a.  Basis of Preparation of Financial Statements
 
 The financial statements are prepared as per historical cost convention
 on accrual basis and comply with the provisions of the Companies Act,
 1956, the generally accepted accounting principles in India and the
 applicable accounting standards as notified by Companies (Accounting
 Standard) Rules, 2006.
 
 b.  Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of the assets
 and liabilities on the date of the financial statements and the
 reported amount of revenues and expenses during the reporting period.
 Difference between the actual results and estimates are recognized in
 the period in which the results are known/materialized.
 
 c.  Turnover
 
 In line with generally accepted accounting practices, sales are
 recognised when goods are supplied and are recorded net of Rebates,
 Sales Tax.
 
 Service income is recognized as per the terms of the contracts with
 customers when the related services are performed, or the agreed
 milestones are achieved.
 
 d.  Revenue Recognition
 
 In accordance with the Companys accounting policy followed
 consistently, all revenues are accounted when there is reasonable
 certainty of its ultimate collection.
 
 e.  Expenditure
 
 All general business expenditure is accounted in the year in which it
 is incurred and provision is made for all known losses and expenses.
 
 f.  Fixed Assets
 
 Fixed Assets are stated at cost, less accumulated depreciation. Costs
 include all costs relating to acquisition and installation of fixed
 assets. Intangible assets represent product development expenses and
 technology transfer stated at the valued amount and software stated
 at cost.
 
 g.  Depreciation
 
 Depreciation on fixed assets is provided on the straight line value
 method at the rates prescribed under Schedule XIV to the Companies Act,
 1956. Intangible assets are amortised over a period of five years,
 being the expected
 
 period of use. The leasehold land and leasehold improvements are
 depreciated over the lease period.
 
 h. Impairment of Assets
 
 As asset is treated as impaired when the carrying cost of asset exceeds
 its recoverable value. An impairment loss is charged to the Profit and
 Loss Account in the year in which an asset is identified as impaired.
 The impairment loss recognized in prior accounting period is reversed
 if there has been change in the estimate of recoverable amount.
 
 i.  Investments
 
 Long-term investments are valued at cost. Provision for diminution in
 value of investments is made, if the diminution is of a nature other
 than temporary. Current investments are valued at the lower of cost and
 market value.
 
 j.  Inventory
 
 Raw material, packaging material and stores and spare parts are carried
 at cost. Cost includes purchase price, (those subsequently recoverable
 by the enterprise from the concerned revenue authorities), freight
 inwards and other expenditure incurred in bringing such inventories to
 their present location and condition. In determining the cost, First In
 First Out (FIFO) method is used.
 
 Work in progress, manufactured finished goods and traded goods are
 valued at the lower of cost and net realizable value. The comparison of
 cost and net realisable value is made on an item by item basis. Cost of
 work in progress and manufactured finished goods is determined on First
 In First Out (FIFO) and comprises direct material, cost of conversion
 and other costs incurred in bringing these inventories to their present
 location and condition.
 
 k.  Excise Duty and Sales Tax/Value Added Tax
 
 Excise duty is accounted on the basis of both, payments made in respect
 of goods cleared as also provision made for goods lying in bonded
 warehouses. Sales tax / Value added tax is charged to Profit and Loss
 account.
 
 I.  Research and Development Expenses
 
 Revenue expenditure on research and development is expensed out under
 the respective heads of account in the year in which it is incurred.
 
 Expenditure on development activities, whereby research findings are
 applied to a plan or design for the production of new or substantially
 improved products and processes,
 
 is capitalised, if the cost can be reliably measured, the product or
 process is technically and commercially feasible and the Company has
 sufficient resources to complete the development and to use and sell
 the asset.  The expenditure capitalised includes the cost of materials,
 direct labour and an appropriate proportion of overheads that are
 directly attributable to preparing the asset for its intended use.
 Other development expenditure is recognised in the Profit and Loss
 account as an expense as incurred.
 
 Capitalised development expenditure is stated at cost less accumulated
 amortisation and impairment losses. Fixed assets used for research and
 development are depreciated in accordance with the Companys policy.
 
 Materials identified for use in research and development process are
 carried as inventories and charged to Profit and Loss Account on
 issuance of such materials for research and development activities.
 
 m. Employee Retirement Benefits
 
 a.  Short term employee benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 b.  Post employment and other long term employee benefits are
 recognised as an expense in the profit and loss account for the year in
 which the employee has rendered services. The expense is recognised at
 the present value of the amounts payable determined using actuarial
 valuation techniques. Actuarial gains and losses in respect of post
 employment and other long term benefits are charged to the profit and
 loss account.
 
 n. Borrowing Cost
 
 Borrowing costs attributable to 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
 time to get ready for its intended use. All other borrowing costs are
 charged to Profit and Loss account.
 
 o. Foreign Currency Transactions
 
 a.  Transactions denominated in foreign currencies are recorded at spot
 rates / average rates.
 
 b.  Monetary items denominated in foreign currencies at the year end
 are restated at year end rates.
 
 c.  Non monetary foreign currency items are carried at cost.
 
 d.  In respect of branches, which are integral foreign operations, all
 transactions are translated at rates prevailing on the date of
 transaction or that approximates the actual rate on the date of
 transaction. Branch monetary assets and liabilities are restated at the
 year end rates.
 
 e.  Any income or expense on account of exchange difference either on
 settlement or on translation is recognised in the profit and loss
 account except in case of long term liabilities, where they relate to
 acquisition of fixed assets, in which case they are adjusted to the
 carrying cost of such assets.
 
 p. Accounting for taxes on Income
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of the Income Tax Act, 1961.
 
 Deferred tax on timing differences between taxable income and
 accounting income is accounted for, using the tax rates and the tax
 laws enacted or substantially enacted as on the balance sheet date.
 Deferred tax assets is recognized and carried forward only to the
 extent that there is a virtual certainty that the asset will be
 realized in future.
 
 q. Provision, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes.  Contingent Assets a;e neither recognized nor disclosed in the
 financial statements.