(a) Basis of Accounting:
 
 These Accounts have been prepared under the historical cost convention
 on an accrual basis and comply with the Accounting Standards referred
 to in Section 211(3C) of the Companies Act, 1956, of India (the Act).
 
 (b) Fixed Assets and Depreciation/Amortisation:
 
 Fixed assets are stated at cost of acquisition less accumulated
 depreciation Cost of acquisition is inclusive of all attributable cost
 of bringing the fixed asset to their working condition. When assets are
 retired or otherwise disposed off, the cost of such assets and the
 related accumulated depreciation are removed from the accounts. Any
 profit or loss on retirement, or other disposition is reflected in the
 Profit and Loss Account.
 
 Depreciation on fixed assets is provided on a pro-rata basis, on
 straight line method, at the rates prescribed under Schedule XIV to the
 Act, except in respect of certain assets, which are depreciated based
 on the useful lives estimated by the Management, as stated below:
 
 Assets                                                     Useful Lives
 
 Moulds and Dies                                                 3 Years
 
 Medical Equipment (including assets given on lease)             8 Years
 
 Information Technology related assets                           3 Years
 
 Vehicles                                                        3 Years
 
 The useful lives of the assets are based on technical estimates
 approved by the Management, and are lower than the implied useful lives
 arrived on the basis of the rates prescribed under Schedule XIV to the
 Act. Assets individually costing less than Rs. 5,000 are fully
 depreciated in the year of acquisition.
 
 Leasehold Land is being amortised over the period of lease.
 
 (c) Investments:
 
 Long-term investments are valued at cost. Provision is made in case of
 permanent diminution in the value of long-term investments. Short-term
 investments are valued at lower of cost and market value/net asset
 value.
 
 (d) Inventories:
 
 Inventories are valued at lower of cost (ascertained on
 first-in-first-out basis) and net realisable value, except spares which
 are charged to the Profit and Loss Account on its purchase. Cost for
 Work-in-Progress and Finished Goods includes raw material cost,
 estimated cost of conversion and other costs incurred in bringing the
 inventories to their present location and condition.
 
 (e) Retirement Benefits:
 
 The Company has various schemes of retirement benefits and the
 Companys contributions are charged to Profit and Loss Account.
 
 (I) In case of Provident Fund, payments are made to the relevant
 authorities.
 
 (II) In case of Superannuation, the amounts are funded through the
 Superannuation scheme of the Life Insurance Corporation of India.
 
 (III) In case of Gratuity, payments are made to the Trustees of the
 Companys Gratuity Fund on the basis of an actuarial valuation.
 
 The Company provides for Unutilised Privilege Leave and Retirement
 Ex-gratia Liability based on acturial valuation carried out by an
 independent actuary.
 
 (f) Sales:
 
 Sales are net of sales tax, trade and other discounts.
 
 (g) Taxes on Income:
 
 (I) The Company provides for taxes on income, on the tax payable
 method.
 
 (II) Deferred tax arising from timing differences between book and tax
 profits is accounted for under the liability method, at the applicable
 rate of tax, to the extent that the timing differences are expected to
 crystallise/capable of reversal as deferred tax charge/benefit in the
 Profit and Loss Account and as deferred tax liability/asset in the
 Balance Sheet.
 
 (h) Foreign Currency Transactions:
 
 Transactions in foreign currencies are accounted at `approximate
 exchange rates prevalent on the transaction date. Gains and losses
 arising out of subsequent fluctuations are accounted for on actual
 payment/realisation. Exchange differences arising therefrom is taken
 to the Profit and Loss Account, except in relation to purchase of fixed
 assets, wherein the exchange difference is adjusted in the carrying
 cost of the assets. The foreign currency denominated current assets and
 liabilities are restated at the exchange rate prevailing on the Balance
 Sheet date, and the resultant exchange gain or loss is recognised in
 the Profit and Loss Account.
 
 (i) Leases:
 
 (I) Assets acquired under leases where a significant portion of the
 risks and rewards of ownership are retained by the lessor are
 classified as operating leases. Lease rentals are charged to the Profit
 and Loss Account on accrual basis.
 
 (II) Assets leased out under operating leases are capitalised. Rental
 income is recognised on accrual basis over the lease term. Initial
 direct costs relating to assets given on operating leases are charged
 to Profit and Loss Account.