01.  Basis for Preparation of Financial Statements
 
 The financial statements have been prepared on the historical cost
 convention basis. The Generally Accepted Accounting Principles (GAAP)
 and the Accounting Standards referred under section 211(3C) of the
 Companies Act, 1956 have been adopted by the Company and disclosures
 made in accordance with the requirements of Schedule VI of the
 Companies Act, 1956 and the Indian Accounting Standards.
 
 02.  Fixed Assets
 
 a) Fixed assets are stated at costs, which comprises of purchase
 consideration and other directly attributable cost of bringing the
 assets to its working condition for the intended use.
 
 b) Deprecation on fixed assets is provided on straight- line method at
 the rates and in the manner as prescribed in Schedule XIV to the
 Companies Act, 1956.
 
 03.  Translation of Foreign Currency Items
 
 Transactions in foreign currency are recorded at the rate of exchange
 in force on the date of the transactions.  Current Assets and Current
 Liabilities denominated in foreign currency are translated at the
 exchange rate prevalent at the date of the Balance Sheet. The resultant
 gain / loss is recognized in the Profit & Loss Account, except in cases
 where they relate to the acquisition of fixed assets, in which case
 they are adjusted to the carrying cost of such assets. The Forward
 Contract including derivatives contract entered into to hedge foreign
 currency risk on unexpected firm commitments and highly probable
 forecast transactions recognized in the financial statements
 accordingly as per Accounting Standards issued by the Institute of
 chartered Accountants of India, exchange difference arising on such
 contracts are recognized in the period in which they arise.  Gain and
 losses arising on account of such transaction are recognized as income/
 expenses in the Profit and Loss Account.
 
 04.  Research and Development
 
 Revenue expenditure on Research & Development is included under the
 natural heads of expenditure. Capital expenditure on Research &
 Development is treated in the same manner as expenditure on other fixed
 assets.
 
 05.  Valuation of Inventory
 
 a) Closing stock of finished goods is valued at the lower of estimated
 cost or net realizable value.
 
 b) Closing stock of semi-finished goods is valued at estimated cost.
 
 c) Inventory of raw material and packing material is valued at cost.
 
 06.  Investments
 
 Investments are valued at costs unless there is a permanent fall in
 their value as at the date of Balance Sheet.
 
 07.  Retirement Benefits
 
 Encashment of accrued leave salary and retirement benefits to employees
 are provided on accrual basis.
 
 08.  Contingent Liability
 
 Liabilities though contingent, are provided for if there are reasonable
 prospects of such liabilities maturing. The other Contingent
 Liabilities, which are not acknowledged as debt are disclosed by way of
 note, but claims of frivolous nature are ignored. Provisions,
 contingent liabilities and contingent assets are reviewed at each
 Balance Sheet date.
 
 09.  Revenue Recognition
 
 a.  Sales are inclusive of excise duty / customs duty and net of trade
 discounts. Export sales include goods invoiced against confirmed orders
 and cleared from excise and customs authorities.
 
 b.  Export incentives receivable on exports made during the year, are
 recognized as income.
 
 c.  Other items of revenue including export benefits are recognized in
 accordance with the Accounting Standard (AS-9). Accordingly, wherever
 there are uncertainties in the ascertainment / realization of income
 such as interest from customers, the same is not accounted for.
 
 10.  Taxes on Income
 
 a.  Provision for current income tax is made on the basis of the
 estimated taxable income for the current accounting year computed in
 accordance with the provisions of the Income Tax Act, 1961.
 
 b.  Deferred tax is recognized on timing difference between the income
 accounted in financial statements and taxable income for the year, and
 quantified using tax rates and laws enacted or substantively enacted as
 on the Balance Sheet date are accounted for on the basis of Accounting
 Standard (AS-22)
 
 11.  Borrowing Costs
 
 Borrowing costs directly attributable to acquisition, construction and
 production of assets are capitalized as a part of the cost of such
 asset up to the date of completion. Other borrowing costs are
 recognized as expenses in the period in which they are incurred and
 charged to the Profit & Loss Account.
 
 12.  Impairment of Assets
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that any asset including goodwill, 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 & Loss Account. If at the balance sheet date there
 is an indication that a previously assessed impairment loss no longer
 exists, then such loss is reversed and the asset is restated to that
 effect.
 
 13.  Segment accounting
 
 Segment accounting policies are in line with the accounting policies of
 the company. In addition, the following specific accounting policies
 have been followed for segment reporting:
 
 a.  Segment revenue includes sales and other income directly
 identifiable with/ allocable to the segment.
 
 b.  Expenses that are directly identifiable with / allocable to segment
 are considered for determining the segment results.
 
 c.  Segment assets and liabilities include those directly identifiable
 with respective segments. Unallocable assets and liabilities represent
 the assets and liabilities that relate to the company as a whole and
 not allocable to any segment.