1.  General:
 
 i) The financial statements are prepared on the basis of historical
 cost convention, and on the accounting principles of a going concern
 
 ii) All expenses and Income to the extent as certainable with
 reasonable certainty are accounted for on accrual basis.
 
 2.  Use of Estimates:
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles (GAAP) requires management to make
 estimates and assumptions that affects the reported amounts of assets
 and liabilities and the disclosures of contingent liabilities on the
 date of financial statements and reported amounts of revenue and
 expenses for the year. Any revision to accounting estimates is
 recognised prospectively.
 
 3.  Fixed Assets:
 
 (a) Fixed Assets are stated at cost of acquisition (inclusive of any
 other cost attributable to bringing the same to their working
 condition), less accumulated depreciation.
 
 (b) Fixed Assets manufactured / constructed in house are valued at
 actual cost of raw materials, conversion cost, and other related cost,
 less accumulated depreciation.
 
 (c) Pre-operative Expenses incurred up to Commencement of Commercial
 production of respective unit has been appropriated on the Fixed Assets
 value at the end of the year of respective unit.
 
 4.  Impairment of Assets:
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that any asset may be impaired. If any such indication
 exists, the carrying value of such assets is reduced to its recoverable
 amount and the amount of such impairment loss is charged to profit and
 loss account. If at the balance sheet date there is any indication that
 a previously assessed impairment loss no longer exists, then such loss
 is reversed and the asset is restated to that effect.  None of the
 Company''s fixed assets are considered impaired as on the Balance Sheet
 date.
 
 5.  Depreciation:
 
 Depreciation on fixed assets is provided on straight line method at the
 rates and in the manner as specified in Schedule XIV to the Companies
 Act.
 
 6.  Sales:
 
 Sales are inclusive of Excise duty, Sales Tax, other benefits etc., and
 less of returns.
 
 7.  Investments:
 
 Investments, which are Long term in nature, are stated at cost.
 
 8.  Inventory Valuation:
 
 (a) Inventories are valued at lower of cost or estimated net realizable
 value.
 
 (b) Excise Duty is added in the Closing Inventory of Finished Goods.
 
 (c) The basis of determining cost for various categories of inventories
 is as follows
 
 i) Raw Material, Packing Materials and Stores & Spares First in First
 out (FIFO)
 
 ii) Finished Goods and Goods-in-Process Cost of Direct Material and
 Labour and Other Manufacturing Overheads
 
 9.  Accounting for Taxes on Income:
 
 Provision for current tax is made on the basis of the estimated taxable
 income for the current accounting year in accordance with the
 provisions as per Income Tax Act, 1961.
 
 The Deferred Tax for timing differences between book profits and tax
 profits for the year is accounted for using the tax rules and laws that
 have been enacted or substantially enacted as of the balance sheet
 date. The Deferred Tax Assets arising from timing difference are
 recognized to the extent there is a reasonable certainty that these
 would be realized in future and are reviewed for the appropriateness of
 their respective carrying values at each balance sheet date.
 
 10.  Borrowing Cost:
 
 Borrowing Costs attributable to acquisition and construction of
 qualifying assets are capitalized as a part of the cost of such asset
 upto the date when such asset is ready for its intended use. Other
 Borrowing costs are charged to profit & Loss Account.
 
 11.  Employee Stock Option Plan:
 
 The accounting value of stock options representing the excess of the
 market value on the date of grant over the exercise price of the shares
 granted under Employee Stock Option Scheme of the company, if any, is
 amortized as Deferred Employee Compensation on straight line basis
 over the vesting period in accordance with the SEBI (Employee Stock
 Option Scheme and Employee Stock Purchase Scheme) Guidelines, 199 and
 guidance Note 18 share Based Payments issued by Institute of
 Chartered Accountants of India.
 
 12.  Foreign Currency Fluctuations:
 
 i) Monetary Assets and Liabilities related to Foreign Currency
 transactions remaining unsettled at the end of the year are translated
 at yearend rate.
 
 ii) The difference in translation of monetary assets and liabilities
 and realized gains and losses on foreign exchange transactions other
 than those relating to fixed assets are recognized in the Profit and
 Loss Account. In respect of transactions covered by foreign exchange
 contracts, the difference between the contract rate and the spot rate
 on the date of transaction is charged to the Profit and Loss Account
 over the period of the contract.
 
 iii) Exchange differences in respect of liabilities incurred to acquire
 fixed assets are adjusted to the carrying amount of such fixed assets.
 
 13.  Employee Benefits:
 
 Liability in respect of employee benefits is provided and charged to
 Profit & Loss Accounts as follows:
 
 a) Provident Fund : At a specified percentage of salary/wages for
 eligible employees.
 
 b) Leave Encashment: As determined on the basis of accumulated leave to
 the credit of the employees as at the year end as per the Company''s
 rules being the short term benefits.
 
 c) Gratuity: Gratuity liability under the Payment of Gratuity Act, 1972
 is a defined benefit obligation and is provided on the basis of the
 actuarial valuation made at the end of the financial Year.
 
 U. Provisions, Contingent Liabilities and Contingent Assets:
 
 Provision involving substantial degree of estimation in measurement are
 recognised when there is a present Obligation as a result of past event
 and it is probable that there will be an out flow of resources.
 Contingent liabilities are not recognised but are disclosed in the
 notes to accounts. Contingent assets are neither recognised nor
 disclosed in the financial statements.