1.  BASIS FOR PREPARATION OF FINANCIAL STATEMENTS:
 
 The Financial statements have been prepared under the historical cost
 convention, on an accrual basis of accounting, to comply in all the
 material respects with the notified accounting standards by the
 Companies Accounting Standard Rules, 2006 and the relevant provisions
 of the Companies Act,1956. The Accounting principles discussed more
 fully below are consistent with those used in the previous year.
 
 2.  REVENUE RECOGNITION:
 
 Sales of products are recognized when risk and rewards of ownership of
 the products are passed on to the customers, which is generally on
 dispatch of goods. Exports sale are recognized on the basis of
 Shipping/ Airway Bills. Sales stated are excluding sales tax and net of
 returns.
 
 3.  USE OF ESTIMATES:
 
 The presentation of financial statement in conformity with the
 generally accepted principles requires estimates and assumptions to be
 made, that affect the reported amount of assets and liabilities as on
 the date of financial statements and the reported amount of revenues
 and expenses during the period. Difference between the actual result
 and estimates are recognized in the period in which the results are
 known/materialized.
 
 4.  FIXED ASSETS:
 
 a) Fixed Assets are stated at their historical cost, adjusted by
 revaluation of certain land & building less provision for impairment
 losses, if any, depreciation, amortization and adjustments on account
 of foreign exchange fluctuations in respect of changes in rupee
 liability of foreign currency loans used for acquisition of fixed
 assets.
 
 b) Borrowing cost eligible for Capitalization, incurred in respect of
 acquisition/construction of the qualifying assets, till the asset is
 substantially ready for use, are capitalized as part of the cost of
 that assets.
 
 c) Pre operative, Trial run and incidental expenses relating to the
 projects are carried forward to be capitalized and apportioned to
 various assets on commissioning of the Project.
 
 5.  CAPITAL WORK IN PROGRESS:
 
 Advance paid towards acquisition of fixed assets which have not been
 installed or put to use, and the cost of assets not put to use, before
 the year end are disclosed under Capital Work in Progress .
 
 6.  DEPRECIATION:
 
 Depreciation on fixed assets is provided using the written down value
 method and as per rate provided in the XIV schedule of the Companies
 Act, 1956, based on the useful life as estimated by the management.
 Depreciation is charged on the pro-rata basis for assets purchased/sold
 during the year.
 
 7.  INVENTORIES:
 
 Items of inventories are valued on the basis given below:
 
 Raw Materials and Packing Materials: At Cost net of CENVAT/VAT computed
 on first in-first out method.
 
 Work in process and Finished Goods: At Cost including material cost net
 of CENVAT, labour cost and all overheads other than selling and
 distribution overheads for work-in- process and the same or realizable
 value, whichever is lower in case of finish goods except physician
 samples which are valued at cost as computed above.
 
 Stores and Spares: Stores and spares parts are valued at purchase cost.
 
 8.  FOREIGN CURRENCY TRANSACTIONS:
 
 Foreign currency assets and liabilities are translated at exchange rate
 prevailing on the last working day of the accounting year. Gain or loss
 on the restatement of foreign currency transaction or on cancellation
 of forward contract if any, is reflected in the Profit and Loss account
 except gain or loss relating to acquisition of fixed assets which is
 adjusted to the carrying cost of fixed assets.
 
 Transaction in Foreign Currency is recorded in the Books of Account in
 Indian Rupee at the rate of exchange prevailing on the date of
 transaction.
 
 9.  INVESTMENTS:
 
 Long Term Investments are Valued at cost. Provision for diminution in
 the value of long term investments is made only if such a decline is
 other than temporary, in the opinion of the Management.
 
 10.  BORROWING COST:
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of times to get ready for it''s intend use. All other
 borrowing costs are charged to revenue.
 
 11.  EARNINGS PER SHARE:
 
 The Company reports basic and diluted earnings per share in accordance
 with Accounting Standard 20 on Earnings per Share. Basic earning per
 share is computed by dividing the net Profit or Loss for the period by
 the weighted average number of Equity shares outstanding during the
 period. Diluted earnings per share is computed by dividing the net
 profit or loss for the period by the weighted average number of Equity
 shares during the period as adjusted for the effects of all dilutive
 potential equity shares, except where the results are anti-dilutive.
 This includes employee stock options granted and outstanding.
 
 12.  TAXATION:
 
 Current Tax: Current Tax is calculated as per the provisions of the
 Income Ta x Act, 1961
 
 Deferred Tax: Deferred tax is recognized on timing differences being
 the differences between taxable incomes and accounting income that
 originate in one period and are capable of reversal in one or more
 subsequent period. Deferred tax assets are subject to the consideration
 of prudence are recognized and carried forward only to the extent that
 there is reasonably certainly that sufficient taxable income will be
 available against which such deferred tax assets can be realized. The
 tax effect is calculated on the accumulated timing difference at the
 year end based on the tax rates and law enacted or substantially
 enacted on balance sheet date.
 
 MAT Credit: MAT Credit entitlement is recognized only when the company
 actually avails MAT credit based on its annual tax computation.
 
 13.  PROVISIONS AND CONTINGENT LIABILITIES:
 
 Provisions are recognized for present obligations, of uncertain timing
 or amount, arising as a result of past event where reliable estimate
 can be made and it is probable that an outflow of resources embodying
 economic benefits will be required to settle the obligations. Where it
 is not probable that an outflow of resources embodying economic benefit
 will be required or the amount cannot be estimated reliably, the
 obligation is disclosed as a contingent liability unless the
 probability of outflow of resources embodying economic benefit is
 remote.
 
 Possible obligations, whose existence will only be confirmed by the
 occurrence or non-occurrence of one or more uncertain future events,
 are so also disclosed as contingent liabilities unless the probability
 of outflow of resources embodying economic benefit is remote.
 
 14.  EMPLOYEE BENEFITS:
 
 a.  Short Term Employee Benefits
 
 All employee benefits payable wholly within twelve months of rendering
 the service, are classified as short term employee benefits. Benefits
 such as salaries, wages, short term compensated absences, etc.  and the
 expected cost of bonus, ex-gratia are recognized in the period in which
 the employee renders the related service.
 
 b.  Long Term Employee Benefits
 
 - Retirement Benefit in the form of provident fund is a defined
 contribution scheme and contributions are charged to the Profit and
 Loss account for the year/period when the contributions are due.
 
 - Leave Encashment is recognized on the basis of payment at the end of
 the year.
 
 15.  CENVAT and Service Tax Credit:
 
 CENVAT and Service Tax credit utilized during the year is accounted in
 excise duty and unutilized CENVAT/ Service Ta x balance at the year end
 is considered as advance excise duty.
 
 16.  MISCELLANEOUS EXPENDUTURE:
 
 - Expenditure on formation of company being in the nature of
 preliminary expenses is amortized over the period of ten years.
 
 - The expenditure incurred in respect of IPO have been treated as
 deferred revenue expenditure and amortized over a period of 10 years.