(a) GENERAL:
 
 (i) The Company follows the mercantile system of accounting and
 recognises income and expenditure on accrual basis. The accounts are
 prepared on historical cost basis, as a going concern and adjusted by
 revaluation of assets.
 
 (ii) Accounting policies not specifically referred to otherwise are
 consistent and in consonance with generally accepted accounting
 principles and practices.  The financial statements have been prepared
 in compliance with all material aspects of the mandatory Accounting
 Standard issued by the ICAI and the relevant provisions of the
 Companies Act, 1956.
 
 (b) USE OF ESTIMATES:
 
 The presentation of financial statements requires certain estimates and
 assumptions. These estimates and assumptions 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 reporting
 period. Difference between the actual result and estimates are
 recognized in the period in which the results are known / materialized.
 
 (c) FIXED ASSETS & DEPRICIATION
 
 Fixed Assets are stated at cost and adjusted by revaluation of assets.
 
 (i) Depreciation on Fixed Assets (including revalued assets) is
 provided on Straight Line Method at the rates and in the manner
 specified in Schedule XIV of Companies Act, 1956, read with the
 relevant circulars issued by the Department of Company Affairs from
 time to time.
 
 (ii) Depreciation on the assets added/disposed off during the year has
 been provided on pro-rata basis with reference to the date of
 addition/disposal.
 
 (d) CURRENT ASSETS : Inventories are valued at lower of cost or net
 realizable value. Cost is arrived at as under:
 
 RAW MATERIALS : FIFO
 
 PACKING MATERIALS : FIFO
 
 STOCK IN PROGRESS Absorption Cost Basis
 
 STOCK IN GOODS Absorption Cost Basis
 
 (e) INVESTMENT All the Investments are the Company are long tern
 
 investments and the same are stated at cost.
 
 (f) EMPLOYEE BENEFIT
 
 Retirement benefits in the form of Provident Fund, Family Pension Fund
 and Superannuation Schemes, which are defined contribution schemes, are
 charged to the profit and loss account of the period in which the
 contributions to the respective funds accrue.
 
 The Company has created Employees Group gratuity fund which has taken a
 Group Gratuity insurance Policy fro Life Insurance Corporation of India
 (LIC). Premium on the above policy as intimated by LIC is charged to
 the profit and loss account. The adequacy of balances available is
 compared with actuarial valuation obtained at the period end and
 shortfall, if any, is provided for the profit and loss account.
 
 Actuarial gains and losses are immediately recognized in the profit and
 loss account and are not deferred.
 
 (g) TAX ON INCOME:
 
 Current Tax is determined on the basis of the amount of tax payable in
 respect of taxable income for the year.
 
 Deferred tax is calculated at current statutory income tax rate and is
 recognized on timing differences; being the difference between taxable
 income and accounting income that originate in the one period and are
 capable of reversal in one or more subsequent periods. Deferred tax
 assets subject to the consideration of prudence, are recognized and
 carried forward only to extent that there is reasonable certainty that
 sufficient future taxable income will be available against which such
 deferred tax liability can be realized.