(a) Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects in respects with the accounting standards notified by
 Companies (Accounting Standard) Rules, 2006, (as amended) and the
 relevant provisions of the Companies Act, 1956. The financial
 statements have been prepared under the historical cost convention on
 an accrual basis except in case of assets for which provision for
 impairment is made and revaluation is carried out. The accounting
 policies have been consistently applied by the Company and are
 consistent with those used in the previous year.
 
 (b) Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 (c) Fixed Assets
 
 Fixed assets are stated at cost (or revalued amounts, as the case may
 be), less accumulated depreciation and impairment losses, if any.  Cost
 comprises the purchase price and any attributable cost of bringing the
 asset to its working condition for its intended use.
 
 Leasehold improvements represent expenses incurred towards civil work,
 interior furnishings etc. of the leasehold premises.
 
 (d) Impairment
 
 (i) The carrying amounts of assets are reviewed at each balance sheet
 date if there is any indication of impairment based on
 internal/external factors. An impairment loss is recognised wherever
 the carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the greater of the asset''s net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value using a pre-tax discount
 rate that reflects current market assessments of the time value of
 money and risks specific to the asset.
 
 (ii) After impairment, depreciation is provided on the revised carrying
 amount of the assets over its remaining useful life.
 
 (iii) A previously recognised impairment loss is increased or reversed
 depending on changes in circumstances. However, the carrying value
 after reversal is not increased beyond the carrying value that would
 have prevailed by charging usual depreciation if there was no
 impairment.
 
 (e) Depreciation
 
 Depreciation is provided on Straight Line Method at the rates computed
 based on estimated useful life which are equal to corresponding rates
 prescribed in Schedule XIV to the Companies Act, 1956, except for
 Stretcher Cylinder and 3 looms capitalized during earlier years and a
 pretacker and a loom capitalized during the previous year (included
 under Plant & Machinery) where life is assessed shorter of four years
 and ten years, respectively, (instead of 13.45 years as ascertained
 using Schedule XIV rates).
 
 For significant modifications capitalized, depreciation is charged over
 the remaining life out of the originally assessed useful life of such
 assets. Machinery spares which can be used only in connection with an
 item of fixed assets and whose use as per technical assessment is
 expected to be irregular are capitalised and are depreciated over the
 residual useful life of the respective assets.
 
 Leasehold improvements (included under Buildings) are amortised over
 the primary lease year or useful life, whichever is earlier.
 
 (f) Inventories
 
 Inventories are valued as follows:
 
 Raw materials, stores and spare parts Lower of cost and net realizable
 value. However, materials and other items 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 of raw material is determined on weighted
 average basis. Cost of stores and spare parts is determined on First in
 First Out (FIFO) basis.
 
 Work-in-process and finished goods Lower of cost and net realizable
 value. Cost includes direct materials and labour and a
 
 proportion of manufacturing overheads based on normal operating
 capacity. Cost of finished goods includes excise duty. Cost is
 determined on weighted average basis.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and estimated
 costs necessary to make the sale.
 
 (g) Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured on the following basis:
 
 Sale of goods
 
 Revenue is recognized when the significant risks and rewards of
 ownership of the goods have passed to the buyer. Excise Duty deducted
 from turnover (gross) is the amount that is included in the amount of
 turnover (gross) and not the entire amount of liability arisen during
 the year.
 
 Income from services
 
 Commission income is recognised as per agreed terms and as and when
 these services are rendered.
 
 Interest
 
 Revenue is recognized on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 (h) Foreign Currency Translation
 
 (i) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency by
 applying to the foreign currency amount the exchange rate
 
 between the reporting currency and the foreign currency at the date of
 the transaction.  
 
 (ii) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-Monetary items which are carried in term of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction.
 
 (iii) Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting company''s monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 previous financial statements, are recognized as income or as expenses
 in the year in which they arise.
 
 (i) Retirement and other Employee Benefits
 
 (i) Short term compensated absences are provided for based on
 estimates. Long term compensated absences are provided for based on
 actuarial valuation. The actuarial valuation is done as per projected
 unit credit method.
 
 (ii) Long service award and other retirement benefit are provided for
 based on actuarial valuation. The actuarial valuation is done as per
 projected unit credit method.
 
 
 (iii) Gratuity liability is a defined benefit obligation and is
 provided for on the basis of an actuarial valuation on projected unit
 credit method made at the end of each financial year. The liability so
 provided is represented substantially by creation of a separate fund.
 
 (iv) Retirement benefits in the form of Superannuation Fund is a
 defined contribution scheme and the contributions are charged to the
 Profit and Loss Account of the year when the contributions to the
 respective funds are due. There are no other obligations other than the
 contribution payable to the respective fund.
 
 (v) The Provident Fund (where administered by a Trust) is a defined
 benefit scheme whereby the Company deposits amount determined as a
 fixed percentage of basic pay to the fund every month.  The benefit
 vests upon commencement of employment. The interest credited to the
 accounts of the employees is adjusted on an annual basis to confirm to
 the interest rate declared by the government for the Employees
 Provident Fund. The Guidance Note on implementing AS-15, Employee
 Benefits (revised 2005) states that provident funds set up by
 employers, which requires interest shortfall to be met by the employer,
 need to be treated as defined benefit plan. Pending the issuance of the
 Guidance Note from the Actuarial Society of India, the Company''s
 actuary has expressed his inability to reliably measure the provident
 fund liability. There is no deficit in the fund at the year end.  
 
 (vi) Actuarial gains/losses are immediately taken to profit and loss
 account and are not deferred.
 
 (j) Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased term, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit & Loss Account on a basis, which reflect the time pattern
 of such payment appropriately.
 
 (k) Income Taxes
 
 Tax expense comprises current and deferred tax. Current income tax are
 measured at the amount expected to be paid to the tax authorities in
 accordance with the Income Tax Act, 1961 enacted in India. Deferred
 income taxes reflect the impact of current year timing differences
 between taxable income and accounting income for the year and reversal
 of timing differences of earlier years.  Deferred tax is measured based
 on the tax rates and the tax laws enacted or substantively enacted at
 the balance sheet date. Deferred tax assets and deferred tax
 liabilities are offset, if a legally enforceable right exists to set
 off current tax assets against current tax liabilities and the deferred
 tax assets and deferred tax liabilities relate to the taxes on income
 levied by same governing taxation laws.  Deferred tax assets are
 recognised only to the extent that there is reasonable certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realised. In situations where the company
 has unabsorbed depreciation or carry forward tax losses, all deferred
 tax assets are recognised only if there is virtual certainty supported
 by convincing evidence that they can be realised against future taxable
 profits. .
 
 At each balance sheet date the Company re-assessed unrecognised
 deferred tax assets. It recognises unrecognised deferred tax assets to
 the extent that has become reasonably certain or virtually certain, as
 the case may be, that sufficient future taxable income will be
 available against which such deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 (l) Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the year.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the year attributable to equity shareholders and the
 weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares.
 
 (m) Provisions
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event; 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 its
 present value and are determined based on 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.
 
 (n) Cash and Cash equivalents
 
 Cash and cash equivalents in the balance sheet comprise cash at bank
 and in hand and short-term investments with an original maturity of
 three months or less.