1.  Method of Accounting:
 
 a) The financial statements are prepared under the historical cost
 convention as a going concern and on accrual basis in accordance with
 Generally Accepted Accounting Principles in India, the Accounting
 Standards notified under the Companies Act, 1956 and the relevant
 provisions of the said Act.
 
 b) All assets & liabilities have been classified as current &
 non-current as per the Company''s normal operating cycle and other
 criteria set out in the Schedule VI of the Companies Act, 1956. Based
 on the nature of activities undertaken by the Company and their
 realization in cash and cash equivalents, the company has ascertained
 its operating cycle as 12 months for the purpose of current -
 non-current classification of assets& liabilities.
 
 2.  FIXED ASSETS: -
 
 a) All Fixed assets are carried at cost less depreciation.  The cost
 comprises of acquisition cost and any attributable cost of bringing the
 asset to the condition for its intended use.
 
 b) Depreciation on the assets is calculated on straight- line method at
 the rates and in the manner prescribed in schedule XIV to the Companies
 Act, 1956.
 
 c) Individual assets acquired for less than Rs.5,000 are entirely
 depreciated in the year of acquisition.  Depreciation is charged on
 pro-rata basis for the assets purchased during the year
 
 d) Carrying amount of cash generating units/assets are reviewed at
 balance sheet date to determine whether there is any impairment. If any
 such indication exists the recoverable amount is estimated as the
 higher of net realisable price and value in use. Impairment loss, if
 any, is recognised whenever carrying amount exceeds the recoverable
 amount
 
 3.  INTANGIBLE ASSETS: -
 
 All Intangible Assets are measured at cost and amortized so as to
 reflect the pattern in which the assets economic benefits are consumed.
 Brands are amortized over the estimated period of benefit, not
 exceeding five years. Software capitalised is amortised over useful
 life of three to five years equally commencing from the year in which,
 the software is installed.
 
 4.  INVESTMENTS:-
 
 Long term investments are stated at cost. Provision, if any, is made
 for permanent diminution in the value of investments. Current
 investments are stated at cost or fair value whichever is lower.
 
 5.  INVENTORIES:-
 
 Raw materials, stores and spares are valued at cost (net of CENVAT and
 VAT set-off), determined on FIFO basis.
 
 Work in process and finished goods are valued at lower of cost and net
 realisable value. Cost is determined on the basis of direct cost
 comprising raw material, direct labour and an appropriate portion of
 direct production overheads.
 
 6.  FOREIGN CURRENCYTRANSACTION: -
 
 a) Transactions in foreign currencies are recorded at the exchange
 rates prevailing on the date of transaction. Foreign currency monetary
 assets and liabilities are translated at year-end exchange rates.
 Exchange difference arising on settlement of transactions and
 translation of monetary items are recognised as income or expense in
 the year in which they arise.
 
 b) In respect of forward exchange contracts the difference between the
 forward rate and the exchange rate at the inception of the contract is
 recognised as income or expense over the period of the contract.
 
 c) Gains or losses on cancellation / settlement of forward exchange
 contracts are recognised as income or expense.
 
 7.  REVENUE RECOGNITION: -
 
 a) Sale of products and services are recognized when the products are
 shipped or services rendered.  Income from job work is recognised on
 completion and is included in sales.
 
 b) Income in respect of overdue interest, insurance claims, export
 benefits etc is recognised to the extent the company is reasonably
 certain of its ultimate realisation.
 
 8.  LEASES
 
 a) Lease income on an operating lease is recognized in the statement of
 profit and loss on a straight-line basis over the lease period.
 
 9.  EMPLOYEE BENEFITS: -
 
 a) Short Term Employee benefits:
 
 All short term employee benefit plans such as salaries, wages, bonus,
 special awards and medical benefits which fall due within 12 months of
 the period in which the employee renders the related services which
 entitles him to avail such benefits are recognised on an undiscounted
 basis and charged to the profit & loss account.
 
 b) Defined contribution Plan:
 
 The Company has a statutory scheme of Provident Fund with the Regional
 Provident Fund Commissioner and contributions of the company are
 charged to the profit & loss account on accrual basis.
 
 c) Defined benefit Plan:
 
 The Company''s liability towards gratuity to its employees is covered by
 a group gratuity policy with an insurance company. The contribution
 paid /payable to insurance company is debited to Profit & Loss Account
 on accrual basis. Liability towards gratuity is provided on the basis
 of an actuarial valuation using the Projected Unit Credit method and
 debited to Profit & Loss Account on accrual basis. Charge to the Profit
 and Loss Account includes premium paid, current service cost, interest
 cost, expected return on plan assets and gain/loss in actuarial
 valuation during the year net of fund value of plan asset as on the
 balance sheet date.
 
 10.  BORROWING COSTS :-
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of a qualifying asset are capitalised as part of cost of
 such asset till such time as the asset is ready for its intended use. A
 qualifying asset is an asset that necessarily requires a substantial
 period of time to get ready for its intended use. All other borrowing
 costs are recognised as an expense in the period in which they are
 incurred.
 
 11.  TAXES ON INCOME:-
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the year. Deferred tax is recognised, subject to
 consideration of prudence, on timing difference, being the difference
 between taxable incomes and accounting income that originate in one
 period and are capable of reversal in one or more year. Deferred tax
 assets arising on account of unabsorbed depreciation or carry forward
 of tax losses are recognized only to the extent that there is virtual
 certainty supported by convincing evidence that sufficient future tax
 income will be available against which such deferred tax assets can be
 realised.
 
 12.  CONTINGENT LIABILITIES:-
 
 Contingent liabilities with possible present obligation are disclosed
 under Notes to Accounts. Contingent liabilities with probable present
 obligation are provided based on the current estimates.