ACCOUNTING CONVENTION: The Accounts are prepared on accrual basis under
 the historical cost convention, except for certain fixed assets which
 are revalued, in accordance with applicable accounting standards and
 relevant provisions of the Companies Act, 1956.
 
 USE OF ESTIMATES: The preparation of financial statements in conformity
 with the generally accepted accounting principles requires estimates
 and assumptions to be made that affect the reported amount of assets
 and liabilities on the date of the financial statements and the
 reported amount of revenues and expenses during the reporting period.
 Difference between the actual result and estimates are recognised in
 the period in which the results are known / materialized.
 
 FIXED ASSETS: Fixed Assets including intangible assets are stated at
 cost net of cenvat / value added tax and includes amount added on
 revaluation less accumulated depreciation and impairment loss, if any.
 All Cost is inclusive of Freight, Duties, (net of tax credits as
 applicable) levies and any directly attributable cost till commencement
 of commercial production.
 
 IMPAIRMENT OF ASSETS: Impairment is ascertained at each balance sheet
 date in respect of Cash Generating Units. An impairment loss is
 recognized whenever the carrying amount of an asset exceeds its
 recoverable amount. The recoverable amount is the greater of the net
 selling price and value in use. In assessing value in use, the
 estimated future cash flows are discounted to their present value based
 on an appropriate discount factor.
 
 DEPRECIATION AND AMORTISATION: Depreciation on fixed assets is provided
 as per the straight line method (SLM) at the rate and in the manner
 prescribed in Schedule XIV of the Companies Act, 1956 on pro rata
 basis. Fixed Assets are capitalised at cost inclusive of expenses and
 interest wherever applicable.
 
 Intangible Assets are amortised over their respective individual
 estimated useful life on a straight line basis commencing from the year
 the asset is available to the Company for its use, not exceeding five
 years.
 
 INVESTMENTS: Long-term investments are stated at cost.  Provision for
 diminution in the value of long-term investment is made only if, such a
 decline is other than temporary in the opinion of management. Current
 Investments are carried at lower of cost and fair value.
 
 INVENTORIES:
 
 A.  Raw Materials and General Stores are valued at cost or realisable
 value, whichever is less, excluding Cenvat and VAT credit, by FIFO
 method.
 
 B.  Work in Process is valued at raw materials cost or realisable
 value, whichever is less plus estimated overheads, but excluding Cenvat
 and VAT.
 
 C.  Finished Goods are valued at cost including estimated overheads or
 net realisable value, whichever is less. The value includes excise duty
 paid / payable on such goods.
 
 EXCISE DUTY & CENVAT CREDIT: Excise Duties wherever recovered are
 included in Sales and shown separately in financial statement as
 deduction from sales. Excise duty provision made in respect of finished
 goods lying at factory premises are shown separately as an item of
 manufacturing and other expenses and included in the valuation of
 finished goods. Cenvat credit available on purchases of service /
 materials / capital goods is accounted by reducing cost of services /
 materials / capital goods. Cenavat credit availed of is accounted by
 way of adjustment against excise duty payable on dispatch of finished
 goods.
 
 PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS: A provision is
 recognised when an enterprise has a present obligation as a result of
 past events and it is probable that an outflow of resources will be
 required to settle the obligation, in respect of which a reliable
 estimate can be made. Provisions are determined based on management
 estimate required to settle the obligation at the balance sheet date.
 These are reviewed at each balance sheet date and adjusted to reflect
 the current management estimates. Contingent Assets are neither
 recognised nor disclosed in the financial statements. Contingent
 liabilities are not recognise but are disclosed by way of note on the
 balance sheet. Provision is made in the accounts for those liabilities
 which are likely to materialise after the year end till the
 finalisation of accounts and having effects on the position stated in
 the balance sheet as at the year end.
 
 FOREIGN EXCHANGE TRANSACTION:
 
 A: Transactions entered into and those settled during the year in
 foreign currency are recorded at the actual exchange rates prevailing
 at the time of the transactions.
 
