(a) Basis of Accounting:
 
 The financial statements have been prepared and presented under the
 historical cost convention on accrual basis of accounting to comply
 with the accounting standards prescribed in the Companies (Accounting
 Standards) Rules, 2006 and with the relevant provisions of the
 Companies Act, 1956.
 
 (b) Use of Estimates:
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles (GAAP) in India requires management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities and the disclosures of contingent liabilities on
 the date of financial statements.
 
 2.  Fixed Assets
 
 (a) Fixed assets are carried at the cost of acquisition or
 construction, less accumulated depreciation. The cost of fxed assets
 includes taxes (other than those subsequently recoverable from tax
 authorities), duties, freight and other directly attributable costs
 related to the acquisition or construction of the respective assets.
 Interest on borrowed funds directly attributable to the qualifying
 assets up to the period such assets are put to use, is included in the
 cost.
 
 (b) Know-how related to plans, designs and drawings of buildings or
 plant and machinery is capitalised under relevant asset heads.
 
 (c) Depreciation on all fixed assets is provided under Straight Line
 Method. The rates of depreciation prescribed in Schedule XIV to the
 Companies Act, 1956 are considered as the minimum rates. If the
 managements estimate of the useful life of a fixed asset at the time
 of acquisition of the asset or of the remaining useful life on a
 subsequent review is shorter than that envisaged in the aforesaid
 schedule, depreciation is provided at a higher rate based on the
 managements estimate of the useful life/remaining useful life.
 Pursuant to this policy, depreciation on following category of assets
 has been provided at rates which are higher than the corresponding
 rates prescribed in Schedule XIV.
 
 Information Technology Assets : 4 years
 
 Scientific Research equipment : 8 years
 
 Furniture and Fixtures : 8 years
 
 Office equipment and Vehicles : 5 years
 
 Godowns, Office and Roads situated within factory premises : 30 years
 
 For Phthalic Anhydride and Pentaerythritol plants, depreciation is
 provided on all eligible plant and machinery at rates applicable for
 continuous process plants and for other plant and machinery
 depreciation is provided on triple shifit basis.
 
 Depreciation on tinting systems except computers, leased to dealers is
 provided under Straight Line Method over the estimated useful life of
 nine years as per technical evaluation. Depreciation on computers given
 on lease is provided under Straight Line Method and at rates specified
 under Schedule XIV to the Companies Act, 1956.
 
 Assets costing less than ^ 5,000 are fully charged to the profit and
 loss account in the year of acquisition.  Leasehold land and leasehold
 improvements are amortised over the primary period of lease.
 
 Purchase cost, user licence fees and consultancy fees for major
 sofitware are amortised over a period of four years. Acquired Trade mark
 is amortised over a period of five years.
 
 (d) At Balance Sheet date, an assessment is done to determine whether
 there is any indication of impairment in the carrying amount of the
 Companys fixed assets. If any such indication exists, the assets
 recoverable amount is estimated. An impairment loss is recognised
 whenever the carrying amount of an asset exceeds its recoverable
 amount.
 
 An assessment is also done at each Balance Sheet date whether there is
 any indication that an impairment loss recognised for an asset in prior
 accounting periods may no longer exist or may have decreased. If any
 such indication exists the assets recoverable amount is estimated. The
 carrying amount of the fixed asset is increased to the revised estimate
 of its recoverable amount so that the increased carrying amount does
 not exceed the carrying amount that would have been determined had no
 impairment loss been recognised for the asset in prior years. A
 reversal of impairment loss is recognised in the Profit and Loss
 Account.
 
 After recognition of impairment loss or reversal of impairment loss as
 applicable, the depreciation charge for the asset is adjusted in future
 periods to allocate the assets revised carrying amount, less its
 residual value (if any), on straight line basis over its remaining
 useful life.
 
 3.  Revenue Recognition
 
 Revenue from sale of goods is recognised on transfer of all significant
 risks and rewards of ownership to the buyer.  The amount recognised as
 sale is exclusive of sales tax/VAT and are net of returns. Sales are
 stated gross of excise duty as well as net of excise duty; excise duty
 being the amount included in the amount of gross turnover. The excise
 duty related to the difference between the closing stock and opening
 stock is recognised separately as part of ‘material cost.
 
 Revenue from service is recognised on rendering of services to
 customers.
 
 Dividend income is recognised when the right to receive payment is
 established.
 
 Interest income is recognised on the time proportion basis.
 
 4.  Lease Accounting
 
 Assets taken on operating lease:
 
 Lease rentals on assets taken on operating lease are recognised as
 expense in the Profit and Loss Account on an accrual basis over the
 lease term.
 
 Assets given on operating lease:
 
 The Company has provided tinting systems to dealers on an operating
 lease basis. Lease rentals are accounted on accrual basis in accordance
 with the respective lease agreements.
 
 5.  Inventory
 
 (a) Raw materials, work-in-progress, finished goods, packing materials,
 stores, spares, traded Items and consumables are carried at the lower
 of cost and net realisable value. The comparison of cost and net
 realisable value is made on an Item-by-Item basis. Damaged,
 unserviceable and inert stocks are suitably written down/ provided for.
 
 (b) In determining cost of raw materials, packing materials, traded
 Items, stores, spares and consumables, weighted average cost method is
 used. Cost of inventory comprises all costs of purchase, duties, taxes
 (other than those subsequently recoverable from tax authorities) and
 all other costs incurred in bringing the inventory to their present
 location and condition.
 
