A.  BACKGROUND
 
 The Company is engaged in manufacturing a range of Oral and Dental
 products for elite national and international brands.  The main
 portfolio of the Company is to carry out manufacturing, exporting,
 importing and trading of oral care/ hygiene products including
 toothbrushes and toothpastes mouthwash, Denture tablets, sanitizers
 etc.
 
 1.  Basis of preparation of Financial Statements
 
 The Financial Statements have been prepared to comply in all material
 respects with the Accounting Standards notified by Companies
 (Accounting Standards) Rules, 2006, (as amended) and the relevant
 provision of the Companies Act, 1956 and guidelines issued by
 Securities and Exchange Board of India, to the extent applicable. The
 Financial Statements have been prepared under the historical cost
 convention on accrual basis. The accounting policies have been
 constantly applied by the Company.
 
 2.  Use of Estimates
 
 The preparation of the financial statements in conformity with
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities on the date of the financial statements, revenue and
 expenses during the reporting period. Although such estimates and
 assumptions are made on reasonable and prudent basis taking into
 account all available information, actual results could differ from
 these estimates and assumptions and such differences are recognised in
 the period in which the results are crystallised.
 
 3.  Fixed Assets and Depreciation
 
 a) Fixed Assets are stated at cost of acquisition, which is inclusive
 of taxes, freight, installation and allocated incidental expenditure
 during construction/ acquisition and exclusive of CENVAT Credit is
 available to the Company.
 
 b) Advances paid towards the acquisition of fixed assets outstanding at
 balance sheet date and the cost of fixed assets not put to use before
 such date are disclosed under the head Capital Work-in-Progress.
 
 c) Depreciation on fixed assets, except intangibles is provided at
 minimum rates prescribed in Schedule XIV of the Companies Act, 1956 on
 straight line basis on pro rata basis from the respective number of
 days after addition/ before discard or sale of fixed assets by leaving
 residual value of Re.1 except that moulds and dies are depreciated over
 the useful life of 5 Years as estimated by the management.
 
 d) Individual assets costing Rs.5,000 or less are fully depreciated in
 the year of purchase.
 
 e) Intangible assets comprise of Computer Software and are amortised
 over a period of five years. All costs relating to up gradation
 /enhancements are generally charged off as revenue expenditure unless
 they bring significant additional benefits of enduring nature.
 
 4.  Impairment of Assets
 
 An asset is treated as impaired when carrying cost of assets exceeds
 its recoverable amount. An impairment loss is charged to the profit and
 loss account when asset is identified as impaired. Reversal of
 impairment loss recognised in prior periods is recorded when there is
 an indication that impairment loss recognised for the assets no longer
 exists or has decreased.  An impairment loss is reversed only to the
 extent that the asset''s carrying amount does not exceed the carrying
 amount that would have been determined net of depreciation or
 amortised, if no impairment loss has been recognised Post impairment,
 depreciation is provided on the revised carrying value of the asset
 over its remaining useful life. The Company periodically assesses using
 external and internal resources whether there is an indication that an
 asset may be impaired.
 
 5.  Inventories
 
 a) Raw materials, packaging materials and stores & spare parts are
 carried at cost. Cost includes purchase price, (excluding those
 subsequently recoverable by the enterprise from the concerned revenue
 authorities), freight inwards and other expenditure incurred in
 bringing such inventories to their present location and condition. In
 determining the cost, weighted average cost method is used. The
 carrying cost of raw materials, packaging materials and stores and
 spare parts are appropriately written down when there is a decline in
 replacement cost of such materials and finished products in which these
 will be incorporated are expected to sell below cost.
 
 b) Work in progress, manufactured finished goods and traded goods are
 valued at the lower of cost and net realisable value. The comparison of
 cost and net realisable value is made on an item by item basis. Cost of
 work in progress and manufactured finished goods is determined on the
 weighted average basis and comprises direct material, cost of
 conversion and other costs incurred in bringing these inventories to
 their present location and condition. Cost of traded goods is
 determined on a weighted average basis. Finished products and work in
 progress includes appropriate production overheads.
 
 c) Excise duty liability is included in the valuation of closing
 inventory of finished goods. Excise duty payable on finished goods is
 accounted for upon manufacture and transfer of finished goods to the
 stores. Payment of excise duty is deferred till the clearance of goods
 from the factory premises.
 
