(i) Basis of preparation of financial statements
 
 the financial statements are prepared and presented in accordance with
 indian Generally accepted accounting Principles (GaaP) under the
 historical cost convention on the accrual basis. GaaP comprises
 accounting standards notified by the Central Government of india under
 Section 211 (3C) of the Companies act, 1956, other pronouncements of
 the institute of Chartered accountants of india, provisions of the
 Companies act, 1956 and guidelines issued by Securities and exchange
 Board of india (SeBi).
 
 (ii) Use of estimates
 
 the preparation of the financial statements in conformity with the
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and disclosure of contingent assets and liabilities at
 the date of the financial statements and the reported amounts of
 revenues and expenses during the reporting period.  the estimates and
 the assumptions used in the accompanying financial statements are based
 upon management evaluation of the relevant facts and circumstances as
 of the date of the financial statements.  actual results may differ
 from the estimates used in preparing the accompanying financial
 statements.
 
 (iii) revenue recognition
 
 revenue from sale of goods is recognised upon passage of title of goods
 to the customers.  the cost of company''s products given free as
 incentive with the sales of various other products is borne by the
 company and thus not included in sales.
 
 (iV) fixed assets
 
 Fixed assets are stated at cost of acquisition less accumulated
 depreciation. Cost of acquisition is inclusive of inward freight,
 duties and taxes and incidental expenses related to acquisition. in
 case of projects involving construction ,related pre operational
 expenses form part of value of fixed asset capitalised expenses
 capitalised also include applicable borrowing costs and adjustments
 arising from foreign exchange rate variations relating to borrowings
 attributable to the fixed assets.
 
 Fixed assets acquired on the merger of henkel SPiC india Limited into
 the Company during the year 2004 have been taken into the books at fair
 value as per the scheme of amalgamation, as approved by the hon ''ble
 high Court of madras. in case of revaluation of fixed assets, the
 original cost as written up to the extent certified by the valuer is
 considering the accounts and the differential amount is transferred to
 revaluation reserve.
 
 (V) depreciation
 
 Depreciation is provided on Straight Line method and at the rates and
 in the manner specified in the Schedule XiV of the Companies act, 1956.
 Depreciation on revalued assets is provided at the rates specified in
 Schedule XiV to the Companies act, 1956.  an amount equivalent to the
 additional depreciation attributable to revalued assets is transferred
 from revaluation reserve to the credit of the Profit and Loss account.
 
 Leasehold Lands are amortised over the lives of the respective lease
 agreements. Depreciation on fixed assets added / disposed of during the
 year, is provided on a prorata basis with reference to the date of
 addition / disposal.
 
 (Vi) Borrowing costs
 
 Borrowing costs relating to the acquisition / construction of
 qualifying assets are capitalised until the time all substantial
 activities necessary to prepare the qualifying assets for their
 intended use are complete.  a qualifying asset is one that necessarily
 takes substantial period of time to get ready for its intended use.
 all other borrowing costs are charged to revenue.
 
 (Vii) lease rentals
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased term, are classified as
 operating leases. Lease payments under an operating lease are
 recognized as an expense in the statement of profit and loss on a
 straight line basis over the lease term.
 
 (Viii) inventories
 
 (a) raw materials are valued at weighted average cost.
 
 (b) Work-in-progress and finished goods are valued at the lower of cost
 and net realisable value. Cost includes material cost determined on the
 weighted average basis and also includes an appropriate portion of
 allocable overheads
 
 (c) excise duty on goods produced is included in the value of finished
 goods inventory.
 
 (iX) investments
 
 Long term investments are valued at their acquisition cost. a provision
 for diminution is made to recognise a decline, other than temporary, in
 the value of long term investments.
 
 (X) foreign currency transactions
 
 Foreign currency transactions are recorded at the exchange rates
 prevailing on the date of the transactions.  monetary assets and
 liabilities denominated in foreign currencies as at the balance sheet
 date are translated at the closing exchange rates on that date.
 exchange differences arising on foreign exchange transactions during
 the year and on restatement of monetary assets and liability are
 recognized in the profit and loss account of the year.
 
 Xi) research and development
 
 research and development expenditure of a revenue nature is charged to
 the Profit and Loss account in the year of incurrence, while
 expenditure of a capital nature is capitalised as fixed assets in the
 year of incurrence.
 
 (Xi) retirement Benefits
 
 provident fund:
 
 Contributions to provident funds is made monthly to the provident fund
 trust and are charged to the profit and loss account.
 
 gratuity:
 
 the Company provides for gratuity, a defined benefit retirement Plan
 (the Gratuity Plan) covering eligible employees.  the Plan provides
 payment to vested employees at retirement, death or termination of
 employment, of an amount based on the respective employee''s salary and
 the tenure of employment with the Company. the Company provides the
 gratuity benefit through annual contribution to a fund managed by the
 Life insurance Corporation of india (''LiC). Under this scheme the
 settlement obligation remains with the Company although the LiC
 administers the scheme and determines the contribution premium required
 to be paid by the Company.  Liabilities related to the Gratuity Plan
 are determined by actuarial valuation as at the balance sheet date.
 
 (Xii) taxation
 
 income-tax expense comprises of current tax and deferred tax charge or
 release. Provision for current income tax is based on the assessable
 profits computed in accordance with the provisions of the income tax
 act, 1961.  Deferred taxes recognised, subject to consideration of
 prudence, on timing differences, being difference between taxable and
 accounting income / expenditure that originate in one period and are
 capable of reversal in one or more subsequent periods. Deferred tax
 assets are not recognised unless there is ''virtual certainty'' that
 sufficient future taxable income will be available against which such
 deferred tax assets will be realised.
 
 (Xiii) impairment of assets
 
 the Company has a policy of assessing the impairment of assets every
 year in accordance with aS 28 impairment of assets.  this is done
 through comparing its carrying amount of assets as per books of account
 with its recoverable value.
 
 (XiV) identification of segments
 
 Based on the Company''s internal organisation and management structure:
 
 (a) Business segments are the primary segments.  the Company''s business
 is organised and managed according to the nature of the products. each
 business segment is engaged in providing products carrying risks and
 returns that are different from that carried by other products.
 
 (b) Geographic segments are secondary segments. Geographic segments are
 based on the location of the customer and are distinguished between
 domestic and export.
 
 (c) allocation of common costs: Common allocable costs are allocated to
 each segment on a case to case basis applying an appropriate ratio for
 each item of revenue and expense. items of revenue and expense which
 relate to the enterprise as a whole and are not allocable to segments
 on a reasonable basis have been disclosed separately.