 (c) Cost of finished goods and work-in-process includes the cost of raw
 materials, packing materials, an appropriate share of fixed and
 variable production overheads, excise duty as applicable and other
 costs incurred in bringing the inventories to their present location
 and condition. Fixed production overheads are allocated on the basis of
 normal capacity of production facilities.
 
 6.  Investments
 
 Long term investments are carried 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. Current
 investments are carried at lower of cost and fair value. The comparison
 of cost and fair value is done separately in respect of each category
 of investments.
 
 Profit or loss on sale of investments is determined on a
 first-in-first-out (FIFO) basis.
 
 7.  Transactions in Foreign Currency
 
 Transactions in foreign currency are recorded at the exchange rate
 prevailing on the date of the transaction. Exchange differences arising
 on foreign currency transactions settled during the year are recognised
 in the Profit and Loss Account of the year.
 
 Monetary assets and liabilities denominated in foreign currencies,
 which are outstanding as at the year end are translated at the closing
 exchange rate and the resultant exchange differences are recognised in
 the Profit and Loss Account.
 
 The premium or discount on forward exchange contracts is recognised
 over the period of the contracts in the Profit and Loss Account.
 
 8.  Sundry Debtors
 
 Sundry debtors are stated After writing off debts considered as bad.
 Adequate provision is made for debts considered doubtful. Discounts
 due, yet to be quantified at the customer level are included under the
 head ‘Current Liabilities and Provisions.
 
 9.  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 and they are
 recognised in the period in which the employee renders the related
 service.  The Company recognises the undiscounted amount of short-term
 employee benefits expected to be paid in exchange for services rendered
 as a liability (accrued expense) After deducting any amount already
 paid.
 
 B.  Post-employment benefits:
 
 (a) Defined contribution plans
 
 Defined contribution plans are Provident Fund scheme, Employee State
 Insurance scheme and Government administered Pension Fund scheme for
 all employees and Superannuation scheme for eligible employees.  The
 Companys contribution to defined contribution plans are recognised in
 the Profit and Loss Account in the financial year to which they relate.
 
 The Company makes specified monthly contributions towards employee
 provident fund to a Trust administered by the Company. The interest
 payable by the trust to the beneficiaries every year is being notified
 by the Government. The Company has an obligation to make good the
 shortfall, if any, between the return on investments of the trust and
 the notified interest rate.
 
 (b) Defined benefit plans
 
 (i) Defined benefit gratuity plan
 
 The Company operates a defined benefit gratuity plan for employees. The
 Company contributes to a separate entity (a fund), towards meeting the
 Gratuity obligation.
 
 (ii) Defined benefit pension plan
 
 The Company operates a defined benefit pension plan for certain
 specified employees and is payable upon the employee satisfying certain
 conditions, as approved by the Board of Directors.
 
 (iii) Defined Post Retirement Medical benefit plan
 
 The Company operates a defined post retirement medical benefit plan for
 certain specified employees and is payable upon the employee satisfying
 certain conditions.
 
 The cost of providing defined benefits is determined using the
 Projected Unit Credit method with actuarial valuations being carried
 out at each Balance Sheet date. Past service cost is recognised
 immediately to the extent that the benefits are already vested, else is
 amortised on a straight-line basis over the average period until the
 amended benefits become vested.
 
 The defined benefit obligations recognised in the Balance Sheet
 represents the present value of the defined benefit obligation as
 adjusted for unrecognised actuarial gains and losses and unrecognised
 past service costs, and as reduced by the fair value of plan assets, if
 applicable. Any defined benefit asset (negative defined benefit
 obligations resulting from this calculation) is recognised representing
 the unrecognised past service cost plus the present value of available
 refunds and reductions in future contributions to the plan.
 
 C.  Other long term employee benefits
 
 Entitlements to annual leave and sick leave are recognised when they
 accrue to employees. Sick leave can only be availed while annual leave
 can either be availed or encashed subject to a restriction on the
 maximum number of accumulation of leave. The Company determines the
 liability for such accumulated leaves using the Projected Accrued
 Benefit method with actuarial valuations being carried out at each
 Balance Sheet date.
 
 10.  Research and Development
 
 (a) Capital expenditure is shown separately under respective heads of
 fixed assets.
 
 (b) Revenue expenses including depreciation are charged to Profit and
 Loss account under the respective heads of expenses.
 
 11.  Provision for Taxation
 
 Tax expense comprises of current tax (i.e. amount of tax for the period
 determined in accordance with the Income Tax Act, 1961) and deferred
 tax charge or credit (reflecting the tax effects of timing differences
 between accounting income and taxable income for the period).
 
 The deferred tax charge or credit and the corresponding deferred tax
 liabilities or assets are recognized using the tax rates that have been
 enacted or substantively enacted by the Balance Sheet date.
 
 Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realised in future;
 however, where there is unabsorbed depreciation or carry forward loss
 under taxation laws, deferred tax assets are recognised only if there
 is a virtual certainty of realisation of such assets. Deferred tax
 assets are reviewed as at each Balance Sheet date to reassess
 realisation.
 
 12.  Provisions and Contingencies
 
 The Company creates a provision when there exists a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation. A disclosure for a contingent liability is made when there
 is a possible obligation or a present obligation that may, but probably
 will not require an outflow of resources. When there is a possible
 obligation or a present obligation in respect of which likelihood of
 outflow of resources is remote, no provision or disclosure is made.
 
 13.  Earnings Per Share
 
 The Basic and Diluted Earnings Per Share (EPS) is computed by
 dividing the net profit After tax for the year by weighted average
 number of equity shares outstanding during the year.
 
 14.  Proposed Dividend
 
 Dividend recommended by the Board of directors is provided for in the
 accounts, pending approval at the Annual General Meeting.