1.  Basis of Preparation of Financial Statements
 
 a.  The financial statements have been prepared in compliance with the
 mandatory Accounting Standards notified under the Companies (Accounting
 Standards) Rules, 2006 (as amended) and generally accepted Accounting
 principles applicable in India (GAAP).Accounting policies have been
 consistently applied except where a newly issued accounting standard is
 initially adopted or a revision to an existing accounting standard
 requires changes in the accounting policy hitherto in use.
 
 b.  The financial statements have been prepared under historical cost
 convention on accrual basis.
 
 2.  Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the reported amounts of revenues and expenses
 during the reporting period. Difference between the actual results and
 estimates are recognized in the period in which the results are known
 /materialized.
 
 3.  Fixed Assets
 
 Fixed Assets are stated at cost less accumulated depreciation and
 impairment losses. Cost includes acquisition cost, freight, duties,
 taxes and other incidental expense incurred during the construction /
 installation stage attributable to bring- ing the asset to working
 condition for its intended use.
 
 Expenditure on software is recognized as ''Intangible Assets'' and is
 amortized over a period of three years.
 
 4.  Depreciation and Amortization
 
 Depreciation on Fixed Assets is being provided on written down value
 method at the rate and in the manner specified in Schedule XIV of the
 Companies Act, 1956.
 
 Leasehold land is amortized over the initial period of lease.
 
 The expenditure incurred on improvement on leased premises is written
 off proportionately over the initial period of lease.
 
 5.  Impairment of Fixed Assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the company estimates the recoverable amount of the assets. If
 such recoverable amount of the asset or the recoverable amount of the
 cash-generating unit to which the assets belongs, is less than the
 carrying amount, carrying amount is reduced to its recoverable amount.
 The reduction is treated as an impairment loss and is recognised in the
 profit and loss account. If at the balance sheet date there is an
 indication that previously assessed impairment loss no longer exists,
 the recoverable amount is reassessed and the asset is reflected at the
 recoverable amount.
 
 6.  Inventories
 
 a.  Inventories are valued at lower of cost and estimated net
 realisable value. Cost is determined on ''First-in First-out'', ''Specific
 Identification'', or Weighted Average'' basis, as the case may be. Cost
 of Inventories Comprises of all cost of purchase, cost of conversion
 and other costs incurred in bringing the inventories to their present
 location and condition.
 
 b.  Raw Materials include materials issued for production. Materials
 consumed are materials used for production of fin- ished goods only.
 
 c.  Determination of estimated net realizable value and specific
 identification involve technical judgments of the manage- ment, which
 has been relied upon by the Auditors.
 
 7.  Investments
 
 Long-term investments are stated at cost. Provision for diminution in
 the value of long-term investments is made if such decline is other
 than temporary in nature.
 
 Current investments are carried at lower of cost or market value.
 
 8.  Revenue Recognition
 
 Sale of Goods:
 
 Revenue from sales of goods is recognized when risk and rewards of
 ownership of the products are passed on to the customers, which is
 generally on dispatch of goods and is stated net of returns, trade
 discounts, claims etc.
 
 Dividend on Investment:
 
 Dividends are recognised when the right to receive payment is
 established.
 
 Interest Income:
 
 Interest Income is recognised on time proportion basis taking in to
 account the amount outstanding & rate applicable.
 
 9.  Foreign Currency Transactions:
 
 a.  Initial Recognition:
 
 Transactions denominated in foreign currencies are recorded at the
 exchange rate prevailing at the time of the transaction.
 
 b.  Conversion:
 
 Monetary items denominated in foreign currencies at the year-end are
 translated at closing rates. Non-monetary items which are carried in
 terms of historical cost denominated in foreign currency are reported
 using the exchange rate at the date of transaction and investment in
 foreign companies are recorded at the exchange rates prevailing on the
 date of making the investments.
 
 c.  Exchange Differences:
 
 Exchange differences arising on the settlement of monetary items or on
 restatement of monetary items at rates differ- ent from those at which
 they were initially recorded during the year, or reported in previous
 financial statements, are recognised as income or as expenses in the
 year in which they arise.
 
 d.  Forward Exchange Contract not intended for trading or speculation
 purposes:
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortized as expense or income over the life of contract.
 Exchange differences on such contract are recognized in the profit and
 loss account in the year in which the exchange rate changes. Any profit
 or loss arising on cancellation or renewal of forward exchange contract
 is recognised as income or as expense.
 
