i) Fixed Assets
 
 (a) Fixed assets are stated at their original cost, which includes
 duties, taxes and incidental expenses.
 
 (b) Depreciation has been provided on written down value method on
 pro-rata basis at the rates and manners prescribed by Schedule XIV of
 the Companies Act, 1956.
 
 ii) Investments
 
 Investments are carried at cost and provision is made in the accounts
 for diminution in the value of quoted investment
 
 iii) Inventories Valuation
 
 Raw materials, stores and spares and packing materials at cost, work in
 process at raw materials cost plus conversion cost depending on the
 stage of completion, finished goods at cost or net realisable value
 whichever is less and waste/damaged goods etc. at estimated realisable
 value.
 
 iv) Employees Benefits
 
 a) The gratuity is charged to revenue on cash basis, so no provision
 has been made for gratuity.  The accrued liability as on 31st March,
 2012 in respect of gratuity is Rs.24.97,325/-(Previous year
 Rs.20,40,529/-)
 
 b) Leave encashment - provision for Leave encashment is accounted and
 provided for at the end of the financial year.
 
 c) Provident Fund- Liability is determined on the basis of contribution
 as required under the statutory rules and charged to profit and loss
 account.
 
 v) Export Sales
 
 The export sales are accounted for on CIF as well as on FOB basis in
 consonance with the nature of contract executed with the foreign
 buyers. Other sales are net of Vat
 
 vi) Reorganization of Income & Expenditure
 
 All incomes and expenditures are accounted for on accrued basis except
 insurance claims, which are being accounted for on receipt basis.
 
 vii) Contingent Liabilities
 
 Contingent liabilities are disclosed by way of Notes to Balance Sheet.
 Provision is made in the accounts in respect of liabilities which are
 acknowledged by the company and which have material effect on the
 position stated in the balance sheet.
 
 viii) Impairment of assets
 
 At each balance sheet date, the company reviews the carrying amount of
 its fixed assets to determine whether there is any indication that the
 assets suffered any impairment loss. If any such indication exists, the
 recoverable amount of the assets is estimated in order to determine the
 extent of impairment of loss. Recoverable amount is higher of the
 assets net selling price and value in use. In assessing value in use,
 estimated future cash flows expected from the continuing use of the
 assets and from its disposal are discounted to their present value
 using a pretax discount rate that reflects the current market
 assessment of time value of money and the risks specific to the assets.
 
 ix) Taxes on Income including Deferred Tax
 
 Current tax is determined as the amount of tax payable in respect of
 income for the period. Deferred tax is recognized subject to the
 consideration of prudence in respect of deferred tax assets, on timing
 differences, being the difference between the taxable income and
 accounting income that originate in one year and are capable of
 reversal in one or more year. Deferred tax assets are not recognized
 unless there is a sufficient assurance with respect to its reversal in
 future years.
 
 x) Foreign Currency transactions
 
 Transaction denominated in foreign currency is recorded at the exchange
 rate prevailing at the date of transaction. Exchange differences
 arising on settlement / conversion of foreign currency transaction are
 included in the profit and loss account.