by the
 Management.
 
 2) Balances of Sundry Debtors and Sundry Creditors as on 31/03/2012 are
 subject to confirmation. No confirmations of balances have been
 obtained from the parties and hence the value of these Debtors and
 Creditors for the balance sheet purpose has been take as certified by
 the Management.
 
 3) The Company has not been following the Guidelines issued by the
 Institute of Chartered Accountants of India on Accounting for Excise
 Duty and Cenvat.