A. Basis of Accounting
 
 The financial statements are prepared under the historical cost
 convention, on a going concern concept and in compliance with the
 Accounting Standards notified by the Companies (Ac- counting Standard)
 Rules, 2006 and the relevant provisions of the Companies Act 1956.
 Accounting policies not specifically referred to otherwise, are
 consistent and in consonance with the generally accepted accounting
 principles.
 
 B. Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires estimates and assumptions to be
 made that affect the reported amount of assets and liabilities on the
 date of the financial statements and reported amounts of revenues and
 expenses during the reporting period. Differences between actual
 results and es- timates are recognized in the period in which the
 results are known / materialised.
 
 C. Recognition of Income
 
 Revenue is recognised when it is earned and no significant uncertainty
 exists as to its realisation or collection.
 
 The Company follow the accrual basis of accounting except in the
 following cases, where the same are recorded on cash basis on
 ascertainment of right and obligation.
 
 i. Leave encashment
 
 ii. Insurance Claim
 
 iii. Dividend Income, if any.
 
 D. Fixed Assets
 
 Fixed Assets are stated at actual cost of acquisition less ac-
 cumulated depreciation and impairment, if any. Cost includes all
 incidental expenses related to acquisition and attributable cost of
 bringing the asset to its working condition for its in- tended use.
 
 E. Impairment of Fixed Assets
 
 At the end of each year, the Company determines whether a provision
 should be made for impairment loss on fixed as- sets by considering the
 indication that an impairment loss may
 
 have occurred in accordance with Accounting Standard 28 on Impairment
 of Assets. Where the recoverable amount of any fixed assets is lower
 than its carrying amount, a provision for impairment loss on fixed
 assets is made.
 
 F. Depreciation
 
 i) Depreciation on Fixed Assets has been provided on ''Straight Line
 Method'' as per the rates specified in Schedule XIV of the Companies
 Act, 1956.
 
 ii) Depreciation on assets acquired/sold during the year is provided on
 prorata basis.
 
 G. Investments
 
 Investments that are intended to be held for more than a year, from the
 date of acquisition, are classified as long term invest- ment and are
 carried at cost less any provision for permanent diminution in value.
 Investments other than long term invest- ments being current
 investments are valued at cost or fair market value whichever is lower.
 
 H. Employee Benefits
 
 The Company has both defined contribution and defined bene- fit plans
 of which some have assets in special funds or similar securities. The
 plans are financed by the Company and in case of some defined
 contribution plans, by the Company along with its employees.
 
 - Gratuity
 
 In accordance with the Payment of Gratuity Act, 1972, the company
 provides for a lump sum payment to eligible employ- ees, at retirement
 or termination of employment based on the last drawn salary and years
 of employment with the company.  The gratuity fund is managed by the
 Life Insurance Corpora- tion of India (LIC). The Company''s gratuity
 benefit scheme is a defined benefit plan. The company''s obligation in
 respect of the gratuity plan is provided for based on actuarial
 valuation carried out by an independent actuary using the projected
 unit credit method. The Company recognises actuarial gains and losses
 immediately in the profit and loss account.
 
 - Provident fund, State Insurance, Labour Welfare Fund, Professional
 Tax
 
 These are the defined contribution plans in which the Company
 
 pays pre-defined amounts to separate funds. The Company''s contributions
 to these funds are reported as an expense during the period in which
 the employees perform services that the payment covers.
 
 - Compensated Absences
 
 The employees of the Company are entitled to compensate absence. The
 employees can carry forward a portion of the unutilized accrued
 compensated absence and utilize it in future periods or receive cash
 compensation at retirement or termination of employment for the
 unutilized accrued compensated absence. The company follows the cash
 basis of accounting for recording the obligation of leave encashment.
 In other words, the company records an obligation for compensated
 absences in the period in which it has been encashed by the employees.
 
 - Employee Stock Option Plan (ESOP)
 
 In respect of employee''s stock options, the excess of market price on
 the date of grant over the exercise price is recognised as deferred
 employee compensation expense amortised over vesting period
 
 I. Valuation of inventories
 
 Inventories are accounted for at cost, determined on FIFO (Weighted
 Average Method, if it followed) basis, or net realizable value,
 whichever is less.
 
 J. Lease
 
 Lease arrangements where the risks and rewards incident to ownership of
 an asset substantially vest with the lessor, are recognised as
 operating leases. The lease agreements con- tain rent escalation
 clause. Lease rental expenses including escalations for operating
 leases are recognised in the Profit and Loss Account on a straight-line
 basis over the minimum lease term.
 
 K. Miscellaneous Expenditure
 
 Preliminary expenses are amortised in the year in which they are
 incurred.
 
 L. Foreign Currency Transactions
 
 i) The transactions in foreign currencies are recorded at the rate of
 exchange prevailing on the date of transactions.
 
 ii) The difference on account of fluctuation in the rate of exchange
 prevailing on the date of transaction and the date of realization is
 charged to the Profit and Loss Account.
 
 iii) Differences on translations of Current Assets and Current
 Liabilities remaining unsettled at the year-end are recognized in the
 Profit and Loss Account.
 
 M. Treatment of Contingent Liabilities
 
 Contingent liabilities are disclosed by way of notes to ac- counts.
 Disputed demands in respect of income tax and other proceedings are
 disclosed as contingent liabilities. Payments in respect of such
 demands, if any are shown as advances.
 
 N. Accounting for Taxation of Income
 
 Current taxes
 
 Provision for current income-tax is recognized in accordance with the
 provisions of Indian Income-tax Act, 1961 and is made annually based on
 the tax liability after taking credit for tax allowances and
 exemptions.
 
 Deferred taxes
 
 Deferred tax assets and liabilities are recognized for the future tax
 consequences attributable to timing differences that result between the
 profits offered for income taxes and the profits as per the financial
 statements. Deferred tax assets and liabilities are measured using the
 tax rates and the tax laws that have been enacted or substantially
 enacted at the balance sheet date. The effect of a change in tax rates
 on deferred tax and assets or liabilities are recognized in the period
 that includes the enactment date. Deferred tax Assets are recognized
 only to the extent there is virtual certainty that the assets can be
 realized in the future. Deferred Tax Assets are reviewed as at each
 Balance Sheet date.
 
 Minimum Alternative Tax Credit
 
 Minimum Alternative Tax (MAT) paid in accordance with tax laws, which
 give rise to future economic benefits in the form of adjustment of
 future tax liability, is recognized as an asset only when, based on
 convincing evidence, it is probable that the future economic benefits
 associated with it will flow to the company and the asset can be
 measured reliably.