a.  Method of Accounting
 
 The Financial Statements are prepared as per historical cost convention
 and in accordance with the Generally Accepted Accounting Principles in
 India, the provisions of the Companies Act, 1956, and the applicable
 Accounting Standards notified under the Companies (Accounting
 Standards) Rules, 2006. All Income and Expenditures having material
 bearing on the Financial Statements are recognized on accrual basis.
 
 b.  Use of Estimates
 
 The presentation of the Financial Statements in conformity with the
 Generally Accepted Accounting policies requires, the management to make
 estimates and assumptions that affect the reported amount of Assets and
 Liabilities, Revenues and Expenses and disclosure of contingent
 liabilities. Such estimation and assumptions are based on management''s
 evaluation of relevant facts and circumstances as on date of Financial
 Statements. Difference between the actual results and estimates are
 recognized in the period in which the results are known / materialized.
 
 c.  Revenue Recognition
 
 Sales are stated inclusive of rebate and trade discount and excluding
 Central Sales Tax, State Value Added Tax. With regard to sale of
 products, income is reported when practically all risks and rights
 connected with the ownership have been transferred to the buyers. This
 usually occurs upon dispatch, after the price has been determined.
 
 Export Benefits are accounted on accrual basis.
 
 d.  Fixed Assets
 
 Tangible Fixed Assets acquired by the Company are reported at
 acquisition value, with deductions for accumulated depreciation [other
 than freehold land where no depreciation is charged] and impairment
 losses, if any. The acquisition value includes the purchase price
 (excluding refundable taxes), and expenses directly attributable to
 assets to bring it to the factory and in the working condition for its
 intended use.  Where the construction or development of any such asset
 requiring a substantial period of time to set up for its intended use,
 is funded by borrowings if any, the corresponding borrowing cost are
 capitalized up to the date when the asset is ready for its intended
 use.
 
 Capital work in progress is stated at Cost.
 
 Pre-operative expenditure & trial run expenditure on the Project is
 capitalized amongst the various heads of fixed assets on the
 commencement of commercial production of respective project.
 
 e.  Depreciation
 
 i) Depreciation on Fixed Assets is provided on Straight Line Basis in
 accordance with the provisions of Section 205(2)(b) of the Companies
 Act, 1956 in the manner and at the rates specified in Schedule XIV to
 the said Act.
 
 ii) Depreciation on additions to Assets during the year is being
 provided on pro-rata basis with reference to month of
 acquisition/installation as required by Schedule XIV to the Companies
 Act, 1956.
 
 iii) Depreciation on assets sold, scrapped or demolished during the
 year is provided at their respective rates up to the date on which such
 assets are sold, scrapped or demolished, as required by Schedule XIV of
 the Companies Act, 1956.
 
 iv) No depreciation has been provided in respect of Capital Work in
 Progress.
 
 f.  Excise Duty
 
 Excise Duties recovered are included in the sale of products. Excise
 duties in respect of Finished Goods lying in stock are shown separately
 as an item of Other Manufacturing Expenses and included in the
 valuation of finished goods.
 
 g.  Cash Flow Statement
 
 The Cash Flow Statement is prepared by the indirect method set out in
 Accounting Standard 3 on Cash Flow Statements and presents the cash
 flows by operating, investing and financing activities of the Company.
 Cash and Cash equivalents presented in the Cash Flow Statement consist
 of cash on hand and demand deposits with banks
 
 h.  Foreign Currency Transactions
 
 Transactions in the foreign currency which are covered by forward
 contracts are accounted for at the contracted rate; the difference
 between the forward rate and the exchange rate at the date of
 transaction is recognized in the profit & loss account over the life of
 the contract. Transactions in the foreign currency other than those
 covered by forward contract rates are translated to the reporting
 currency based on the exchange rate on the date of the transaction.
 Exchange differences arising on settlement thereof during the year are
 recognized as income or expenses in the Profit and Loss Account.
 
 Cash and bank balances, receivables and liabilities (monetary items) in
 foreign currencies as at the yearend are translated at closing-date
 rates, and unrealized translation differences are included in the
 Profit and Loss Account
 
 i.  Investments
 
 Investments are classified as Long Term & Current Investments. Long
 Term Investments are valued at cost less provision for diminution other
 than temporary, in value, if any. Current Investments are valued at
 cost or fair value whichever is lower.
 
 j.  Valuation of Inventories
 
 i) Raw materials are valued at cost or net realizable value whichever
 is lower.
 
 ii) Work in progress has been valued at cost of materials and labour
 charges together with relevant factory overheads.
 
 iii) Finished Goods are valued at cost or net realizable value
 whichever is lower. (Inclusive Excise Duty).
 
 iv) Stores & Fuel are valued at cost or net realizable value whichever
 is lower.
 
 k.  Employee Benefit
 
 (i) Short Term
 
 Short Term employee benefits are recognized as an expense at the
 undiscounted amount expected to be paid over the period of services
 rendered by the employees to the company.
 
