a) Fixed Assets
 
 i.  Fixed Assets are stated at cost, less accumulated depreciation and
 impairment loss (if any)
 
 ii.  Cost of Fixed Assets includes all incidental costs until the
 assets are ready for their intended use.
 
 iii. Cost of Fixed Assets not ready to use as on the Balance sheet date
 are disclosed under Capital Work in Progress and Advances paid
 towards acquisition of fixed assets outstanding as at Balance Sheet
 date are disclosed as Capital Advances under Long term loan and
 advances.
 
 iv. Depreciation is calculated by Straight Line Method at rates
 prescribed under the Schedule XIV of the Companies Act, 1956. In
 respect of additions during the year, it is calculated on pro-rata
 basis from the month of addition.
 
 v. Impairment of Assets - 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 recognized to
 the extent of carrying amount is greater than the recoverable amount of
 the asset. Recoverable amount is the higher of net selling price and
 value in use.
 
 b) Intangible assets are valued at cost, less accumulated amortization
 and impairment loss (if any). Computer software is amortized over the
 useful life of 6 years (as estimated by the Management).
 
 c) Inventory
 
 i. Stock of finished goods is valued at lower of cost and net
 realizable value. Cost includes raw material cost, excise duty, other
 manufacturing expenses and depreciation.
 
 ii. All other stocks are valued at cost or net realizable value,
 whichever is lower. The cost includes expenses incurred in bringing
 them to present location and condition excluding excise duty. The cost
 formula used is weighted average.
 
 d) Sales
 
 i. Sales are inclusive of excise duty and exclusive of discounts and
 returns, ii.Sales revenue is recognized at the time of dispatch of
 materials.
 
 e) Value of Import Entitlements is accounted for by reduction from cost
 of raw materials in the year of export.
 
 f) Employee Benefits
 
 Contribution to Provident Fund is charged to accounts on accrual basis.
 Provision for leave encashment and gratuity has been made on the basis
 of actuarial valuation.
 
 g) Foreign Currency Transactions
 
 i. Foreign currency transactions are recorded at the exchange rates
 prevailing on the date of transaction. Gain or loss arising out of
 subsequent fluctuations is accounted for on actual payment or
 realization.
 
 ii. Monetary items denominated in foreign currency as at the Balance
 Sheet date other than those covered by forward contracts, are converted
 at exchange rates prevailing on that date and those covered by forward
 contract are covered at Contracted Rate.
 
 iii. Exchange differences relating to fixed assets are adjusted in the
 cost of assets. Any other exchange differences are dealt with in the
 profit & loss account.
 
 iv.  Forward Exchange Contracts :
 
 The Company uses foreign currency forward contracts to hedge its risk
 associated with foreign currency fluctuations relating to certain firm
 commitments.
 
 The Company does not use derivative financial instruments for
 speculative purposes.
 
 h) Custom duty on goods stored in bonded warehouse is accounted for at
 the time of clearance.
 
 I) Taxation
 
 i. The provision for current tax is ascertained on the basis of
 assessable profit computed in accordance with provisions of the Income
 Tax Act, 1961.
 
 ii. Deferred tax is recognized (subject to the consideration of
 prudence) on timing differences (being the differences between the
 taxable income and accounting income that originate in one period and
 are capable of reversal in one or more subsequent periods).
 
 j) Operating leases - Lease charges paid for operating leases are
 charged to profit and loss account on straight line basis over the
 lease term.
 
 The Company has issued only one class of equity shares having a par
 value of Rs.10 per share. Each holder of Equity Share is entitled to
 one vote per share. The Company declares and pays dividend in Indian
 rupees. The dividend proposed by the Board of Directors is subject to
 the approval of the shareholders at the Annual General Meeting.