(a) Basis of Accounting
 
 These financial statements have been prepared under historical cost
 convention from the books of accounts maintained on an accrual basis in
 conformity with accounting principles generally accepted in India and
 comply with the accounting standards notified under Section 211 (3C) of
 the Companies Act, 1956 (the Act) and the relevant provisions of the
 Act.
 
 (b) Fixed Assets and Depreciation/ Amortisation
 
 Fixed Assets are stated at cost of acquisition less depreciation. Cost
 comprises of cost of acquisition, cost of improvements and any
 attributable cost of bringing the asset to its working condition for
 intended use.
 
 Leasehold Land and Leasehold Improvement are amortised over the period
 of lease. Depreciation on assets costing Rs. 5,000 or less is provided at
 the rate of 100% in the year of acquisition of the assets.
 
 Goodwill, Technical Knowhow and Software are amortised over a period of
 three to five years.
 
 (c) Investments
 
 Long term investments are stated at cost and provision is made for
 diminution, other than temporary, in value of investments.  Current
 investments are valued at lower of cost and market value/ net asset
 value.
 
 (d) Inventories
 
 Inventories are stated at cost or net realisable value, whichever is
 lower.
 
 Cost of raw materials, packing materials and traded goods are
 determined on Weighted Average method.
 
 Cost of finished goods and semi-finished goods include cost of raw
 materials and packing materials, cost of conversion and other costs
 incurred in bringing the inventories to the present location and
 condition.
 
 (e) Revenue Recognition
 
 Sales are accounted for inclusive of excise duty but excluding sales
 tax, rebates and trade discounts.
 
 Revenue is recognised when the property and all significant risks and
 rewards of ownership are transferred to the buyer and no significant
 uncertainty exists regarding the amount of consideration that is
 derived from the sale of goods.
 
 Interest Income is accounted on accrual basis and dividend income is
 accounted when right to receive payment is established.
 
 Recoveries from group companies and third parties include recoveries
 towards common facilities/ resources, Information Technology and other
 support provided to such parties which is recognised as per terms of
 agreement.
 
 (f) Foreign Currency Transactions
 
 Transactions denominated in foreign currency are recorded at the
 exchange rate prevailing on the date of the transactions.  Exchange
 differences arising on foreign exchange transactions settled during the
 year are recognised in the Profit and Loss Account.
 
 Monetary assets and liabilities in foreign currency are translated at
 the year-end at the closing exchange rate and the resultant exchange
 differences are recognised in the Profit and Loss Account. Non-monetary
 foreign currency items are carried at cost.
 
 The premium or discount on forward exchange contracts is amortised as
 expense or income over the life of the contract.
 
 (g) Employee Benefits
 
 a.  Defined Contribution Plans:
 
 The Company has Defined Contribution plans for post employment benefits
 namely Provident Fund and Superannuation Fund which are administered
 through appropriate authorities/ trustees.
 
 The Company contributes to a Government administered Provident Fund,
 Employees'' Deposit Linked Insurance Scheme and Family Pension Fund on
 behalf of its employees and has no further obligation beyond making its
 contribution.
 
 The Superannuation Fund applicable to certain employees is a defined
 contribution plan as the Company makes contributions to Managerial
 employees'' Superannuation Scheme which is administered by Life
 Insurance Corporation of India (''LIC'') and has no further obligation
 beyond making the payment to the insurance company.
 
 The Company makes contributions to State plans namely Employees'' State
 Insurance Fund and has no further obligation beyond making the payment
 to them.
 
 The Company''s contributions to the above funds are charged to revenue
 every year.
 
 b.  Defined Benefit Plans:
 
 The Company has a Defined Benefit plan namely Gratuity covering its
 employees and Pension for certain employees.  The gratuity scheme is
 funded through Group Gratuity-cum-Life Assurance Scheme which is
 administered by Life Insurance Corporation of India (''LIC) and Pension
 plan is an unfunded scheme.
 
 The liability for the Defined Benefit plan of Gratuity and Pension is
 provided based on an actuarial valuation at the year-end using
 Projected Unit Credit Method.
 
 c.  Termination benefits are recognised as an expense as and when
 incurred.
 
 d.  Actuarial gains and losses comprise experience adjustments and the
 effects of changes in actuarial assumptions and are recognised
 immediately in the Profit and Loss Account as income or expense.
 
 e.  Other Employee Benefits:
 
 The employees of the Company are entitled to leave encashment and long
 service awards as per the policy of the Company. The liability in
 respect of the same is provided, based on an actuarial valuation
 carried out by an independent actuary as at the year-end using
 Projected Unit Credit Method. Short term compensated absences, if any
 are provided on cost to Company basis.
 
 (h) Taxation
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the year. Deferred Tax is recognised, subject to the
 consideration of prudence, on timing differences being the difference
 between taxable income and accounting income that originate in one
 period and are capable of reversal in one or more subsequent periods.
 Deferred Tax Asset is not recognised unless there are timing
 differences, the reversal of which will result in sufficient income or
 there is virtual certainty that sufficient future taxable income will
 be available against which such deferred tax asset can be realised.
 
 (i) Borrowing Costs
 
 Borrowing cost directly related to the acquisition or construction of a
 qualifying asset is capitalised as part of the cost of that asset.
 Other borrowing costs are charged to the Profit and Loss Account.
 
 (j) Operating Lease
 
 Operating lease payments are recognised as an expense in the Profit and
 Loss Account on a straight-line basis over the lease term. Initial
 direct costs are charged to Profit and Loss Account as and when
 incurred.
 
 (k) Provision, Contingent Liabilities and Contingent Assets
 
 The Company recognises a provision when there is 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 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 that the likelihood of outflow of resources is
 remote, no provision or disclosure as specified in Accounting Standard
 29 - Provisions, Contingent Liabilities and Contingent Assets is
 made.
 
 Contingent Assets are not recognised in the financial statements.
 
 (l) Impairment of Assets
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or recoverable amount of the cash
 generating unit to which the asset belongs is less than its carrying
 amount, the carrying amount is reduced to its recoverable amount. The
 reduction is treated as an impairment loss and is recognised in the
 Profit and Loss Account. If at the Balance Sheet date there is an
 indication that a previously assessed impairment loss no longer exists,
 the recoverable amount is reassessed and the asset is reflected at the
 recoverable amount.