a) BASIS OF PREPARATION OF FINANCIAL STATEMENT
 
 The financial statements have been prepared under the historical cost
 convention using the accrual basis of accounting and comply with all
 the mandatory Accounting Standards as specified in the Companies
 (Accounting Standards) Rules, 2006 and relevant provisions of the
 Companies Act, 1956, as adopted consistently by the Company.
 
 b) USE OF ESTIMATES
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles (GAAP) requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and the disclosure of contingent liabilities on the
 date of the financial statements. Actual results could differ from
 those estimates. Any revision to accounting estimates is recognised in
 the period in which such revision are made.
 
 c) INVENTORIES
 
 i) Inventories are valued at lower of cost or Net Realisable Value.
 
 ii) Cost of inventories have been computed to include all costs of
 purchases, cost of conversion and other costs incurred in bringing the
 inventories to their present location and condition.
 
 iii) The basis of determining cost for various categories of
 inventories are as follows:
 
 a) Raw material Weighted Average Cost.
 
 b) Traded / Finished goods Weighted Average Cost.
 
 c) Stores and Spares Weighted Average Cost.
 
 d) CASH FLOW STATEMENT
 
 The Cash Flow Statement is being prepared in accordance with the format
 prescribed by Securities and Exchange Board of India and as per
 Accounting Stanadard-3 as specified in the Companies (Accounting
 Standards) Rules, 2006.
 
 e) PRIOR PERIOD AND EXCEPTIONAL ITEMS
 
 All identifiable items of Income and Expenditure pertaining to prior
 period are accounted through Prior Period Adjustment Account.
 
 Exceptional items are generally non-recurring items of income and
 expense within profit or loss from ordinary activities, which are of
 such size, nature or incidence that their disclosure is relevant to
 explain the performance of the Company for the year.
 
 f) DEPRECIATION
 
 i) Depreciation on Fixed Assets is provided on straight line method at
 rates and in the manner specified in Schedule XIV to the Companies Act,
 1956 read with the relevant circulars issued by the Ministry of
 Corporate Affairs.
 
 ii) Depreciation on Assets acquired / disposed off during the year is
 provided on pro-rata basis with reference to the date of
 addition/disposal.
 
 iii) Individual assets costing less than Rs. 5,000 are fully depreciated
 in the year of purchase.
 
 iv) Intangible Assets in the form of Software which are an integral
 part of Computer Systems are amortised at the same rate as that of
 Computer Systems.
 
 g) REVENUE RECOGNITION
 
 i) Sales of goods are recognised on shipment or dispatch to customer
 and net of value added tax and return.
 
 ii) Dividend income from investments is recognised when the Companys
 right to receive payment is established.
 
 iii) Income from services rendered is accounted for when the work is
 performed.
 
 iv) Interest income is recognised on time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 v) Profit/Loss on sale of investments are recognised on the contract
 date.
 
 vi) Export benefits under various scheme announced by the Central
 Government under Exim policies are accounted for on accrual basis to
 the extent considered receivable, depending on the certainty of
 receipt.
 
 h) FIXED ASSETS
 
 i) Fixed assets are stated at cost of acquisition or construction. They
 are stated at historical cost less accumulated depreciation.
 
 ii) Expenditure on account of modification/alteration in plant and
 machinery, which increases the future benefit from the existing asset
 beyond its previous assessed standard of performance, is capitalized.
 
 iii) Any capital expenditure in respect of assets, the ownership of
 which would not vest with the Company, is charged off to revenue in the
 year of incurrence.
 
 iv) Fixed Asset includes:
 
 a.  Capital work in progress where assets not put to use before
 year-end.
 
 b.  Capital advances towards the acquisition of fixed assets.  i)
 FOREIGN CURRENCY TRANSACTIONS
 
 i) Initial Recognition
 
 Transactions denominated in foreign currencies are recorded at the
 exchange rates prevailing on the date of the transaction.
 
 ii) Conversion
 
 At the year-end, monetary items denominated in foreign currencies,
 other than those covered by forward contracts, are converted into rupee
 equivalents at the year end exchange rates.
 
 iii) Exchange Differences
 
 All exchange differences arising on settlement and conversion of
 foreign currency transaction are included in the Profit and Loss
 Account.
 
 iv) Forward Exchange Contracts
 
 The Company uses foreign currency forward contracts to hedge its risks
 associated with foreign currency fluctuations relating to certain firm
 commitments and forecasted transactions.
 
 The use of such foreign currency forward contracts is governed by the
 Companys policies approved by the management, which provide principles
 on use of such financial derivatives consistent with the Companys risk
 management strategy.  The Company does not use derivative financial
 instruments for speculative purposes.
 
 In respect of transactions covered by forward exchange contracts, the
 difference between the year end rate and the exchange rate at the date
 of contract is recognised as exchange difference and the premium paid
 on forward contracts is recognised over the life of the contracts.
 
 j) INVESTMENTS
 
 (i) Long-term investments are stated at cost. Provision for diminution
 in the value of long-term investments is made only if such a decline is
 other than temporary in the opinion of the management.
 
 (ii) Current investments are carried at the lower of cost and
 quoted/fair value, computed category wise.
 
 (iii) Investments in Equity Shares of foreign subsidiaries are
 expressed in Indian Currency at the rates of exchange prevailing at the
 time when the investment was made.
 
 k) EMPLOYEES RETIREMENT BENEFITS
 
 (i) Defined Benefit Plan
 
 Gratuity with respect to defined benefit schemes are accrued based on
 actuarial valuations, carried out by an independent actuary as at the
 balance sheet date. These contributions are covered through Group
 Gratuity Scheme with Life Insurance Corporation of India and are
 charged against revenue.
 
