The financial statements are prepared to comply in all material aspects
 with the applicable accounting principles in India, the accounting
 standards notified under sub-section (3C) of Section 211 of the
 Companies Act, 1956 (the ''Act'') and the other relevant provisions of
 the Act. The significant accounting policies are as follows -
 
 (a) Basis of Accounting
 
 The financial statements are prepared in accordance with the historical
 cost convention.
 
 (b) Fixed Assets
 
 Fixed assets are stated at cost of acquisition, including any
 attributable cost for bringing the asset to its working condition for
 its intended use, less accumulated depreciation and impairment loss.
 
 Depreciation is provided on Straight Line Method, pro-rata to the
 period of use, at the rates specified in Schedule XIV of the Act or the
 rates based on useful lives of the assets as estimated by the
 management, whichever are higher. The rates based on useful lives of
 the assets in the following categories are estimated to be higher than
 those specified in Schedule XIV of the Act:
 
 Trade Marks are amortised over the useful life of five years, as
 estimated by the management.
 
 Impairment loss is provided to the extent the carrying amount of assets
 exceed their recoverable amount. Recoverable amount is the higher of an
 asset''s net selling price and its value in use. Value in use is the
 present value of estimated future cash flows expected to arise from the
 continuing use of an asset and from its disposal at the end of its
 useful life. Net selling price is the amount obtainable from the sale
 of an asset in an arm''s length transaction between knowledgeable,
 willing parties, less the costs of disposal.
 
 (c) Investments
 
 Long-term Investments are stated at cost. Provision is made to
 recognise a decline, other than temporary, in the value of Long-term
 Investments. Current Investments are stated at lower of cost and fair
 value.
 
 (d) Inventories
 
 Inventories are valued at lower of cost and net realisable value. Cost
 is determined on moving weighted average basis. Cost of
 work-in-progress and finished goods includes labour and manufacturing
 overheads, where applicable.
 
 (e) Foreign Currency Transactions
 
 Foreign currency transactions are recorded at the exchange rates
 prevailing on the date of the transaction. Gains and losses arising out
 of subsequent fluctuations are accounted for on actual payment or
 realisation. Monetary items denominated in foreign currency as at the
 Balance Sheet date are converted at the exchange rates prevailing on
 that date. Exchange differences are recognised in the Profit and Loss
 Account.
 
 Notes to the Financial Statements
 
 (f) Forward Contracts
 
 Premium or discount arising at the inception of forward contract is
 amortised as expense or income over the life of the contract. Exchange
 difference on forward contract is recognised in the Profit and Loss
 Account in theyear in which the exchange rates change. Any profit or
 loss arising on cancellation or renewal of forward contract is
 recognised as income or expense in the Profit and Loss Account.
 
 (g) Revenue Recognition
 
 Sales are recognised when goods are supplied to customers and are
 recorded net of excise duty, sales tax, rebates and trade discounts.
 
 Provision is made for the non-sellable returns of goods from the
 customers estimated on the basis of historical data of such returns.
 Such provision for non-sellable sales returns is reduced from sales for
 the year.
 
 Dividend income is recognised when the right to receive dividend is
 established.
 
 (h) Employee Benefits
 
 (i) Long-term Employee Benefits
 
 (a) Defined Contribution Plans
 
 The company has Defined Contribution Plans for post employment benefits
 in the form of Superannuation Fund and Employees'' Pension Scheme which
 are recognised by the Income-tax authorities and administered through
 trustees and/or Life Insurance Corporation of India (LIC).
 Superannuation Fund which constitutes an insured benefit and Employees''
 Pension Scheme are classified as Defined Contribution Plans as the
 company has no further obligation beyond making the contributions. The
 company''s contributions to Defined Contribution Plans are charged to
 the Profit and Loss Account as incurred.
 
 (b) Defined Benefit Plans
 
 The company has Defined Benefit Plans for post employment benefits in
 the form of Provident Fund (treated as a Defined Benefit Plan on
 account of guaranteed interest benefit), Gratuity, Leave Encashment,
 Non-Contractual Pension Plan (treated as a Defined Benefit Plan on
 account of guaranteed pension) and Post Retirement Medical Benefits.
 Provident Fund and Gratuity are recognised by the Income-tax
 authorities and administered through trustees and/or LIC. Liability for
 Defined Benefit Plans is provided on the basis of valuations, as at the
 Balance Sheet date, carried out by independent actuary.
 
 The obligations are measured as the present value of estimated future
 cash flows discounted at rates reflecting the prevailing market yields
 of Indian Government securities as at the Balance Sheet date for the
 estimated term of the obligations. The estimate of future salary
 increases considered takes into account the inflation, seniority,
 promotion and other relevant factors.  The expected rate of return of
 plan assets is the company''s expectation of the average long term rate
 of return expected on investments of the fund during the estimated term
 of the obligations. Plan assets are measured at fair value as at the
 Balance Sheet date. The actuarial valuation method used by independent
 actuary for measuring the liability is the Projected Unit Credit
 method.
 
 (c) Other Long-term Employee Benefit
 
 The employees of the company are entitled to other long-term benefit in
 the form of Long Service Awards as per the policy of the company.
 Liability for such benefit is provided on the basis of valuation, as at
 the Balance Sheet date, carried out by independent actuary. The
 actuarial valuation method used by independent actuary for measuring
 the liability is the Projected Unit Credit method.
 
 (ii) Termination benefits are recognised as an expense as and when
 incurred.
 
 (iii) Actuarial gains and losses comprise experience adjustments and
 the effects of changes in actuarial assumptions and are recognised in
 the Profit and Loss Account in the year in which they arise.
 
 (i) Expenditure on Research and Development
 
 Revenue expenditure is recognised as expense in the year in which it is
 incurred and the expenditure on capital assets is depreciated over the
 useful lives of the assets.
 
 (j) Taxes on Income
 
 Current tax is determined as the amount of tax payable in respect of
 estimated taxable income for the year.
 
 Deferred tax is recognised, subject to the consideration of prudence in
 respect of deferred tax assets, on timing differences, being the
 difference between taxable income and accounting income that originate
 in one period and are capable of reversal in one or more subsequent
 periods.