1.1 Basis of preparation of financial statements
 
 The financial statements have been prepared and presented under the
 historical cost convention, on the accrual basis of accounting and in
 accordance with the provisions of the Companies Act, 1956 (''the Act'')
 and the accounting principles generally accepted in India and comply
 with the accounting standards prescribed in the Companies (Accounting
 Standards) Rules, 2006 issued by the Central Government, in
 consultation with the National Advisory Committee on Accounting
 Standards, to the extent applicable.
 
 2.2 Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles (''GAAP'') in India requires management to
 make estimates and assumptions that affect the reported amount of
 assets, liabilities, revenues and expenses and disclosure of contingent
 liabilities on the date of the financial statements. The estimates and
 assumptions used in the accompanying financial statements are based
 upon management''s evaluation of the relevant facts and circumstances as
 of the date of financial statements which in management''s opinion are
 prudent and reasonable. Actual results may differ from the estimates
 used in preparing the accompanying financial statements. Any revision
 to accounting estimates is recognised prospectively in current and
 future periods.
 
 2.3 Revenue recognition
 
 Revenue is recognised when the property and all significant risks and
 rewards of ownership are transferred to the buyer and no significant
 uncertainty exists regarding the amount of consideration that is
 derived from the sale of goods. Sales are accounted net of excise duty,
 sales tax and trade discounts, if any.
 
 Interest income is recognized using the time proportion method, based
 on the underlying interest rates.
 
 Dividend income is recognized when the right to receive dividend is
 established.
 
 2.4 Fixed assets and depreciation/amortisation
 
 (a) Tangible assets
 
 Tangible assets are carried at cost of acquisition or construction less
 accumulated depreciation and impairment loss, if any. Cost includes
 inward freight, duties, taxes (to the extent not recoverable from tax
 authorities) and expenses incidental to acquisition and installation of
 the fixed assets up to the time the assets are ready for intended use.
 Capital work-in-progress comprises of 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.
 
 Depreciation on fixed assets, except leasehold land, is provided under
 the straight-line method at the rates prescribed in Schedule XIV to the
 Act, which in the opinion of management reflects the economic useful
 lives of assets. Depreciation on sale of assets is provided up to the
 date of sale of the asset.
 
 Assets costing up to Rupees five thousand are fully depreciated in the
 year of purchase.
 
 Leasehold land is amortised over the primary period of lease.
 
 (b) Intangible assets
 
 Intangible assets comprises of Non-competition agreement and
 Distribution Rights and are carried at cost of acquisition less
 accumulated amortisation and impairment loss, if any. Non-competition
 agreement is amortised over its contractual period of 5 years and
 Distribution Rights are amortised on a straight-line basis over a
 period of ten years, which in management''s opinion represents the
 period during which economic benefits will be derived from their use.
 
 2.5 Impairment of assets
 
 In accordance with AS 28 on ''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. The recoverable
 amount is the greater of the net selling price and value in use. Value
 in use is the present value of the estimated future cash flows expected
 to arise from the continuing use of the asset and from its disposal at
 the end of its useful life.  In assessing the value in use, the
 estimated future cash flows are discounted to their present value based
 on an appropriate discount factor. 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.
 
 If at the balance sheet date there is an indication that a previously
 assessed impairment loss no longer exists, the recoverable amount is
 reassessed and the asset is reflected at the recoverable amount subject
 to a maximum of depreciable historical cost.
 
 2.6 Investments
 
 Long term investments are stated at cost. Provision for diminution in
 value is made only when in the opinion of the management there is a
 decline other than temporary in the carrying value of such investments.
 Current investments are valued at lower of cost and market value.
 
 2.7 Employee benefits
 
 (a) Short term employee benefits:
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short-term employee benefits. These
 benefits include salary, wages and bonus, compensated absences such as
 paid annual leave and sickness leave. The undiscounted amount of
 short-term employee benefits expected to be paid in exchange for the
 services rendered by employees is recognized during the period of
 rendering of service by the employee.
 
 (b) Long term employee benefits:
 
 (i) Defined contribution plans
 
 The Company has defined contribution plans for post employment benefits
 namely Provident Fund which is recognised by the income tax
 authorities.
 
 Under the provident fund plan, the Company contributes to a Government
 administered provident fund on behalf of its employees and has no
 further obligation beyond making its contribution.
 
 The Company makes contributions to state plans namely Employee''s State
 Insurance Fund and Employee''s Pension Scheme 1995 and has no further
 obligation beyond making the payment to them.
 
 The Company''s contributions to the above funds are charged to profit
 and loss account every year.
 
