1.Basis of Preparation
 
 The financial statements have been prepared to comply in all material
 aspects with the mandatory Accounting Standards issued by the Institute
 of Chartered Accountants of India and relevant provisions of Companies
 Act, 1956. The financial statements have been prepared under the
 historical cost convention and on accrual basis. The Accounting
 policies have been consistently applied in preparing the accounts and
 are consistent with those used in the previous year.
 
 2.Fixed Assets & Depreciation:
 
 Fixed Assets are stated at historical cost less accumulated
 depreciation and impairment loss, if any. Cost comprises the purchase
 price and any attributable cost of bringing the assets to its working
 condition for its intended use.
 
 Depreciation on fixed assets is provided on straight line basis in
 accordance with the rates prescribed in Schedule -XIV of the Companies
 Act, 1956.
 
 3.lnventories:
 
 Inventories are valued at cost except the finished goods which are
 being valued at cost or market value whichever is lower. The stocks
 held at the factory and at other locations are as physically verified
 and certified by the Management.
 
 4.Revenue Recognition:
 
 Sales represent gross value of sales including Excise Duty but
 excluding Sales Tax. Income and Expenditure are accounted on accrual
 basis.
 
 5.Employee Retirement Benefit:
 
 Liability on account of Gratuity is provided based on acturial
 valuation. PF and ESI contributions are accrued as per the Statutory
 rules in force.
 
 6.Research and Development:
 
 Research / Product Development expenditure is amortised over a period
 of 10 years.