1.1 Basis of preparation of financial statements
 
 These financial statements have been prepared on the accrual basis of
 accounting, under the historical cost convention, in accordance with
 the Companies Act, 1956, the applicable accounting standards notified
 by The Companies Accounting Standard Rules, 2006 and the Guidance note
 issued by the Institute of Chartered Accountants of India.
 
 1.2 Use of estimates
 
 The presentation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reported period. Differences
 between the actual result and estimates are recognised in the period in
 which the results are known/ determined.
 
 1.3 Fixed Assets
 
 Fixed Assets are stated at their original cost including incidental
 expenses related to acquisition and installation, less accumulated
 depreciation. Cost comprises of the purchase price and any other
 attributable cost of bringing the assets to its working condition for
 its intended use.
 
 At the balance sheet date, an assessment is done to determine whether
 there is any indication of impairment in the carrying amount of
 Company''s fixed assets. If any such indication exists, the asset''s
 recoverable amount is estimated.  An impairment loss is recognised
 whenever the carrying amount of an asset exceeds its recoverable
 amount.
 
 After recognition of impairment loss, the depreciation charge for the
 assets is adjusted in future periods to allocate the asset''s revised
 carrying amount, less its residual value (if any), on straight line
 basis over its remaining useful life.
 
 1.4 Borrowing Costs
 
 Borrowing Costs that are directly attributable to acquisition of
 qualifying assets are capitalized for the period until the asset is
 ready for intended use. A qualifying asset is an asset that necessarily
 takes substantial period of time to get ready for its intended use,
 
 Other borrowing costs are recognised as an expense in the period in
 which they are incurred.
 
 1.5 Depreciation
 
 (i) Depreciation on Fixed Assets is provided on Straight Line Method at
 rates and in the manner specified in Schedule XIV of the Companies Act,
 1956
 
 (ii) Depreciation on additions/deletion is provided on pro rata basis.
 
 (iii) Intangible assets are amortised over a period of five years.
 
 (iv) Lease hold land is amortised over the period of lease.
 
 1.6 Inventories
 
 (i) Raw Materials, Stock-in-process, Finished Goods are valued at lower
 of cost or net realizable value. Cost of stock-in-process and finished
 goods include materials, labour, manufacturing overhead and other cost
 incurred in bringing the inventories to their present location. Excise
 duty on goods manufactured by the company and remaining in inventory is
 included as a part of valuation of finished goods.
 
 (ii) Stock of stores, spares, consumable and packing materials are
 valued at cost.
 
 1.7 Revenue Recognition
 
 (i) Revenue in respect of sale of products and services are recognised
 upon despatch of products and the services rendered to the customers.
 Sales are stated at contractual realisable values, net of excise duty,
 value added tax and trade discount. Export Sales are shown on C.I.F.
 Basis, whenever contract is of C.I.F
 
 (ii) Export Incentives are accounted for on accrual basis.
 
 1.8 Foreign Currency Transactions
 
 (i) Foreign currency transactions and forward exchange contracts used
 to hedge foreign currency transactions are initially recognised at the
 spot rate on the date of the transaction/contract.
 
 (ii) Monetary assets and liabilities relating to foreign currency
 transactions and forward exchange contracts remaining unsettled at the
 end of the year are translated at year end rates.
 
 The difference in translation and realised gains and losses on foreign
 exchange transactions, are recognised in the Profit and Loss Account.
 Further in respect of transaction covered by forward exchange contract,
 the difference between the contract rate and the spot rate on the date
 of the transaction is charged to the Profit and Loss account over the
 period of the contract.
 
 1.9 Retirement Benefits
 
 Gratuity and Leave Encashment liability is accounted for on accrual
 basis computed as per actuarial valuation made at the end of each
 financial year in accordance with AS-15 (Revised).
 
 1.10 Excise/Custom Duty and Service Tax
 
 Excise duty has been accounted on the basis of both payments made in
 respect of goods cleared from factory premises and also provision made
 for manufactured goods lying unsold at year end in factory premises.
 
 1.11 Research and Development Expenditure
 
 Revenue Expenditure in respect of Research and Development is charged
 to the Profit and Loss Account and Capital Expenditure is added to the
 cost of Fixed Assets in the year in which it is incurred.
 
 1.12 Stores and Spares
 
 Stores, spares and consumables, except L.D.O. and Diesel are charged to
 profit and loss account as and when they are procured and stock of such
 items as at the end of the year is accounted at cost.
 
 1.13 Taxation
 
 (i) Current year tax is provided based on taxable income computed in
 accordance with the provisions of the Income-tax Act, 1961.
 
 (ii) Deferred tax is recognized, subject to the consideration of
 prudence, on timing differences, being the difference between taxable
 incomes and accounting income that originate in one period and are
 capable of reversal in one or more subsequent period. Deferred tax
 assets are recognized on unabsorbed depreciation and carry forward of
 losses based on virtual certainty that sufficient future taxable income
 will be available against which such deferred tax assets can be
 realized.
 
 1.14 Provisions and Contingencies
 
 A provision is recognised when the Company has a present obligation as
 a result of past event 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
 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 adjustment to reflect the current best
 estimates. Contingent assets and liabilities are not recognised.
 
 1.15 Provisions and Prepayment of Expenses
 
 Provisions and Prepayment of expenses up to Rs. 5,000/- in each case are
 charged to revenue.