1.1 Basis of Preparation of Financial Statements
 
 The financial statements have been prepared to comply in all material
 respects with the Accounting Standards notified by Companies
 (Accounting Standards) Rules, 2006, (as amended) and the relevant
 provisions of the Companies Act, 1956.  The financial statements have
 been prepared under the historical cost convention on an accrual basis
 except in case of assets for which provision for impairment is made and
 revaluation is carried out. The accounting policies have been
 consistently applied by the Company and except for the changes in
 accounting policy discussed more fully below, are consistent with those
 used in the previous year.
 
 1.2 Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles 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 and the results of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 1.3 Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Sale of Goods
 
 Revenue is recognised when the significant risks and rewards of
 ownership of the goods have passed to the buyer. Excise Duty, Sales Tax
 and VAT are deducted from turnover (gross).
 
 Interest
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.  Dividends
 
 Revenue is recognised when the shareholders'' right to receive payment
 is established by the balance sheet date. Dividend from subsidiaries is
 recognised even if same are declared after the balance sheet date but
 pertains to period on or before the date of balance sheet.
 
 1.4 Accounting for Export Incentive:
 
 Export incentive are recognised on exports on accrual basis, and based
 on the estimated realizable value of such entitlements.
 
 1.5 Fixed Assets
 
 Fixed assets are stated at cost (or revalued amounts, as the case may
 be), less accumulated depreciation and impairment losses if any. Cost
 comprises the purchase price and any attributable cost of bringing the
 asset to its working condition for its intended use. Borrowing costs
 relating to acquisition of fixed assets which takes substantial period
 of time to get ready for its intended use are also included to the
 extent they relate to the period till such assets are ready to be put
 to use.
 
 1.6 Depreciation and Amortisation
 
 Depreciation is provided using the Straight Line Method as per the
 useful lives of the assets estimated by the management, or at the rates
 prescribed under schedule XIV of the Companies Act, 1956 whichever is
 higher. The Company provides pro- rata depreciation for additions /
 deletions made during the reporting period, except for the asset each
 costing Rs. 5000 or less, for which depreciation is provided at hundred
 percent.
 
 1.7 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/external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the asset''s net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value at the weighted average cost of capital. After
 impairment, depreciation is provided on the revised carrying amount of
 the asset over its remaining useful life. Previously recognised
 impairment loss is increased or reversed depending on changes in
 circumstances. However the carrying value after reversal is not
 increased beyond the carrying value that would have prevailed by
 charging usual depreciation if there was no impairment.
 
 1.8 Leased Assets
 
 Finance leases, which effectively transfer to the Company, all the
 risks and benefits incidental to ownership of the leased item, are
 capitalized at the lower of the fair value and present value of the
 minimum lease payments at the inception of the lease term and disclosed
 as leased assets. Lease payments are apportioned between the finance
 charges and reduction of the lease liability based on the implicit rate
 of return. Finance charges are charged directly against income. Lease
 management fees, legal charges and other initial direct costs are
 capitalised. If there is no reasonable certainty that the Company will
 obtain the ownership by the end of the lease term, capitalized leased
 assets are depreciated over the shorter of the estimated useful life of
 the asset or the lease term.
 
 Lease hold land is amortised over the Lease period.
 
 1.9 Foreign Currency Transactions
 
 (i) Initial Recognition:
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 (ii) Conversion:
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 (iii) Exchange Differences:
 
 Exchange differences arising on a monetary item that, in substance,
 form part of the company''s net investment in a non- integral foreign
 operation is accumulated in a foreign currency translation reserve in
 the financial statements until the disposal of the net investment, at
 which time they are recognised as income or as expenses.
 
 Exchange differences arising on the settlement of monetary items not
 covered above, or on reporting such monetary items of company at rates
 different from those at which they were initially recorded during the
 year, or reported in previous financial statements, are recognized as
 income or as expenses in the year in which they arise.
 
 (iv) Forward Exchange Contracts not intended for trading or speculation
 purposes:
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortised as expense or income over the life of the
 contract. Exchange differences on such contracts are recognised in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contracts is recognised as income or as expense for
 the year. None of the forward exchange contracts are taken for trading
 or speculation purpose.
 
