1.  Basis of Preparation of Financial Statements
 
 Financial statements are prepared on accrual basis under the historical
 cost convention in accordance with the Accounting Standards as notified
 by the Companies (Accounting Standards) Rules 2006 and the relevant
 provisions of the Companies Act 1956..
 
 2.  Use of Estimates
 
 The Preparation of financial statements, in conformity with the
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and disclosure of contingent liabilities at the date of
 the financial statements and the reported amount of revenue and
 expenses for the period.
 
 Estimates are based on historical experience, where applicable and
 other assumptions that management believes are reasonable under the
 circumstances. Actual results could vary from these estimates and any
 such differences are dealt with in the period in which the results are
 known/materialize.
 
 3.  Fixed Assets
 
 Fixed Assets are carried at cost less accumulated depreciation and
 impairment loss if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use. Borrowing costs relating to acquisition of Fixed
 assets which takes substantial period of time to get ready for its
 intended use are also included to the extent they relate to the period
 till such assets are ready to be put to use.
 
 4.  Depreciation
 
 Depreciation on fixed assets is provided on Straight Line method at the
 rates and in the manner prescribed in Schedule XIV of the Companies Act
 1956.
 
 5.  Revenue Recognition
 
 Revenue is recognized when it is earned and 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 is recognized on delivery of the products,
 when all significant contractual obligations have been satisfied, the
 property in the goods is transferred for a price, significant risks and
 rewards of ownership are transferred to the customers and no effective
 ownership is retained.
 
 6.  Inventories
 
 Cost of Inventories, comprises of Cost of Purchase, cost of conversion
 and other costs incurred in bringing them to their respective present
 location and condition.
 
 Raw Materials and Work-in-Progress are valued at cost using the
 weighted average cost method.
 
 Finished Goods produced and purchased are valued at cost or net
 realizable value whichever is lower.
 
 Excise duty in respect of finished goods awaiting despach is included
 in valuation of inventory.
 
 Stores and Spares and packing material are carried at cost, ascertained
 on weighted average basis.  Necessary provision is made in the case of
 obsolete and non moving items.
 
 7.  Investments
 
 Long-term investments are carried at cost less provision for other than
 temporary diminution in the carrying value of each investment. Current
 investments are stated at the lower of cost or quoted /fair value.
 
 8.  Leases
 
 Lease arrangements where the risks and rewards incident to the
 ownership of an asset substantially vest with the lessor, are
 recognized as operating leases. Lease rentals under operating leases
 are recognized in the Profit and Loss account on a straight-line basis
 over the lease term.
 
 9.  Employee Benefits
 
 Short term employee benefits (benefits which are repayable within
 twelve months after the end of the period in which the employees render
 service) are measured at cost and are recognized as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 Contributions to Provident Fund, a defined contribution plan are made
 in accordance with the statue and are recognized as an expense when
 employees have rendered service entitiling them to the contributions.
 
 Other long term employee benefits (benefits which are payable after the
 end of twelve months from the end of the year in which the employees
 render service) are measured on a discounted basis by the Projected
 Unit Credit Method on the basis of actuarial valuation.
 
 Acturial gains and losses are recognized in the profit and loss
 account.
 
 10.  Provisions, Contingent Liabilities and Contingent Assets
 
 A provision is recognized when there is a present obligation as a
 result of a past event, it is probable that an outflow of resources
 will be required to settle the obligation and in respect of which
 reliable estimate can be made.
 
 Contingent liabilities are not provided for and are disclosed by way of
 notes.
 
 Contingent assets are neither recognized nor disclosed in the financial
 statements.
 
 11.  Foreign Currency Transactions
 
 Transactins in foreign currencies are recorded at the exchange rates
 prevailing on the dates of transactions and in the case of purchase of
 material and sale of goods, the exchange gains/losses on the
 settlements during the year are changed to profit and loss account.
 
 Monetary assets and liabilities denominated in foreign currencies are
 translated at the rates prevailing on the date of Balance Sheet.
 
 12.  Borrowing Cost
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying fixed assets are capitalized as part of the
 cost of such assets till such time as the asset is ready for its
 intended use or sale.
 
 13.  Taxation
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income of the year.  Deferred tax for timing differences
 between the income as per the financial statement and income as
 
 per the Income tax Act 1961, is accounted for using the tax rates and
 laws that have been enacted or substantially enacted as of the balance
 sheet date.
 
 Deferred tax assets arising from the timing differences are recognized
 to the extent there is virtual certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 created.
 
 14.  Impairment of Assets
 
 Assets that are subject to impairment are reviewed for impairment
 whenever events or changes in circumstances indicate that the carrying
 amount may not be recoverable. An impairment loss is recognized for the
 amount by which the assets carrying amount exceeds the recoverable
 amount.
 
 15.  Earnings per share
 
 The earnings considered in ascertaining EPS comprise the net profit
 after tax. The number of shares used in computing Basic EPS is the
 weighted average number of shares outstanding during the Period.
 
 For the Purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effect of all dilutive potential equity shares.
 
 16.  Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby net profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature and any deferrals or accruals of past or future cash receipts or
 payment. The cash flows from regular revenue generating investment and
 financing activities of the Company are segregated.