a.  Basis of Accounting
 
 The financial statements are prepared under the historical cost
 convention, on accrual basis and in accordance with the generally
 accepted accounting principles in India (GAAP), the Accounting
 Standards (AS) issued by the Institute of Chartered Accountants of
 India and the applicable relevant provisions of the Companies Act,
 1956. The financial statements are presented in Indian Rupees rounded
 off to the nearest thousand.
 
 b.  Revenue Recognition
 
 Income from sale of goods is recognized upon transfer of significant
 risk and reward of ownership of the goods to the customer which
 generally coincides with delivery and acceptance of the goods sold.
 Interest income is recognized on accrual basis.
 
 c.  Fixed Assets
 
 All fixed assets are stated at cost of acquisition, less accumulated
 depreciation.  In the case of fixed assets acquired for new projects /
 expansion, interest cost on borrowings and other related expenses up to
 the date of commercial production incurred towards acquiring fixed
 assets are capitalized.
 
 d.  Depreciation
 
 Depreciation on fixed assets is provided as per the straight line
 method at the rates and in the manner specified in Schedule XIV of the
 Companies Act, 1956. Depreciation on additions / deletions of assets
 during the year is provided on a pro-rata basis.
 
 e.  Retirement Benefits
 
 Retirement benefit in the form of contribution to Provident Fund is
 charged to the Profit and Loss Account of the period when the
 contributions to the respective funds are due.
 
 The company has gratuity scheme with Life Insurance Corporation of
 India. The premium thereof is paid in terms of the policy and charged
 to Profit and Loss Account. Leave encashment and other benefit are
 provided on the basis of actuarial valuation at the year end.
 
 f.  Inventories
 
 Raw Materials, Stores, Spares, Consumables, Packing Material and
 Work-in-Progress are valued at cost. Cost is ascertained on weighted
 average basis. WIP is valued at direct cost plus allocated overheads at
 appropriate stages. Finished Goods are valued at lower of cost or net
 realizable value. In accordance with Accounting Standard 2 issued by
 the Institute of Chartered Accountants of India, provision is made for
 excise duty on closing stock of finished goods.
 
 g.  Impairment of Assets
 
 The Company evaluates all its assets for assessing any impairment and
 accordingly recognizes the impairment, wherever applicable, as provided
 in Accounting Standard 28, Impairment of Assets.
 
 h.  Taxes on Income
 
 Provision for current tax is made, at the current rate of tax, based on
 assessable income computed on the basis of relevant tax rates and tax
 laws. Deferred tax resulting from timing differences between the book
 Profits and the tax Profits is accounted to the extent that the
 timing differences are expected to crystallize. Deferred tax assets are
 not recognized unless there is sufficient assurance with respect to
 reversal of the same in the future.
 
 i.  Contingent Liabilities and Provisions
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outfl ow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 Notes. Contingent Assets are neither recognized nor disclosed in the fi
 nancial statements. Provisions, Contingent Liabilities and Contingent
 Assets are reviewed at each balance sheet date.
 
 j.  Foreign Currency Transactions
 
 Transactions denominated in foreign currencies are recorded at the
 exchange rate prevailing on the date of transaction. Monetary items
 denominated in foreign currencies, if any at year end are restated at
 the year end rate. Any gain or loss on account of exchange difference
 either on settlement or on translation is recognized in the Profit &
 loss account.