a) Basis of Preparation
 
 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
 provisions of the Companies Act, 1956.  The financial statements have
 been prepared under the historical cost convention on an accrual basis.
 The accounting policy has been consistently applied by the Company.
 
 The Company follows the mercantile system of accounting in general and
 recognizes income and expenditure on accrual basis except as otherwise
 stated.
 
 b) Use of Estimates
 
 The preparation of 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 and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 c) Fixed Assets:
 
 Fixed Assets are stated at cost (or revalued amounts, as the case may
 be), less accumulated depreciation/amortisation and impairment losses
 if any. Cost comprises the purchase price and any attributable cost of
 bringing the asset to its working condition for its intended use.
 Borrowing costs relating to acquisition of fixed assets which takes
 substantial period of time to get ready for its intended use are also
 included to the extent they relate to the period till such assets are
 ready to be put to use.
 
 Advances paid towards acquisition of the fixed assets which have not
 been installed or put to use and the cost of the assets not put to use
 before the year end are disclosed under capital work-in-progress.
 
 d) Depreciation:
 
 Depreciation is provided using the Straight Line Method at the rates
 prescribed under schedule XIV of the Companies Act, 1956.
 
 Leasehold land/building is amortized over the lease period.
 
 Fixed assets costing each Rs. 5000/- or less are fully depreciated in
 the year of purchase.
 
 Depreciation on the fixed Assets added/disposed off during the year
 provided on pro-rata basis.
 
 e) Impairment of Fixed Assets:
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognised whenever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the assets net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value at the weighted average cost of capital. If at
 the Balance Sheet date there is any evaluation that a previously
 assessed impairment loss no longer exists, then such loss is reversed
 and the asset is restated to that effect.
 
 f) Investments:
 
 Long term investments are stated at cost less provision for diminution
 in value, which is other than temporary. Current investments are
 carried at lower of cost or fair value. In respect of current
 investments, the shortfall in the book value when compared to market
 value of said investment on individual basis charged to Revenue A/c.
 
 g) Inventory Valuation:
 
 Inventories are valued as under: 
 
 Category                           Method of Valuation
 
 Raw materials, packing materials,  At lower of cost and net 
 stores and spares                  realizable value. For this 
                                    purpose cost is determined  
                                    on moving weighted average 
                                    basis.
 
 Semi-finished goods and            At lower of cost and net 
 manufactured Goods                 realizable value. Cost includes 
                                    material cost, direct and 
                                    indirect labour cost, 
                                    attributable factory overheads
                                    and excise duty.
 
 Traded goods                       At lower of cost and net 
                                    realizable value. For this
                                    purpose cost is determined on
                                    first in first out basis. Cost 
                                    includes cost of purchase and 
                                    other direct costs incurred.
 
 h) Foreign Currency Transactions:
 
 The transactions denominated in foreign currencies are normally
 recorded at the exchange rate prevailing at the time of the
 transaction. Any income or expense on account of exchange difference
 either on settlement or on translation is recognized in Profit and Loss
 Account. Monetary Assets and liabilities denominated in foreign
 currencies are stated at the exchange rate prevailing on the date of
 the Balance Sheet.
 
 i) Forward Contracts
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortised as expense or income over the life of the
 contract. Exchange differences on such contracts are recognised in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contracts is recognised as income or as expense for
 the year.
 
 j) Revenue Regonition:
 
 Sale of Goods
 
 Revenue is recognised when the significant risks and rewards of
 ownership of the goods have passed to the buyer which normally
 coincides with dispatch of goods. Sales are net of returns, trade
 discounts, and sales tax and include excise duty.
 
 Interest
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 Commission
 
 Commission is recognized when right to receive the same from principal
 is established on sale.
 
 Dividend
 
 Dividend Income is recognized when right to receive the same is
 established.
 
 Others
 
 Subsidiary from governments, Sales Tax assessment dues, Insurance
 claims are accounted for when reasonable certainty of receipt is
 established.
 
 k) Employee Benefits
 
 (i) Defined benefit plans
 
 Gratuity:
 
 Gratuity liability is provided for on the basis of an actuarial
 valuation on projected unit credit method made at the end of each
 financial year.
 
 The Company makes annual contribution to the Employees'' Group Gratuity
 Scheme of the Life Insurance Corporation of India, a funded defined
 benefit plan for qualifying employees. The scheme provides lump sum
 payment to vested employees at retirement, death while in employment or
 on termination of employment of an amount equivalent to 15 days salary,
 payable for each completed year of service or part thereof in excess of
 six months. Vesting occurs upon completion of five years of service.
 
