i.  Basis of Accounting
 
 The Financial Statements are prepared under historical cost convention
 and generally on accrual basis and are in accordance with the
 requirement of the Companies Act, 1956.
 
 ii.  Fixed Assets
 
 Fixed Assets, other than those which have been revalued, are stated at
 their original cost which includes expenditure incurred in acquisition
 and construction/installation and other related expenses. Cenvat and
 vat credit taken in respect of purchase of plant and machinery has been
 reduced from the cost of respective plant and machinery and
 depreciation has been provided on net cost. Assets which have been
 revalued are accounted for at values determined on the basis of such
 revaluation made by professional valuers. Surplus arising on
 revaluation has been credited to Revaluation Reserve Account.
 
 iii) Depreciation
 
 a) Depreciation has been provided on Straight line Method as per the
 rates prescribed in Schedule XIV to the Companies Act, 1956.
 Depreciation on additions/deduction during the year is provided on
 prorata basis except for low value items up to Rs.5,000/- on which the
 company has provided 100% depreciation.
 
 b) In respect of revalued assets, depreciation is provided for on the
 revalued figures and an amount equal to the additional depreciation
 consequent on revaluation is transferred annually from the Revaluation
 Reserve to the Profit and Loss Account.
 
 c) Leasehold land: Amortised over the period of lease.
 
 iv) Intangible Assets
 
 a) Expenditure incurred for acquiring software is stated at acquisition
 cost and they are amortised over their useful life not exceeding five
 years.
 
 b) Goodwill has been amortised over a period of five years.
 
 v) Inventories
 
 a) Raw materials and General Stores are valued at cost or realizable
 value whichever is less, excluding Cenvat and VAT credit, by FIFO
 method.
 
 b) Work in Process is valued at raw material cost plus estimated
 overheads or realizable value, whichever is less but excluding Cenvat
 and VAT credit.
 
 c) Finished Goods valued at cost including estimated overheads or net
 realizable value whichever is less. The value includes excise duty
 paid/payable on such goods.
 
 d) Scrap is valued at realizable value. This value includes excise duty
 payable thereon.
 
 vi) Retirement Benefits
 
 1) Post-Employment Employee benefits
 
 a) Defined Contribution Plans:
 
 The company has Defined Contribution Plan for Post employment benefits
 in the form of Provident Fund for all employees which is administered
 by Regional provident Fund Commissioner. Provident Fund is classified
 as defined contribution plan as the Company has no further obligation
 beyond making the contributions. The Companys contribution to
 Defined Contribution Plan is charged to the statement of profit and
 Loss as and when incurred.
 
 b) Defined Benefit Plans:
 
 Funded Plan: The Company has defined benefit plan for Post-Employment
 benefit in the form of Gratuity for all employees which is administered
 through Life Insurance Corporation (LIC)
 
 Liability for above defined benefit plan is provided on the basis of
 valuation, as at the Balance Sheet date, carried out by an independent
 actuary. The actuarial method used for measuring the liability is the
 Projected Unit Credit method.
 
 2) Other Long-term Employee Benefit
 
 Liability for Compensated Absences (unutilized leave benefit) is
 provided on the basis of valuation, as at the Balance Sheet Date,
 carried out by an independent actuary. The actuarial valuation method
 used for measuring the liability is the Projected Unit method in
 respect of past service.
 
 3) Termination benefits are recognized as an expense as and when
 incurred.
 
 4) The actuarial gains and losses arising during year are recognized in
 the statement of Profit and Loss of the year without resorting to any
 amortization.
 
 vii) Investments
 
 Long Term investments are stated at cost or fair value, whichever is
 less, temporary fall in market value, if any, is not provided for.
 Current Investments are carried at lower of cost and fair value.
 
 viii) Sales
 
 Sales are inclusive of excise duty and net of sales tax, sales returns,
 claims and discount, etc. Domestic sale is recognised at the point of
 billing & exports sale is recognised on date of Bill of lading.
 
 ix) Borrowing Cost
 
 Borrowing costs that are directly attributable to the acquisition of
 fixed assets are capitalised for the period until the asset is ready
 for its intended use. Other borrowing costs are recognised as an
 expense in the period in which they are incurred.
 
 x) Taxes on Income
 
 Income Tax expense for the year comprises of current tax and deferred
 tax. Current tax provision has been determined on the basis of
 reliefs, deduction available under the Income Tax Act. Deferred Tax
 is recognized for all timing differences, subject to the consideration
 of prudence, applying the tax rates and laws that have been enacted or
 substantively enacted on Balance Sheet Date. Deferred Tax asset is
 recognized only to the extent there is virtual certainty that assets
 will be realized in future.
 
 xi) Foreign Currency Transaction
 
 a) Foreign currency transactions are recorded at exchange rate
 prevailing on the date of transaction.
 
 b) Foreign currency receivable/payables at the year end are translated
 at exchange rates applicable as on that date.
 
 c) Any gains or losses arising due to exchange differences at the time
 of translation or settlement are accounted for in the statement of
 Profit & Loss.
 
 xii) Impairment of Assets
 
 Impairment of assets are assessed at each balance sheet date and loss
 is recognized wherever the receivable amount of an assets is less than
 its carrying amount.
 
 xiii) Provisions, Contingent Liabilities and Contingent Assets:
 
 Provision 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 assets are neither recognized nor disclosed in the financial
 statements. Contingent liabilities are disclosed separately.
 
 xiv) Excise Duty:
 
 Excise Duty payable on products is accounted for at the time of
 dispatch of goods from the factory but is accrued for stocks held at
 the year end.
 
 Excise Duty related to the difference between the closing stock and
 opening stock of finished goods has been recognized separately in the
 statement of Profit and Loss under Other Expenses.