The financial statements are prepared to comply with all material
 aspects with the accounting principles generally accepted in India and
 in consonance with the Accounting Standards issued by The Institute of
 Chartered Accountants of India to the extent applicable and the
 relevant provisions of the Companies Act,1956.
 
 (i) Basis of Accounting
 
 The Financial Statements are prepared under the historical cost
 convention on an accrual basis.
 
 (ii) 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 amount of assets and
 liabilities and disclosures of contingent liabilities at the date of
 financial statement and the result of operation during the reporting
 period end. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 (iii) Revenue Recognition
 
 Revenue is recognised when consideration can be reasonably measured and
 there exists reasonable certainty of its recovery.
 
 (a) Sales
 
 Sales is inclusive of VAT and Central Sales Tax, wherever applicable
 and after making adjustments towards price variations, discounts, etc.
 
 As the company''s business model is such that the excise duty payable by
 the company is negligible, it is not shown separately.
 
 Revenue from domestic sales is accounted on dispatch of products to
 customers.
 
 Revenue from export sales is recognised on shipment / air lift of
 products.
 
 (b) Interest
 
 Interest on investments is booked on a time proportion basis taking
 into account the amounts invested and the rate of interest.
 
 (c) Export Benefits
 
 Export Incentives are estimated and accounted for in the year of
 export.
 
 (d) Dividend Income
 
 Dividend income on investments is accounted for when the right to
 receive the payment is established.
 
 (iv) Tangible Fixed Assets
 
 Fixed Assets are stated at cost of acquisition / construction less
 accumulated depreciation, amortisation and impairment loss (if any).
 Cost comprises of purchase price, import duties and other
 non-refundable taxes or levies and any directly attributable cost to
 bring the assets ready for their intended use. Direct expenses, as well
 as pro rata identifiable indirect expenses on projects during the year
 of construction are capitalised.
 
 The fixed assets retired from active use are stated at the lower of
 cost or net realisable value.
 
 (v) Expenditure on New Projects and Substantial Expansion
 
 All direct capital expenditure on expansion and new projects is
 capitalised. As regards indirect expenditure on expansion and on new
 projects only that portion is capitalised which represents the increase
 in such expenditure as a result of capital expansion. The same is
 treated as pre- operative expenditure pending allocation to fixed
 assets in progress and is shown as  Capital Work - in Progress.  The
 same is transferred to fixed assets on progressive basis and is
 capitalised along with fixed assets on commencement of commercial
 activities.
 
 (vi) Intangible Fixed Assets
 
 Intangible assets are stated at cost of acquisition / cost incurred
 less accumulated amortisation.
 
 (vii) Depreciation / Amortisation
 
 Depreciation on all tangible fixed assets is provided on Straight Line
 Method at the rates prescribed in Schedule- XIV of the Companies
 Act,1956, on pro-rata basis for the period the assets have been put to
 use.
 
 Assets costing up to Rs. 5,000/- are fully depreciated in the year in
 which they are put to use.
 
 Depreciation on sale of assets is provided till the date of sale.
 
 Intangible fixed assets in the nature of software are amortised at the
 rate prescribed under schedule XIV of the Companies Act,1956 on
 straight line method. The value of these intangible assets is reviewed
 at each balance sheet date to assess the probability of continuing
 future benefits. If there is any indication that the value of such
 assets is impaired, the resulting impairment loss is recognised in the
 financial statement.
 
 (viii) Investments
 
 Current Investments are carried at the lower of cost and fair value
 computed individually. Long term investments are stated at cost.
 Provision for diminution in the value of long term investments is made,
 only if, in the opinion of the management, such a decline is regarded
 as being other than temporary.
 
 (ix) Inventories
 
 Raw materials are valued at lower of cost or net realisable value. The
 costs of these items of inventory comprises of cost of purchase and
 other incidental costs incurred to bring the inventories to their
 present location and condition.
 
 Finished goods are valued at lower of cost or net realisable value. The
 cost of finished goods includes cost of conversion and other costs
 incurred to bring the inventories to their present location and
 condition. Cost of inventories is determined on First in First out
 basis.
 
 Excise duty in respect of finished goods lying at the factory premises
 have been provided for and included in valuation of inventory.
 
 (x) Research and Development
 
 Research and Development costs incurred for development of products
 including manpower cost are charged to revenue as incurred, except for
 development costs relating to the design and testing of new or improved
 materials, products or processes which are recognised as intangible
 assets to the extent that it is expected that such assets will generate
 future economic benefits. Research and development expenditure of
 capital nature is added to fixed assets.
 
