a) Basis for preparation of financial statement
 
 The financial statement have been prepared to comply in all material
 respects with the notified accounting standards by Companies
 (Accounting Standards) Rules, 2006 and the relevant provision of the
 Companies Act, 1956, under historical cost convention on an accrual
 basis unless stated otherwise.
 
 b) Method of Accounting
 
 The Company follows the mercantile system of accounting.
 
 c) Revenue recognition of Income & Expenditure
 
 i) Revenue from sales of products is recognized on transfer of all
 significant risk and rewards of ownership of the product on to
 customer, which is generally on dispatch of goods. Sales are stated
 exclusive of Value Added Tax/Sales Tax, returns and discounts for the
 year but inclusive of Excise duty.
 
 ii) Purchases are recognized when ownership of goods is transferred and
 inclusive of all statutory levies but excluding excise duty & value
 added tax
 
 d) Job work charges are accounted for on completion of job basis.
 
 iv) Interest income is recognized on time proportion basis.
 
 v) All items of Income & Expenses are accounted for on accrual basis.
 
 d) Services Tax & Convert Credit
 
 i) Services Tax payable on Job work is accounted for on completion of
 Job Work.
 
 ii) Convert Credit on input services is recognized on the date of the
 Payment of the same.
 
 e) Fixed Assets
 
 Fixed Assets are stated at cost net of Cenvat, other setoffs,
 accumulated depreciation and impairment loss if any. Cost includes all
 expenses incurred to bring the asset to its present location and
 condition.
 
 f) Capital Work in Progress
 
 The capital Work in progress is stated at cost plus pre operative
 expenses.
 
 g)      Depreciation
 
 i) Depreciation on Fixed Asset at Mumbai Office is provided on written
 down value as per the rates prescribed under the schedule XTV of the
 Companies Act, 1956.
 
 ii) Depreciation on Fixed Assets at Nag thane Factory Unit is provided
 on straight-line method as per the rates prescribed under Schedule XIV
 of the Companies Act, 1956.
 
 iii) Depreciation on Plant & Machinery is calculated on the basis of 3
 shifts on straight- line method.
 
 h) Inventories
 
 i) Raw Materials are valued at cost or net realizable value whichever
 is less. Cost is arrived at using FIFO Method and comprises of all
 expenditure including expenses incurred in bringing the inventories to
 the present condition and situation. It does not include Excise Duty
 and VAT.
 
 ii) Work in progress is valued at cost or net realizable value
 whichever is lower. Cost consists of average cost of Raw material and
 conversion cost up to the stage of process completed.
 
 iii) Finished goods are valued at cost or net realizable value
 whichever is less. Cost consists average cost of Raw material,
 conversion cost and excise duty.
 
 iv) Stores and Spares are valued at cost exclusive of Excise Duty & VAT
 credit taken.  
 
 v) Scrap is valued at the net realizable value.
 
 i)      Foreign Currencies Transaction
 
 a) Transactions in foreign currency are recorded at the exchange rates
 prevailing on the date of the transaction
 
 b) Monetary items denominated in foreign currency are restated at the
 exchange rate prevailing on the balance sheet date.
 
 c) The exchange differences on realization or on restatement are
 adjusted to :
 
 i) Carrying cost of fixed assets, if they relate to fixed assets and
 
 ii) Profit and Loss account in other cases
 
 d) In case of forward contracts, the exchange difference are dealt with
 in the profit and loss account over the period of the contracts except 
 in respect of liabilities incurred for acquiring fixed assets in which 
 case, the difference are adjusted in their carrying cost.
 
 j) Employee Benefit
 
 Liability in respect of employee benefits are accounted for as follows:
 
 A.  Short-term employee benefits are recognized as expenses at
 undiscounted amount in the Profit & Loss Account of the year in which
 the relevant services is rendered.
 
 B.  Retirement Benefit
 
 i) Retirement benefit in the form of Provident Fund, which are defined
 Contribution plans, are accounted on accrual basis and charged to the
 Profit & Loss Account of the year.
 
 ii) The liability in respect of accumulated leave is provided for in
 the profit & loss account, based on actual leave liability determined
 at the end of the year at undiscounted amount.
 
 iii) The Company has taken a Group Gratuity cum Life Insurance policy
 with Life Insurance Corporation of India (LIC) for all eligible
 employees. The liability is actuarially assessed by LIC and accounted
 on accrual basis.
 
 k) Borrowing Cost
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. All other borrowed cost are charged to Profit & Loss
 Account.
 
 l) Taxation:
 
 i) Current Tax is determined as the amount of tax payable in respect of
 taxable income for the year, computed in accordance with the applicable
 provisions of income tax Act, 1961.
 
 ii) Deferred Tax resulting from timing difference between taxable and
 accounting income is accounted for using the tax rates and laws that
 have been enacted or substantively enacted by the balance sheet date.
 Deferred Tax Asset is recognized and carried forward only if there is
 reasonable certainty of its realization.
 
 m) Impairment of Assets
 
 Impairment of assets is ascertained in each balance sheet date in
 respect of cash generating units.  An impairment loss is recognized
 whenever carrying amount of an asset exceeds its recoverable amount.
 The recoverable amount is the greater of the net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value based on an appropriate
 discount factor.
 
 n) Provisions, Contingent Liabilities and Contingent Assets
 
 i) A provision is recognized based on a reliable estimate when there is
 a present obligation as a result of past events and it is probable that
 an outflow of resources embodying economic benefits will be required to
 settle an obligation.
 
 ii) Contingent liabilities, if material, are disclosed by way of notes
 to accounts. Contingent assets are neither recognized nor disclosed in
 the financial statements.