a) Accounting concept
 
 i) The Company follows the mercantile system of the accounting and
 recognises income and expenditure on accrual basis.
 
 ii) Financial statement are based on historical cost convention.
 
 b) Sales
 
 Sales are inclusive of income from services, excise duty, export
 incentives and net of trade discount and rebates.
 
 c) Fixed Assets
 
 i) Fixed Assets
 
 Fixed assets are stated at cost of acquisition or construction less
 accumulated depreciation(except free hold land).  Assets which have
 been revalued are stated at values as per approved valuer''s report less
 depreciation.
 
 ii) Capital Expenditure
 
 Assets under erection/installation and advances given for capital
 expenditure are shown as Capital work in progress.  Expenditure
 during construction period is shown as Pre-operative expenses to be
 capitalised on erection/installation of the assets.
 
 d) Depreciation
 
 Depreciation on fixed assets is provided on straight line method at the
 rates and in the manner specified in Schedule XIV of the Companies
 Act,1956. Depreciation on assets added/disposed off during the year has
 been provided on pro-rata basis with reference to the date of
 addition/disposal.
 
 e) Borrowing cost
 
 Borrowing costs attributable to the acquisition and construction of
 qualifying assets are capitalised as part of the cost of such
 asset up to the date when such asset is ready for its intended use. Other
 borrowing costs recharged to Profit and Loss Account.
 
 f) Inventories
 
 i) Inventories are valued at lower of cost or net realisable value on
 FIFO basis except Goods in transit which is stated at cost and value of
 stores, spares, consumables and packing materials are arrived at on
 Moving Average Price basis.
 
 Cost of inventories generally comprise all cost of purchase, cost of
 conversion and other cost incurred in bringing the inventories to their
 present location and condition. Finished goods lying in the factory
 premises are valued inclusive of excise duty.
 
 ii) Scrap at net realisable value.
 
 iii) Custom Duty.
 
 The liability on account of Custom duty on imported materials in
 transit or in bonded warehouse is recognised on clearance of the goods
 from the Customs.
 
 g) Investments
 
 Long term investments are stated at cost with an appropriate provision
 for permanent diminution in value.
 
 h) Export incentives/Benefits
 
 Export incentives or benefits under the Export Import Policy are
 accounted in the year of exports on accrual basis taking into account
 certainty of realization and its subsequent utilization.
 
 i) Foreign Currency Transactions
 
 Transaction in Foreign currency are recorded at the rate of exchange
 prevailing on the date of transaction. Current assets and Current
 liabilities not covered by forward contract are translated at the year
 end exchange rate and any gain/loss on account of fluctuation in the
 rate of exchange is recognised in profit and loss account. Premium /
 Discount in respect of forward foreign exchange contract is recognised
 Over the life of the contract.
 
 j) Contingent liabilities not provided for are disclosed by way of
 notes, 
 
 k) Segment Accounting
 
 (1) Segment Accounting Policies:-
 
 Accounting policies followed by the company for segment reporting are:-
 
 (a) Segment revenue includes sales and other income directly
 identifiable with/allocable to segment.
 
 (b) Expenses that are directly identifiable with/allocable to segments
 are considered for determining the segment results.  The expenses,
 which relate to the company as a whole and not allocable to segment,
 are included under unallowable expenses.
 
 (c) Income which relates to the company as a whole and not allocable to
 segment is included under unallowable income.
 
 (d) (i)Segment Assets includes those assets directly identifiable with
 respective segments and employed by a segment in its operating
 activities, but does not include income tax assets.
 
 (ii)Segment liabilities includes those liabilities directly
 identifiable with respective segments and operating liabilities that
 results, from operating activities of a segment, but does not include
 income tax liabilities and financial liabilities.
 
 (iii)Unallowable corporate assets and liabilities represents the assets
 and liabilities that relate to company as a whole and not allocable to
 any segment.
 
 l) Taxes on Income
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of the Income Tax
 Act, 1961. Deferred tax is recognized on timing differences, being the
 difference between taxable income & accounting income that originate in
 one period and are capable of reversal in one or more subsequent period
 and quantified using tax rates and laws enacted or substantively
 enacted as on Balance Sheet date. Deferred tax assets are recognized and
 carried forward to the extent that there is reasonable certainty that
 sufficient future income will be available against which such deferred
 tax assets can be realized.
 
 m) Employee Benefits
 
 (a) Post-employment benefit plans
 
 i) Defined Contribution plan- Contributions to provident fund and
 Family Pension fund are accrued in accordance with applicable statute
 and deposited with appropriate authorities.
 
 ii) Defined Benefit plan
 
 (a)The liability in respect of leave encashment is determined using
 actuarial valuation carried out as at Balance Sheet date.  Actuarial
 gains and losses are recognized in full in Profit and Loss Account for
 the year in which they occur.
 
 (b) The Company has opted for scheme with Life Insurance Corporation of
 India to cover its liabilities towards employees gratuity. The annual
 premium paid to Life Insurance Corporation of India is charged to
 Profit and Loss Account. The Company also carried out acturial
 valuation of gratuity using Projected Unit Credit Method as required by
 Accounting Standard 15 Employee Benefits (Revised 2005) and
 difference between fair value of plan assets and liability as per
 actuarial valuation as at year end is recognized in Profit and Loss
 Account.
 
 (b) Short term employee benefits
 
 The undiscounted amount of short term employee benefits expected to be
 paid in exchange for services rendered by employees is recognized
 during the period when the employees render the services. These
 benefits include compensated absence also.
 
 n) Excise duty
 
 The Excise duty in respect of closing inventory of finished goods is
 included as part of inventory, 
 
 o) Operating Leases
 
 Lease rental are recognised as an expense on straight line basis over
 the term of the lease, 
 
 p) Impairment of Assets
 
 An asset is treated as impaired when carrying cost of asset exceeds its
 recoverable value ,An impairment loss is charged to the profit & loss
 account in the year in which an asset is identified as impaired. An
 impairment loss recognised in prior accounting period is reversed if
 there has been a change in the estimate of recoverable amount, q) 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 amount of assets & liabilities on the
 date of the financial statements and the reported amounts of revenue
 and expenses during the reporting period. Differences between actual
 results and estimates are recognised in the period in which the results
 are known/ materialised.