A) Basis of Preparation of Financial Statements :-
 
 (i) The financial statements are prepared under the Historical Cost
 Convention, on the accrual basis of accounting and in accordance with
 the provisions of the Companies Act, 1956 and comply with the
 Accounting Standards notified by the Companies (Accounting Standards)
 Rules, 2006 and the relevant provisions of Companies Act, 1956.
 
 (ii) Estimates and Assumptions used in preparation of the Financial
 Statements are based upon Managements evaluations of the relevant
 facts and circumstances as of the date of the financial
 statements,which may differ from the actual results at a subsequent
 date.
 
 B) Fixed Assets and Depreciation :
 
 (i) Fixed Assets:
 
 Fixed Assets are stated at cost (net of Cenvat and sales tax credit )
 of acquisition or construction or at manufacturing cost in case of
 Company manufactured assets, less accumulated depreciation (except on
 free hold land). The cost includes freight,duties,taxes, and incidental
 expenses related to acquisition,installation,erection and
 commissioning.
 
 (ii) Depreciation:
 
 a) Depreciation is provided as per the Written Down Value (w.d.v.)
 method at the rates specified in Schedule XIV to the Companies Act,
 1956.
 
 b) Leasehold land s value is written off on the basis of the tenure.
 
 c) Depreciation is provided on pro-rata basis on additions/deductions
 during the year.
 
 C) Investments:
 
 Long term Investments are stated at cost. Provision is made to
 recognise any diminution in the value,other than temporary, in the
 carrying amount of any long term investments.
 
 D) Inventories:
 
 Inventories are valued at the lower of cost( Value of cost is computed
 on a weighted average basis) and estimated net realisable value.
 Finished goods and work-in-progress include costs of conversion and
 other costs incurred in bringing the inventories to their present
 location and condition. Excise duty is included in the value of
 finished goods inventory.
 
 E) Revenue Recognition:
 
 Sale of goods is recognised when the significant risks and rewards of
 ownership of goods have passed to the customers which is generally on
 despatch of goods. Gross Sales include excise duty but excludes sales
 tax and are net of discounts.
 
 F) Employee Retirement Benefits:
 
 Defined Contribution Plans: The Company makes specified monthly
 contributions towards employee provident fund.
 
 Defined Benefit Plans: The Companys gratuity and leave wages are
 defined benefit plans. The present value of the obligation under such
 defined benefit plans is determined based on acturial valuation using
 the projected unit credit method, which recognises each period of
 services as giving rise to additional unit of employee benefit
 entitlement and measure each unit separately to build up the final
 obligation.
 
 The obligation is measured at the present value of the estimated future
 cash flows. The discount rates used for determining the present value
 of the obligation under defined benefit plans, is based on the market
 yields on Government securities as at the balance sheet date. Actuarial
 gains and losses are recognised immediately in the profit and loss
 account.
 
 Short term employee benefits are recognized as an expense at the
 undiscounted amount in the Profit and Loss Account in the year in which
 the related service is rendered.
 
 G) Foreign Currency Transactions:
 
 Transactions in foreign currency are accounted at exchange rates
 prevailing at the time of the transaction. All exchange gains/losses
 arising out of such transactions are taken to profit and loss account.
 Foreign currency monetary assets and liabilities are translated at the
 exchange rates prevailing on the last working day of the accounting
 year .
 
 H) Taxation:
 
 Provision is made for income tax liability which may arise on the
 results for the year at the current rate of tax in accordance with the
 Income-tax Act, 1961.
 
 The Deferred Tax for timing differences between the book profit and tax
 profits for the year is accounted for using the tax rates prevailing as
 of the balance sheet date. Deferred Tax Assets arising from temporary
 timing differences are recognised to the extent there is reasonable
 certainty that the assets can be realised in future.
 
 I) Impairment of Assets:
 
 At each balance sheet date, the Company assesses whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount. If the carrying
 amount of the assets exceeds its recoverable amount, an impairment loss
 is recognised in the profit and loss account to the extent the carrying
 amount exceeds recoverable amount.During the year there was no
 impairment of assets.
 
 J) Provisions and Contingent Liabilities:
 
 a) Provisions in respect of present obligation arising out of past
 events are made in the accounts when reliable estimates can be made
 about the amount of obligation.
 
 b) Contingent Liabilties are disclosed when there is a possible
 obligation that may, but probably will not, require an outflow of
 resources.
 
 K) Earnings per Share:
 
 Basic and diluted earnings per share is computed by dividing the net
 profit attributable to equity shareholders for the year, by the
 weighted average number of equity shares outstanding during the year.
 
 L) Warranty:
 
 The estimate liability for product warranties is recorded when products
 are sold.These estimates are established using historical information
 on the nature,frequency and average cost of warranty claims and
 management estimates regarding posible future incidence based on
 corrective actions on product failures.