1.  Basis of Accounting Policies
 
 The accounts of the Company are prepared and presented under the
 historical cost convention and in accordance with accounting principles
 generally accepted in India (Indian GAAP) and comply with the
 applicable accounting standards notified under sub-section 3(C) of
 Section 211 of the Companies Act 1956 (Act) and relevant provisions of
 the said Act except where otherwise stated.
 
 The Company follows accrual method of accounting unless otherwise
 specifically stated.
 
 2.  Use of Estimates
 
 The Preparation of Financial statements requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and disclosures relating to contingent liabilities and
 assets as at the Balance Sheet date and the reported amounts of Income
 and Expenses during the reporting period. Difference between the actual
 results and the estimates are recognized in the year in which the
 results are known/materialized.
 
 3.  Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Revenue from sale of goods and services are recognized when the
 significant risks and rewards of ownership of the goods have passed to
 the buyer.
 
 4.  Fixed Assets
 
 Fixed assets are stated at cost less accumulated depreciation. Cost of
 an asset comprises its purchase price and incidental expenses related
 thereto. Capital Work in Progress comprises the cost of fixed assets
 that are not yet ready for their intended use as on the balance sheet
 date.
 
 5.  Intangible Assets
 
 Intangible Assets are recognized only when future economic benefits
 attributable to the asset will flow to the enterprise and cost can be
 measured reliably and to be amortized in equal installment over a
 useful life.
 
 6.  Depreciation & Amortization
 
 i) Depreciation on fixed assets is provided on Straight Line method at
 the rates prescribed in Schedule XIV of the Act. Depreciation for
 assets purchased/sold during the period is proportionately charged.
 
 ii) Copy Right & Trade Marks are amortized over a period of ten year.
 
 iii) Computer software is amortized by one - fifth on Straight line
 method.
 
 7.  Investments
 
 i) Investments that are readily realizable and intended to be held for
 not more than a year are classified as current investments. All other
 investments are classified as long-term investments
 
 ii) Long Term Investments are stated at cost and provision for
 diminution in value is made only if such decline is other than
 temporary.
 
 iii) Current Investments are stated at lower of cost and fair value
 determined on an individual investment basis.  Decline in the value of
 current Investment are charged to the profit and loss account.
 
 8.  Inventories
 
 Inventories are valued using FIFO method on the basis mentioned below -
 
 i) Raw Materials, Packing Materials and Materials under process are
 valued at cost or net realizable value whichever is lower.
 
 ii) Finished goods are valued at cost or net realizable value whichever
 is lower.
 
 iii) Cost of Material under process comprises cost of materials and
 conversion cost up to the relative stage of completion.
 
 9.  Government Grants
 
 i) Government Grants of the nature of Project Subsidy on Capital Assets
 is recognized as Capital Subsidy when there is a reasonable assurance
 that the subsidy will be received.
 
 ii) Revenue Grant is recognized in the profit and loss account on
 confirmation of reasonable assurance of the receipt.
 
 10.  Sales
 
 Sales are recorded net of indirect taxes (Sales Tax, VAT etc), sales
 return and discounts.
 
 11.  Exports Incentives
 
 Benefits on account of duty drawback are accounted in the year of
 export.
 
 12.  Employees'' Benefits
 
 i) Company''s contributions to Provident Fund are charged to Profit &
 Loss Account as and when they become payable.
 
 ii) Gratuity Liability is defined benefit obligation and is provided
 for on basis of actuarial value. It is a defined fund maintained with
 Life Insurance Corporation of India (LICI) under the Group Gratuity
 Scheme.
 
 iii) Actuarial gains/losses are immediately taken into Profit & Loss
 Account and not deferred.
 
 iv) Leave encashment benefits are accrued and settled on a 12-month
 period of September to August and are accounted for accordingly.
 
 13.  Borrowing Cost
 
 Borrowing Costs that are attributable to the acquisition, construction
 or production of qualifying assets are capitalized as part of cost of
 such assets till such time as the asset is ready for its intended use
 or sale. A qualifying asset is an asset that necessarily requires a
 substantial period of time to get ready for its intended use or sale.
 All other borrowing costs are recognized as an expense in the period in
 which they are incurred.
 
 14.  Taxes on Income
 
 i) Tax on income for the current period is determined on the basis of
 taxable income and tax credit computed in accordance with the
 provisions of the Income Tax Act, 1961.
 
 ii) Deferred tax is recognized on timing difference between the
 accounting income and the taxable income for the year and quantified
 using the tax rates and laws enacted or substantively enacted as on the
 Balance Sheet date.
 
 iii) Deferred tax assets are recognized and carried forward to the
 extent that there is a reasonable certainty that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realized.
 
 15.  Segment Reporting
 
 i) The accounting policies applicable to the reportable segments are
 the same as those as used in the preparation of the financial
 statements as set out above.
 
 ii) Segment revenue and expense include amount which can be directly
 identifiable to the segment or allocable on a reasonable basis.
 
 iii) Assets and liabilities relate to the company as a whole and do not
 relate to any other segment, are not allocated.
 
 iv) The Company has identified business segment as its primary segment.
 The Company has also identified as its Reportable Geographical Segment
 the sales to Indian markets and export sales.
 
 16.  Prior Period Adjustments/Extra ordinary Items
 
 i) Prior period items which arise in the current period as a result of
 error or omission in preparation of prior period''s financial statement
 are separately disclosed in the current statement of Profit or Loss.
 However, differences in actual Income/expenditure arising out of
 over/under estimation pertaining to prior periods are not treated as
 Prior Period Adjustment.
 
 ii) Extraordinary items, i.e. gains or losses which arise from events
 or transactions which are distinct from ordinary activities of the
 company which are material are separately disclosed in the statement of
 accounts.
 
 17.  Provisions, Contingent Liabilities and Contingent Assets
 
 i) The Company recognizes as Provisions, the liabilities being present
 obligations arising from past events, the settlement of which is
 expected to result in an outflow of resources and which can be measured
 only by using a substantial degree of estimation.
 
 ii) Contingent Liabilities are disclosed by way of a note to the
 financial statements after careful evaluation by the management of the
 facts and legal aspects of the matters involved.
 
 iii) Contingent Assets are neither recognized nor disclosed.
 
 18.  Impairment of Assets
 
 On the basis of an assessment in each balance sheet date, if the
 carrying amount of fixed assets exceeds the recoverable amount on the
 reporting date, the carrying amount is reduced to the recoverable
 amount. The recoverable amount is measured as the higher of the net
 selling price and the value in use, determined by the present value of
 estimated future cash flow.