(i) BASIS OF ACCOUNTING
 
 Financial statements are prepared under the historical cost convention
 and as a going concern and in accordance with the normally accepted
 accounting standards.
 
 (ii) FIXED ASSETS
 
 a. Tangible Assets :
 
 Fixed assets are stated at cost net of Cenvat Credit, less accumulated
 depreciation. Cost is inclusive of freight, duties, taxes and all
 directly attributable costs of bringing the assets to their working
 condition for its intended use.
 
 b. Intangible Assets :
 
 Trade Mark and Designs : Costs relating to Trade Marks and Designs
 which are acquired are capitalised and amortised on a straight line
 basis over a period of 5 years.
 
 (iii) EXPENDITURE DURING CONSTRUCTION PERIOD
 
 Expenditure incurred during the construction period is included under
 capital Work-in-progress and will be capitalised when ready for
 commercial use.
 
 (iv) BORROWING COSTS
 
 Borrowing costs that are attributable to construction of qualifying
 assets are capitalised as part of cost of such assets till such time
 the asset is ready for its intended use. A qualifying asset is an asset
 that requires a substantial period of time to get ready for its
 intended use. All other borrowing costs are recognized as expenses in
 the period in which they are incurred.
 
 (v) DEPRECIATION
 
 Depreciation is provided on straight-line basis at the rates specified
 in Schedule XIV of the Companies Act, 1956,onpro rata basis.
 
 (vi) INVENTORIES
 
 (a) Finished goods are valued at cost or market price whichever is
 less. Cost includes appropriate share of related overheads and excise
 duty payable on such goods.
 
 (b) Stocks of raw- materials, stores, spare parts, material-in-transit
 etc., are valued at First-in- First out (FIFO) method. Cost includes
 expenses of procurement, excise and other duties net of Cenvat Credit.
 
 (vii) TURNOVER
 
 Turnover includes Sale of Goods, Conversion Charges, Excise duty and
 Value added tax net of Trade Discounts.
 
 (viii) INVESTMENTS
 
 Investments are long term and valued at cost. Permanent diminution in
 value will be recognised in the profit and loss account. Income from
 Investments is recognised in the year in which it accrues andatgross
 value.
 
 (ix) EXCISEDUTY
 
 Excise duty has been accounted on the basis of both payments made in
 respect of goods cleared as also provision made for goods lying as
 closing stock.
 
 (x) RETIREMENTBENEFITS
 
 Contribution to defined contribution schemes such as provident fund and
 family pension fund is charged to Profit & Loss Account as incurred. In
 respect of gratuity, no provision has been made in the accounts for the
 actuarially ascertained liability for future payment of gratuity.
 Gratuity payments are charged to profit and loss account in the year in
 which payments are made.
 
 (xi) FOREIGN CURRENCY TRANSACTIONS
 
 (a) Transactions denominated in foreign currencies are normally
 recorded at the exchange rate prevailing at the time of the
 transaction.
 
 (b) The monetary items denominated in foreign currencies at the year-end
 are translated at the year-end rates.
 
 (c) Any income or expense on account of exchange difference either on
 settlement or on translation is recognized in the Profit and
 Loss Account.
 
 (xii) TAXESONINCOME
 
 Income Tax is computed in accordance with Accounting Standard – 22
 (AS-22) issued by the Institute of Chartered Accountants of India. Tax
 expenses are accrued in the same period as the revenue and
 expenses to which they relate.
 
 a) Provision for current income tax is made on the tax liability
 payable on taxable income after considering tax allowances, deductions
 and exemptions determined in accordance with the prevailing tax laws.
 The difference between taxable income and the net profit or loss before
 tax for the year, as per the financial statements, are identified and
 the tax effect of the deferred tax asset or deferred tax liability is
 recorded for timing differences, i.e. differences that originate in one
 accounting period and reverse in another.
 
 (xiii) IMPAIRMENT OF ASSETS
 
 Impairment is as curtained at each balance sheet date in respect of the
 Company''s fixed assets.  An impairment loss is recognized whenever the
 carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the greater of the net selling price and value in
 use. In assessing the value in use, the estimated future cash flows are
 discounted to their present value based on an appropriate discount
 factor.
 
 (xiv) ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT
 ASSETS
 
 Provisions are recognized in terms of Accounting Standard
 29-''Provisions,Contingent Liabilities and Contingent assets''(AS-29),
 issued by the ICAI, when there is a present legal or statutory
 obligation as a result of past events.
 
 Contingent liabilities are recognized only when there is a possible
 obligation arising from past events due to occurrence or non-occurrence
 of one or more uncertain future events not wholly within the control of
 the Company or where any present obligation cannot be measured in terms
 of future outflow of resources or where a reliable estimate of the
 obligation cannot be made.  Obligations are assessed on a non going
 basis and only those having a largely probable outflow of resources are
 provided for.