 (ii) Defined benefit plans
 
 Post-employment benefits:
 
 The Company''s gratuity scheme with Life Insurance Corporation of India
 is a defined benefit plan. The Company''s net obligation in respect of
 the gratuity benefit scheme is calculated by estimating the amount of
 future benefit that employees have earned in return for their service
 in the current and prior periods; that benefit is discounted to
 determine its present value, and the fair value of any plan assets is
 deducted. The present value of the obligation under such defined
 benefit plan is determined based on independent actuarial valuation at
 the balance sheet date using the Projected Unit Credit Method, which
 recognizes each period of service as giving rise to additional unit of
 employee benefit entitlement and measures each unit separately to build
 up the final obligation. The obligation is measured at the present
 value of the estimated future cash flows. The discount rates used for
 determining the present value of the obligation under defined benefit
 plan are based on the market yields on Government securities as at the
 Balance Sheet date. When the calculation results in a benefit to the
 Company, the recognised asset is limited to the net total of any
 unrecognised actuarial losses and past service costs and the present
 value of any future refunds from the plan or reductions in future
 contributions to the plan. Actuarial gains and losses are recognized
 immediately in the Profit and Loss Account.
 
 (ii) Defined benefit plans (Continued)
 
 Other long-term employment benefits:
 
 Compensated absences which are not expected to occur within twelve
 months after the end of the period in which the employee renders the
 related services are recognized as a liability at the present value of
 the defined benefit obligation at the Balance Sheet date. The discount
 rates used for determining the present value of the obligation under
 defined benefit plan are based on the market yields on Government
 securities as at the Balance Sheet date.
 
 2.8 Borrowing costs
 
 Borrowing costs that are attributable to acquisition, construction or
 production of qualifying assets are capitalised as part of such assets.
 A qualifying asset is an asset that necessarily takes a substantial
 period of time to get ready for its intended use. All other borrowing
 costs are recognised as an expense in the period in which they are
 incurred.
 
 2.9 Inventories
 
 Inventories are valued at lower of cost and net realisable value. Cost
 is determined under the first in first out method and includes all
 costs incurred in bringing the inventories to their present location
 and condition. Finished goods and Work- in-progress include appropriate
 proportion of costs of conversion. Fixed production overheads are
 allocated on the basis of normal capacity of production facilities.
 Valuation of work-in-progress is based on stage of completion as
 certified by the management.
 
 2.10 Foreign currency transactions
 
 Foreign currency transactions are recorded at the exchange rates
 prevailing on the dates of the transactions. Exchange differences
 arising on foreign currency transactions settled during the year are
 recognized in the profit and loss account of that year.Monetary assets
 and liabilities denominated in foreign currencies at the balance sheet
 date are translated at the closing exchange rates. The resultant
 exchange differences are recognized in the profit and loss account.
 
 The premium or discount on forward exchange contracts not relating to
 firm commitments or highly probable forecast transactions and not
 intended for trading or speculation purpose is amortised as expense or
 income over the life of the contract.
 
 Forward exchange contracts relating to firm commitments or highly
 probable forecast transactions are marked to market and the resultant
 net exchange loss is recorded in accordance with the concept of
 prudence.
 
 2.11 Operating leases
 
 Lease arrangements, where the risks and rewards incidental to ownership
 of an asset substantially vests with the lessor, are recognised as
 operating leases. Lease payments under operating lease are recognised
 as an expense in the profit and loss account on a straight line basis.
 
 2.12 Taxes on Income
 
 Income tax
 
 Income tax expense comprises current tax and deferred tax charge or
 credit (reflecting the tax effects of timing differences between
 accounting income and taxable income for the period). Current tax
 provision is made based on the tax liability computed after considering
 tax allowances and exemptions, in accordance with the Income tax Act,
 1961.
 
 Deferred tax
 
 Deferred tax charge or credit and the corresponding deferred tax
 liability or asset is recognized for timing differences between the
 profits/losses offered for income taxes and profits/ losses as per the
 financial statements. Deferred tax assets and liabilities are measured
 using the tax rates and tax laws that have been enacted or
 substantively enacted at the balance sheet date. Deferred tax assets
 are recognised only to the extent there is reasonable certainty that
 the assets can be realised in future; however, where there is
 unabsorbed depreciation or carry forward of losses, deferred tax assets
 are recognised only if there is a virtual certainty of realisation of
 such assets. Deferred tax assets are reviewed as at each balance sheet
 date and written down or written-up to reflect the amount that is
 reasonably/ virtually certain (as the case may be) to be realised.
 
 2.13 Earnings per share (''EPS'')
 
 Basic EPS is computed by dividing the net profit attributable to
 shareholders by the weighted average number of equity shares
 outstanding during the year.
 
 Diluted EPS is computed using the weighted average number of equity and
 dilutive equity equivalent shares outstanding during the year- end,
 except where the results would be anti dilutive.
 
 2.14 Provisions and contingencies
 
 Provision is recognised in the balance sheet when the Company has a
 present obligation as a result of a past event, and it is probable that
 an outflow of economic benefits will be required to settle the
 obligation and reliable estimation can be made of the amount required
 to settle the obligation. Contingent liabilities arising from claims,
 litigation, assessment, fines, penalties etc. are disclosed when there
 is a possible obligation or a present obligation as a result of a past
 event where it is not probable that an outflow of economic benefits
 will be required to settle the obligation, and the amount can be
 reasonably estimated. When there is a possible obligation or a present
 obligation in respect of which the likelihood of outflow of resources
 is remote, no provision or disclosures is made.