 1.10 Investment
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments.  All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost. However, provision for diminution in value is made to recognise a
 decline other than temporary in the value of the Investment.
 
 1.11 Inventories Inventories are valued as follows:
 
 Raw materials, packing material, Work in progress, components, stores
 and spares:
 
 Lower of cost and net realizable value. However, materials and other
 items held for use in the production of inventories are not written
 down below cost if the finished products in which they will be
 incorporated are expected to be sold at or above cost.  Cost is
 determined on First in First out basis (FIFO).
 
 Finished goods:
 
 Lower of cost and net realizable value. Cost includes direct materials
 and labour and a proportion of manufacturing overheads based on normal
 operating capacity. Cost of finished goods includes excise duty.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and estimated
 costs necessary to make the product saleable.
 
 1.12 Taxes on Income
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Income-tax Act, 1961 enacted in India. Deferred
 income tax reflects the impact of current year timing differences
 between taxable income and accounting income for the year and reversal
 of timing differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date.  Deferred
 tax assets and deferred tax liabilities are offset, if a legally
 enforceable right exists to set off current tax assets against current
 tax liabilities and the deferred tax assets and deferred tax
 liabilities relate to the taxes on income levied by same governing
 taxation laws. Deferred tax assets are recognised only to the extent
 that there is reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realised. In situations where the company has unabsorbed depreciation
 or carry forward tax losses, all deferred tax assets are recognised
 only if there is virtual certainty supported by convincing evidence
 that they can be realised against future taxable profits.
 
 At each balance sheet date the Company re-assesses unrecognised
 deferred tax assets. It recognises unrecognised deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be that sufficient future taxable income will be
 available against which such deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available
 
 MAT credit is recognised as an asset only when and to the extent there
 is convincing evidence that the company will pay normal income tax
 during the specified period. In the year in which the Minimum
 Alternative tax (MAT) credit becomes eligible to be recognized as an
 asset in accordance with the recommendations contained in guidance Note
 issued by the Institute of Chartered Accountants of India, the said
 asset is created by way of a credit to the profit and loss account and
 shown as MAT Credit Entitlement. The Company reviews the same at each
 balance sheet date and writes down the carrying amount of MAT Credit
 Entitlement to the extent there is no longer convincing evidence to the
 effect that Company will pay normal Income Tax during the specified
 period.
 
 1.13 Employee Benefits
 
 Retirement benefits in the form of Provident Fund and Government
 administered Employees Insurance and Pension Plans are defined
 contribution schemes and the contributions are charged to the Profit
 and Loss Account of the year when the contributions to the respective
 funds are due. There are no other obligations other than the
 contribution payable to the respective funds.
 
 Gratuity liability is a defined benefit obligations and are provided
 for on the basis of an actuarial valuation. The Company makes annual
 contributions to the Employee''s Group Gratuity-cum-Life Assurance
 Scheme of the Life Insurance Corporation of India, a funded defined
 benefit plan for qualifying employees. The Scheme provides for lump-sum
 payment to vested employees at retirement, death while in employment or
 on termination of employment of an amount equivalent to 15 days salary
 payable for each completed year of service or part thereof in excess of
 six months. Vesting occurs upon completion of five years of service.
 
 The Company has a scheme for compensated absences for employees, the
 liability of which is recognized on actual basis instead of accrual
 basis and charged to Profit and Loss Account in the year of payment.
 
 Expenditure on Voluntary Retirement Scheme are amortised over the
 period of two years.
 
 1.14 Borrowing Cost
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalized as
 part of the cost of the respective asset.  All other borrowing costs
 are expensed in the period they occur.
 
 1.15 Earnings Per Share
 
 Basic earnings per shares is computed and disclosed using the weighted
 average number of common shares outstanding during the year. Diluted
 earnings per share is computed and disclosed using the weighted average
 number of common and dilutive common equivalent shares outstanding
 during the year, except when the results would be anti-dilutive
 
 1.16 Provision
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event; it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on best estimate required to
 settle the obligation at the balance sheet date. These are reviewed at
 each balance sheet date and adjusted to reflect the current best
 estimates.
 
 1.17 Cash and Cash equivalents:
 
 Cash and cash equivalents for the purposes of cash flow statement
 comprise cash at bank and in hand and short-term investments with an
 original maturity of three months or less.