 The carrying value of development costs is reviewed for impairment
 annually when the asset is not yet in use, and otherwise when events
 and change in circumstances indicate that the carrying value may not be
 recoverable.
 
 (xi) Foreign currency transactions
 
 (a) Transactions denominated in foreign currencies are recorded at the
 exchange rate prevailing at the time of transactions. Exchange
 difference arising from foreign currency transactions are dealt with in
 the Company''s Profit and Loss account except when it is of the capital
 expenditure.
 
 (b) Year end balance of foreign currency transactions are translated at
 the year end rates. Exchange difference arising on restatement or
 settlement is charged to Profit and Loss Account except the difference
 in case of liability pertaining to acquisition of Fixed Assets which is
 adjusted in the cost of Fixed Assets.
 
 (c) Monetary items denominated in foreign currencies at the year end
 are restated at the year end rates. Non monetary foreign currency items
 are carried at cost.
 
 (xii) Derivatives
 
 Premium or discount arising at the inception of derivative contract is
 amortised as expenses or income over the life of the contract. Exchange
 difference on derivative contract is recognised in the Profit & Loss
 Account in the year in which the exchange rates change. Any Profit or
 Loss arising on cancellation or renewal of derivative contract is
 recognised as income or expense in the profit and loss account.
 
 (xiii) Employee Benefits
 
 (a) Short term Employee Benefits
 
 Short-term employee benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 (b) Post Employment Benefits
 
 Defined Contribution Plan :- The Company''s contribution paid / payable
 during the year to Provident Fund are considered as defined
 contribution plans. The Contribution paid / payable under these plans
 are recognised during the period in which the employee render services.
 
 (c) Defined Benefit Plan
 
 Other long-term employee benefits are recognised as an expense in the
 profit and loss account for the period in which the employee has
 rendered services. Estimated liability on account of long-term benefits
 is discounted to the current value, using the yield on government
 bonds, as on the date of balance sheet, at the discounting rate.
 
 Actuarial gains and losses in respect of post employment and other
 long-term benefits are charged to the profit and loss account.
 
 (xiv) Leases
 
 All leases are classified into Operating and Financial Lease at the
 inception of the lease. Leases that transfer substantially all risks
 and reward from lessor to lessee are classified as Finance Lease,
 others being classified as Operation Lease.
 
 Rent Expense and Rent Income represent operating leases which are
 recognised as an expense in the statement of Profit and Loss Account on
 a Straight Line basis over the lease terms.
 
 (xv) Provision for tax
 
 Tax expenses for a year comprise of current tax and deferred tax.
 
 Provision for current tax is determined based on assessable profits of
 the company as determined under the Income Tax Act,1961.
 
 Provision for deferred tax is determined based on the effect of timing
 difference between the assessable profits under the Income Tax Act and
 the profits as per the Profit and Loss Account.
 
 Deferred tax assets, other than those from carry forward losses and
 unabsorbed depreciation, are recognised at the end of the company''s
 accounting year (ending on 30th June every year), only to the extent
 that there is reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realised.
 
 (xvi) Impairment of Fixed Assets
 
 The carrying amount of fixed assets including those assets that are not
 available for use, are reviewed at each balance sheet date to determine
 whether there is any indication of impairment.
 
 If any such indication exist, the assets recoverable amount is
 estimated. An impairment loss is recognised in the Profit and Loss
 account whenever the carrying amount of assets exceeds its recoverable
 amount. An impairment loss can be reversed if there are changes in
 estimates to determine the recoverable amount in future period. An
 impairment loss is reversed only to the extent that the carrying amount
 of the assets does not exceed the net book value that would have been
 determined, if no impairment loss has been recognised.
 
 (xvii) Provisions and Contingent Liabilities
 
 Provisions are recognised for when the Company has at present, legal or
 contractual obligation as a result of past events, only if it is
 probable that an outflow of resources embodying economic benefits will
 be required and if the amount involved can be measured reliably.
 
 Contingent liabilities being a possible obligation as a result of past
 events, the existence of which will be confirmed only by the occurrence
 or nonoccurrence of one or more future events not wholly in the control
 of the Company are not recognised in the accounts. The nature of such
 liabilities and an estimate of its financial effect are disclosed in
 the Notes to Financial Statements.
 
 Contingent assets are neither recognised nor disclosed in the financial
 statements.