1 Basis of Accounting
 
 The financial statements are prepared under historical cost
 convention,on accrual basis,in accordance with the provisions of
 Companies Act,1956 and the accounting principles generally accepted in
 India and comply with the Accounting Standards prescribed in the
 Companies (Accounting Standards) Rules,2006.
 
 2 Use of Estimates:
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles in India requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and disclosure of contingent liabilities on the date of
 financial statements and the reported amounts of revenues and expenses
 during the reporting year. Actual results could differ from these
 estimates. Any revision to accounting estimates is recognised
 prospectively in current and future periods.
 
 3 Inventories
 
 Inventories are valued after providing for obsolescenses as under :
 
 Stock of Raw materials are valued at lower of cost or Net realisable
 value ,which includes duties and taxes ( Except
 
 those subsequently recoverable).
 
 Stock of Packing materials & Stores and spares are valued at cost
 ,which includes duties and taxes ( Except those subsequently
 recoverable).
 
 Stock of Finished products including traded goods and Semi finished
 goods are valued at lower of cost or net realisable value.
 
 However Raw materials & Semi finished goods held for use in the
 production of inventories are not written down below cost if the
 finished products in which they will be incorporated are expected to be
 sold at or above cost.
 
 Cost includes material cost, labour, direct expenses, related
 production overheads and applicable taxes. Cost is determined on
 weighted average basis.
 
 4 Fixed Assets and Depreciation/Amortisation
 
 Fixed Assets are recorded at cost including any directly attributable
 expenses incurred (net of recoverable taxes) to bring the assets to
 working condition for their intended use. Advances paid towards the
 acquisition of fixed assets outstanding at each balance sheet date and
 the cost of fixed assets not ready for their intended use before such
 date are disclosed under capital work-in-progress
 
 Depreciation is provided on Straight- Line Method on Buildings and
 Plant & Machinery except mentioned below and on Written Down Value
 Method on other fixed assets at rates specified in schedule XIV of
 Companies Act, 1956.  Higher rates are considered based on useful lives
 of the assets determined by management as under;
 
 Depreciation methods, useful lives and residual values are reviewed at
 each reporting date.  Leasehold Land is amortised over the period of
 lease. Intangible assets are amortised on straight line basis over the
 useful lives of the assets not exceeding 10 years.  Assets costing
 individually upto Rs. 5,000 are written off to revenue.  Assets costing
 between Rs. 5,000 and Rs. 15,000 are depreciated fully in the year of
 purchase except when value of individual assets purchased in aggregate
 exceeds Rs. 100,000.
 
 5 Research and Development Expenses
 
 Revenue expenditure incurred on research and development is expensed as
 incurred. Capital expenditure on research and development is
 capitalised as fixed assets and depreciated in accordance with the
 depreciation policy of the Company.
 
 6 Revenue Recognition
 
 Revenue is recognised 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 sales of goods is recognised when significant risks and
 rewards of ownership are transferred to the customers. Sales are net of
 sales tax, claims for date expired goods & breakage but inclusive of
 excise duty and rate differences , if any.
 
 Revenue from Product development charges is recognised as and when
 services are rendered and related costs are incurred in accordance with
 the terms of the specific contracts. Benefits on account of entitlement
 to import of goods free of duty under the Duty Entitlement Pass Book
 under Duty Exemption Scheme and benefits on account of export
 promotion schemes is accounted when the right to receive is reasonably
 certain. Interest income is recognised on a time proportion basis
 taking into account the amount outstanding and the rate applicable.
 Dividend income from investment is recognised when the right to receive
 payment is established.
 
 7 Foreign Currency Transactions
 
 The transactions in foreign currencies are accounted for at the
 exchange rate prevailing on the date of transaction.  The exchange
 difference arising on actual settlement of foreign exchange transaction
 are recognized in the Profit and Loss Account of the year. Monetory
 assets and liabilities in foreign exchange, which are outstanding as at
 the year end, are translated at the year end at the closing rate and
 the resultant exchange differences are recognised in the Profit and
 Loss Account.
 
 Investments in foreign subsidiaries are recorded in Indian currency at
 the rate of exchange prevailing at the time when the original
 investments were made.
 
 The premium or discounts arising at the inception of forward exchange
 contract is amortised as expense or income over the life of contract.
 Exchange differences on such contracts are recognised as gain / loss in
 the Profit and Loss account of the period.
 
 8 Investments
 
 Investments that are readily realisable and intended to be held for not
 more than 12 months are classified as current investments. All other
 investments are classified as long-term investment. Current investments
 are carried at the lower of cost and fair value. Long-term investments
 are carried at cost less diminution in value, if any. Provisions are
 recognized for any decline, other than temporary, in the carrying value
 of long term investment as determined by management.
 
