(i) The Company generally follows the mercantile system of accounting and recognizes significant items of income and expenditure on an accrual basis except in case of Accumulated leaves which are accounted on payment basis.

(ii) The Financial Statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 2013 as adopted consistently by the Company.

(iii) The Financial Statements comply with the Accounting Standards issued by the Institute of Chartered Accountants of India as referred to Sec 133 of the Companies Act, 2013, of India except AS -15 "Employee's Benefits".

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

(2) ASSETS AND DEPRECIATIONS :

TANGIBLE ASSETS

(i) The Gross Block of Fixed Assets is shown at the cost of acquisition which includes Taxes, Duties and other identifiable direct expenses.

(ii) Depreciation has been provided on Straight Line Method based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013. Residual Value has been assigned to each asset in accordance with Schedule II of the Companies Act, 2013.

(iii) Depreciation on additions to fixed assets is being provided on pro- rata basis from the next month of acquisition and on assets sold, discarded, demolished or scrapped, the same is being provided up to the month in which the said asset is sold, discarded, demolished or scrapped.(iv) The balance amount brought forward as Written Down Value of Fixed assets whose remaining useful life as on 31st March, 2014 is Nil, is transferred to Retained Earnings after setting aside the residual value for those Fixed Assets.

(3) INVESTMENT :

(i) Unquoted Investments are valued at cost of acquisition.

(ii) Provision for dimunition in value of long term investment is made only if such a decline is other than temporary.

( 4 ) INVENTORIES :

(i) Raw Materials, Packing Materials are valued at Landed Cost.

(ii) Stores, Spares and consumable are valued at Landed Cost.

(iii) Finished Products and Work in progress are valued on the principle of direct cost or estimated net realisable value whichever is lower.

(iv) Scrap generated on manufacturing of barrel are valued at realizable value.

(5) USE OF ESTIMATES :

The preparation of Financial Statements require estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of Financial Statements and the reported amount of revenues and expenses during the reported period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

(6) REVENUE RECOGNITION :

(i) Sales are recognized when goods are supplied and are recorded net of trade discounts and rebates.

(ii) Interest income on investments is booked on a time proportionate basis taking into account the amounts invested and the rate of interest.

(iii) Dividend income is recognised when the right to receive dividend is established.

(7) RETIREMENT BENEFITS :

(i) Contributions to Provident Fund & Family Pension Scheme are accounted on accrual basis and charged to Profit and Loss Account for the year. (ii) The Company has adopted a policy to make payment of accumulated leaves at the time of termination of its employees. Hence, no provision on account of leave encashment is made in the books of accounts.

(iii) The Company accounts for Gratuity on the basis of Management estimates.

(8) TREATMENT OF CONTINGENT LIABILITIES :

Contingent Liabilities are determined on the basis of available information and disclosed by way of Accounts.

ACCOUNTING FOR TAXES ON INCOME :

(9) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred tax is recognized, on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized if there is virtual certainty that sufficient future taxable income will be availbale against which such assets can be realized. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each Balance sheet date to reassess realization.

Deferred tax assets and liabilities are measured using the tax rates and laws that have been enacted on the balance sheet date.