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, the provisions of the
 Companies Act, 1956 and guidelines issued by Securities and Exchange
 Board of India.
 
 ii) Use of estimates
 
 The preparation of financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities, disclosure of contingent
 assets and liabilities at the date of the financial statements and the
 reported amounts of revenues and expenses during the period reported.
 Actual results could differ from these estimates. Any revision to
 accounting estimates is recognized prospectively in the current and
 future periods.
 
 iii) Revenue recognition
 
 Revenue from sale of goods is recognized upon transfer of all
 significant risks and rewards of ownership to the buyer which generally
 corresponds with the dispatch/delivery of goods to buyers based on the
 terms of the contract. The amount recognized as sale is exclusive of
 sales tax and trade discounts.
 
 Service income is recognized as the services are rendered on an accrual
 basis in accordance with the terms of the relevant contract.
 
 Dividend income is recognized when the unconditional right to receive
 the payment is established.
 
 Interest income on deposits and interest bearing securities is
 recognized on a time proportionate basis.
 
 iv) Fixed Assets
 
 Fixed Assets are stated at cost of acquisition less accumulated
 depreciation. The cost of fixed assets includes freight, duties and
 taxes and other incidental expenses related to the acquisition, but
 exclude duties and taxes that are recoverable subsequently from tax
 authorities. Borrowing costs directly attributable to acquisition of
 those fixed assets which necessarily take a substantial period of time
 to get ready for their intended use are capitalized.
 
 Advance paid towards the acquisition of fixed assets outstanding at
 each balance sheet date and the cost of fixed assets acquired but not
 ready for their intended use before such date are disclosed as capital
 work-in-progress.
 
 v) Depreciation
 
 Depreciation is provided on the straight line method at the rates of
 depreciation prescribed in Schedule XIV to the Companies Act, 1956. If
 the managements estimate of the useful life of a fixed asset at the
 time of acquisition of the asset or of the remaining useful life on a
 subsequent review is shorter than that envisaged in the aforesaid
 Schedule, depreciation is provided at a higher rate based on the
 managements estimate of the useful life/remaining useful life.
 Pursuant to this policy, based on the estimated useful life of the
 assets, depreciation is provided at the following rates which
 corresponds to the rates prescribed in Schedule XIV to the Companies
 Act, 1956.
 
 Intangible assets and amortization
 
 Intangible assets are recorded at the consideration paid for
 acquisition. Intangible assets are amortized over their estimated
 economic useful lives on a straight line basis commencing from the date
 the asset is available for its use. The management estimates the useful
 lives for the intangible asset (software) at 5 years.
 
 vi) Leases
 
 Assets taken on lease where the Company acquires substantially the
 entire risks and rewards incidental to ownership are classified as
 finance leases. The amount recorded is the lesser of the present value
 of the minimum lease rental and other incidental expenses during the 
 lease term or the assets fair value.
 
 The rental obligations, net of interest charges, are reflected in
 secured loan. Leases that do not transfer substantially all of the
 risks and rewards of ownership are classified as operating leases and
 recorded as expenses as and when payments are made on a straight line
 basis over the lease term.
 
 vii) Impairment
 
 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 (higher of net
 realizable value and value in use) of the asset. If such recoverable
 amount of the asset or the recoverable amount of the cash generating
 unit to which the asset belongs is less than the carrying amount, the
 carrying amount is reduced to its recoverable amount. The reduction is
 treated as an impairment loss and is recognized in the profit and loss
 account. If at the balance sheet date there is an indication that a
 previously assessed impairment loss no longer exists, the recoverable
 amount is reassessed and the asset is reflected at the recoverable
 amount subject to a maximum of depreciable historical cost.
 
 viii) Investments
 
 Long-term investments are stated at cost less any other-than-temporary
 diminution in value, determined separately for each individual
 investment. Current investments are carried at the lower of cost and
 fair value.
 
 ix) Inventories
 
 Inventories are valued at the lower of cost and net realizable value.
 Cost of inventories comprises all cost of purchase, cost of conversion
 and other costs incurred in bringing the inventories to their present
 location and condition. Cost includes all taxes and duties, but
 excludes duties and taxes that are subsequently recoverable from tax
 authorities.
 
 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 liabilities 
 are recognized in the profit and loss account of the year.
 
