A.  Basis of Preparation of Financial Statements:
 
 The Financial Statements have been prepared under the historical cost
 convention on accrual method of accounting, in accordance with, the
 generally accepted accounting principles in India, mandatory Accounting
 Standard notified by the Companies (Accounting Standards) Rules, 2006
 and the relevant provisions of the Companies Act, 1956, except for
 certain fixed assets which have been revalued.
 
 B.  Use of Estimates:
 
 The presentation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and ex- penses during the reporting period.
 Difference between the actual results and estimates are recognised in
 the period in which the results are known/materialsed.
 
 C.  Fixed Assets
 
 1) Fixed assets (other than those which have been revalued) including
 intangible assets are stated at cost of acquisition (net of Cenvat &
 VAT, wherever applicable), inclu- sive of freight, duties and other
 directly at- tributable costs, less depreciation.
 
 2) i) Depreciation on all fixed assets is pro-
 
 vided on straight line method at the rate specified in schedule XIV of
 the Compa- nies Act, 1956 or at rates arrived at on the basis of the
 balance useful lives of the assets based on technical evaluation/
 revaluation of the related assets, which- ever is higher, on pro-rata
 basis.
 
 ii) On assets sold, discarded, etc. during the year, depreciation is
 provided upto the date of sale/discard.
 
 iii) In respect of revalued assets, a transfer is made from the
 revaluation reserve to the Profit & Loss Account for the sum of the
 difference as below:
 
 - The difference between the amount of depreciation on revalued value
 and on the historical cost at rate prescribed in Schedule XIV.
 
 D.  Investments
 
 Long Term investments are valued at cost. The cost of investment
 includes acquisition charges such as brokerage, fees and duties.
 Provision for deminution in the value of long term invest- ment is made
 only if such a decline is other than temporary in the opinion of
 management.  Current investment are valued at lower of cost or net
 realizable value.
 
 E.  Inventories
 
 Inventories are valued as under:
 
 1) Raw Material, WIP, Stores, Spares & Pack- ing Material:
 
 - At cost or net realisable value whichever is lower. Cost is arrived
 at on first-in-first- out (FIFO) basis.
 
 2) Finished Products:
 
 - At cost of production or market value whichever is lower. Cost of
 production is arrived at on standard cost basis.
 
 F.  Foreign Currency Transactions
 
 1) Transactions in Foreign currencies are recorded on initial
 recognition at the ex- change rate prevailing on the date of the
 transaction.
 
 2) All foreign currency liabilities and monetary assets are stated at
 the exchange rate prevailing at the date of the Balance Sheet except
 where forward exchange cover is obtained and the loss or gain is taken
 to the Profit & Loss account as exchange fluctuation.
 
 3) In respect of the forward contracts, the difference between the
 forward rate and the exchange rate at the date of transaction is
 recognized as income or expense and is spread over the life of the
 contract.
 
 G.  Revenue Recognition
 
 1) Consignment Sales
 
 The consignment sales have been accounted for on sales effected by the
 consignee.
 
 2) Other Sales
 
 Sales are accounted for net of Excise Duty, CST and VAT. Sale of
 products are recog- nized on transfer of property in goods as per
 agreed terms.
 
 3) Other Incomes
 
 All income items in all material aspects having bearing on the
 financial statement are recognized on accrual basis.
 
 H. Provisons and Contingent Liabilities
 
 1) Provisions are recognized for liabilities that can be measured by
 using a substantial de- gree of estimation, if.
 
 a) the Company has present obligation as a result of a past event;
 
 b) a probable outflow of resources embodying economic benefits is
 expected to settle the obligation; and
 
 c) the amount of obligation can be relilably estimated.
 
 2) Contingent liability is disclosed in the case of:
 
 a) a present obligation arising from a past event when it is not
 probable that an out- flow of resources embodying economic benefits
 will be required to settle the ob- ligation, or,
 
 b) a possible obligation, unless the probabil- ity of outflow of
 resources embodying economic benefits is remote.
 
 I.  Employees'' Benefits
 
 1) Short term employee benefits are recog- nized as expense in the
 Profit & Loss Account of the year in which service is ren- dered.
 
 2) Company''s contributions to Provident Fund and other Funds during the
 year are charged to Profit and Loss Account.
 
 3) Provision for retirement gratuity & leave encashments are determined
 and made in accordance with the relevant laws by assuming that benefits
 are payable to all em- ployees at the year end and are charged to
 Profit & Loss Account.
 
 J. Taxation
 
 Provision for tax is made for both current and deferred taxes.
 Provision for current income- tax is made on the current tax rates
 based on assessable income. The Company provides for deferred tax based
 on the tax effect of timing differences resulting from the recognition
 of items in the financial statements and in esti- mating its current
 tax provision.  The deferred tax assets is recognised and carried
 forward only to the extent that there is a rea- sonable certainty that
 the assets will be realised in future.
 
 K.  Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition of or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying assets is one that necessarily takes
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to revenue.
 
 L.  Lease
 
 1) Operating : Lease of assets under which significant risks and
 rewards of ownership are effectively retained by the lessor are
 classfied as operating leases. Lease pay- ments under an operating
 lease are recog- nized as expense in the Profit & Loss Ac- count, on
 straight line basis over the lease term.
 
 2) Finance : Lease assets acquired on which significant risks and
 rewards of ownership effectively transferred to the Company are
 capitalized at lower of fair value or the amounts paid under such lease
 arrange- ments. Such assets are amortized over the period of lease.
 
 M.  Impairment of Assets
 
 At each Balance Sheet date an assessment is made whether any indication
 exists that an as- set has been impaired, if any such indication
 exists, an impairment loss, i.e. the amount by which the carrying
 amount of an asset exceed its recoverable amount is provided in the
 books of account.
 
 N.  Earning Per Share
 
 The earnings considered in ascertaining the Company''s EPS comprises the
 net profit after tax as per Accounting Standard-20 on Earning per
 share, issued by the Institute of Chartered Accountants of India. The
 number of shares used in computing basic EPS is the weighted average
 number of shares outstanding during the period. The diluted EPS is
 calculated on the same basis as basic EPS, after adjusting for the
 effects of potential dilutive equity shares unless the effect of the
 potential dilutive share is anti-dilutive.