 6.  Revenue recognition
 
 a) Revenue from sale of goods is recognised on transfer of significant
 risk and rewards of ownership to the customer.  Revenue includes excise
 duty and is net of Sales Tax, Value Added Tax and applicable discounts
 and allowances.
 
 b) Interest income from deposits is recognised on accrual basis.
 
 c) Dividend is recognised when the right to receive of the same is
 established.
 
 d) Export incentives principally comprise of Duty Entitlement Pass Book
 Scheme (DEPB). The benefit under these incentive schemes are available
 based on the guideline formulated for respective schemes by the
 government authorities. DEPB is recognised as revenue on accrual basis
 to the extent it is probable that realisation is certain.
 
 7.  Borrowing Cost
 
 Borrowing costs that are directly attributable to the acquisition or
 construction or production of qualifying assets are capitalised as part
 of the cost of such assets. A qualifying asset is one that necessarily
 takes substantial period of time to get ready for intended use. All
 other borrowing costs are recognised as an expense in the period in
 which they are incurred and charged to revenue.
 
 Exchange differences, in respect of accounting periods commencing on or
 after December 7, 2006, arising on reporting of long-term foreign
 currency monetary items at rates different from those at which they
 were initially recorded during the period, or reported in previous
 financial statements, in so far as they relate to the acquisition of a
 depreciable capital asset, are added to or deducted from the cost of
 the asset and are depreciated over the balance life of the asset, and
 in other cases, are accumulated in a Foreign Currency Monetary Item
 Translation Difference Account in the enterprise''s financial
 statements and amortised over the balance period of such long-term
 asset/liability but not beyond accounting period ending on or before
 March 31, 2011
 
 Exchange differences arising on the settlement of monetary items not
 covered above, or on reporting such monetary items of company at rates
 different from those at which they were initially recorded during the
 year, or reported in previous financial statements, are recognised as
 income or as expenses in the year in which they arise.
 
 When there is a change in the classification of a foreign operation,
 the translation procedures applicable to the revised classification are
 applied from the date of the change in the classification.
 
 8.  Investments
 
 Investments are valued as per AS – 13 Accounting for Investments.
 Investments that are readily realisable and are intended to be held for
 not more than One year are classified as current investments. All other
 investments are classified as long-term investments, even though they
 may be readily marketable. The cost of an investment includes
 acquisition charges such as brokerage, fees and duties.
 
 Current investments are carried at lower of cost and fair value
 determined on an individual investment basis.
 
 Long-term investments including investments in subsidiaries are carried
 at cost. However, provision for diminution in value is made to
 recognise a decline other than temporary in the value of the
 investments.
 
 9.  Employee Benefits
 
 a) Short term employee benefits:
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as Short term employee benefits. Benefits
 such as salaries, wages, short term compensated absence and bonus etc
 are recognised in the Profit and Loss Account in the period in which
 the employee renders the related service.
 
 b) Post employment benefits:
 
 I.  Defined contribution plans:
 
 Provident Fund Contribution: In accordance with the provisions of the
 Employees Provident Funds and Miscellaneous Provisions Act, 1952,
 eligible employees of the Company are entitled to receive benefits with
 respect to provident fund, a defined contribution plan in which both
 the Company and the employee contribute monthly at a determined rate
 (currently 12% of employee''s basic salary). Company''s contribution to
 Provident Fund is charged to the Profit and Loss Account.
 
 Employee State Insurance Contribution: The Contributions for Employee
 State Insurance Contribution are deposited with the appropriate
 government authorities and are recognised in the Profit & Loss Account
 in the financial year to which they relate and there is no further
 obligation in this regard.
 
