(A) Accounting Convention
 
 The financial statements are prepared under the historical cost
 convention, on an accrual basis and in accordance with the applicable
 accounting standards notified by the Company (Accounting Standards
 Rule, 2006) as amended and relevent Provision of the Companies Act.
 
 (B) Use of Estimates
 
 The Preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual results and estimates are recognised in the period
 in which the results are known / materialised.
 
 (C) Revenue Recognition
 
 Sales are recognised on transfer of significant risks and rewards in
 connection with the ownership at the time of dispatch of goods.  Sales
 are recorded net of trade discounts. Dividend income is recognised when
 right to receive is established.
 
 (D) Fixed Assets
 
 Fixed Assets are stated at cost less accumulated depreciation and
 impairment loss if any. Cost comprises of the purchase price and all
 other attributable costs for bringing the asset to its working
 condition for its intended use.
 
 (E) Depreciation
 
 (i) Depreciation on Fixed Assets other than intangible assets is
 provided on Written Down Value Method in accordance with the rates,
 prescribed in Schedule XIV to the Companies Act,1956. Individual assets
 acquired for less than Rs.5000/- are entirely depreciated in the year
 of acquisition.
 
 (ii) Depreciation on fixed assets added/disposed off during the year
 has been provided on pro-rata basis.
 
 (iii) Lease Premium and related costs are amortised over the lease
 period.
 
 (iv) Cost of registration of Trade Marks and for acquiring Copy Rights
 are amortised over a period of 10 years in equal installments.
 
 (v) Cost of Intangible assets other trademark are amortised over a
 period of 36 months.
 
 (F) Impairment of Assets Assets are treated as impaired when the
 carrying cost of asset exceeds their recoverable value. An impairment
 loss is charged to the Profit and Loss Account in the year in which an
 assets are identified as impaired. The impairment loss recognised in
 prior accounting period is reversed if there has been a change in the
 estimate of recoverable amount.
 
 (G) Expenditure during construction period Expenditure during
 construction period are included under capital work-in-progress and the
 same are allocated to the respective fixed assets on the completion of
 construction.
 
 (H) Foreign Currency Transactions & Financial Instruments (i) Monetary
 assets and liabilities related to foreign currency transactions
 remaining unsettled at the end of the year, are restated at the closing
 rate as applicable.
 
 (ii) The differences in translation of monetary assets and liabilities
 and realised gains and losses on foreign exchange transactions are
 recognised in the Profit and Loss Account.
 
 (iii) In respect of forward foreign exchange contract, represented by
 monetary assets/liabilities and are meant for hedging purposes, the
 premium or discount arising at the inception of such forwards contract
 is amortised as expense or income over the life of contract. Exchange
 differences on such a contract is recognized in the statement of profit
 and loss in the reporting period in which the exchange rates change.
 Any profit or loss arising on cancellation or renewal of such a forward
 exchange contract is recognised as income or as expense for the period.
 
 (iv) Non - monetary items are carried in terms of historical cost
 denominated in a foreign currency using the exchange rate at the date
 of the transactions.
 
 (v) Exchange difference arising on a monetary item that, in substance,
 forms part of an enterprise''s net investments in a non-integral foreign
 operation are accumulated in a foreign currency translation reserve.
 
 (I) Inventories
 
 Inventories are valued at lower of cost and estimated net realisable
 value.
 
 a) Cost of Raw materials, packing materials, stores and spares are
 determined on weighted average basis.
 
 b) The Cost of Finished goods and Work-In-Process includes cost of
 conversion and other costs incurred in bringing the inventories to
 their present location and condition.
 
 (J) Retirement Benefits
 
 (i) Contribution to the provident fund, which is a defined contribution
 scheme, are charged to the Profit and Loss Account in the period in
 which the liability is incurred.  
 
 (ii) Provision for gratuity, which is a defined benefit plan, is made
 on the basis of an actuarial valuation carried out by an independent
 actuary at the balance sheet date and funded through scheme
 administered by the Life Insurance Corporation of India (''LIC''). The
 actuarial valuation is done using the ''Project Unit Credit Method''.  
 
 (iii) 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 recognised as a liability at the present value
 of the defined benefit obligation at the balance sheet date based on an
 actuarial valuation carried out by an independent actuary.  
 
 (K) Investments
 
 Long-term Investments are stated at cost after deducting provision,if
 any, for other than temperory diminution in the value of Investment.
 Current Investments are stated at lower of cost and market / fair
 value.  
 
 (L) Borrowing Costs
 
 The Company capitalises the borrowing costs which are directly
 attributable to the acquisition or construction of qualifying assets
 till the said asset is put to use or ready to be put to use. All other
 borrowing cost are expensed in the period they incurred.
 
 (M) Leased Assets
 
 Operating Lease : Rentals are expensed with reference to lease terms
 and other considerations.
 
 (N) Provision for Tax
 
 Tax expense comprises of current and deferred tax.  Provision for
 current tax is determined on the basis of taxable income for the period
 as per the provisions of Income Tax Act,1961.
 
 Deferred tax is recognized, subject to consideration of prudence, on
 timing differences between book profits and tax profits using the tax
 rates and laws that have been enacted by the balance sheet date.
 Deferred tax assets are recognized and carried forward only when there
 is a reasonable certainty that the assets will be realized in future.
 
 (O) Contingent Liabilities and Provision
 
 Contingent Liabilities are possible but not probable obligations as on
 Balance Sheet date, based on the available evidence.  Provisions are
 recongnized when there is 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 determined based on the best estimate required
 to settle the obligation at the Balance Sheet date.