Thebrparation of the financial statements in conformity with Indian GAAP requiresthe Management to make estimates and assumptions considered in the reportedamounts of assets and liabilities (including contingent liabilities) and thereported income and expenses during the year. The Management believes that theestimates used in brparation of the financial statements are prudent andreasonable. Future results could differ due to these estimates and differencesbetween actual results and estimates are recognised in the periods in which theresults are known/materialise. Examples of such estimate include provision fordoubtful debts, provision for income tax and useful life of debrciable fixedassets.

Tangible assets are stated at cost of acquisiton as reducedby accumulated debrciation and impairment losses, if any. Cost comprisespurchase price and any attributable cost of bringing the asset to its workingcondition for its intended use. Subsequent expenditure result in an increase inthe future benefits from such asset beyond its brviosly assessed standard ofperformance.

Intangible Assets are stated at cost of acquisition net ofrecoverable taxes less accumulated amortisation.

Cost of an intangible asset includes purchase price,non-refundable taxes and duties and any other directly attributable expenditureon making the asset ready for its intended use and net of any trade discountsand rebates. Subsequent expenditure on an intangible asset is charged to theStatement of Profit and Loss as an expense unless it is probable that suchexpenditure will enable the intangible asset increase the future benefits fromthe existing asset beyond its brviously assessed standard of performance andsuch expenditure can be measured and attributed to the intangible assetreliably, in which case, such expenditure is capitalised.

FinishedGoods and Raw materials are valued at the lower of cost (determined using theFirst-in-First-out Method) and the net realisable value after providing forobsolescence and other losses, where considered necessary. Cost includes allcharges in bringing the goods to the point of sale, including octroi and otherlevies, transit insurance and receiving charges.Net realizable value isestimated at the expected selling price less estimated selling cost.

Foreigncurrency transactions are recorded in the reporting currency, by applying tothe foreign currency amount the exchange rate between the reporting currencyand the foreign currency at the date of transaction.

Foreigncurrency monetary items are reported using the closing rate. Non-monetary itemswhich are carried in terms of historical cost denominated in a foreign currencyare reported using the exchange rate at the date of transaction; andnon-monetary items which are carried at fair value or other similar valuationdenominated in a foreign currency are reported using the exchange rates thatexisted when the values were determined.

Exchangedifferences arising on reporting of long-term foreign currency monetary itemsat rates different from those at which they were initially recorded during theperiod, or reported in brvious financial statements, in so far as they relateto the acquisition of fixed assets they are adjusted to Profit and Loss Accountas per AS-11 (revised).

Exchangedifference arising on the settlement of monetary items not covered above, or onreporting such monetary items of company at rates different from those at whichthey were initially recorded during the year, or reported in brvious financialstatements, are recognized as income or as expense in the year in which theyarise.

Investmentproperties are carried individually at cost less accumulated debrciation andimpairment, if any. Investment properties are capitalized and debrciated (whereapplicable) in accordance with policy stated for fixed assets. Impairment ofinvestment property is determined in accordance with policy statement forimpairment of assets.

Employee benefits include provident fund, gratuityfund (unfunded) and compensated absences.

The Company?s contribution to provident fund and employeesstate insurance are considered as defined contribution plan and is charged asan expense as they fall due based on the amount of contribution required to bemade and when services are rendered by the employees.

For defined benefit plan in the form of gratuity fund, thecost of providing benefits is determined using the Projected Unit Credit method,with actuarial valuations being carried out at each Balance Sheet date.Actuarial gains and losses, if any, are recognized in the Statement of Profitand Loss in the period in which they occur. Past service cost is recognizedimmediately to the extent that the benefits are already vested and otherwise isamortised on a straight-line basis over the average period until the benefits becomevested.

The undiscounted amount of short-term employee benefits expectedto be paid in exchange for the services rendered by employees are recognisedduring the year when the employees render the service. These benefits includeperformance incentive and compensated absences which are expected to occurwithin twelve months after the end of the period in which the employee rendersthe related service.

The cost of such accumulated compensated absences isaccounted as under when employees render the services that increase theirentitlement of future compensated absences.

Provision forBonus and Ex-Gratia is made on accrual basis.

Currenttax is the amount of tax payable on the taxable income for the year asdetermined in accordance with the applicable tax rates and the provisions ofthe Income Tax Act, 1961 and other applicable tax laws.

MinimumAlternate Tax (MAT) paid in accordance with the tax laws, which gives futureeconomic benefits in the form of adjustment to future income tax liability, isconsidered as an asset if there is convincing evidence that the Company willpay normal income tax. Accordingly, MAT is recognised as an asset in theBalance Sheet when it is highly probable that future economic benefitassociated with it will flow to the Company.

