p. Provision and Contingencies

Provisions involving substantial degree of estimation in measurement are
recognized when there is a present obligation as a result of past events and it is
probable that there will be an outflow of resources. Contingent liabilities are not
recognized but are disclosed in the notes. Contingent assets are neither recognized
nor disclosed in the Financial Statement.

q. Employee Benefits:-

a. Provident Fund is a defined contribution scheme and the contributions are
charged to the Profit & Loss A/c of the year when the contributions to the
Government Funds is due.

b. Gratuity Liability is defined benefit obligations and is provided for on the
basis of Actuary Valuation obtained from Registered Actuary.

c. Short Term Compensated absences are provided for based on estimates.
Long Term compensated absences are provided for based on actuarial
valuation.

d. Actuarial gains / losses are immediate taken to the profit & loss account
and are not deferred.

e. Re-measurement of defined benefit plans in respect of post-employment
are charged to the Other Comprehensive Income.

r. Segment Reporting:-

a) Business Segment: - The accounting policies adopted for segment reporting
are in the line with the accounting policies of the company. Segment Revenue,
Segment expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating activities of the
segment. Revenue, Expenses, Assets, Liabilities which relates to the company
as whole and not allocable to segment on reasonable basis have been included
under “Unallocated revenue/ expenses/ assets/ liabilities”.

b) Geographical Segment: - The Company sells its products within India. The
condition prevailing in India being uniform. So no separate geographical
segment disclosure is considered necessary.

s. Research & Development Expenditure:-

Revenue expenditure pertaining to research is charged to the Profit and Loss
Statement. Development costs of products are charged to the Profit and Loss
Statement unless a product’s technological feasibility has been established, in
which case such expenditure is capitalized.

t. Intangible assets:-

Cost incurred on intangible assets, resulting in future economic benefits are
capitalized as intangible assets and amortized on equated basis over the estimated
useful life of such assets.

u. Events Occurring After the Balance Sheet Date:

Events occurring after the balance sheet date and related to circumstances existing
on the Balance Sheet are accounted for. Events not related to circumstances
existing on the Balance Sheet date are disclosed by way note to accounts.