These accounts are prepared under the historical cost basis of
 accounting and evaluated on a going concern basis, with revenues
 recognised and expenses accounted for on their accrual to comply in all
 material aspects with the applicable accounting principles, the
 applicable Accounting Standards notifies u/s. 211 (3C) of the Companies
 Act, 1956 and other relevant provisions of the Companies Act, 1956.
 
 (A) The following significant accounting policies adopted in the
 preparation and presentation of these financial statements are:
 
 i) Sales are recognized when goods are supplied and recorded net of
 discounts, vat and sales tax thereon.
 
 ii) Income from Conversion job is recognized on its completion and on
 acceptance by the customers.
 
 iii) Dividend income is accounted for in the year in which the right to
 receive the same is established.
 
 iv) Fixed assets shown under gross block are valued at cost of
 acquisition inclusive of inward freight, duties & taxes & incidental
 expenses related to acquisition & also include cost of installation,
 wherever incurred.
 
 v) Depreciation on fixed assets has been calculated by adopting the
 revised rates of depreciation specified in Schedule XIV of the
 Companies Act, 1956 as under:
 
 Depreciation on fixed assets has been calculated in accordance with the
 Schedule XIV of the Companies Act, 1956. Fixed assets at the Companys
 Cosmetics unit has been depreciated on the straight line method as
 contemplated in Section 205(2)(a) of the said Act, except on vehicles,
 on which the written down value method has been adopted. In respect of
 other assets of the Trading division, the written down value method has
 been adopted at rates specified therein. Depreciation on additions to
 fixed assets during the current year is charged on prorata basis, for
 the period of use. The Company incurred expenditure towards product
 development. The same has been capitalized during the year and shown
 under miscellaneous expenditure as product development charges. The
 same will be written off in three installments.
 
 vi) Investments are valued at cost, inclusive of dividend reinvested
 thereon.
 
 vii) Inventories are value as under:
 
 a.  Trading goods - at cost or net realisable value, whichever is
 lower;
 
 b.  Raw materials & packing materials - At weighted average cost or net
 realisable value;
 
 c.  Process stock - At cost or estimated realisable value, whichever is
 lower and
 
 d.  Finished goods - At cost or net realisable value, whichever is
 lower and is inclusive of excise duty thereon.  
 
 viii) Employee benefits:
 
 a.  Gratuity: The Company has computed its liability towards future
 payments of gratuity to employees, on actuarial basis and the charge
 for the current year is debited to the Profit and Loss Account.
 
 b.  Superannuation: The Company contributes towards its Employees
 Superannuation Fund, for future payment of retirement benefits to its
 employees. The contributions accruing during each year are charged to
 the Profit and Loss Account.
 
 c.  Leave encashment liabilities are determined by actuarial valuation
 done at the end of the year and the charge for the current year is
 debited to the Profit and Loss Account.
 
 d.  Employers contribution to Provident fund is charged to the Profit
 and Loss Account.
 
 ix) Foreign exchange transactions:
 
 All receipts in foreign currencies are recorded at banks buying rates
 that prevailed on the dates on which the relevant transactions took
 place. Liabilities payable in foreign currency are restated at the year
 end exchange rates.
 
 x) Taxes on income:
 
 a.  Current taxation:
 
 Provision for current tax is made based on the tax liability computed
 after considering tax allowances and exemptions.
 
 b.  Deferred tax:
 
 Provision for deferred taxation is made using the applicable rate of
 taxation, for all timing differences which arise during the year and
 are reversed in subsequent periods.
 
 xi) All contractual liabilities connected with the business operations
 of the Company are appropriately provided for.  xii) Product
 development expenses to be amortised over a period of three years.
 
 (B) Events happening after the Balance Sheet date:
 
 93,239 warrants have been converted into Equity Shares of the Company
 pursuant to the Board resolution dated April 29, 2011 and consequent to
 the same the paid up Equity Share Capital and Share Premium Account
 have increased to Rs. 2,61,41,780/- and Rs. 1,33,35,662, reduction in
 share warrants respectively.