i.  Basis of Accounting
 
 The financial statements are prepared under the historical cost
 convention on accrual basis in accordance with the Companies
 (Accounting Standards) Rules, 2006 issued under sub section (3C) of
 section 211 of the Companies Act, 1956.
 
 ii.  Use of Estimates
 
 The preparation of financial statements requires the management of the
 Company to make estimates and assumptions that af ect the reported
 balance of assets and liabilities, revenue and expenses and disclosures
 relating to the contingent liabilities. The management believes that
 the estimates used in preparation of the financial statements are
 prudent and reasonable. Future results could differ from these
 estimates. Any revision of accounting estimates is recognised
 prospectively in the current and future periods.
 
 iii.  Fixed Assets
 
 Fixed Assets are stated at cost of acquisition (net of recoverable
 taxes & Government grants and other subsidies wherever availed) or
 construction or other amounts substituted for historical costs on
 revaluation less accumulated depreciation. Where several fixed assets
 are acquired for consolidated price, the consideration is apportioned
 to fixed assets on fair value basis.
 
 iv.  Borrowing Costs
 
 Borrowing costs attributable to acquisition and/or construction of
 qualifying assets are capitalised as a part of the cost of such assets,
 up to the date such assets are ready for their intended use.
 
 Other financing/ borrowing costs are charged to profit & Loss Account.
 
 v.  Depreciation
 
 Depreciation on fixed assets is provided on the Straight Line Method at
 the rates and in the manner prescribed under Schedule XIV to the
 Companies Act, 1956.
 
 All individual items of fixed assets, where the actual cost does not
 exceed Rs.5,000 each have been written of entirely in the year of
 acquisition.
 
 Cost of leasehold land including premium is amortised over the primary
 period of lease.
 
 vi.  Inventories
 
 Raw materials & Packing materials are valued at lower of cost and net
 realisable value after providing for obsolescence, if any. However,
 these items are considered to be realisable at cost if the finished
 products, in which they will be used, are expected to be sold at or
 above cost.
 
 Work-in-process and finished goods are valued at lower of cost and net
 realisable value. Finished goods and work-in-process include costs of
 raw material, labour, conversion costs and other costs incurred in
 bringing the inventories to their present location and condition.
 
 Cost of finished goods includes excise duty.
 
 Cost of inventories is computed on weighted average basis.
 
 vii. Foreign Exchange Transactions
 
 Transactions in foreign currencies are recorded at the exchange rates
 prevailing on the date of the transaction.
 
 Foreign currency monetary assets & liabilities and forward contracts
 are restated at year end exchange rates. Exchange differences arising
 on the settlement of foreign currency monetary items or on reporting
 Company''s foreign currency monetary items at rates different from those
 at which they were initially recorded during the year or reported in
 the previous financial statements, are recognised as income or expense
 in the year in which they arise.
 
 Non-monetary foreign currency items are carried at the rates prevailing
 on the date of the transaction.
 
 In respect of forward contracts, the premium or discount on these
 contracts is recognised as income or expenditure over the period of the
 contract. Any profit or loss arising on cancellation or renewal of such
 contracts is recognised as income or expense of the year.
 
 Foreign branches are identified as integral foreign operations. All
 transactions are transferred at rates prevailing on the date of
 transaction. Monetary assets and liabilities of the branch are restated
 at the year end rates.
 
 viii. Employee benefits
 
 Liability on account of short term employee benefits is recognised on
 an undiscounted and accrual basis during the period when the employee
 renders service/ vesting period of the benefit.
 
 Post retirement contribution plans such as Provident Fund are charged
 to profit and Loss Account of the year when the contributions to the
 respective funds accrue.
 
 Post retirement benefit plans such as gratuity and leave encashment are
 determined on actuarial valuation made by an independent actuary as at
 the Balance Sheet date. Actuarial gains and losses are recognised
 immediately in the profit and Loss Account.
 
 ix.  Research and Development
 
 Revenue expenditure on Research and Development is recognised as
 expense in the year in which it is incurred.
 
 Capital expenditure on Research and Development is shown as addition to
 Fixed Assets.
 
 x.  Expenditure on Regulatory Approvals
 
 Expenditure incurred for obtaining regulatory approvals and
 registration of products for overseas markets is charged to revenue.
 
 xi.  Investments
 
 Long term investments are stated at cost, less any provision for
 diminution (other than temporary) in value.  Current investments are
 stated at lower of cost and fair value.
 
 xii. Revenue Recognition
 
 Revenue is recognised to the extent that is probable that the economic
 benefits will flow to the Company and the revenue can be reliably
 measured.
 
 Revenue from sale of goods is recognised when significant risks and
 rewards of ownership of the goods have been passed to the buyer, which
 ordinarily coincides with despatch of goods to customers. Revenues are
 recorded at invoice value, net of sales tax, returns and trade
 discounts.
 
 Revenue from rendering of services are recognised on completion of
 services.
 
 benefits on account of entitlement of export incentives is recognised
 as and when the right to receive is established.
 
 Technical Know-how/fees are recognised as and when the right to receive
 such income is established as per terms and conditions of relevant
 agreement.
 
 Interest income is recognised on time proportion basis.
 
 Dividend income is recognised when the right to receive is established.
 
 xiii. Income Tax
 
 Current income tax is measured at the amount expected to be paid to the
 tax authorities in accordance with the provisions of local Income Tax
 Laws as applicable to the financial year.
 
 Deferred income taxes reffect the impact of current year timing diff
 erences between taxable income and accounting income of 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.
 
 The Company of sets, on a year-on-year basis, the current tax assets
 and liabilities, where it has a legally enforceable right and where it
 intends to settle such assets and liabilities on a net basis.
 
 xiv. Impairment of Assets
 
 At each Balance Sheet date, the Company assesses whether there is any
 indication that any asset may be impaired. If any such indication
 exists, the carrying value of such assets is reduced to its estimated
 recoverable amount and the amount of such impairment loss is charged to
 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 subject to a maximum of depreciated historical cost.
 
 xv.  Government Grants
 
 Capital subsidy/Government grants are accounted for where it is
 reasonably certain that the ultimate collection will be made.
 
 Capital subsidy/Government grants related to specific depreciable
 assets are shown as deduction from the gross value of the asset
 concerned in arriving at its book value. The grant/subsidy is thus
 recognised in the profit and Loss Statement over the useful life of
 such depreciable assets by way of a reduced depreciation charge.
 
 xvi. Provisions and Contingent Liabilities
 
 A provision is recognised when the Company has a present obligation as
 a result of a 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.
 
 A disclosure for a contingent liability is made when there is a
 possible obligation or a present obligation that may, but probably will
 not, require an outflow of resources. Where there is a possible
 obligation or a present obligation in respect of which the likelihood
 of outflow of resources is remote, no provision or disclosure is made.
 
 xvii. Earning Per Share
 
 Basic earning per share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.  For the
 purpose of calculating diluted earnings per share, the net profit
 attributable to equity shareholders and the weighted average number of
 shares outstanding are adjusted for the effect of all dilutive
 potential equity shares from the exercise of options on unissued share
 capital. The number of equity shares is the aggregate of the weighted
 average number of equity shares and the weighted average number of
 equity shares which would be issued on the conversion of all the
 dilutive potential equity shares into equity shares.