1.  Basis of Accounting:
 
 The financial statements have been prepared under the historical cost
 convention on an accrual system based on principle of going concern and
 are in accordance with the generally accepted accounting principles and
 the accounting standards referred to in section 211 (3C) of the
 Companies Act, 1956.
 
 2.  Fixed Assets:
 
 Fixed assets are capitalized at cost inclusive of freight, duties,
 taxes, insurance, installation and net of cenvat credit and VAT set
 off.
 
 3.  Depreciation:
 
 Depreciation on fixed assets for own use has been provided based on
 straight-line method and at the rates prescribed by Schedule XIV of the
 Companies Act, 1956. Depreciation on assets added/disposed off during
 the period is provided on pro-rata basis from the date of addition or
 up to the date of disposal, as applicable. Depreciation on building
 constructed on lease hold land is provided over the lease Period. Cost
 of improvements to land and building taken on lease are amortized over
 the remaining lease period.
 
 4.  Impairment of Assets:
 
 Impairment loss is recognized wherever the carrying amount of an asset
 is in excess of its recoverable amount and the same is recognized as an
 expense in the statement of profit and loss and carrying amount of the
 asset is reduced to its recoverable amount.
 
 Reversal of impairment losses recognized in the prior years is recorded
 when there is an indication that the impairment losses recognized for
 the asset no longer exist or have decreased.
 
 5.  Investments:
 
 Long Term Investments are stated at cost except that there is permanent
 diminution in value of the said investment as required by AS-13.
 
 6.  Inventory:
 
 a) Raw materials are valued at cost or net realizable value which ever
 is lower as per FIFO method followed.
 
 b) Work-in-process is valued at estimated cost (including factory
 over-heads and depreciation)
 
 c) Manufactured finished goods are valued at lower of estimated cost
 (including factory overheads and depreciation) or net realizable value
 as per FIFO method followed.
 
 d) Traded goods are valued at lower of cost or net realizable value as
 per FIFO method followed.
 
 e) Re-usable waste generated on conversion of defective or damaged or
 obsolete stocks are valued at estimated material cost.
 
 7.  Purchases And Sales:
 
 a) Purchases are recorded net of cenvat credit.
 
 b) Sales are recognized at the time of dispatches and include excise
 duty, VAT and are net of returns. In case of export sales, revenue is
 recognized as on the date of bill of lading, being the effective date
 of dispatch.
 
 8.  Taxation:
 
 Income tax expense comprises current tax, deferred tax charge or
 release and charge on account of fringe benefit tax. The deferred tax
 charge or credit is recognized using substantially enacted rates. In
 the case of unabsorbed depreciation or carry forward losses, deferred
 tax assets are recognized only to the extent there is virtual certainty
 or realization of such assets. Other deferred tax assets are recognized
 only to the extent there is reasonable certainty of realization in
 future. Such assets are reviewed as at each Balance Sheet date to
 reassess realization.
 
 9.  Retirement Benefits:
 
 Provisions for/contributions to retirement benefits schemes are made as
 follows;
 
 a) Provident fund on actual liability basis.
 
 b) Gratuity based on actuarial valuation done as at the reporting date.
 
 10.  Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is present obligation as a result of past
 event and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes. Contingent Assets are neither recognized nor disclosed in the
 financial statement except where virtual certainty is there.
 
 11.  Use of Estimates:
 
 The preparation of financial statements in conformity with the
 generally accepted accounting principles requires estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities on the date of financial statements and the reported
 amounts of revenues and expenses during the reported Period. Difference
 between the actual results and estimates are recognized in the Period
 in which the results and estimates are recognized in the Period in
 which the results are known or materialize.
 
 12. Provisioning/Write-off of Doubtful Debts:
 
 Unrealizable Debts and Sundry balances has been written-off to present
 true and fair view of the Management and as per the policy adopted by
 the Management of the company in the previous years.