1.  Basis of preparation of financial statements
 
 The financial statements have been prepared on the basis of going
 concern, under the historic cost convention on accrual basis, to comply
 in all material aspects with applicable Generally Accepted Accounting
 Principles in India (Indian GAAP), the Accounting Standards
 (AS) notified under Section 211 (3C) of the Companies Act, 1956
 (the Act) and the relevant provisions of the Act.
 
 2.  Use of Estimates
 
 The preparation of financial statements in conformity with the
 generally accepted accounting principles requires estimates and
 assumptions to be made that may affect the reported amount of assets
 and liabilities and disclosures relating to contingent liabilities as
 at the date of the financial statements and the reported amount of
 revenues and expenses during the reporting period. Management believes
 the estimates used in the preparation of financial statements are
 prudent and reasonable. Actual results could differ from those
 estimated. Any revision to accounting estimate is recognized
 prospectively in the current and future periods.
 
 3.  Tangible Fixed Assets
 
 Tangible Fixed Assets are stated at cost less accumulated depreciation.
 Cost comprises the purchase price and any attributable costs of
 bringing the asset to their working condition for their intended use.
 
 4.  Intangible Assets
 
 Intangible Assets are recorded at their cost of acquisition. Cost of an
 internally generated asset, if any, comprises all expenditure that can
 be directly attributed, or allocated on a reasonable and consistent
 basis, to creating, producing and making the asset ready for its
 intended use.
 
 5.  Depreciation
 
 Cost of leasehold land is amortised over the remaining period of lease
 after the commencement of commercial production.
 
 Depreciation on other Fixed Assets is provided on Straight Line Method
 at the rates and in the manner specified in Schedule XIV to the
 Companies Act, 1956.  Continuous process plants are classified on
 technical assessment and depreciation provided accordingly.
 
 Depreciation on the Fixed Assets added/disposed off/ discarded during
 the year is provided on pro-rata basis with reference to the month of
 addition / disposal/ discarding.
 
 6.  Amortisation of Intangible assets
 
 The Intangible Assets are amortised on straight line basis based on
 their actual life of ten years whichever is lower.
 
 7.  Borrowing Costs:
 
 Borrowing costs attributable to the acquisition or construction of
 qualifying assets which take substantial period of time are capitalised
 as part of cost of such asset up to the date when such asset is ready
 for its intended use. Other borrowing costs are recognised as an
 expense in the period in which they are incurred.
 
 8.  Investments
 
 Investments which are readily realizable and are intended to be held
 for not more than one year from the date, on which such investments are
 made, are classified as current investments. All other investments are
 classified as long term investments.
 
 Long-term investments are carried at cost of acquisition.  Provision is
 made only when in management''s opinion there is a decline, other than
 temporary, in the carrying value of such investments. Current
 investments are valued at lower of cost and market value.
 
 9.  Inventories
 
 Raw materials and Stores and spares are valued at or below cost. Other
 inventories are valued at lower of cost and net realizable value. The
 method of determination of cost of various categories of inventories is
 as follows:
 
 Raw Materials: weighted average cost, cost includes purchase cost and
 attributable expenses.
 
 Finished Goods & Work-in-process : weighted average cost of production,
 which comprises of direct material costs, direct wages and applicable
 overheads. Excise duty is included in the value of finished goods. The
 obsolete, defective and unserviceable stocks and duty are provided for
 whenever required.
 
 Store & Spares: Weighted average cost
 
 Stock in Trade: Weighted average cost
 
 10.Foreign Currency Transactions
 
 Transactions made during the year in foreign currency are recorded at
 the exchange rate prevailing at the time of transactions. Monetary
 assets and liabilities relating to foreign currency transactions
 remaining unsettled at the year-end are translated at the exchange rate
 prevalent at the date of Balance Sheet. Exchange differences arising on
 actual payment/ realisation and year end reinstatement referred to
 above are recognised in the Statement of Profit and Loss.
 
 11.  Revenue Recognition
 
 The Company recognises Sales at the point of dispatch of goods to the
 customers which coincides with the transfer of risks and rewards. .
 Sales include amount recovered towards Excise Duty and exclude Sales
 tax and Value added tax. Interest income is accounted for on accrual
 basis.
 
 12. Taxation
 
 Provision for Taxation is made for the current accounting period
 (reporting period) on the basis of the taxable Income as determined in
 accordance with the provision of Income Tax Act, 1961.
 
 Deferred Tax resulting from timing differences between book and tax
 profits is accounted for under the liability method using the tax rates
 and laws that have been substantively enacted as at the Balance Sheet
 date, to the extent that the timing differences are expected to
 crystallize.
 
 Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realized in future.
 However, where there is unabsorbed depreciation or carried forward loss
 under taxation laws, deferred tax assets are recognised only if there
 is a virtual certainty of realisation of such assets. Deferred tax
 assets are reviewed as at each Balance Sheet date and written down or
 written up to reflect the amount that is reasonably/virtually certain
 to be realized.
 
 13.Government Grants
 
 Grants relating to Fixed Assets in the nature of project capital
 subsidy are credited to Capital Reserve.
 
 14.  Retirement Benefits:
 
 Defined contribution plans
 
 Contributions paid/payable to defined contribution plans comprising
 Provident Fund for employees covered under the Scheme are recognised in
 the Statement of Profit and Loss each year.
 
 The Company makes contributions to Recognised Provident Fund for
 employees, at a specified percentage of the employees'' salary. The
 Company does not have any other obligation apart from making
 contributions to the fund.
 
 Defined benefit plans
 
 Gratuity for employees is covered under a Scheme of Life Insurance
 Corporation of India (LIC) and contributions in respect of such scheme
 are recognised in the Statement of Profit and Loss. The liability as at
 the Balance Sheet date is provided for based on the actuarial valuation
 carried out as at the end of the year.
 
 Other long term employee benefits
 
 Other long term employee benefits comprise of leave encashment which is
 provided for based on the actuarial valuation carried out as at the end
 of the year.
 
 15.Earnings per Share
 
 Basic earning per share is calculated by dividing the net profit for
 the period attributable to equity shareholders by the weighted average
 number of equity shares outstanding during the period. The weighted
 average number of equity shares outstanding during the period is
 adjusted for events of subsequent issue of shares.
 
 For the purpose of calculating diluted earnings per share, the net
 profit for the period attributable to equity shareholders and weighted
 average number of shares outstanding during the period is adjusted for
 the effects of all dilutive potential equity shares.
 
 16.Impairment of Assets
 
 The carrying amounts of the Company''s assets are reviewed at each
 Balance Sheet date. If any indication of impairment exists, an
 impairment loss is recognised to the extent of the excess of the
 carrying amount over the estimated accountable amount.
 
 17.Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions are recognised in respect of present probable obligations,
 the amount of which can be reliably estimated.
 
 Contingent Liabilities are disclosed in respect of possible obligations
 that arise from past events but their existence is confirmed by the
 occurrence or non occurrence of one or more uncertain future events not
 wholly within the control of the Company.
 
 A Contingent asset is neither recognized nor disclosed in the financial
 statements.