 II.  Defined Benefit Plans:
 
 Gratuity: The Company provides for retirement benefits in the form of
 Gratuity. The Company''s gratuity plan is a defined benefit plan. The
 present value of gratuity obligation under such defined plan is
 determined based on an actuarial valuation carried out by an
 independent actuary using the Projected Unit Credit Method, which
 recognises each period of service as giving rise to additional unit of
 employee benefit entitlement and measures each unit separately to build
 up the final obligation. The obligation is measured at the present
 value of the estimated future cash flows. The discount rate used for
 determining the present value of the obligation under the defined
 benefit plans, is based on the market yields on Government securities
 as at the valuation date having maturity periods approximating to the
 terms of the related obligations. Actuarial gains and losses are
 recognised immediately in the profit and loss account.
 
 10.  Accounting for taxes on income
 
 a) Tax expenses comprises of Current Tax, Deferred Tax and Wealth Tax.
 Current Income Tax is measured at the amount expected to be paid to the
 tax authorities in accordance with the Indian Income Tax Act, 1961.
 
 b) Deferred Income Tax reflects the impact of current year timing
 differences between taxable income and accounting income for the year
 and reversal of timing differences of earlier years. Deferred Tax is
 measured based on the tax rates and the tax law enacted or
 substantially enacted at the balance sheet date. Deferred tax assets
 are recognised only to the extent there is reasonable certainty that
 sufficient future taxable income will be available against which these
 assets can be realised in future where as in cases of existence of
 carry forward of losses or unabsorbed depreciation, deferred tax assets
 are recognised only if there is virtual certainty of realisation backed
 by convincing evidence.  Deferred tax assets are reviewed at each
 balance sheet date.
 
 c) Minimum Alternative Tax (MAT) payable under the provisions of the
 Income-tax Act, 1961 is recognised as an assets in the year in which
 credit become eligible and is set off to the extent allowed in the year
 in which the entity becomes liable to pay income tax at the enacted tax
 rates.
 
 11.  Provisions, Contingent Liabilities and Contingent Assets
 
 Contingent liabilities are not recognised but are disclosed in the
 notes to accounts. Payment in respect of such Contingent liabilities,
 if any, is shown as balance with Statutory Authorities under head loans
 and advances, till the final outcome of the matter.
 
 Contingent Assets are neither recognised nor disclosed in the financial
 statements.
 
 Provisions are recognised when the Company has a present obligation as
 a result of past event and it is probable that an outflow of resources
 will be required to settle obligation(s), in respect of which estimate
 can be made for the amount of obligation. Provisions are not discounted
 to its present value. These are reviewed at each balance sheet date and
 adjusted to reflect the current best estimates.
 
 12.  Earnings per share
 
 Basic Earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders after tax (and
 including post tax effect of any extra-ordinary item) by the weighted
 average number of equity shares outstanding during the year. The
 weighted average number of equity shares outstanding during the period,
 are adjusted for events of bonus issue to existing shareholders.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss attributable to equity shareholders and the weighted
 average number of shares outstanding are adjusted for the effects of
 all dilutive potential equity shares, if any, except when the results
 would be anti- dilutive.
 
 13.  Leases
 
 a) Operating lease As Lessee
 
 Lease arrangements, where the risks and rewards incidental to ownership
 of an asset substantially vest with the lesser, are recognised as an
 operating lease. Lease payments under operating lease are recognised as
 an expense in the Profit and Loss Account on a straight-line basis over
 the lease period.
 
 As Lesser
 
 The assets given under operating lease are shown in the Balance Sheet
 under fixed assets and depreciated on a basis consistent with the
 depreciation policy of the Company. The lease income is recognised in
 the Profit and Loss Account on a straight-line basis over the lease
 period.
 
 b) Finance lease
 
 Assets taken on finance lease are capitalised at an amount equal to the
 fair value of the leased assets or the present value of minimum lease
 payments at the inception of the lease, whichever is lower. Such leased
 assets are depreciated over the lease tenure or the useful life,
 whichever is shorter. The lease payment is apportioned between the
 finance charges and reduction of outstanding liability. The finance
 charge is allocated to the periods over the lease tenure to produce a
 constant periodic rate of interest on the remaining liability.
 
 14.  Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby net profits
 before tax is adjusted for the effect of transaction of non-cash nature
 and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating, investing and
 financing activities are segregated.