1) Basis of Accounting
 
 i) The financial statements have been prepared under the historical
 cost convention (except for certain fixed assets, which have been
 revalued) in accordance with the generally accepted accounting
 principles to comply with the applicable Accounting Standards as
 prescribed under the Companies (Accounting Standards) Rules, 2006 and
 the relevant provisions of the Companies Act, 1956.
 
 ii) The Company generally follows the mercantile system of accounting
 and recognizes significant items of income and expenditure on accrual
 basis.
 
 iii) Use of estimates: The preparation of financial statements in
 conformity with generally accepted accounting principles in India
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities and disclosure of contingent
 liabilities at the date of the financial statements.
 
 2) Fixed Assets and Depreciation
 
 i) Fixed Assets are stated at cost (net of cenvat/service tax credit
 wherever claimed) less accumulated depreciation and impairment, if any,
 other than land and building at Bhaili division which are shown at
 revalued cost. The cost of assets comprises of purchase price and
 directly attributable cost of bringing the assets to its working
 condition for its intended use including borrowing cost and incidental
 expenditure incurred up to the date the assets are ready for its
 intended use.
 
 ii) Depreciation on plant-,& machinery except electrical installations,
 computers, laboratory equipments, machine tools and effluent treatment
 plant purchased on or after 1st October, 1982 has been provided on
 straight line basis and on other assets on written down value basis at
 the rates specified in schedule XIV of the Companies Act, 1956.
 Individual items of fixed assets costing upto Rs. 5,000 are fully
 depreciated in the year of purchase.
 
 iii) Technical know-how recognized as intangible asset is stated at the
 consideration paid for acquisition and amortised on straight-line basis
 at plant & machinery rates.
 
 3) Impairment of Assets
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal or external
 factors. An asset is treated as impaired when the carrying cost of
 assets exceeds its recoverable value. An impairment loss is charged to
 the profit & loss account in the year in which an asset is identified
 as impaired. The impairment loss, if any, recognized in prior
 accounting period is reversed if there has been a change in the
 estimate of recoverable amount.
 
 4) Foreign Currency Transactions
 
 Foreign currency transactions are recorded at the exchange rate
 prevailing on the date of transaction.  Monetary items denominated in
 foreign currencies at the year-end are translated at the year-end
 rates. Any exchange differences arising on settlement/transaction are
 dealt with in the profit and loss account except those relating to
 acquisition of fixed assets, which are adjusted to the cost of the
 asset.
 
 5) Investments
 
 Investments are stated at cost. No provision for diminution in value,
 if any, has been made as these are long-term investments and in the
 opinion of the management any decline is temporary.
 
 6) Inventories
 
 i) Raw materials, stores & spares, packing materials, work-in-process
 and finished goods are valued at lower of cost and net realizable
 value. Damaged, unserviceable and inert stocks are suitably
 depreciated.
 
 ii) In determining cost of raw materials, stores & spares and packing
 materials weighted average cost method is used. Cost of inventory
 comprises all costs of purchase, duties and taxes other than those
 subsequently recoverable from tax authorities.
 
 iii) Cost of finished products and work-in-process include the cost of
 raw materials, packing materials, an appropriate share of fixed and
 variable production overheads and excise duty as applicable on the
 finished goods.
 
 7) Retirement Benefits
 
 The Company has defined contribution plan for its employees'' retirement
 benefits comprising of provident fund. The Company contributes to
 provident fund for its employees. The Company has defined benefit plan
 comprising of gratuity fund and leave encashment entitlement. The
 liability for the gratuity fund and leave encashment has been
 determined on the basis of an independent actuarial valuation done at
 the year-end. Actuarial gains and losses comprise adjustments and the
 effect of changes in the actuarial assumptions and are recognised in
 the profit and loss account as income or expense. Contribution in
 respect of gratuity is paid to the Life Insurance Corporation of India
 (LIC).
 
 8) Research and Development
 
 i) Capital expenditure is shown separately under the respective head of
 fixed assets.  ii) Revenue expenses including depreciation are charged
 to profit & loss account.
 
 9) Sales
 
 Revenue from sale of goods is recognised only when it can be reliably
 measured and it is reasonable to expect ultimate collection. Sales are
 net of returns and discounts and exclude sales tax, excise duty and
 other charges.
 
 10) Provision for Current and Deferred Tax
 
 i) Provision for current tax is made after taking into consideration
 the deduction allowable under the provisions of the Income-tax Act,
 1961.
 
 ii) Deferred tax resulting from ''timing difference'' between book and
 taxable profit is accounted by using the tax rate that have been
 enacted or substantively enacted as on the balance sheet date. The
 deferred tax liability is provided in the profit and loss account.
 Deferred tax assets are recognised only if there is reasonable
 certainty that the assets can be realized in future.
 
 11) Borrowing Costs
 
 Borrowing costs attributable to the acquisition or construction of a
 qualifying asset is capitalized as part of the cost of the asset. Other
 borrowing cost is recognized as an expense in the period in which they
 are incurred.
 
 12) Dividend
 
 Dividend income is considered on receipt basis
 
 13) Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 event and it is probable that there will be an outflow of resources.
 Contingent Liabilities which are not recognised are disclosed by way of
 notes. Contingent assets are neither recognised nor disclosed in the
 financial statements.
 
 14) Sundry Debtors
 
 Sundry debtors are stated after writing off debts considered as bad.
 Provision is made for debts considered as doubtful, if any. Discounts
 due yet to be quantified at the customer level are included under the
 head Current Liabilities and provisions''.
 
 15) Earning Per Share
 
 The basic and diluted earning 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.
 
 16) Proposed Dividend
 
 Dividend recommended by The Board of Directors is provided for in the
 accounts, pending approval at annual general meeting.