Deferredtax is recognised on timing differences, being the differences between thetaxable income and the accounting income that originate in one period and arecapable of reversal in one or more subsequent periods.  Deferred tax is measured using the tax ratesand the tax laws enacted or substantively enacted as at the reportingdate.   Deferred tax liabilities arerecognised for all timing differences. Deferred tax assets are recognised fortiming differences of items other than unabsorbed debrciation and carryforward losses only to the extent that reasonable certainty exists thatsufficient future taxable income will be available against which these can berealised. However, if there are unabsorbed debrciation and carry forward oflosses and items relating to capital losses, deferred tax assets are recognisedonly if there is virtual certainty supported by convincing evidence that therewill be sufficient future taxable income available to realised the assets.Deferred tax assets and liabilities are offset if such items relate to taxes onincome levied by the same governing tax laws and the Company has a legallyenforceable right for such set off. Deferred tax assets are reviewed at eachbalance sheet date for their realisability.

Currentand deferred tax relating to items directly recognised in reserves isrecognised in reserves and not in the Statement of Profit and Loss.

Thecarrying values of assets / cash generating units at each balance sheet dateare reviewed for impairment if any indication of impairment exists. Thefollowing intangible assets are tested for impairment each financial year evenif there is no indication that the asset is impaired:

(a) anintangible asset that is not yet available for use; and (b) an intangible assetthat is amortised over a period exceeding ten years from the date when theasset is available for use.

If thecarrying amount of the assets exceed the estimated recoverable amount, animpairment is recognised for such excess amount. The impairment loss isrecognised as an expense in the Statement of Profit and Loss, unless the assetis carried at revalued amount, in which case any impairment loss of therevalued asset is treated as a revaluation decrease to the extent a revaluationreserve is available for that asset.

Therecoverable amount is the greater of the net selling price and their value inuse. Value in use is arrived at by discounting the future cash flows to theirbrsent value based on an appropriate discount factor.

Whenthere is indication that an impairment loss recognised for an asset (other thana revalued asset) in earlier accounting periods no longer exists or may havedecreased, such reversal of impairment loss is recognised in the Statement ofProfit and Loss, to the extent the amount was brviously charged to theStatement of Profit and Loss. In case of revalued assets such reversal is notrecognised.

Cash flows are reported using the indirectmethod, whereby profit /(loss) before  extraordinaryitems and tax is adjusted for the effects of transactions of non-cash natureand any deferrals or accruals of past or future cash receipts or payments. Thecash flows from operating, investing and financing activities of the Companyare segregated based on the available information.

Based on the nature of products/ activities of the Company and the normaltime between acquisition of assets and their realistion in cash or cashequivalents, the Company has determined its operating Cycle as 12 months for thepurpose of classification of its assets and liabilities as current and non-curent.

Employee benefits include provident fund, gratuityfund (unfunded) and compensated absences.

The Company?s contribution to provident fund and employeesstate insurance are considered as defined contribution plan and is charged asan expense as they fall due based on the amount of contribution required to bemade and when services are rendered by the employees.

For defined benefit plan in the form of gratuity fund, thecost of providing benefits is determined using the Projected Unit Credit method,with actuarial valuations being carried out at each Balance Sheet date.Actuarial gains and losses, if any, are recognized in the Statement of Profitand Loss in the period in which they occur. Past service cost is recognizedimmediately to the extent that the benefits are already vested and otherwise isamortised on a straight-line basis over the average period until the benefits becomevested.

The undiscounted amount of short-term employee benefits expectedto be paid in exchange for the services rendered by employees are recognisedduring the year when the employees render the service. These benefits includeperformance incentive and compensated absences which are expected to occurwithin twelve months after the end of the period in which the employee rendersthe related service.

The cost of such accumulated compensated absences isaccounted as under when employees render the services that increase theirentitlement of future compensated absences.

Provision forBonus and Ex-Gratia is made on accrual basis.

Employee benefits include provident fund, gratuityfund (unfunded) and compensated absences.

The Company?s contribution to provident fund and employeesstate insurance are considered as defined contribution plan and is charged asan expense as they fall due based on the amount of contribution required to bemade and when services are rendered by the employees.

For defined benefit plan in the form of gratuity fund, thecost of providing benefits is determined using the Projected Unit Credit method,with actuarial valuations being carried out at each Balance Sheet date.Actuarial gains and losses, if any, are recognized in the Statement of Profitand Loss in the period in which they occur. Past service cost is recognizedimmediately to the extent that the benefits are already vested and otherwise isamortised on a straight-line basis over the average period until the benefits becomevested.

The undiscounted amount of short-term employee benefits expectedto be paid in exchange for the services rendered by employees are recognisedduring the year when the employees render the service. These benefits includeperformance incentive and compensated absences which are expected to occurwithin twelve months after the end of the period in which the employee rendersthe related service.

The cost of such accumulated compensated absences isaccounted as under when employees render the services that increase theirentitlement of future compensated absences.

Provision forBonus and Ex-Gratia is made on accrual basis.