Basis of preparation of financial statements:
 
 (a) The financial statements are prepared on historical cost
 convention and on the presumption of going concern in accordance with
 generally accepted accounting principles in India the applicable
 mandatory Accounting Standards and the relevant provisions of the
 Companies Act, 1956 of India adopted consistently by the Company.
 
 (b) The Company generally follows mercantile system of accounting and
 recognizes all the income and expenditure on accrual basis.
 
 Use of Estimates :
 
 The preparation of financial statements in conformity with generally
 accounting principles requires management to make estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities on the date of the
 financial statements and the results of operations during the said
 reporting period. Although these estimates are based upon management''s
 best knowledge of current events and actions, actual results could
 differ from these estimates.  Difference between the actual results and
 estimates are recognized in the period in which the results are known /
 materialized.
 
 Fixed Assets:
 
 a) Tangible Assets are stated at cost less accumulated depreciation and
 impairment loss if any. Cost comprises of purchase price and any
 attributable cost of bringing the assets to its working condition for
 its intended use.
 
 b) Intangible Assets are stated at cost less accumulated amortization.
 Cost includes any expenditure directly attributable on making the asset
 ready for its intended use.
 
 Depreciation:
 
 Depreciation on Fixed Assets is provided on straight line method as
 prescribed in Schedule XIV of the Companies Act, 1956 of India.
 Intangible assets are amortized over their useful life/ a period of ten
 years.
 
 Impairment:
 
 An asset is treated as impaired when the carrying cost of asset exceeds
 its recoverable value being higher of value in use and net selling
 price. Value in use is computed at net present value of cash flow
 expected over the balance useful life of the assets. An impairment loss
 is recognized as an expense in the Profit and Loss Account in the year
 in which an asset is identified as impaired.
 
 Investments:
 
 a.  Long Term Investments are carried at cost after deducting
 provision, if any, for diminution in value considered being other than
 temporary in nature.
 
 b.  Current investments are stated at lower of cost and fair value.
 
 Inventory:
 
 a) Raw-Materials, Stores and Packing Materials are valued at cost –
 Cost is determined on FIFO basis.
 
 b) Work-in-progress & finished goods are valued at estimated cost or
 net realizable value whichever is lower.
 
 Employee Benefits:
 
 Employee benefits of short term nature are recognized as expenses as
 and when it accrues. Long Term employee benefits/ post employment
 benefits (e.g. gratuity), both funded and non-funded, are recognized
 as expense based on actuarial valuation at year end which takes into
 account actuarial gains and losses.
 
 Sales and Purchases:
 
 Sales and Purchases are accounted net of returns basis. Sales include
 Export Entitlements / Benefits. Export entitlements are accounted on
 accrual basis at realizable value or entitlement value whichever is
 less.
 
 Foreign Currency Transactions:
 
 Transactions in foreign exchange are accounted at the exchange rate
 prevailing on the date of transaction. The exchange difference arising
 out of these transactions are dealt in profit and loss account.
 
 Derivative Instruments:
 
 The Company uses derivative financial instrument such as forward
 contract to hedge its risk associated with foreign currency fl
 uctuation. In respect of transactions covered by Forward Exchange
 Contract, the difference between the forward rate and the exchange rate
 at inception of contract is recognized as income or expense over the
 life of the contract.
 
 Taxes on Income:
 
 Tax on Income for the current period is determined on the basis of
 taxable income and tax credits computed in accordance with the
 provisions of the Income Tax Act, 1961.
 
 Deferred tax is provided in conformity with Accounting Standard-22
 issued by the Institute of Chartered Accountants of India based on the
 timing difference between the accounting income and the taxable income.