i.  Basis Of Preparation
 
 The financial statements have been prepared in accordance with the
 Generally Accepted accounting Principles in India under the historical
 cost convention.
 
 ii.  Use of Estimates
 
 The preparation of the financial statements in conformity with the
 Indian GAAP requires management to make judgement, estimates and
 assumptions that affects the reported amount of revenues, expenses,
 assets and liabilities and the disclosure of contingent liabilities, at
 the end of the reporting period. Although these estimates are based on
 the management''s best knowledge of current events and actions,
 uncertainty about these assumptions and estimates could result in the
 outcomes requiring material adjustment to the carrying amounts of
 assets or liabilities in future periods.
 
 iii. Revenue Recognition
 
 The Company follows mercantile system of Accounting and Income and
 expenditure are recognised on accrual basis.
 
 iv.  Fixed Assets
 
 All fixed Assets are stated at cost of acquisition less accumulated
 depreciation (net of cenvat, wherever availed). All cost relating to
 the acquisition and installation of the fixed assets are capitalised
 and includes financing costs relating to borrowed fund attributable to
 the acquisition of fixed assets up to the date the fixed assets is put
 to use.
 
 v.  Depreciation
 
 Depreciation has been provided on straight-line method at the rates and
 in the manner prescribed in Schedule XIV to the Companies Act except in
 case of Plant & machinery depreciation has been provided @ 5.15% by
 revising the useful life of the Plant & Machinery. Depreciation on
 Additions/Deletions during the year has been provided on pro rata
 basis.
 
 vi.  Inventories Valuation
 
 Raw material and Packing Material: At lower of Cost or Net realisable
 value. The cost is arrived at on first-in-first-out basis and net of
 cenvat credit availed.
 
 Finished Goods and Work in Progress: At lower of Cost or Net realisable
 value. Cost includes appropriate allocation of overheads and is arrived
 at on first-in-first-out basis.
 
 vii. Investments
 
 Long term investments are stated at cost less provision for diminution
 in value other than temporary, if any.
 
 viii.  Borrowing Cost
 
 Borrowing Costs that are attributable to the acquisition and
 construction of qualifying assets are capitalised. A qualifying asset
 is an asset that necessarily takes substantial period of time to get
 ready for its intended use. Other borrowing costs are recognised as an
 expense in the year in which they are incurred.
 
 ix.  Foreign Currency Transaction
 
 Foreign currency transactions are accounted on the basis of exchange
 rate prevailing at the time of transaction. The foreign currency
 transaction remains outstanding at year-end are restated at rate
 prevailing on 31st March. The Exchange difference if any arises due to
 exchange fluctuation is charged to Profit and Loss Account.
 
 x.  Taxes on Income
 
 Current Tax is measured at the amount expected to be paid to the
 taxation authorities, using the applicable tax rates and tax laws.
 
 Deferred tax assets and liabilities are measured using the tax rates
 and tax laws that have been announced upto the balance sheet date.
 Deferred Tax assets and liabilities are recognised for the future tax
 consequences attributable to timing differences between the taxable
 income and accounting income. The effect of tax rate change is
 considered in the Profit & Loss account of the respective year of
 change.
 
 Minimum Alternate Tax (MAT) credit is recognized 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 MAT credit becomes eligible to be recognized as an asset in
 accordance with the recommendations contained in Guidance Note issued
 by the Institute of Chartered Accountants of India, the asset is
 created by way of a credit to the Profit & 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 specified period.
 
 xi.  Retirement Benefits
 
 i.  Provident Fund
 
 Retirement benefit in form of Provident Fund is a defined contribution
 plan and the contributions made for the eligible employees, are charged
 to the Profit & Loss Account of the year when the contributions to the
 respective funds are dues.
 
 ii.  Gratuity
 
 Retirement gratuity liability of employees is a defined benefit
 obligation. The company has taken up a group policy with Life Insurance
 Corporation of India for future payments of gratuities to employees.
 The contributions are based on actuarial valuation
 
 xii. Earning Per Share
 
 Basic earning per share are calculated by dividing the net profit
 /(loss) for the year attributable to equity shareholders (after
 deducting attributable taxes) by average number of equity shares
 outstanding during the year.
 
 For the purpose of calculating diluted earning per share, the net
 profit or loss for the year attributable to equity shareholders and the
 average number of shares outstanding during the year are adjusted for
 the effects of all dilutive potential equity shares.
 
 Basic earning per share are calculated by dividing the net profit
 /(loss) for the year attributable to equity shareholders (after
 deducting attributable taxes) by average number of equity shares
 outstanding during the year.
 
 For the purpose of calculating diluted earning per share, the net
 profit or loss for the year attributable to equity shareholders and the
 average number of shares outstanding during the year are adjusted for
 the effects of all dilutive potential equity shares.
 
 xiii.  Segmental Reporting
 
 The Company is engaged in manufacture of Pharmaceutical Formulations.
 The entire operations are governed by same set of risk and return;
 hence the same has been considered representing a single primary
 segment.
 
 xiv. Provisions, Contingent Liabilities And Contingent Assets
 
 Provisions are recognized in the accounts in respect of present
 probable obligations arising as a result of past events and it is
 probable that there will be an outflow of resources, the amount of
 which can be reliably estimated
 
 Contingent liabilities are disclosed in respect of possible obligation
 that arises from past events but their existence is confirmed by the
 occurrence or non occurrence of one or more uncertain future events not
 wholly with in the control of the company.
 
 Contingent Assets are neither recognized nor disclosed in the financial
 statements.