 B: Foreign currency transactions remaining unsettled at the year end
 and not covered by forward contract are translated at the exchange
 rates prevailing at the year end.
 
 C: In case of item which are covered by forward exchange contract, the
 difference between the year end rate and rate on the date of the
 contract is recognised as exchange difference and the premium paid on
 forward contract is recognised over the life of the contracts. Forward
 exchange contracts outstanding as at the year end are calculated at the
 year end rate and mark to market profit / loss is dealt in the Profit &
 Loss Account.
 
 REVENUE RECOGNITION:
 
 A: Sales are recognised, net of returns and trade discounts, on
 despatch of goods to customers and are reflected in the accounts at
 gross realisable value i.e. inclusive of excise duty. Inter-unit
 sales/purchases have been eliminated during the year. In case of export
 sales, revenue is recognised when the risk and reward on the goods is
 transferred to the customers i.e. on the basis of date of billing of
 lading.
 
 B: In appropriate circumstances, Revenue (Income) is recognised when no
 significant uncertainty as to Measurability or collectibility exists.
 Export benefits / incentives are accounted on accrual basic.
 
 C: Interest income is recognised on time proportionate method.
 
 D: Dividend is accrued in the year in which it is declared whereby a
 right to receive is established.
 
 TAXATION:
 
 A: Provision for current taxation is made for the current accounting
 period (reporting period) on the basis of the taxable profits computed
 in accordance with Income Tax Act, 1961 for the relevant assessment
 year.
 
 B: Deferred Tax resulting from “timing differences” between book and
 tax profits is accounted for under the liability method, at the current
 rate of tax and tax laws that have been enacted or substantively
 enacted at the Balance Sheet, date to the extent that the timing
 differences are expected to crystalise, as deferred tax charge /
 benefit in the Profit and Loss Account and as deferred tax asset or
 liabilities in the Balance Sheet. The deferred tax assets is recognised
 and carry forward only to the extent that there is a virtual certainty
 that the assets will be realised in the future.
 
 EMPLOYEE RETIREMENT BENEFITS:
 
 A: Defined Contribution Plans: The Company has defined contribution
 plan for Post-employment benefits in the form of Provident fund for all
 eligible employees; which is administered by the Regional Provident
 Fund Commissione. Provident Fund is classified as defined contribution
 plan as the Company has no further obligation beyond making
 contribution.  The Company''s contribution to Defined Contribution Plan
 is charged to the Profit and Loss Account as and when incurred.
 
 B: Defined Benefits Plans: Funded Plan: The company has a Defined
 Benefits Plan for Post employment benefits in the form of gratuity for
 all employees and the liability for the defined benefit plan of
 Gratuity is determined on the basis of actuarial valuation by an
 independent actuary at the year end, which is calculated using
 projected unit credit method. Actuarial gains and losses which comprise
 experience adjustment and the effect of changes in actuarial
 assumptions are recognised in the Profit and Loss Account.
 
 C: Leave Liability (Long-term Employee Benefits): The Employee of the
 Company are entitled to leave encashment which is encashed annually as
 per the leave policy of the company. Liability for compensated absences
 (Unutilised leave benefit) is provided on the basis of valuation, as at
 the Balance Sheet date, carried out by an independent actuary.
 
 D: Termination Benefit are recognised as an expenses as and when
 incurred.
 
 E: The actuarial gain and losses arising during the year are recognised
 in the profit and loss account of the year without restoring to any
 amortisation.
 
 BORROWING COST: Borrowing cost that attributes to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets.  A qualifying asset is one that necessarily takes
 substantial period of time to set ready for intended use. All other
 borrowing cost are charged to revenue.
 
 PROPOSED DIVIDEND: Dividend proposed by the Board of Directors is
 provided for in the accounts pending approval at the Annual General
 Meeting.