I was trying to create the folder level security. I assigned manufacturing with deny all permission. But when I login as manufacturing I am still able to view the folder, although I can't check out the file. Same is hapening with life cycle states. I don't know whats wrong.
Are you logging in as an administrator? Administrators can see all files,
even if the permissions have a deny for read. This behavior was done to
prevent files from becoming locked in an invisible mode. If it were
possible to make a file invisible to everyone, it would be locked that way,
because nobody would be able to set it back to visible.
Software Engineer, Autodesk Inc.
Could you let we know the roles of the user manufacturing? you can check: Client Tools->Administration->Security->User->Roles. If the manufacturing's role is administrator, then as Doug mentioned 'it can see all files, even if the permissions have a deny for read'.