1.  Accounting Convention
 
 The financial statements are prepared under the historical cost
 convention on the Accrual Concept” of accountancy in accordance with
 the accounting principles generally accepted in India and comply with
 the accounting standards issued by the Institute of Chartered
 Accountants of India to the extent applicable and with the relevant
 provisions of the Companies Act, 1956. Item of exceptional nature and
 assessment dues are accounted on cash basis.
 
 2.  Fixed Assets
 
 All Fixed assets are stated at cost except the Land & Factory Buildings
 which have been valued at its current market value as on 31.3.2007.
 Cost comprised the purchase price and any attributable cost of bringing
 the asset to its working condition for its intended use.
 
 3.  Depreciation
 
 Depreciation on Fixed Assets is provided on the Written Down Method at
 the Rates and in the manner specified in the Schedule XIV of the
 Companies Act, 1956.
 
 4.  Foreign Currency Transactions
 
 Transaction in foreign currency is recorded at the rate of exchange
 prevailing on the date of transaction. Current assets and liabilities
 are translated at the year-end closing rates. The resulting exchange
 gain/loss is reflected in the profit and loss account except in case
 where the relates to acquisition of Fixed Assets in which case they are
 adjusted to the carrying Cost of such Assets.
 
 5.  Investment
 
 Long Term Investments are stated at cost after deducting provision, if
 any for decline other than temporary in value.  Current investments are
 stated at lower of cost and market fair value.
 
 6.  Inventories
 
 Raw Materials, Stores and Spares are valued at Cost and finished goods
 are valued at lower of Cost or Net Realizable Value. Cost of raw
 materials, stores & spares parts are ascertained on FIFO basis. Trading
 Goods are valued at cost.
 
 7.  Revenue Recognition
 
 Sales are recognized when goods are supplied. Sales are net of trade
 discounts, rebates, returns and sales tax. Revenue in respect of other
 item is recognized when no significant uncertainty as to its
 determination or realization exists.
 
 8.  Research & Development:
 
 Revenue expenditure on research and development is charged out in the
 year in which it is incurred. Advertisement and Sales Promotion
 expenses on introduction of new products and on account of Re-Launch of
 Products are written off over a period of five years.
 
 9.  Employee Benefit :
 
 Leave Encashment : Leave Encashment is accounted for on accrual basis.
 
 Gratuity: Gratuity liability under the payment of Gratuity Act is
 accounted for on an accrual basis for those employees who have
 completed five year of their employment with the company at the end of
 financial year.
 
 10.  Taxes on Income
 
 Income tax expenses for the year comprises of current tax and deferred
 tax. Current tax provision is determined on the basis of taxable income
 computed as per the provisions of the Income Tax Act. Deferred tax is
 recognized for all timing differences that are capable of reversal in
 one or more subsequent periods subject to conditions of prudence and by
 applying tax rates that have been substantively enacted by the balance
 sheet date.
 
 11.  Provision, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 
 Contingent liabilities are not recognized but are disclosed in the
 notes.
 
 Contingent assets are neither recognized nor disclosed in the financial
 statements.