 (ii) Defined Contribution plans
 
 Companys contribution to Provident Fund, Superannuation Fund,
 Employees State Insurance Fund are determined under the relevant
 schemes and/or statute, charged to the Profit & Loss Account when
 incurred.
 
 (iii) Provision is made for leave encashment based on actuarial
 valuation, carried out by an independent actuary as at the balance
 sheet date.
 
 (iv) Termination benefits, if any, are recognised as an expense as and
 when incurred.
 
 l) BORROWING COSTS
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowing costs are charged to revenue.
 
 m) SEGMENT ACCOUNTING
 
 Based on guiding principles given in Accounting Standard on Segment
 Reporting- AS 17, single financial report contains both Standalone
 financial statement and Consolidated financial statement of the
 Company. Hence, the required segment information has been appended in
 the Consolidated Financial Statements (CFS).
 
 n) RELATED PARTY TRANSACTIONS
 
 Disclosure of transactions with Related Parties, as required by
 Accounting Standard 18 Related Party Disclosures has been set out in
 a separate note forming part of this Schedule. Related parties as
 defined under clause 3 of the Accounting Standard 18 have been
 identified on the basis of representations made by the management and
 information available with the Company.
 
 o) LEASES
 
 The Companys significant leasing arrangements are in respect of
 operating leases for immovable property which includes residential
 premises, office, godowns, etc. The aggregate lease rental payable is
 charged as rent including lease rentals.
 
 p) EARNING PER SHARE
 
 The Company reports basic and diluted earnings per share (EPS) in
 accordance with the Accounting Standard 20 as specified in the
 Companies (Accounting Standard) Rules 2006. The Basic EPS has been
 computed by dividing the income available to equity shareholders by the
 weighted average number of equity shares outstanding during the
 accounting year. The Diluted EPS has been computed using the weighted
 average number of equity shares and dilutive potential Equity Shares
 outstanding at the end of the year.
 
 q) TAXES ON INCOME
 
 i) DEFERRED TAXATION
 
 In accordance with the Accounting Standard 22 - Accounting for Taxes on
 Income, as specified in the Companies (Accounting Standards) Rules,
 2006, the deferred tax for timing differences between the book and tax
 profits for the year is accounted for by using the tax rates and laws
 that have been enacted or substantively enacted as of the Balance Sheet
 Date.
 
 Deferred tax assets arising from timing differences are recognised to
 the extent there is virtual certainty that the assets can be realized
 in future.
 
 Net outstanding balance in Deferred Tax account is recognised as
 deferred tax liability/asset. The deferred tax account is used solely
 for reversing timing difference as and when crystallized.
 
 ii) CURRENT TAXATION
 
 Provision for taxation including wealth tax has been made in accordance
 with the direct tax laws prevailing for the relevant assessment years.
 
 The current tax charge for the Company includes Minimum Alternative Tax
 (MAT) determined under section 115JB of the Income Tax Act, 1961.
 
 r) IMPAIRMENT OF FIXED ASSETS
 
 The carrying amount of assets, other than inventories, is reviewed at
 each balance sheet date to determine whether there is any indication of
 impairment. If any such indication exists, the assets recoverable
 amount is estimated.
 
 The impairment loss is recognised whenever the carrying amount of an
 asset or its cash generation unit exceeds its recoverable amount. The
 recoverable amount is the greater of the assets net selling price and
 value in the uses which is determined based on the estimated future
 cash flow discounted to their present values. All impairment losses are
 recognised in the profit and loss account.
 
 An impairment loss is reversed if there has been a change in the
 estimates used to determine the recoverable amount and is recognised in
 the profit and loss account.
 
 s) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 Provision involving substantial degree of estimation in measurements
 are recognised 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 recognised but are disclosed in the
 notes. Contingent assets are neither recognised nor disclosed in the
 financial statements.
 
 t) EXPENDITURE
 
 Expenses are net of taxes recoverable, where applicable.
 
 u) DERIVATIVE INSTRUMENTS
 
 As per the Institute of Chartered Accountants of India (ICAI)
 Announcement, accounting for derivative contracts, derivative contract
 other than those covered under AS-11, as specified in the Companies
 (Accounting Standards) Rules, 2006,The Effects of Changes in the
 Foreign Exchange Rates, are marked to market on a portfolio basis, and
 the net loss after considering the offsetting effect on the underlying
 hedge item is charged to the income statement. Net gains are ignored.
 
 v) ACCOUNTING OF CLAIMS
 
 i) Claims received are accounted at the time of lodgment depending on
 the certainty of receipt and claims payable are accounted at the time
 of acceptance.
 
 ii) Claims raised by Government authorities regarding taxes and duties,
 which are disputed by the Company, are accounted based on legality of
 each claim. Adjustments, if any, are made in the year in which disputes
 are finally settled.
 
 w) PROPOSED DIVIDEND
 
 Dividend proposed by the Directors is provided for in the books of
 account pending approval by the members at the Annual General Meeting.
 
 x) DOUBTFUL DEBTS/ADVANCES
 
 Provision is made in the accounts for Debts/Advances which in the
 opinion of the management are considered doubtful of recovery.
 
 y) MISCELLANEOUS EXPENDITURE (TO THE EXTENT NOT WRITTEN OFF OR
 ADJUSTED)
 
 Miscellaneous Expenditure represent the expenses incurred on Rights
 Issue offer and the same has been adjusted against Securities Premium
 account as permitted under Section 78 of the Companies Act,1956.