1 ACCOUNTING ASSUMPTION
 
 The financial statements are drawn up in accordance with the historical
 cost convention on accrual basis and comply with the accounting
 standards referred to in Sec 211 (3C) of the Companies Act, 1956.
 
 2 FIXED ASSETS
 
 All fixed assets are stated at cost of acquisition less accumulated
 depreciation and impairment loss, if any. Cost comprises the purchase
 price, material cost and any attributable/incidental cost incurred by
 the Company for bringing the asset to its working condition for its
 intended use. In the case of fixed assets acquired for new projects /
 expansions, finance cost of borrowing and other related expenses up to
 the date of commercial production incurred towards acquiring fixed
 assets are capitalized.
 
 3.  IMPAIRMENT
 
 a.  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. 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 & Loss account.
 
 b.  A previously recognized impairment loss is increased or reversed
 depending on changes in circumstances. However, the carrying value
 after reversal is not increased beyond the carrying value that would
 have prevailed by charging usual depreciation if there was no
 impairment.
 
 4.  DEPRECIATION
 
 Depreciation on all fixed assets except moulds is provided on
 straight-line method at the rate specified in Schedule XIV of the
 Companies Act, 1956. Depreciation on additions / deletions is provided
 on pro-rata basis to the months of additions / deletions.
 
 Moulds with predetermined useful life, are depreciated on the actual
 usage of the mould impression used for production during the reporting
 period. Deprecation on mould provided in the books is not less than
 deprecation if provided at the rates specified in the schedule XIV of
 the Companies Act, 1956.
 
 5 INVESTMENTS
 
 Investments are classified as long-term investments and are stated at
 cost. Diminution in value, if any, which is of a temporary nature, is
 not provided.
 
 6 VALUATION OF INVENTORIES
 
 Raw materials, Stores & spares, and Packing Materials are valued at
 weighted average cost. Work in progress and finished goods are valued
 at lower of cost or net realizable value. Cost of working in progress
 and finished goods is determined by taking materials, labour cost and
 other appropriate allocable overheads. Excise Duty on goods
 manufactured by the company and are remaining in inventory is included
 as part of valuation of finished goods.
 
 7 REVENUE RECOGNITION
 
 Sales are recognized, on invoicing and actual dispatch to customers and
 are recorded inclusive of Excise Duty and Sales Tax. Technical Services
 and Other Fees, Interest incomes are accounted on accrual basis.
 Dividends and Insurance Claims are accounted on receipt basis.
 
 8 EXCISE DUTY
 
 The Excise Duty in respect of Closing Inventory of Finished Goods is
 included as part of the Inventory. The amount of CENVAT Credit, in
 respect of Material consumed for Sales is deducted from Cost of
 Material Consumed.
 
 9 FOREIGN CURRENCY TRANSACTION
 
 The transactions in foreign currency are accounted at exchange rate
 prevailing on the date of transaction. Monetary items denominated in
 foreign currency outstanding at the year-end are translated at the
 year-end exchange rate and the unrealized exchange gain or loss is
 recognized in the profit and loss account.
 
 Exchange difference (Realized / Unrealized) as on reporting date,
 arising on long term Foreign Currency Monetary Items so far as they
 relate to acquisition of depreciable asset, are added to or deducted
 from the cost of the asset. (This change in the accounting policy has
 been made during the financial year 2011-12 in exercise of the option
 given by the Government of India, Ministry of Corporate Affairs vide a
 Notification dated December 29, 2011, amending the Companies
 (Accounting Standards) Rules, 2006.)
 
 10 RETIREMENT BENEFITS
 
 The Company''s contributions in respect of Provident Fund are charged
 against revenue every year. Present Liability for future payment of
 Gratuity and unveiled leave benefits to the employees at the end of
 the year is provided on the basis of actuarial valuation and is charged
 to revenue.
 
 11 BORROWING COSTS
 
 Borrowing costs are recognized as an expense in the period in which
 they are incurred, except to the extent where borrowing costs that are
 directly attributable to the acquisition, construction, or production
 of an asset till put for its intended use is capitalized as part of the
 cost of that asset.
 
 12 A. Current Tax
 
 Provisions for Current Income tax liability is made on estimated
 Taxable Income under Income Tax Act, 1961 after considering permissible
 tax exemptions, deductions and disallowances. This liability is
 calculated at the applicable tax rate or Minimum Alternate Tax rate
 under section 115JB of The Income Tax Act, 1961 as the case may be.
 
 B.  Deferred Tax
 
 Deferred Tax liability ascertained as on 31st March ''02 resulting
 from timing differences between book profits and tax profits is
 accounted for under the liability method, at the tax rate specified
 under section 115JB of the Income Tax Act, 1961 to the extent that the
 timing differences are expected to crystallize. Deferred tax liability
 on timing difference arising subsequent to 31st March, 2002 is
 accounted at regular rate as enacted in the Income Tax Act, 1961.
 
 13 PROVISION AND CONTINGENT LIABILITIES
 
 The Company recognizes a provision when there is a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation. A disclosure for a contingent liability is made when there
 is a possible obligation or a present obligation that may, but probably
 will not, requires an outflow of resources. Where there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 14.  PROPOSED DIVIDEND
 
 Dividend proposed by the Board of Directors is provided in the books of
 account, pending approval of the Annual General Meeting.
 
 15.  MEASUREMENT OF EBIDTA.
 
 As per the guidance note on revised schedule VI of the Companies Act
 1956, issued by ICAI, the company has elected to present earnings
 before interest, tax, depreciation & amortization (EBIDTA) as a
 separate line item on the face of the statement of profit and loss. The
 company measures EBIDTA on the basis of profit/(loss) from continuing
 operations. In its measurements, the company does not include finance
 costs, depreciation and amortization expense and tax expense.