a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 The accompanying financial statements are prepared in accordance with
 Generally Accepted Accounting priciples and provisions of the Companies
 Act, 1956 under the historical cost convention on the accrual basis of
 accounting. The accounting policies have been consistently applied by
 the company unless otherwise stated.
 
 b) USE OF ESTIMATES
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires estimates and assumptions to be
 made that affect the reported amounts of assets and liabilites and
 disclosures of contingent liabilities on the date of the financial
 statements and the reported amounts of revenues and expenses during the
 reporting period. Actual result could differ from these estimates and
 the difference between actual results and estimates are recognized in
 the periods in which the results are known / materialize.
 
 c) FIXED ASSETS AND DEPRECIATION
 
 i) Fixed Assets are stated at cost (net of Cenvat/VAT, wherever
 availed) less accumulated depreciation.  Cost includes pre-operative
 expenses including interest on borrowings for the project incurred upto
 the date of installation and adjustment arising from exchange rate
 variations upto 31st March, 2007 relating to liabilities attributable
 to the fixed assets. Such exchange rate variations w.e.f. 1st
 April''2007 are recognized in the Profit and Loss Account.
 
 ii) The company depreciates its fixed assets on straight line method at
 the rates prescribed under Schedule XIV of the Companies Act, 1956.
 Depreciation on assets acquired / sold during the year is provided on
 pro-rata basis.
 
 iii) The premium paid for leasehold land is not amortised over the
 period of lease, since the lease intended to be renewed on the expiry
 of the stipulated lease period.
 
 d) INTANGIBLE ASSETS AND AMORTIZATION
 
 Items of expenditure that meet the recognition criteria as mentioned in
 Accounting Standard - 26 on Intangible Assets are classified as
 intangible assets are amortized over the period of economic benefits.
 
 Softwares are stated at cost of acquisition and are amortized on
 straight line basis over a period of five years irrespective of the
 date of acquisition.
 
 e) REVENUE RECOGNITION
 
 i) Revenue from Sale of goods, income from delivery / courier charges
 and income from jobs are recognized on the basis of dispatch of goods.
 
 ii) Sales are inclusive of Excise Duty.
 
 iii) Dividend including interim is accounted when the right to receive
 payment is established.
 
 iv) Benefits available against exports are estimated and accounted for
 in the year of exports.
 
 f) BORROWING COST
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowing costs are charged to revenue.
 
 g) EXCISE DUTY
 
 The Company is providing liability for excise duty on finished goods
 manufactured and remaining in stock.
 
 h) INVENTORIES
 
 i) Raw Material, Store & Spares, Packing Materials and Fuel are valued
 at cost or net realisable value whichever is lower. The cost includes
 the purchase price as well as incidental expenses such as freight and
 is net of CenvaWAT benefit available, if any.
 
 ii) Finished Goods and Work-in-progress are valued at cost or net
 realisable value whichever is lower. Cost includes appropriate
 allocation of overheads.
 
 iii) Waste/Scrap are valued at net realisable value.
 
 iv) The cost of base shells is amortised over a period of 8 years from
 the year of purchase.
 
 v) Cost is arrived at on first-in-first-out basis.
 
 i) ASSETS ON OPERATING LEASES
 
 Lease rental paid/received on assets taken/given under operating lease
 are recognized as expenses/income on accrual basis in accordance with
 the respective lease agreements.
 
 j) FOREIGN CURRENCY TRANSACTIONS
 
 Foreign Currency transactions are accounted at the exchange rate
 prevailing on the date of transaction.  Foreign Currency monetary items
 outstanding as at the Balance Sheet date are reported using the closing
 rate. Gains and losses resulting from the settlement of such
 transactions and translation of monetary assets and liabilities
 denominated in Foreign Currencies are recognised in the Profit and Loss
 Account. Non- monetary Foreign Currency items are carried at cost.
 Premium in respect of forward contracts are accounted over the period
 of contract.
 
 k) INVESTMENTS
 
 Investments are stated at cost because they are long term in nature.
 Provision for diminution in the value is made only if such diminution
 is other than temporary in the opinion of the management.
 
 l) EMPLOYEE BENEFITS
 
 A) Short Term Benefits
 
 All employee benefits including bonus/performance incentives/ex-gratia
 payable wholly within twelve months of rendering the service are
 classified as short term employee benefits and are charged to the
 Profit and Loss Account of the year.
 
 B) Long Term Benefits
 
 (a) Post Employment Benefits
 
 i) Defined Contribution Plans :- Retirement/Employee benefits in the
 form of Provident Fund, Employees State Insurance and labour welfare
 are considered as defined contribution plan and contributions to the
 respective funds administered by the Government are charged to the
 profit and loss account of the year when the contribution to the
 respective funds are due.
 
 ii) Defined Benefit Plans :- Retirement benefits in the form of
 gratuity is considered as defined benefit obligation and is provided
 for on the basis of an actuarial valuation on projected unit credit
 method made as at the date of the Balance Sheet. The same is not
 funded. Actuarial gain/ loss, if any are immediately recognized in the
 Profit and Loss account.
 
 (b) Other Long Term Benefits
 
 i) Leave Encashment
 
 Liability on account of leave entitlement of employees in accordance
 with the policy cf the company is provided for on the basis of an
 actuarial valuation on projected unit credit method made as at the date
 of the Balance Sheet. The same is not funded. Actuarial gain/loss, if
 any are immediately recognized in the Profit and Loss account.
 
 ii) As per the present policy of the company, there are no other iong
 term benefits to which its employees are entitled.
 
 m) PROVISION FOR CURRENT AND DEFERRED TAX
 
 Provision for current Income Tax is made on the taxable income using
 the applicable tax rules and tax laws.  Deferred tax arising on account
 of timing difference and which are capable of reversal in one or more
 subsequent periods, is recognised using the tax rates and tax laws that
 have enacted or substantively enacted. Deferred tax assets are
 recognised and carried forward only to the extent that there is a
 virtual certanity that the asset will be realised in future.
 
 n) IMPAIRMENT OF ASSETS
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 Profit and Loss Account in the year in which an asset is identified as
 impaired. The impairment loss recognised in prior accounting periods is
 reversed if there has been a change in the estimate of recoverable
 amount.
 
 O) PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event(s) and it is probable that an outflow of
 resources embodying economic benefits will be required to settle the
 obligation(s), in respect of which a reliable estimate can be made for
 the amount of obligation. Contingent liabilities, if material, are
 disclosed by way of notes. Contingent assets are not recognized or
 disclosed in the financial statements.
 
 p) CONTINGENCIES AND EVENTS OCCURING AFTER THE BALANCE SHEET DATE
 
 Event occuring after the date of the Balance Sheet, which provide
 further evidence of conditions that existed at the Balance Sheet date
 or that arose subsequently, are considered upto the date of approval of
 accounts by the Board of Directors, where material.