1.  Basis of Preparation of Financial Statements
 
 These financial statements have been prepared under the historical cost
 convention in accordance with generally accepted accounting principles
 in India, the applicable Accounting Standards and the provisions of the
 Companies Act, 1956.
 
 2.  Use of Estimates
 
 The preparation of financial statements in conformity with the
 generally accepted accounting principles require estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities on the date of the financial statements and the reported
 amounts of revenues and expenses during the reporting period.
 Differences between, the actual results and estimates are recognised in
 the period in which the results are known / materialise.
 
 3.  Revenue Recognition
 
 a) Revenue on sale of products is recognised when the products are
 dispatched to customers, all significant contractual obligations have
 been satisfied and the collection of the resulting receivable is
 reasonably expected. Sales are stated net of trade discount, returns
 and sales tax collected.
 
 b) Revenue in respect of insurance/other claims, interest etc. is
 recognised only when it is reasonably certain that the ultimate
 collection will be made.
 
 4.  Fixed Assets
 
 a) Own Assets:
 
 Fixed Assets are stated at cost of acquisition or construction
 including directly attributable cost. They are stated at historical
 cost less accumulated depreciation and impairment loss, if any.
 
 b) Assets taken on lease:
 
 1) Finance Lease:
 
 Assets taken on lease after April 1, 2001 are accounted for as fixed
 assets in accordance with Accounting Standard on Leases AS-19.
 Accordingly, the assets have been accounted at fair value. Lease
 payments are apportioned between finance charges and reduction of
 outstanding liability.
 
 2) Operating Lease:
 
 Assets taken on lease under which, all the risk and rewards of
 ownership are effectively retained by the lessor are classified as
 operating lease. Lease payments under operating leases are recognised
 as expenses on accrual basis in accordance with the respective lease
 agreements.
 
 5.  Investments
 
 Investments classified as Long Term Investments are stated at cost.
 Provision is made to recognise a decline, other than temporary, in the
 value of investments. Current investments are carried at cost or fair
 value whichever is lower.
 
 6.  Capital Work – in-Progress
 
 Projects under commissioning are carried forward at cost as capital
 work in progress and represent payments made to contractors including
 advances and directly attributable cost.
 
 7.  Depreciation / Amortization
 
 a) Depreciation on Fixed Assets is provided on Straight Line Method at
 the rates and in the manner specified in Schedule XIV to the Companies
 Act, 1956. Continuous process plant is classified based on technical
 assessment and depreciation is provided accordingly
 
 b) Cost of leasehold land is amortized over the period of lease.
 
 c) Trade marks/Brands marks are amortized over a period of ten years
 from the date of capitalization
 
 d) Computer software is amortized for a period of five years from the
 date of capitalization.
 
 e) Depreciation on additions to assets or on sale / disposal of assets
 is calculated from the beginning of the month of such addition or up to
 the month of such sale / scrapped, as the case may be.
 
 f) Assets costing less than Rs. 5,000/ – are fully depreciated in the
 year of purchase.
 
 8.  Foreign Currency Transactions & Translations
 
 a) Foreign currency transactions are recorded at the exchange rates
 prevailing on the date of the transaction. Exchange differences arising
 on settlement of foreign currency transactions are recognised in the
 profit and loss account
 
 b) Monetary items denominated in foreign currency are restated using
 the exchange rate prevailing at the balance sheet date and the
 resultant exchange differences are recognized in the profit and loss
 account. Non-monetary items denominated in foreign currency are carried
 at historical cost.
 
 However, pursuant to the notification of the Companies (Accounting
 Standards) Amendment Rules 2006 issued on 31 March 2009, which amended
 Accounting Standard 11 on The Effects of Changes in Foreign Exchange
 Rates, exchange differences relating to long term monetary items are
 dealt with in the following manner:
 
 i. Exchange differences relating to long-term monetary items, arising
 during the year, in so far as they relate to the acquisition of a
 depreciable capital asset are added to / deducted from the cost of the
 asset and depreciated over the balance life of the asset.
 
 ii. In other cases such differences are accumulated in a Foreign
 Currency Monetary Item Translation Difference Account and amortized to
 the profit and loss account over the balance life of the long-term
 monetary item, however that the period of amortization does not extend
 beyond 31 March, 2012. (Refer Note 20 below).
 
 c) In respect of forward contracts entered into to hedge foreign
 currency exposure in respect of recognized monetary items, the premium
 or discount on such contracts is amortized over the life of the
 contract. The exchange difference measured by the change in exchange
 rate between the inception dates of the contract / last reporting date
 as the case may be and the balance sheet date is recognized in the
 profit and loss account. Any gain / loss on cancellation of such
 forward contracts are recognised as income / expense of the period.
 
 9.  Inventories
 
 Items of Inventories are valued on the basis given below:
 
 1.  Raw Materials, Packing Materials, Stores and Spares and Trading
 goods: at cost determined on First – In – First – Out (FIFO) basis or
 net realisable value, whichever is lower.
 
