1.1 Basis of preparation of financial statements
 
 The financial statements are prepared under historical cost convention,
 on a going concern basis and in accordance with the applicable
 accounting standards prescribed in the Companies (Accounting Standards)
 Rules, 2006 issued by the Central Government, in consultation with the
 National Advisory Committee on Accounting Standards and relevant
 provisions of the Companies Act, 1956. 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 a change in the accounting policy hitherto in use.
 
 1.2 Use of Estimates
 
 The preparation of financial statements requires management to make
 certain estimates and assumptions that affect the amounts reported in
 the financial statements and notes thereto. Differences between actual
 results and estimates are recognized in the period in which they
 materialize.
 
 1.3 Sale/Revenue Recognition
 
 Revenue (income) is recognized where no significant uncertainty as to
 determination or realization exists. Sales are recognized ex works and
 are including of excise duty but net of trade discounts and sales tax.
 Job work income is recognized on delivery of finished goods.
 
 1.4 Inventories
 
 Raw Material, Packing Materials : At Cost*.
 
 Finished Goods : Cost* or Net realizable value, Whichever is lower.
 
 * Cost is determined on the basis of first in first out (FIFO) method.
 
 1.5 Fixed Assets
 
 Fixed Assets are stated at cost less accumulated depreciation and
 impairment loss, if any. The cost of assets comprises of purchase price
 and directly attributable cost of bringing the assets to working
 condition for its intended use including borrowing cost and incidental
 expenditure during construction incurred up to the date when the assets
 are ready to use and share issue expenses related to funds raised for
 financing the project.
 
 1.6 Depreciation/ Amortisation
 
 i) Depreciation on fixed assets is provided on straight line method as
 per Schedule-XIV of the Companies Act, 1956.
 
 ii) Depreciation is provided on pro-rata basis from the date on which
 assets are put to use in case of addition and provided up to the date of
 sale/disposal in case of sale/disposal.
 
 iii) Leasehold improvement assets are amortised over the period of
 lease.
 
 1.7 Employee Benefits
 
 a) Contribution to the Provident Fund and Employees State Insurance is
 deposited in accordance with the provisions of the relevant acts and is
 charged to profit and loss account.
 
 b) Provision for gratuity and leave encashment is made on the basis of
 actuarial valuation at the end of the year. Actuarial gains or losses
 are recognized in the Statement of Profit and Loss.
 
 1.8 Provisions
 
 A provision is made based on a realizable estimate made. It is probable
 that an outflow of resources embodying economic benefits will be
 realized to settle an obligation. Contingent liabilities, if material,
 are disclosed by way of notes to accounts. Contingent assets are not
 recognized or disclosed in the financial statements.