 9 Borrowing costs
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of qualifying assets are capitalised as part
 of the cost of such assets. A qualifying assets is one that necessarily
 takes substantial period of time to get ready for intended use. All
 other borrowing costs are charged to revenue.
 
 10 Employee Benefits
 
 Short Term Employee Benefits
 
 Short term employee benefits are recognised in the Profit and Loss
 Account as an expense at their undiscounted amount.
 
 Long Term Employee Benefits
 
 (a) Defined Contribution Plans
 
 Employee benefits in the form of employees provident fund scheme,
 employee state insurance scheme, employee pension scheme and
 superannuation are recognised in the Profit and Loss Account on accrual
 basis.
 
 (b) Defined Benefit Plan
 
 Defined Benefit Plans in form of Gratuity and Compensated Absenses are
 provided on the basis of actuarial valuations, as at the balance sheet
 date, carried out by an independent actuary using Projected Unit Credit
 Method.  Actuarial gain or loss is charged in Profit & Loss A/c for the
 year.
 
 Termination Benefits
 
 Compensation paid to employees under Voluntary Retirement Scheme is
 recognised as an expense when incurred.
 
 11 Leases
 
 Leases where the lessor effectively retains substanially all the risks
 and benefits of ownership of leased assets are classified as operating
 leases. Lease rentals for asset taken on operating lease are charged to
 profit & loss account as incurred.
 
 12 Earnings per share
 
 The basic earning per share (EPS) is calculated by dividing the
 Profit/(Loss) after Tax by the weighted average number of Equity Shares
 outstanding. The diluted EPS is calculated after adjusting the weighted
 average number of Equity shares to give effect to the potential equity
 shares on the stock options outstanding.
 
 13 Impairment of Assets
 
 The Management periodically assesses, using external and internal
 sources, whether there is an indication that an asset may be impaired.
 If any such indication exists, the recoverable amount of the asset is
 estimated in order to determine the extent of impairment loss.
 Recoverable amount is the higher of an assets net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows expected from the continuing use of the asset and from its
 disposal are discounted to their present value using a pre-tax discount
 rate that reflects the current market assessments of time value of
 money and the risks specific to the asset. Net selling price is the
 amount obtainable from the sale of an asset in an arms length
 transaction between knowledgeable, willing parties, less the cost of
 disposal. Reversal of impairment loss is recognised immediately as
 income in the profit and loss account.
 
 14 Provisions, Contingent liabilities and Contingent assets
 
 Provision is recognised when the Company has a present obligation as a
 result of past events and it is probable that outflow of resources will
 be required to settle the obligation, in respect of which a reliable
 estimates can be made. A disclosure for contingent liability is made
 when there is a possible obligation or a present obligation that may,
 but probably will not, require an out flow of resources. When there is
 a possible obligation or a present obligation in respect of which the
 likelihood of outflow of resources is remote, no provision or
 disclosure is made. Contingent assets are not recognised in the
 financial statements. Provisions and contingencies are reviewed at each
 balance sheet date and adjusted to reflect the correct management
 estimates.
 
 15 Employees Stock Compensation Costs
 
 Measurement and disclosure of the employee share-based payment plans is
 done in accordance with SEBI (Employee Stock Option Scheme and Employee
 Stock Purchase Scheme) Guidelines, 1999 and the Guidance Note on
 Accounting for Employee Share-based Payments, issued by the Institute
 of Chartered Accountants of India. The Company measures compensation
 cost as excess of the fair value of the Companys stock on the stock
 option grant date over the exercise price. Compensation expense, if
 any, is amortised over the vesting period of the option on a straight
 line basis.
 
 16 Taxation
 
 Current tax is measured at an amount payable for the period in
 accordance with the Income Tax Act, 1961.
 
 Deferred tax expense or benefit is recognised on timing differences
 being the difference between taxable incomes and accounting income that
 originate in one period and are capable of reversal in one or more
 subsequent periods. Deferred tax assets and liabilities are measured
 using the tax rates and tax laws that have been enacted or
 substantively enacted by the balance sheet date. Deferred tax assets in
 respect of unabsorbed depreciation and carry forward of losses are
 recognised only to the extent that there is virtual certainty that
 sufficient taxable income will be available to realise these assets.
 All other deferred tax assets are recognised only to the extent that
 there is reasonable certainty that sufficient future taxable income
 will be available to realise these assets. At each Balance Sheet date,
 the carrying value amount of defered tax assets are reviewed to
 reassure realisation.
 
 The levy of Fringe Benefit Tax(FBT) is not applicable as the Finance
 (No.2) Act, 2009 has abolished FBT with effect from Financial Year
 2009-2010.
 
 17 Provision for Doubtful Debts
 
 A percentage based provision is made for debtors outstanding for more
 than one year based on ageing analysis thereof and a specific provision
 is made in cases where the collection of debt is uncertain.