 Actuarial gains/losses are immediately taken to profit and loss account
 and are not deferred.
 
 Leave Encashment
 
 Leave Encashment liability is provided for on the basis of an actuarial
 valuation on projected unit credit method made at the end of each
 financial year.
 
 The Company allows to encash the privilege leave up to maximum of 15
 days per annum from the maximum accumulated leaves of 84 days of
 qualifying employees. The company provides for unencashed portion of
 leave of qualified employees at each year end and the same is unfunded.
 
 (ii) Defined contribution plans
 
 These are Plans in which the company pays pre-defined amounts to
 separate funds and does not have any legal or informal obligation to
 pay additional sums. These comprise of contributions to the employees
 provident fund with the government, superannuation fund and certain
 state plans like Employees State Insurance. The Company''s payments to
 the defined contribution plans are recognised as expenses during the
 period in which the employees perform the services that the payment
 covers.
 
 l) Taxes on Income:
 
 Income tax is accounted in accordance with AS-22 ''Accounting for taxes
 on income'', issued by The Institute of Chartered Accountants of India
 (ICAI), which includes current taxes and deferred taxes. Deferred
 income taxes reflect the impact of the current year timing differences
 between taxable income and accounting income for the year and reversal
 of timing differences of earlier years. Deferred tax assets are
 recognised only to the extent that there is reasonable certainty that
 sufficient future taxable income will be available except that deferred
 tax assets arising due to unabsorbed depreciation and losses are
 recognised if there is virtual certainty that sufficient future taxable
 income will be available to realise the same and are recognized using
 the tax rates and tax laws that have been enacted or substantively
 enacted.
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income using the applicable tax rates and tax laws for the
 year.
 
 MAT credit is recognised as an asset only when and to the extent there
 is convincing evidence that the Company will pay normal income tax
 during the specified period. In the year in which the Minimum
 Alternative Tax (MAT) credit becomes eligible to be recognised as an
 asset in accordance with the recommendations contained in Guidance Note
 issued by the Institute of Chartered Accountants of India, the said
 asset is created by way of a credit to the profit and loss account and
 shown as MAT Credit Entitlement. The Company reviews the same at each
 balance sheet date and writes down the carrying amount of MAT Credit
 Entitlement to the extent there is no longer convincing evidence to the
 effect that Company will pay normal Income Tax during the specified
 period.
 
 Wealth tax is accounted in accordance with Wealth Tax Act, 1957. 
 
 m)  Cash & Cash Equivalent:
 
 Cash and Cash Equivalent comprises Cash, Fixed deposit and Short Term
 deposit which matured in less than three months.
 
 n) Borrowing Cost:
 
 Interest and other costs related to borrowing are considered as part of
 cost of qualifying fixed assets upto the date asset is ready for use.
 Other borrowing costs are charged to revenue.
 
 o) Earning Per share
 
 Basis earnings per shares are calculated by dividing the net profit or
 loss after tax for the period attributable to equity shareholders by
 the weighted average number of equity shares outstanding during the
 period. For the purpose of calculating diluted earnings per share, the
 net profit or loss for the period attributable to the equity
 shareholders and the weighted average number of shares outstanding
 during the period is adjusted for the effects of all dilutive potential
 equity shares.
 
 p) Provisions, Contingent Liabilities and Contingent Assets
 
 A provision is made based on a reliable estimate when it is probable
 that an outflow of resources embodying economic benefits will be
 required to settle an obligation. Contingent liabilites, if material
 are disclosed by way of notes to accounts.  Contingent assets are
 neither recognised nor disclosed in the financial statements.
 
 q) Cenvat & Excise Duty and Service Tax:
 
 Cenvat benefit on Raw Materials, Packing Materials, Tools and Stores
 and Spares is accounted for at the time of consumption by reducing the
 same from the respective costs, wherever applicable. Cenvat benefit on
 capita! goods is credited to the acquisition cost of the respective
 assets whenever they are available for adjustment against Central
 Excise duty payment.  Service Tax on input service is accounted for at
 the time of availing the service by reducing the same from the
 respective cost of service, wherever applicable. It is adjusted against
 excise duty payment after the payment of the bill for services together
 with the Service Tax in line with the Cenvat Credit Rules 2004.