(1) Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the Accounting Standards notified by Companies
 (Accounting Standards) Rules, 2006 (as amended) and the relevant
 provisions of the Companies Act, 1956. The financial statements have
 been prepared under the historical cost convention on an accrual basis.
 The accounting policies have been consistently applied by the Company
 and are consistent with those used in the previous year.
 
 (2) Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amount of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 (3) Fixed Assets
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses, if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use. Borrowing costs relating to acquisition /
 construction of fixed assets which take substantial period of time to
 get ready for its intended use are also included to the extent they
 relate to the period till such assets are ready to be put to use.
 
 (4) Depreciation
 
 (i) Depreciation is provided using Straight Line Method on a pro rata
 basis as per the useful lives of the assets estimated by the
 management, the rates prescribed in Schedule XIV to the Companies Act,
 1956.
 
 (ii) Leasehold improvements are depreciated over the shorter of the
 estimated useful life of the asset or the lease term.
 
 (iii) Assets costing Rs. 5,000 or below are depreciated at the rate of
 100%.
 
 (iv) Software in the nature of Intangible assets are depreciated over a
 period of 6 years.
 
 (5) Impairment
 
 (i) The carrying amounts of assets are reviewed at each balance sheet
 date if there is any indication of impairment based on internal/
 external factors. An impairment loss is recognized wherever the
 carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the greater of the asset''s net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value using a pre-tax discount
 rate that reflects current market assessments of the time value of
 money and risks specific to the asset.
 
 (ii) After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 (6) Intangible Assets
 
 Intangible assets are recognised if they are separately identifiable
 and the Company controls the future economic benefits arising out of
 them. Research costs are expensed as incurred. Development expenditure
 incurred on software implementation is recognized as an intangible
 asset when its future recoverability can reasonably be regarded as
 assured and are separately identifiable. Any expenditure so capitalised
 is amortized over the estimated useful lives of six years on straight
 line basis.
 
 The carrying value of development costs is reviewed for impairment
 annually when the asset is not in use, and otherwise when events or
 changes in circumstances indicate that the carrying value may not be
 recoverable.
 
 (7) Expenditure on new projects
 
 Expenditure directly relating to construction phase is capitalized.
 Indirect expenditure incurred during construction period is capitalized
 as part of the indirect construction cost to the extent it is related
 to construction or is incidental thereto. Other indirect expenditure
 (including borrowing costs) incurred during the construction period
 which is not related to the construction activity nor is incidental
 thereto is charged to the Profit and Loss Account.
 
 All direct capital expenditure on expansion is capitalized. As regards,
 indirect expenditure on expansion, only that portion is capitalized
 which represents the marginal increase in such expenditure involved as
 a result of capital expansion. Both direct and indirect expenditure are
 capitalized only if they increase the value of the asset beyond its
 original standard of performance.
 
 (8) Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss Account on a straight line basis over the lease
 term.
 
 (9) Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments.  All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis.
 
 Long-term investments are carried at cost. However, provision for
 diminution in the value is made to recognise a decline other than
 temporary in the value of the investments.
 
 (10) Inventories
 
 Inventories are valued as follows:
 
 Raw material, packing material, stores and spares Lower of cost and net
 realizable value. However, materials and other items held for use in
 the production of inventories are not written down below cost if the
 finished products in which they will be incorporated are expected to be
 sold at or above cost. Cost is determined on a weighted average basis.
 
 Work-in-progress and finished goods
 
 Lower of cost and net realizable value. Cost includes direct material
 and labour and a proportion of manufacturing overheads based on normal
 operating capacity. Cost of finished goods includes excise duty. Cost
 is determined on a weighted average basis.
 
 Net Realisable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and the
 estimated costs necessary to make the sale.
 
 (11) Borrowing Costs
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use are capitalized as part of
 the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur.  Borrowing cost consists of interest
 and other costs that an entity incurs in connection with the borrowing
 of funds.
 
 (12) Revenue Recognition
 
 Revenue is recognised to the extent it is probable that the economic
 benefits will flow to the Company and the revenue can be reliably
 measured.
 
 (i) Sale of goods
 
 Revenue is recognised when the significant risks and rewards of
 ownership of the goods have passed to the buyer. Excise duty, sales tax
 and VAT deducted from turnover (gross) are the amount that is included
 in the amount of turnover (gross) and not the entire amount of
 liability arising during the year.
 
 (ii) Income from investments
 
 Revenue is recognised on an accrual basis in accordance with the terms
 of relevant contracts.
 
 (iii) Interest Income
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 (iv) Dividend income
 
 Revenue is recognised when the shareholders'' right to receive payment
 is established by the balance sheet date. Dividend from subsidiaries is
 recognised even if same are declared after the balance sheet date but
 pertains to period on or before the date of balance sheet as per the
 requirement of Schedule VI of the Companies Act, 1956.
 
 (13) Foreign Currency Translation
 
 (i) 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 the
 transaction.
 
 (ii) 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; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 (iii) Exchange differences
 
 Exchange differences arising on the settlement of monetary items, or on
 reporting such 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 expenses in the
 year in which they arise.
 
