1 (a). Basis of Preparation: -
 
 The accounts are prepared on accrual basis under the historical cost
 convention in accordance with the applicable accounting Standards
 issued by the Institute of Chartered Accountants of India referred to
 in Section 211(3C) of the companies Act, 1956 and other relevant
 provisions of the Companies Act,1956.
 
 (b). 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 amount of assets and
 liabilities as of the date on the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual results and estimates are recognized in the year in
 which results materialize.
 
 2.  Revenue recognition:- 
 
 (a) Sales:-
 
 Sales comprise sale of goods, services and export incentives.  Revenue
 from sale of goods is recognized:- i) When all the significant risk and
 rewards of ownership are transferred to the buyer and the company
 retains no effective control of the goods transferred to a degree
 usually associated with ownership; and ii) No significant uncertainty
 exists regarding the amount of the consideration that will be derived
 from the sale of goods.
 
 (b) Benefit under Drawback Scheme:
 
 Revenue in respect of drawback benefit is recognized on post export
 basis.
 
 3.  Fixed Assets: -
 
 (a) Fixed assets are stated at cost less accumulated depreciation and
 impairment losses. Cost comprises the purchase price and any
 attributable cost of bringing the assets to its working condition for
 its intended use.
 
 (b) Capital work in progress comprises of outstanding advances paid to
 acquire fixed assets and the cost of fixed assets that are not yet
 ready for their intended use at the balance-sheet date.
 
 4.  Depreciation: -
 
 (a) Depreciation on fixed assets is provided on Written down value
 method in accordance with and in the manner specified in schedule XIV
 to the Companies Act,1956.
 
 (b) Depreciation on assets costingss5000 or below is charged @100% per
 annum on proportionate basis.
 
 5.  Investments
 
 Long-term investments are stated at cost. Provision for diminution, if
 any, in the value of each long-term investment is made to recognize a
 decline, other than of a temporary nature.  Current investments are
 stated at lower of cost or market value.
 
 6.  Borrowing costs
 
 Borrowing cost that is directly attributable to the acquisition or
 construction of a qualifying asset is considered as part of the cost of
 the asset. All other borrowing costs are treated as period cost and
 charged to the profit and loss account in the year in which incurred.
 
 7.  Impairment of assets
 
 The Company assesses at each Balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset.  If
 such recoverable amount of the asset or the recoverable amount of the
 cash-generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognized in the profit and loss account.
 
 8.  Operating Leases: -
 
 Lease arrangements where the risks and rewards incidental to the
 ownership of an asset substantially vest with the lessor, are
 recognized as operating lease. Operating lease payments are recognized
 as an expense in the profit & loss account on a straight-line basis
 over the lease term.
 
 9.  Inventories: -
 
 The inventories are valued at cost or net realizable value, whichever
 is lower. The cost in respect of the various item of inventory is
 computed as under:
 
 - In case of raw material, at weighted average cost.
 
 - In case of work-in-process, at raw material cost plus conversion
 cost, depending upon the stage of completion.  o In case of finished
 goods, at raw material cost plus conversion cost, packing cost and
 other overheads incurred to bring the goods to their present location &
 condition.  o In case of stores & spares, at weighted average cost.  o
 In case of traded goods, at first-in-first-out basis.  o In case of
 waste & scrap , at net realizable value.
 
 10.  Employee benefits:-
 
 (a) The company''s contribution to Employees Provident Fund is charged
 to revenue on accrual basis.
 
 (b) The company has Defined Benefit plans namely Leave Encashment and
 Gratuity for all employees, the liability for which is determined on
 the basis of an actuarial valuation at the end of the year.
 
 11.  Foreign Currency transaction:-
 
 (a) Initial Recognition:
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of
 transaction.
 
 (b) Conversion:
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction.
 
 (c) Exchange Differences:
 
 Exchange differences arising on the settlement of monetary items except
 fixed assets or on reporting company''s monetary items at rates
 different from those at which they were initially recorded during the
 year, or reported in previous financial statements, are recognized as
 income or as expense in the year in which they arise. Exchange
 differences relating to acquisition of imported fixed assets are
 adjusted in the carrying cost of the fixed assets.
 
 12.  Accounting for Taxes on Income:-
 
 The accounting treatment followed for taxes on income is to provide for
 Current Tax and Deferred Tax.  Current tax is the aggregate amount of
 income tax determined to be payable in respect of taxable income for a
 period. Deferred tax is the tax effect of timing difference between
 taxable income & accounting income that originate in one period and are
 capable of reversal in one or more subsequent periods.
 
 13.  Segment Disclosure: -
 
 Segment Information is prepared in conformity with the accounting
 policies adopted for preparing and presenting the Financial Statements
 of the enterprise as a whole in line with Accounting Standard - 17.
 
 14.  Earning per share: -
 
 Basic earning per share is calculated by dividing the net profit or
 loss 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 equity shareholders and the
 weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 15.  Provisions, Contingent Liabilities and Contingent Assets: -
 
 (a) Provisions are recognized only when there is a present obligation
 as a result of past events and it is probable that an outflow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made. These are reviewed at each
 Balance Sheet date and adjusted to reflect the current best estimate.
 
 (b) A disclosure for a contingent liability is made when there is a
 possible obligation or present obligation that may, but probably will
 not, require an outflow of resources.
 
 (c) Contingent Assets are not recognized in the financial statements
 since this may result in the recognition of income that may never be
 realized.