1.1 Basis of Accounting:
 
 The Financial statements have been prepared on the historical cost
 convention basis, except where otherwise stated. The financial
 statements have been prepared to comply in all material respects with
 the notified accounting standard by Companies Accounting Standard
 Rules, 2006 and relevant provisions of Companies Act, 1956.
 
 1.2 Recognition of Income and Expenditure:
 
 (a) The revenue from sale of goods is recognized on passing of title of
 the goods which generally coincides with delivery.
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable except in case of
 National Savings Certificate.
 
 (b) Export incentive under the Duty Entitlement Pass Book (DEPB) Scheme
 is recognized at the time of shipment.
 
 (c) Insurance claim is accounted for on reasonable certainty of
 realization.
 
 1.3 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 losses
 (other than freehold land for which no depreciation is charged).
 
 1.4 Depreciation:
 
 a) Leasehold land is for a period of 90 years and accordingly 1/90th
 value thereof is being amortized every year..
 
 b) All other assets are depreciated under the straight line method at
 the rates and in the manner prescribed under Schedule XIV to the
 Companies Act, 1956. Plant & Machinery are considered as continuous
 process plant on technical assessment and are accordingly depreciated.
 
 1.5 Capital Work in Progress:
 
 Capital Work in Progress is being valued at cost and includes advances
 given by the company
 
 1.6 Inventories:
 
 Description Basis of Valuation Cost Formula
 
 i) Raw Materials At lower of cost or net realizable value.  FIFO Basis
 
 ii) Stores & Spares At lower of cost or net realizable value FIFO Basis
 
 iii) Finished Goods At lower of cost or net realizable value FIFO Basis
 
 iv) Work in Progress At lower of estimated cost or net realizable
 value.  FIFO Basis However.raw materials and other items held for use
 in the production of finished goods are not written down below cost if
 the finished products in which they will be incorporated are expected
 to be sold at or above cost.
 
 1.7 Employment Benefits:
 
 The Employees gratuity fund scheme managed by LIC is a defined benefit
 plan.The present value of obligation is determined based on actuarial
 valuation. Acturial gains/losses are immedietly taken to profit and
 loss accounts. The Company contributes premium to the LIC from time to
 time.
 
 Short term compensated absences are provided on accrual basis. Long
 term compensated absences are provided on the basis of actuarial
 valuation carried by an actuary as at the end of the year
 
 The company provides for all benefits (conditional or unconditional)
 like Leave Travel Assistance Allowance, Medical Reimbursements etc.
 which an employee becomes entitled to as a result of rendering of the
 service.In estimating the cost of such benefit, the probability of the
 employee availing such benefit is considered.
 
 1.8 Borrowing Costs:
 
 The financing cost incurred during the construction period on loans
 specifically borrowed for projects is capitalized at the actual
 borrowing rates.
 
 The financing cost incurred on general borrowing used for projects is
 capitalized at the weighted average cost. The amount of such borrowing
 is determined after setting off the amount of internal accruals.
 
 1.9 Preliminary Expenses:
 
 Preliminary expenses and Share issue expenses are amortized over a
 period of 10 years.
 
 1.10 Investments
 
 Long Term Investments are carried at cost less provision for permanent
 dimunition in value of investments. Current Investments are carried at
 lower of cost or fair value.
 
 1.11 Taxes on Income
 
 Income Tax expense comprises current tax & deferred tax charge or
 realisation. The deferred tax charge or credit 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. Where there is unabsorbed
 depreciation or carry forward losses, deferred tax assets are
 recognised if there is virtual certainty of realisation of such assets.
 Such assets are reviewed at each Balance Sheet date to reassess
 realisation.
 
 1.12 Foreign Currency Transactions
 
 Initial Recognition:- Foreign currency transactions are recorded in the
 reporting currency, by applying to the foreign currency amount the
 exchange rate between the reporting currency and the foreign currency
 at the date of the transaction.
 
 Conversion:- Foreign Currency monetary items are reported using the
 closing rate.Non-Monetary items which are carried in items of
 historical cost denominated in a foreign currency are reported using
 the exchange rate at the date of the transaction; and non-monetary
 items which are carried at fair value or other similar valuation
 denominated in a foreign currency are reported using the exchange rates
 that existed when the values were determined.
 
 Exchange Differences; Exchange differences arising on the settlement of
 monetary items or on reporting company''s monetary items at rates
 different from those at which they were initially recorded during the
 year, or reported in previous financial statements, are recognisesd as
 income or as expenses in the year in which they arise except those
 arising from investments in non integral operations.
 
 Forward Exchange Contracts:- The company enters into forward exchange
 contracts to hedge its risks associated with foreign currency
 fluctuations. The premium or discount arising at the inception of the
 contract is amortised as expense or income over the life of the
 contract. Exchange differences on such contract are recognised in
 statement of profit and loss in the year in which the exchange rates
 change. Any profit/loss on cancellation or renewal of the forward
 exchange contract is recognised as income or as expense for the year.
 
 1.13 Segment Reporting:
 
 There is no identifiable business segment as the company is only
 dealing in latex prophylactics.
 
 1.14 Earning Per Share:
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period. Partly
 paid equity shares are treated as a fraction of an equity share to the
 extent that they were entitled to participate in dividends relative to
 a fully paid equity share during the reporting period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 1.15 Impairment of Assets:
 
 Impairment losses, if any, are recognized in accordance with AS-28.
 
 1.16 Provisions, Contingent liabilities and Contingent assets:
 
 A provision is recognised when there is a present obligation as a
 result of past event and it is probable that an outflow of the
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made. Provisions are not discounted to
 its present value and are determined based on best estimate required to
 settle the obligation at the balance sheet dtae.  These are reviewed at
 each balance sheet date and adjusted to reflect the current best
 estimates.  Provision for Warranty is made on Export and domestic sales
 @ 0.25% of total sales pertaining to warranty period i.e 3years for
 Export sales and 5 years for sales made to Government of India.  The
 percentage has been arrived at by the management based on its past
 experience and trend analysis.
 
 Contingent Liabilities not required to be provided for in the books of
 account are disclosed by way of note in the accounts.  Contingent
 assets are not recognized in the accounts.