 10.  Retirement Benefits:
 
 Short term employee benefits are recognized as an expense at the
 undiscounted amount in profit and loss account of the year in which the
 related service is rendered.
 
 The Company''s Liability towards gratuity and leave encashment are
 determined on the basis of year end actuarial valuation applying
 Projected Unit Credit Method done by an independent actuary. The
 actuarial gains or losses determined by the actuary are recognized in
 the Profit and Loss Account as income or expense.
 
 11.  Borrowing Cost:
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalized as
 part of the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur. Borrowing costs consist of interest
 and other costs that an entity incurs in connection with the borrowing
 of funds.
 
 12.  Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term.
 
 13.  Earnings Per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting preference dividends and attributable taxes) by the weighted
 average number of equity shares outstanding during the period. Partly
 paid equity shares are treated as a fraction of an equity share to the
 extent that they were entitled to participate in dividends relative to
 a fully paid equity share during the reporting period. The weighted
 average numbers of equity shares outstanding during the period are
 adjusted for events of bonus issue; bonus element in a rights issue to
 existing shareholders; share split; and reverse share split
 (consolidation of shares).
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity share- holders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 14.  Cash and Cash Equivalents
 
 Cash and cash equivalents for the purposes of cash flow statement
 comprise cash at bank and in hand and short-term investments with an
 original maturity of three months or less.
 
 15.  Segment Reporting
 
 Identification of segments:
 
 The Company''s operating businesses are organized and managed separately
 according to the nature of products and ser- vices provided, with each
 segment representing a strategic business unit that offers different
 products and serves different markets. The analysis of geographical
 segments is based on the areas in which major operating divisions of
 the Company operate.
 
 Inter segment Transfers:
 
 The Company generally accounts for intersegment sales and transfers as
 if the sales or transfers were to third parties at current market
 prices.
 
 Allocation of common costs:
 
 Common allocable costs are allocated to each segment according to the
 relative contribution of each segment to the total common costs.
 
 Unallocated items:
 
 Includes general corporate income and expense items which are not
 allocated to any business segment.
 
 Segment Policies:
 
 The company prepares its segment information in conformity with the
 accounting policies adopted for preparing and pre- senting the
 financial statements of the company as a whole.
 
 16.  Provision for Current and Deferred Taxation:
 
 Income tax is accounted in accordance with AS-22 ''Accounting for taxes
 on income'', issued by The Institute of Chartered Accountants of India
 (ICAI), which includes current taxes and deferred taxes. Deferred
 income taxes reflect the impact of the current year timing differences
 between taxable income and accounting income for the year and reversal
 of timing differences of earlier years. Deferred tax assets are
 recognised only to the extent that there is reasonable certainty that
 sufficient future taxable income will be available except that deferred
 tax assets arising due to unabsorbed depreciation and losses are
 recognised if there is virtual certainty that sufficient future taxable
 income will be available to realise the same and are recognized using
 the tax rates and tax laws that have been enacted or substantively
 enacted.
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income using the applicable tax rates and tax laws for the
 year.
 
 17.  Provision, Contingent Liabilities and Contingent Assets:
 
 Provisions are recognized for liabilities that can be measured only by
 using a substantial degree of estimation, if
 
 a. the Company has a present obligation as a result of past event,
 
 b. a probable outflow of resources is expected to settle the obligation
 and
 
 c. the amount of the obligation can be reliably estimated Contingent
 Liability is disclosed in case of
 
 a.  a present obligation arising from a past event, when it is not
 probable that an outflow of resources will be required to settle the
 obligation
 
 b.  a possible obligation, unless the probability of outflow of
 resources is remote.  Contingent Assets are neither recognized, nor
 disclosed.
 
 Provisions, Contingent Liabilities and Contingent Assets are reviewed
 at each Balance Sheet Date.