(a) Basis of Accounting: The financial statements are prepared under
 historical cost convention and comply with the notified accounting
 standards of Companies Accounting Standards Rules, 2006.
 
 (b) Use of Estimates :The preparation of financial statements in
 conformity with generally accepted accounting principles requires
 management to make estimates and assumptions that affect the reported
 amounts of assets and liabilities at the date of the financial
 statements and the result of operations during the reporting period
 end. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 (c) Excise Duty : Excise Duties recovered are included in the sale of
 product. Purchases are being shown at a figure net of excise duty.
 
 (d) Revenue Recognition: Revenue is recognized on accrual basis.
 
 (e) Depreciation : Depreciation is provided under the straight-line
 method at the rates prescribed in Schedule XIV of the Companies Act,
 1956.
 
 (f) Taxation: Provision for Taxation comprises of Income Tax Liability
 on the profits for the year chargeable to tax and Deferred Tax
 resulting from timing differences between Book and Tax profits, The
 Deferred Tax assets/ Liability is provided in accordance with the
 accounting standard 22(AS-22), Accounting for Taxes on Income issued
 by the Institute of Chartered Accountants of India.
 
 Where Minim Alternate Tax (MAT) is applicable, it is provided in the
 Profit and Loss Account irrespective of the Tax Credit benefits
 envisaged in the Income Tax Act, 1961.