(a) Basis of preparation
 
 The financial statements of the Company are prepared under the
 historical cost convention on accrual basis of accounting in all
 material respects in accordance with the notified accounting standards
 by Companies (Accounting Standards) Rules, 2006 (as amended) and the
 relevant provisions of the Companies Act, 1956.  The accounting
 policies have been consistently applied by the Company during the year.
 
 (b) Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principals 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
 financial statements and the results of operations during the reporting
 period end. Although these estimates are based upon managements best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 (c) Change in Accounting Policies
 
 The company has changed the method of providing depreciation on fixed
 assets from written down value (WDV) method to straight line method
 (SLM) with effect from April 1, 2008. Accordingly, depreciation has
 been recalculated in accordance with SLM from the date the assets were
 put to use and a surplus of Rs. 72,569 (net of tax) in respect of
 earlier years has been disclosed as exceptional item. Consequent to
 such change in the method, the impact on the depreciation charge as per
 the previous method for the year ended on the profit is not
 ascertainable.
 
 (e) Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 for any indication of impairment based on internal/external factors.
 Where the carrying value exceeds the estimated recoverable amount,
 provision for impairment is made to adjust the carrying value to the
 recoverable amount. The recoverable amount is the greater of the assets
 estimated net realizable value and value in use. In assessing value in
 use, the estimated future cash flows are discounted to their present
 value using an appropriate discounting rate.
 
 (f) Investments
 
 Investments that are readily realizable 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. Long-term
 investments are stated at cost. Provision, where necessary, is made to
 recognize a diminution, other than temporary, in the value of the
 investments. Current investments are stated at cost or fair value
 whichever is lower.
 
 (g) Inventories
 
 Inventories are valued at the lower of cost, computed on weighted
 average basis and estimated net realizable value. Cost of
 work-in-process and finished goods includes manufacturing overheads.
 The Company accrues for excise duty liability in respect of
 manufactured finished goods inventories lying in the factory and
 customs duty liability in respect of inventories in bond.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated cost of completion and estimated
 cost necessary to make the sale.
 
 (h) Foreign currency transactions
 
 Foreign currency transactions during the year are recorded at the rates
 of exchange prevailing on the date of the transaction. Foreign currency
 monetary assets and liabilities are translated into rupees at the rates
 of exchange prevailing on the date of the Balance Sheet. All exchange
 differences are dealt with in the statement of Profit and Loss account.
 Foreign currency monetary items are reported using the closing rate.
 
 Where the Company has entered into forward exchange contracts which are
 not for trading or speculation purpose, the difference between the
 forward rate and the spot rate at the date of the contract is
 recognized in the statement of Profit and Loss over the life of the
 contract and difference between the spot rate at the date of contract
 and the exchange rate prevailing on the Balance Sheet date is also
 recognized in profit and loss account. Any Profit or Loss arising on
 cancellation or renewal of forward exchange contract is recognized as
 income or expenses for the year.
 
 (i) Revenue Recognition
 
 Sale of goods
 
 Revenue from sale of goods is recongnized when the significant risks
 and rewards of ownership of the goods have passed to the customer,
 which coincides with despatch of goods to customers. Sales include
 amounts invoiced for goods sold and exclude excise duty and sales tax,
 and are net of sales returns, trade discounts and rebates.
 
 Income from Services
 
 Revenue from toll manufacturing and sourcing services are recongnized
 as and when services are rendered.
 
 Interest
 
 Interest on investments is booked on a time proportion basis taking in
 to account the amount invested and the rate of interest.
 
 Dividend
 
 Dividend is recognized when the companys right to receive the payment
 is established. Dividend from subsidiaries is recognized even if same
 are declared after the Balance Sheet date but pertain to period on or
 before the date of Balance Sheet as per the requirement of schedule VI
 of the Companies Act 1956.
 
 Other Income
 
 Other income is accounted for on accrual basis except where the receipt
 of income is uncertain in which case it is accounted for on receipt
 basis.
 
 (j) Retirement and other employee benefits
 
 Retirement and other employee benefits to employees comprise payments
 to gratuity, superannuation and provident fund under the schemes of the
 Company and leave encashment benefit to employees.
 
 (i) Annual contributions to the gratuity fund, a defined benefit scheme
 are determined based on actuarial valuation on projected unit credit
 method made at the end of each financial year.
 
 (ii) Liability for long term leave encashment benefits, in accordance
 with the rules of the Company, is provided for based on actuarial
 valuation by an independent actuary as at year-end. Long term
 compensated absences are provided for based on actuarial valuation. The
 actuarial valuation is done as per projected unit credit method. Short
 term compensated absences are provided for on estimated basis.
 
 (iii) Retirement benefits in the form of provident fund and
 superannuation is a defined contribution scheme and charged to the
 Profit and Loss account of the year when the contributions to the
 respective fund is due. There are no other obligations other than the
 contribution payable to respective funds.
 
 (iv) Actuarial gain/losses are immediately taken to profit and loss
 account and are not deferred.
 
 (k) Taxation
 
 Tax expense comprises of current taxes, deferred taxes and fringe
 benefit tax. Provision for current income tax is made on the taxable
 income at the tax rate applicable to the relevant assessment year.
 Fringe benefit tax is measured at the amount expected to be paid to the
 tax authorities in accordance with the Indian Income Tax Act. Deferred
 income taxes are recognized for the future tax consequences
 attributable to timing differences between the financial statement
 determination of income and their recognition for tax purposes. The
 effect on deferred tax assets and liabilities of a change in tax rates
 is recognized in Profit and Loss account using the tax rates and tax
 laws that have been enacted or substantively enacted by the Balance
 Sheet date.
 
 At each balance sheet date the company reassess unrecognized deferred
 tax assets. Deferred tax assets are recognized and carried forward only
 to the extent that there is a reasonable certainty that sufficient
 future taxable income will be available against which such deferred tax
 assets can be realized.
 
 In a situation where the company has unabsorbed depreciation or carry
 forward tax losses, all deferred tax assets are recognized only if
 there is virtual certainty supported by convincing evidence that they
 can be realized against future taxable profits.
 
 (I) Segment Reporting Policies
 
 Primary Segments:
 
 Segments have been identified taking into account the nature of the
 products, the differing risks and returns, the organizational structure
 and the internal reporting system.
 
 Geographical segments:
 
 The geographical segments have been disclosed based on revenues within
 India (sales to customers in India) and revenues outside India (sales
 to customer located outside India).
 
 Allocation of Common cost:
 
 Common allocable costs are allocated to each segment according to the
 relative contribution of each segment to the total costs.
 
 Unallocated items:
 
 The corporate and other segment includes general corporate income and
 expense items which are not allocated to any business segment.
 
 (m) Cash and Cash equivalents
 
 Cash and Cash equivalents in the balance sheet comprise cash at bank
 and in hand.
 
 (n) Operating leases
 
 Lease payments for operating leases are recognized as expense on a
 straight-line basis over the lease term.
 
 (o) Contingencies/Provisions
 
 A provision is recognized when the Company has a present obligation as
 a result of past events and 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 management estimates required
 to settle the obligation at the balance sheet date. Contingent
 liability is disclosed unless the possibility of an outflow of
 resources embodying the economic benefit is remote. These are reviewed
 at each balance sheet date and adjusted to reflect the current
 management estimates.