A) FIXED ASSETS:
 
 Fixed Assets are stated at cost of acquisition or construction less
 depreciation. Cost comprises of the purchase price and other
 attributable costs and includes the financing costs relating to
 borrowed funds attributable to construction or acquisition of
 Qualifying Fixed Assets up to the date the asset is put to use and
 exchange difference on long term foreign currency monetary items
 relating to acquisition of the respective assets.
 
 B) DEPRECIATION:
 
 I) On Fixed Assets acquired up to 31st March, 1995 :
 
 Depreciation on fixed assets is provided as per Written Down Value
 method at the rates specified for those assets in Appendix I to the
 Income Tax Rules, 1962 with reference to the Written Down Value of the
 Fixed Assets.  Plant & Machinery, Electrical Installation, Dies, Jigs,
 Fixtures & Electrical Fittings costing below Rs. Five Thousand each was
 written off.
 
 II) On Fixed Assets acquired from 1st April, 1995 to 31st March, 2000 :
 
 Depreciation on fixed assets is provided as per Written Down Value
 Method at the rates specified in Schedule XIV to the Companies Act,
 1956. Pro-rata depreciation as specified in Schedule XIV to the
 Companies Act, 1956 is not provided on the assets sold during the year.
 
 III) On Fixed Assets acquired from 1st April, 2000 onwards and on Fixed
 Assets transferred on Merger of Auto Division of erstwhile Jaya Hind
 Sciaky Ltd :
 
 Depreciation on fixed assets is provided as per Straight Line Method at
 the rates specified in Schedule XIV to the Companies Act, 1956.
 Pro-rata depreciation as specified in Schedule XIV to the Companies
 Act, 1956 is not provided on the assets sold during the year.
 
 IV) Intangible Assets : Technical Know-how fees in respect of
 manufacturing process and Computer Software are treated as Intangible
 Asset and the same are written off over a period of four years and in
 respect of Auto Division of erstwhile Jaya Hind Sciaky Ltd., the same
 are written off over a period of five years starting from the year of
 receipt of the same.
 
 C) VALUATION OF INVENTORY:
 
 Inventories are stated at the lower of cost and net realisable value.
 Cost has been determined by using annual weighted average cost formula.
 Work in Progress and manufactured finished goods include material cost,
 labour and allocation of fixed and variable production overheads as per
 Accounting Standard 2 (Revised), Valuation of Inventories notified in
 the Companies ( Accounting Standard ) Rules 2006.
 
 D) INVESTMENTS:
 
 I) Long Term investments are carried at cost. Provision for diminution
 in the value of long term investment is made only if, such a decline is
 other than temporary in the opinion of the management.
 
 II) Current investments are valued at lower of cost and realisable
 value.
 
 E) EMPLOYEE BENEFITS:
 
 (a) Short term employee benefits:
 
 All employee benefits falling due wholly within the accounting period
 of rendering the services are classified as short term employee
 benefits, which include benefits like salaries, wages, short term
 compensated absences and performance incentives and are recognised as
 expenses in the period in which the employees render the relevant
 service.
 
 (b) Post employment benefits:
 
 Contributions to defined contribution schemes such as Provident Fund,
 Superannuation Fund etc., are recognised as expenses in the period in
 which the employee renders the related service. The company also
 provides post employment defined benefit in the form of gratuity. The
 cost of providing benefit is determined using the projected unit credit
 method based on actuarial valuation report.
 
 F) RESEARCH AND DEVELOPMENT EXPENSES:
 
 Revenue Expenditure on Research and Development is charged off as an
 expense in the year in which it is incurred except where such expenses
 are treated as Intangible Assets or Capital Expenditure which is
 grouped with Fixed Assets under appropriate heads and depreciation is
 provided as per Accounting Policy 1(B)
 
 G) FOREIGN CURRENCY TRANSACTIONS:
 
 I) Gains / Losses of transactions in foreign currency are recognised in
 the Profit & Loss Account except gains / losses on long term foreign
 currency monetary items relating to acquisition of a depreciable
 capital asset. Such gains / losses are adjusted against cost of the
 capital asset and depreciated over the remaining life of the assets.
 
 II) Current Assets and Current Liabilities in foreign currency are
 translated at the rates of exchange prevailing at the date of Balance
 Sheet and exchange difference is recognised in the Profit & Loss
 Account. Exchange difference in respect of liabilities covered under
 forward contracts is recognised as income or expense over the life of
 the Contract.
 
 H) INCOME RECOGNITION RELATING TO LEASE:
 
 Income relating to lease / finance charges is recognised as per the
 terms of Agreement except where there is uncertainty of ultimate
 collection of such income.