(a) Accounting Concepts : The accounts of the Company are prepared
 under the historical cost convention using the accrual method of
 accounting in accordance with the generally accepted accounting
 principles in India, mandatory accounting standards as specified in the
 Companies (Accounting Standards) Rules, 2006 and the relevant
 provisions of the Companies Act, 1956.
 
 (b) Use of Estimates : The preparation of financial statements in
 confirmity with generally accepted accounting principles requires
 management to make estimates and assumptions that affect the reported
 amount of assets and liabilities and disclosures of contingent
 liabilities as at the date of financial statements and the results of
 operations during the reported period. Although, these estimates are
 based upon management''s best knowledge of current events and
 actions,actual results could differ from these estimates.
 
 (c) Fixed Assets : All fixed assets are valued at cost less
 depreciation. Roll-over charges on forward exchange contracts and loss
 or gain on conversion of foreign currency liabilities for acquisition
 of fixed assets are added to or deducted from the cost of fixed assets.
 
 (d) Depreciation : Depreciation is provided on different fixed assets
 on the basis of ''straight line method'' and ''written down value method''
 at rates prescribed in Schedule XIV to the Companies Act,1956, as
 clarified in Note to Schedule ''E'' to the Accounts.
 
 (e) Investments : Long term investments are stated at cost and
 provision for diminution is made, if such diminution is other than
 temporary in nature.
 
 (f) Current Assets : Finished Goods and Work-in-Process are valued at
 cost or net realisable value whichever is lower. Other inventories are
 valued at cost.  All other items of current assets are stated after
 provisions for any diminution in value. Inventories are measured using
 Weighted Average method.
 
 (g) Borrowing Cost : Borrowing costs that are directly attributable to
 the acquisition or construction of a qualifying asset are capitalized
 as part of the cost of that asset. The amount of borrowing costs
 eligible for capitalization are determined in accordance with
 Accounting Standard 16 on “Borrowing Costs”. Other borrowing costs are
 recognized as an expense in the period in which they are incurred.
 
 (h) Revenue Recognition:
 
 Revenue is recongnized 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:
 
 Sale is recognized,when the significant risks and rewards of ownership
 of the goods is passed to the buyer, which is generally on
 
 despatch of goods to customers except in case of consignment sales,
 Sales exclude excise duty and VAT and is net of discounts and
 
 incentives to the customers.  
 (i) Employees Retirement Benefits :
 
 (a) Short-term employee benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 (b) Post employment and other long term employee benefits are
 recognised as an expense in the Profit and Loss account for the year in
 which the employee has rendered services. The expense is recognised at
 the present value of the amounts payable determined using acturial
 valuation techniques. Acturial gains and losses in respect of post
 employment and other long tern benefits are charged to the Profit and
 Loss account.
 
 (j) Foreign Exchange Transactions :
 
 (a) Transactions in foreign exchange are translated to Indian Rupees at
 the rate of exchange ruling on the date of transaction.
 
 (b) All foreign currency liabilities related to acquisition of Fixed
 Assets remaining unsettled at the end of the year are converted at
 
 contract rates, where covered by foreign exchange contracts and at year
 end rates in other cases and the difference in translation is adjusted
 in the carrying cost of such assets.
 
 (c) Other outstanding foreign currency liabilities and receivables are
 translated at the year end rates and the difference in translation is
 recognized in the Profit & Loss A/c.
 
 (k) Provision for Current and Deferred Tax:
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of the Income Ta x Act,1961.
 Deferred tax resulting from timing differencesbetween taxable and
 accounting income is accounted for using the tax rates and laws that
 are enacted or substantively enacted as on the balance sheet date. The
 deferred tax assets/liabilities is recognised and carried forward only
 to the extent that there is a virtual certainty that the asset will be
 realised in future.
 
 (l) Research and Development :
 
 Research and Development costs (other than cost of fixed assets
 acquired) are charged as expenses in the year in which they are
 incurred.
 
 (m) Cash Flow Statement :
 
 Cash flows are reported using the indirect method, whereby net profit
 before tax is adjusted for the effects of transactions of a non cash
 nature, any deferrals or accruals of past or future operating cash
 receipts or payments and item of income or expenses associated with
 investing or financing cash flows. The cash flows from operating,
 investing and financing activities of the Company are segregated.
 
 (n) Provisions and Contingent Liabilities :
 
 A provision is recognized if, as a result of a past event,the company
 has a present legal obligation that can be estimated reliably, and it
 is probable that an outflow of economic benefits will be required to
 settle the obligation. Provisions are determined by the best estimate
 of the outflow of economic benefits required to settle the obligation
 at the reporting date. Where no reliable estimate can be made, a
 disclosure is made as contingent liability. A disclosure for a
 contingent liability is also 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 likelyhood of outflow of resources
 is remote, no provision or disclosure is made.