 Premium or discount arising at the inception of forward exchange
 contracts is amortized as expense or income over the life of the
 contract. Any profit or loss arising on the cancellation or renewal of
 forward contracts is recognized as income or as expense for the period.
 In relation to the forward contracts entered into to hedge the foreign
 currency risk of the underlying outstanding at the balance sheet date,
 the exchange difference is calculated as the difference between the
 foreign currency amount of the contract translated at the exchange rate
 at the reporting date, or the settlement date where the transaction is
 settled during the reporting period, and the corresponding foreign
 currency amount translated at the later of the date of inception of the
 forward exchange contract and the last reporting date. Such exchange
 differences are recognized in the profit and loss account in the
 reporting period in which the exchange rates change.
 
 xi) Employee benefits
 
 Provisions for /contributions to retirement benefit scheme are made as
 follows:
 
 Defined contribution plan
 
 Provident fund: Eligible employees receive benefits from the provident
 fund, which is a defined contribution plan. Both the employee and the
 Company make monthly contributions to the provident fund plan equal to
 a specified percentage of the covered employees basic salary. The
 Company has no further obligations under the plan beyond its monthly
 contributions. The Companys contribution to the Employees Provident
 Fund scheme maintained by the Central Government is charged to the
 profit and loss account.
 
 Super annuation fund: Eligible employees receive benefits from the
 super annuation fund, which is a defined contribution plan. The Company
 makes annual contributions to the super annuation fund plan equal to a
 specified percentage of the covered employees basic salary. The
 Company has no further obligations under the plan beyond its yearly
 contributions. The Companys contribution to the super annuation fund
 scheme maintained by the Life Insurance Corporation of India (LIC) is
 charged to the profit and loss account.
 
 Defined benefit plan
 
 Compensated absences: Provision for long term compensated absences is
 made on the basis of an actuarial valuation as at the balance sheet
 date carried out by an independent actuary as at March 31 each year. 
 Provision for short term compensated absences is made on actual 
 basis.
 
 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
 employees 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 done by an independent
 actuary using projected unit credit method as at March 31 each year.
 
 Actuarial gains and losses in respect of post employment and other
 long-term benefits are charged to the Profit and Loss Account.
 
 xii) Earnings per share
 
 Basic earnings per share is computed by dividing net profit or loss for
 the period attributable to equity shareholders by the weighted average
 number of shares outstanding during the year. Diluted earnings per
 share amounts are computed after adjusting the effects of all dilutive
 potential equity shares. The number of shares used in computing diluted
 earnings per share comprises the weighted average number of shares
 considered for deriving basic earnings per share, and also the weighted
 average number of equity shares, which could have been issued on the
 conversion of all dilutive potential shares. The diluted potential
 equity shares are adjusted for the proceeds receivable, had the shares
 been actually issued at fair value (i.e. the average market value of
 the outstanding shares). Dilutive potential equity shares are deemed
 converted as of the beginning of the period, unless issued at a later
 date
 
 xiii) Taxation
 
 Income-tax expense comprise current tax (i.e.  amount of tax for the
 period determined in accordance with the income-tax law) and deferred
 tax charge or credit (reflecting that tax effects of timing differences
 between accounting income and taxable income for the period). The
 deferred tax charge or credit and the corresponding deferred tax
 liabilities or assets are recognized using the tax rates and tax laws
 that have been enacted or substantively enacted by the balance sheet
 date. Deferred tax assets are recognized only to the extent there is a
 reasonable certainty that the assets can be realized in future;
 however, where there is unabsorbed depreciation or carried forward 
 loss under taxation laws, deferred tax assets are recognized only if 
 there is a virtual certainty of realization of such assets. Deferred 
 tax assets are reviewed as at the balance sheet date and written down 
 or written up to reflect the amount that is reasonably/virtually 
 certain (as the case may be) to be realized. 
 
 Current tax and deferred tax assets and liabilities are offset to the
 extent to which the Company has a legally enforceable right to set off
 and they relate to taxes on income levied by the same governing
 taxation laws.
 
 xiv) Provisions, contingent liabilities and contingent assets
 
 The Company creates a provision when there is present obligation as a
 result of past event that probably requires an outflow of resources and
 a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is 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 obi igation
 or a present obi igation i n respect of wh ich the likelihood of
 outflow of resources is remote, no provision or disclosure is made.
 Contingent assets are neither recognised nor disclosed in the financial
 statements.
 
 xv) Cash flows
 
 Cash flows are reported using the indirect method, whereby profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating, financing and
 investing activities of the Company are segregated. Cash flows in
 foreign currencies are accounted at average monthly exchange rates that
 approximate the actual rates of exchange prevailing at the dates of the
 transactions.