 2.  Process stock and Finished Goods: At weighted average cost or net
 realisable values whichever is lower. Cost comprises of cost of
 purchase, cost of conversion and other costs incurred in bringing the
 inventory to their present location and condition.
 
 10.  Employee Benefits (Refer Note No. 10 of Part B of Schedule 19)
 
 a) Defined Contribution Plan
 
 Company''s contribution paid/ payable for the year to defined
 contribution retirement benefit scheme is charged to Profit and Loss
 account.
 
 b) Defined Benefit Plan and other long term benefit plan
 
 Company''s liabilities towards defined benefit scheme and other long
 term benefit plans are determined using the projected unit credit
 method. Actuarial valuation under projected unit credit method are
 carried out at Balance Sheet date, Actuarial gains/losses are
 recognised in Profit and Loss Account in the period of occurrence of
 such gains and losses. Past service cost is recognised immediately to
 the extent benefits are vested otherwise it is amortized on straight
 line basis over running average periods until the benefits become
 vested. The retirement benefit obligation recognised in Balance Sheet
 represents present value of the defined benefit obligations as adjusted
 for unrecognised past service cost and as reduced by fair value of
 scheme assets. Any asset resulting from this calculation is limited to
 past service cost, the present value is available refunds and reduction
 in future contribution to the scheme.
 
 c) Short Term Employee Benefits
 
 Short term employee benefits expected to be paid in exchange for the
 services rendered by the employee are recognised undiscounted during
 the period the employee renders the services, these benefits include
 incentive, bonus.
 
 11.  Accounting of CENVAT credit
 
 Cenvat credit available is accounted by recording material purchases
 net of excise duty. Cenvat credit availed is accounted on adjustment
 against excise duty payable on dispatch of finished goods.
 
 12.  Government Grants
 
 Grants, in the nature of interest subsidy under the Technology
 Upgradation Fund Scheme (TUFS), are accounted for when it is reasonably
 certain that ultimate collection will be made. Government grants not
 specifically related to fixed assets are recognised in the Profit and
 Loss Account in the year of accrual / receipt.
 
 13.  Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is one that necessarily takes a
 substantial period of time to get ready for its intended use or sale.
 All other borrowing costs are charged to revenue.
 
 14.  Income taxes
 
 Tax expense comprises of current tax and deferred tax. Current tax and
 deferred tax are accounted for in accordance with Accounting Standard
 22 (AS-22) on Accounting for taxes on Income. Current tax is measured
 at the amount expected to be paid / recovered from the tax authority
 using the applicable tax rates. Deferred liabilities are recognised for
 future tax consequence attributable to timing difference between
 taxable income and accounting income that are capable of reversing in
 one or more subsequent periods and are measured at relevant enacted/
 substantively enacted tax rates and in the case of deferred tax asset
 on consideration of prudence, are recognised and carried forward to the
 extent of reasonable / virtual certainty as case may be. At each
 balance sheet date, the Company reassesses unrealised deferred tax
 assets to the extent they become reasonably certain or virtually
 certain of realisation, as the case may be.  Minimum Alternate Tax
 (MAT) credit entitlement is recognised in accordance with the Guidance
 Note on Accounting for credit available in respect of Minimum
 Alternate Tax under the Income-tax Act, 1961 issued by ICAI (Refer
 note no. 8 and 12 of Part B of Schedule 19).
 
 15.  Intangible Assets
 
 Intangible assets are recognised only if it is probable that the future
 economic benefits that are attributable to the assets will flow to the
 enterprise and the cost of the assets can be measured reliably. The
 intangible assets are recorded at cost and are carried at cost less
 accumulated amortisation and accumulated impairment losses, if any.
 
 16.  Impairment of Fixed Assets
 
 At the end of each year, the company determines whether a provision
 should be made for impairment loss on fixed assets by considering the
 indications that an impairment loss may have occurred in accordance
 with Accounting Standard 28 (AS-28) ''''Impairment of Assets''''. An
 impairment loss is charged to the Profit and Loss Account in the year
 in which, an asset is identified as impaired, when the carrying value
 of the asset exceeds its recoverable value. The impairment loss
 recognised in prior accounting periods is reversed if there has been a
 change in the estimate of recoverable amount.
 
 17.  Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 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.
 
 18.  Issue Expenses
 
 Expenses incurred in connection with the issue of shares, debentures
 and Foreign Currency Convertible Bonds to be recognised in Profit &
 Loss Account .
 
 19.  Accounting for Derivatives
 
 The company uses derivative instruments to hedge its exposure to
 movements in foreign exchange rates, interest rates and currency risks.
 The objective of these derivative instruments is to reduce the risk or
 cost to the company and is not intended for trading or speculation
 purposes.
 
 Interest Rate Swaps, Currency Option and Currency Swaps, in the nature
 of firm commitment and highly probable forecast transactions, entered
 into by the Company for hedging the risks of foreign currency exposure
 (including interest rate risk) are accounted based on the principles of
 prudence as enunciated in Accounting Standard 1 (AS-1) Disclosure of
 Accounting Policies.