 (iv) Forward exchange contracts not intended for trading or speculation
 purposes
 
 The premium or discounts arising at the inception of forward exchange
 contracts is amortised as expense or income over the life of the
 contract. Exchange difference on such contracts is recognized in the
 statement of profit and loss in the year in which the exchange rate
 changes. Any profit or loss arising on cancellation or renewal of
 forward exchange contracts is recognized as income or expense for the
 year.
 
 (14) Retirement and other employee benefits
 
 (i) Provident fund
 
 Retirement benefit in the form of Provident Fund is a defined benefit
 obligation. The Company and its employees are contributing to a
 provident fund trust Max India Limited Employees Provident Fund Trust
 and the contributions are charged to the Profit & Loss Account of the
 year when the contributions to the respective funds are due. Shortfall
 in the fund, if any, is adequately provided for by the Company.
 
 (ii) Superannuation fund
 
 Superannuation Fund is a defined contribution scheme. Liability in
 respect of Superannuation Fund is accounted for as per the Company''s
 Scheme and contributed by the Company to Max India Limited
 Superannuation Fund every year. The contribution to the fund is
 charged to the Profit and Loss Account of the year. The Company does
 not have any other obligation to the fund other than the contribution
 payable.
 
 (iii) Gratuity
 
 Gratuity liability is a defined benefit obligation and is provided for
 on the basis of an actuarial valuation on projected unit credit method
 made at the end of each financial year. The Company has a recognised
 gratuity trust Max India Limited Employees Gratuity Fund which in
 turn has taken a policy with LIC to cover the gratuity liability of the
 employees. The difference between the actuarial valuation of the
 gratuity of employees at the year-end and the balance of funds with LIC
 is provided for as liability in the books.
 
 (iv) Compensated absences
 
 Short term compensated absences are provided for based on estimates.
 Long term compensated absences are provided on actuarial valuation at
 the year end. The actuarial valuation is done as per projected unit
 credit method.
 
 Actuarial gains/ losses are taken to Profit and Loss Account for the
 year.
 
 (15) Income Taxes
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Indian Income Tax Act, 1961. Deferred income tax
 reflects the impact of current year timing differences between taxable
 income and accounting income for the year and reversal of timing
 differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date.  Deferred
 tax assets and deferred tax liabilities are offset, if a legally
 enforceable right exists to set off current tax assets against current
 tax liabilities and the deferred tax assets and deferred tax
 liabilities relate to the taxes on income levied by same governing
 taxation laws. Deferred tax assets are recognised only to the extent
 that there is reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realised. In situation where the Company has unabsorbed depreciation or
 carry forward tax losses, deferred tax assets are recognised only if
 there is virtual certainty supported by convincing evidence that such
 deferred tax assets can be realised against future taxable profits.
 
 At each balance sheet date the Company reassesses deferred tax assets.
 It recognises unrecognised deferred tax assets to the extent that it
 has become reasonably certain or virtually certain, as the case may be
 that sufficient future taxable income will be available against which
 such deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 (16) Government grants and Subsidies
 
 Grants and subsidies from the government are recognised when there is
 reasonable assurance that the grant/ subsidy will be received and all
 attaching conditions will be complied.
 
 When the grants and subsidy related to an expense item, it is
 recognised as income over the periods necessary to match them on a
 systematic basis to the cost, which it is intended to compensate.
 
 Where the grant or subsidy relates to an asset, its value is deducted
 from the gross value of the asset concerned in arriving at the carrying
 amount of the related assets.
 
 Government grants of the nature of promoter''s contribution are credited
 to the capital reserve and treated as a part of shareholders fund.
 
 (17) Employee Stock Compensation Cost
 
 Measurement and disclosure of the employee share-based payment plans is
 done in accordance with SEBI (Employee Stock Option Scheme) Guidelines,
 1999 and the Guidance Note on Accounting for Employee Share-based
 Payments, issued by the Institute of Chartered Accountants of India.
 The Company measures compensation cost relating to employee stock
 options using the intrinsic value method. Compensation expense is
 amortized over the vesting period of the option on a straight line
 basis.
 
 (18) Segment Reporting Policies Identification of segments
 
 The Company''s operating businesses are organized and managed separately
 according to the nature of products and services provided, with each
 segment representing a strategic business unit that offers different
 products and serves different markets.  The analysis of geographical
 segments is based on the location of customers.
 
 Allocation of common costs
 
 Common allocable costs are allocated to each segment in proportion to
 the relative revenue of each segment.
 
 Unallocated items
 
 All the common income, expenses, assets and liabilities, which are not
 possible to be allocated to different segments, are treated as
 unallocated items.
 
 Segment policies
 
 The Company prepares its segment information in conformity with the
 accounting policies adopted for preparing and presenting financial
 statements of the Company as a whole.
 
 (19) Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of the equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, 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 effect of all dilutive potential equity shares.
 
 (20) Provisions
 
 A provision is recognized when the Company has a present obligation as
 a result of past event 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. Provisions are not discounted to its
 present value and are determined based on best management estimate
 required to settle the obligation at the balance sheet date. These are
 reviewed at each balance sheet date and adjusted to reflect the current
 best estimates.
 
 (21) Cash and Cash equivalents
 
 Cash and cash equivalents for the purpose of cash flow statement
 comprise cash at bank and in hand and short-term investments with an
 original maturity of three months or less.