i) Basis of Accounting
 
 The financial statements are prepared under historical cost convention
 on accrual basis of accounting and in accordance with the Accounting
 Standards prescribed under the Companies (Accounting Standards) Rules,
 2006 and the relevant provisions of the Companies Act, 1956.
 
 ii) Use of Estimates
 
 The presentation 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 results and estimates are recognized in the period
 in which the results are known /materialized.
 
 iii) Revenue Recognition & Other Accounting Policies
 
 a. Sales are recognized when goods are dispatched. Sales are accounted
 net of amount recovered towards excise duty, sales tax and sales
 returns.
 
 b. Sales returns are accounted on actual receipt of return goods /
 settlement of claims.
 
 c.  Services are accounted for pro-rata over the period of contract.
 
 iv) Fixed Assets & Depreciation.
 
 a) Fixed Assets are stated at cost of acquisition / construction, cost
 of improvement and any attributable cost of bringing the asset to its
 working condition for intended use or at revalued amounts wherever such
 assets have been revalued less accumulated depreciation.
 
 b) Depreciation on all assets except Buildings at Sachin is provided on
 written down value method and Depreciation on Buildings at Sachin is
 provided on Straight line Method at the rates and in the manner
 specified in schedule XIV of the Companies Act, 1956.
 
 v) Intangible Assets and Amortization:
 
 Intangible assets are measured at cost. Lump sum fees for technical
 know-how is amortised over the period of agreement. SAP Software
 expenses are amortised over the period of five years.
 
 vi) Borrowing Cost
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying fixed assets are capitalised as part of the
 cost of the assets upto the date the asset is put to use. A qualifying
 asset is one that necessarily takes substantial period of time to get
 ready for its intended use. All other borrowing costs are charged to
 the Profit and Loss Account in the year in which they are incurred.
 
 vii) Foreign Currency Transactions.
 
 (a) Transactions other than those covered by forward contracts are
 accounted at exchange rates prevailing on the date of transaction.
 
 (b) Forward premium in respect of forward exchange contract is
 recognised over the life of contract.
 
 (c) Monetary foreign currency items other than those covered by forward
 contracts ( i. e.  receivable, payable, etc.) denominated in foreign
 currency are reported using the closing exchange rate on each balance
 sheet date. Exchange difference is recognised as income/expense.
 
 (d) Non-monetary foreign currency items are carried at historical cost
 determined on the date of transaction.
 
 viii) Employee Benefits
 
 a) Short Term Employee Benefits:
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short term employee benefits. Benefits
 such as salaries, wages and the expected cost of bonus are recognized
 in the period in which an employee renders the related services.
 
 b) Post-Employment Benefits:
 
 i. Defined Contribution Plans : The Company''s Statutory Provident Fund,
 Employees'' Super-annuation Fund and Employee State Insurance Scheme are
 defined contribution plans. The Super-annuation fund created by the
 company has taken Super-annuation cum life insurance policy from Life
 Insurance Corporation of India.  The company has no further obligation
 for Super-annuation, Provident Fund and Employee State Insurance beyond
 its contribution.
 
 ii. Defined Benefit Plan: The Employees'' Group Gratuity Fund is the
 Company''s defined benefit plan for which Company has taken Group
 Gratuity cum Life Insurance Policy from Life Insurance Corporation of
 India. Gratuity expenses are recognized at the present value of the
 amount payable determined using actuarial valuation techniques.
 Actuarial gains and losses in respect of defined benefits are charged
 to the profit and loss account..
 
 iii.  Provision for accrued leave encashment is provided for on the
 basis of actuarial valuations made at the year end.  
 
 ix) Taxation
 
 Current Tax Provision
 
 Provision for Income Tax is determined in accordance with the
 provisions of Income Tax Act, 1961.
 
 Deferred Tax Provision
 
 Deferred tax is recognised, on timing differences, being the difference
 between the taxable income and accounting income that originate in one
 period and are capable of reversal in one or more subsequent periods.
 
 x) Valuation of Stock:
 
 The mode of valuing closing stock is as under:
 
 Inventory Type                            Mode of Valuation  
 
 Raw-Materials,Packing Materials           At moving weighted average 
 & Other Materials                         cost basis
 
 Work-in-Process                           At cost  
 
 Finished Goods/ Traded Goods              At lower of Cost or net
 for resale                                realizable value.
 
 The cost for the purpose of valuation of Finished Goods and
 work-in-process includes material cost, direct conversion cost and
 appropriate share of overheads incurred for bringing the goods to their
 present location and condition plus excise duty wherever applicable.
 
 xi) Leases:
 
 Assets acquired on lease and assets given on lease where a significant
 portion of the risks and rewards of ownership are retained by the
 lessor are classified as operating leases.  The initial direct cost of
 lease is charged to profit and loss account as and when incurred.
 Lease rental are charged to Profit and loss Account on accrual basis.
 
 xii) Provision for Bad and Doubtful debts:
 
 Provision is made in accounts for Bad and Doubtful Debts as and when
 the same in opinion of the management are considered doubtful of
 recovery.
 
 xiii) Liquidated Damages:
 
 Liabilities in respect of Liquidated Damages are provided if and to the
 extent, not disputed by the Company. Liquidated Damages disputed by the
 Company are treated as contingent liability. The amount of
 liability/contingent liability is estimated on the basis of contracted
 terms, facts of each case and to the extent of revenue recognised.
 
 xiv) Impairment of Fixed Assets :
 
 Consideration is given at each Balance Sheet date to determine whether
 there is any indication of carrying amount of the Company''s fixed
 assets. If there is any indication of impairment based on internal /
 external factors, then asset''s recoverable amount is estimated. An
 impairment loss is recognized wherever the carrying amount of an asset
 exceeds its estimated recoverable amount. The recoverable amount is
 greater of the asset''s net selling price and value in use. In assessing
 the value in use, the estimated future cash flows are discounted to the
 present value using the weighted average cost of capital. Previously
 recognized impairment loss is further provided or reversed depending on
 changes in circumstances.
 
 xv) Investment:
 
 Long-term investments are carried at cost. Provision for diminution is
 made to recognize a decline, other than temporary in value of long-term
 investments and is determined separately for each individual
 investment. Current investments are carried at lower of cost and fair
 value computed separately in respect of each category of investment.
 
 xvi) Research & Development:
 
 Revenue expenditure on research and development is charged as an
 expense in the year in which it is incurred. Capital expenditure on
 research and development is included as additions to fixed assets.
 
 xvii) Provisions, contingent liabilities and contingent assets
 
 Provisions:-
 
 Provision is recognised when
 
 a) The Company has a present obligation as a result of past event;
 
 b) It is probable that an outflow of resources embodying economic
 benefit is expected to settle the obligation,
 
 c) Areliable estimate can be made for the amount of obligation.
 
 Provisions are not discounted to its present value and are determined
 based on best estimate required to settle the obligation at the Balance
 Sheet date.
 
 Contingent liability:-
 
 Contingent Liability is disclosed in case of
 
 a) A present obligation arising from a past event, when it is not
 probable that an outflow of 
 resources will      be required to settle the obligation.
 
 b) Apossible obligation unless the probability of outflow of resources
 is remote.
 
 Contingent assets:-
 
 Contingent assets are neither recognised nor disclosed.
 
 Provisions, Contingent Liabilities are reviewed at each Balance Sheet
 date and adjusted to reflect the current best estimate.