1.1 Conventions & Basis of Accounting:
 
 The Financial Statements of the company have been prepared in
 accordance with the Generally Accepted Accounting Principles in India
 (Indian GAAP) to comply with the Accounting Standards notified under
 the Companies (Accounting Standards) Rules,2006 (as Amended) and the
 relevant provisions of the Companies Act 1956. These Financial
 Statements have been prepared on accrual basis under the historical
 cost convention. The Accounting policies adopted in preparation of
 Financial Statements are consistent with those followed in the previous
 year.
 
 1.2 Use of Estimates:
 
 The presentation of financial statements requires estimates and
 assumptions to be made that effect the reported amount of Assets &
 Liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual result and estimates are recohnised in the period in
 which the results are known/materialized.
 
 1.3 Tangible Assets:
 
 Tangible Assets are stated at acquisition cost, net of accumulated
 depreciation.
 
 Profits arising from the sale of fixed assets which are carried at cost
 are recognised in the Statement of Profit and Loss.
 
 Depreciation:
 
 Depreciation is calculated as per straight line method on single shift
 basis at rates Specified in Schedule XIV of the Companies Act, 1956 and
 on full year basis if asset is put to use for more than 180 days
 otherwise at half the rate.
 
 1.4 Investments:
 
 Current Investments are carried at lower of Cost or Realisable Value.
 
 Long Term investments are carried at cost. Only in case there is
 Permanent diminution in value of Long Term Investments it is provided
 for.
 
 1.5 Inventories:
 
 Inventories are valued at lower of cost or Net Realisable Value. Cost
 is determined using Weighted Average Method for Raw Materials &
 Finished Goods and FIFO method for consumable spares and Packing
 Materials. The cost of finished goods and Work in progress comprises
 raw materials, direct labour, other direct costs and related production
 overheads.Net Realisable Value is the estimated selling price in the
 ordinary course of business, less the estimated cost of completion and
 the estimated costs necessary to make the sale.
 
 1.6 Revenue recognition:
 
 Sale of Goods: Sales are recognised when the substantial risks and
 rewards of ownership in the goods are transferred to the buyer as per
 the terms of the contract and are recognised net of sale returns and
 trade discounts.
 
 Sale of Services: Services are recognised when services are rendered
 and related costs are incurred.  Other Income:
 
 Interest: Interest Income is recognised on a time proportion basis
 taking into account the amount outstanding and the rate applicable.
 
 Dividend: Dividend Income is recognised when the right to receive
 dividend is established.
 
 Rent: Rent is recognised on time proportionate basis.
 
 1.7 Employee Benefit:
 
 Employee benefits include Provident Fund, Gratuity Fund and Compensated
 Expenses.
 
 Provident Fund: Contribution towards provident fund for employees is
 made to the regulatory authorities, where the Company has no further
 obligations. Such benefits are classified as Defined Contribution
 Schemes as the Company doesnot carry any further obligations, apart
 from the contributions made on a monthly basis.They are charged as an
 expense when they fall due based on amount of contribution required to
 be made.
 
 Gratuity: The Company provides for gratuity which is in the form of a
 defined benefit plan on the basis of actuarial valuation done by LIC
 carried out at each Balance Sheet date.
 
 Compensated Abscences: The Company has the policy of non accumulating
 absences and is accounted for on cash basis.
 
 1.8 Segment Reporting:
 
 There are no ''Geographical Segments'' and ''Business Segments''
 reportable under AS-17.
 
 1.9 Earning Per Share:
 
 Basic Earning Per Share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity share outstanding during the period.
 
 Diluted Earning Per Share: Diluted EPS is computed by dividing the
 profit/(loss) after tax(including the post-tax effect of extraordinary
 items, if any) as adjusted for dividend, interest and other chaiges to
 expense or income relating to the dilutive potential equity shares, by
 the weighted average number of equity shares considered for deriving
 basic earning per share and the weighted average number of equity
 shares which could have been issued on the conversion of all dilutive
 potential equity shares.
 
 1.10 Taxes on Income:
 
 Current Tax: Provision for Current Tax is made taking into
 consideration the provisions under the Income Tax Act, 1961.
 
 Deferred Tax: Deferred Tax resulting from Timing Difference
 between Taxable and Accounting Income is accounted for using the tax
 rates and laws that are enacted or substantially enacted as on Balance
 Sheet date. Deferred Tax is recognised and carried forward only to the
 extent that there is visual certainity that the asset will be
 recognised in future.
 
 1.11 Impairment of Assets:
 
 Carrying Amount of asset is reviewed at the Balance Sheet date if there
 is any indication of impairment based on the internal and external
 factors.
 
 The assets are treated as impaired when the carrying amount of the
 asset exceeds its recoverable amount. An impairment loss if any is
 charged to the Statement of Profit and Loss as and when it arises.
 Impairment Loss recognised in prior years is reversed when there is an
 indication that impairment loss recognised for the asset no longer
 exists or may have decreased.
 
 1.12 Provisions & Contingent Liabilities:
 
 Provisions: A provision is required when the Company has a present
 obligation as a result of past events and it is probable that an
 outflow of resources will be required to settle the obligation in
 respect of which a reliable estimate can be made. Provisions are not
 discounted to the Present Value and are determined based on the best
 estimate required to settle the obligation at the Balance Sheet
 
 Date.These are reviewed at each Balance Sheet Date and adjusted to
 reflect the Current best estimates.
 
 Contingent Liabilities: Contingent liabilities are not recognised but
 are disclosed in the notes. Contingent assets are neither recognised
 nor disclosed in the financial statements.
 
 1.13 Insurance Claims:
 
 Insurance claims are accounted for on the basis of claims
 admitted/expected to be admitted and to the extent there is no
 uncertainity in receiving the claims.
 
 1.14 Cash Flow Statement:
 
 Cash Flows are reported using the indirect method,whereby profit/(loss)
 before extraordinary items and tax is adjusted for the effects of
 transactions of non cash nature and any deferrals or accruals of past
 or future cash receipts or payments. The cash flows from operating
 investing and financing activities of the Company are segregated based
 on the available information.