 (ii) Long Term
 
 The Company has both defined contribution and defined benefit plans.
 These plans are financed by the Company in the case of defined
 contribution plans.
 
 (iii) Defined Contribution Plans
 
 These are plans in which the Company pays pre-defined amounts to
 separate funds and does not have any legal or informal obligation to
 pay additional sums. These comprise of contributions to Employees
 Provident Fund. The Company''s payments to the defined contribution
 plans are reported as expenses during the period in which the employees
 perform the services that the payment covers.
 
 (iv) Defined Benefit Plans
 
 Expenses for defined benefit gratuity payment plans are calculated as
 at the balance sheet date by independent actuaries in the manner that
 distributes expenses over the employees working life. These commitments
 are valued at the present value of the expected future payments, with
 consideration for calculated future salary increases, using a
 discounted rate corresponding to the interest rate estimated by the
 actuary having regard to the interest rate on Government Bonds with a
 remaining term i.e.  almost equivalent to the average balance working
 period of employees.
 
 (v) Other Employee Benefit
 
 Compensated absences which accrue to employees and which can be carried
 to future periods but are expected to be encashed or availed in twelve
 months immediately following the year end are reported as expenses
 during the year in which the employees perform the services that the
 benefit covers and the liabilities are reported at the undiscounted
 amount of the benefits after deducting amounts already paid.
 
 l.  Earning per Share
 
 Basic earning per share is calculated by dividing the net profit after
 tax for the year attributable to Equity Shareholders of the Company by
 the weighted average number of Equity Shares in issue during the year.
 Diluted earning per Share is calculated by dividing net profit
 attributable to equity Shareholders (after adjustment for diluted
 earnings) by average number of weighted equity shares outstanding
 during the year.
 
 m.  Taxation
 
 Income –tax expense comprises of current tax, and deferred tax charge
 or credit. Provision for current tax is made on the basis of the
 assessable income at the tax rate applicable to the relevant assessment
 year.  The deferred tax asset and deferred tax liability is calculated
 by applying tax rate and tax laws that have been enacted or
 substantively enacted by the balance sheet date. Deferred tax assets
 arising mainly on account of brought forward business losses, capital
 losses and unabsorbed depreciation under tax laws, are recognized, only
 if there is a virtual certainly of its realization, supported by
 convincing evidence. Deferred tax assets on account of other timing
 differences are recognized only to the extent there is a reasonable
 certainty of its realization. At each balance sheet date, the carrying
 amount of deferred tax assets is reviewed to reassure realization.
 
 n.  Impairment
 
 The carrying value of assets of the Company''s cash generating units are
 reviewed for impairment annually or more often if there is an
 indication of decline in value based on internal/external factors. If
 any indication of such impairment exists, the recoverable amounts of
 those assets are estimated and impairment loss is recognized, if the
 carrying amount of those assets exceeds their recoverable amount. The
 recoverable amount is the greater of the net selling price and their
 value in use. Value in use is arrived at by discounting the estimated
 future cash flows to their present value based on appropriate discount
 factor.
 
 o.  Provisions & Contingencies
 
 A provision is recognized when the Company has a present legal or
 constructive obligation as a result of past event and it is probable
 that an outflow of resources will be required to settle the obligation,
 in respect of which reliable estimate can be made. Provisions
 (excluding long term benefits) are not discounted to its present value
 and are determined based on best estimate required to settle the
 obligation at the balance sheet date. These are reviewed at each
 balance sheet date and adjusted to reflect the current best estimates.
 Contingent liabilities are not recognized but are disclosed in the
 notes to the Financial Statements. A contingent asset is neither
 recognized nor disclosed.
 
 p.  Borrowing Cost
 
 Borrowing costs are recognized in the period to which they relate,
 regardless of how the funds have been utilized, except where it relates
 to the financing of construction or development of assets requiring a
 substantial period of time to prepare for their intended future use.
 Interest on borrowings if any is capitalized up to the date when the
 asset is ready for its intended use. The amount of interest capitalized
 for the period is determined by applying the interest rate applicable
 to appropriate borrowings
 
 q.  Research & Development Expenditure
 
 Research & Development Expenditure is charged to revenue. Capital
 expenditure on research and development is reported as fixed assets
 under the relevant head. Depreciation on research and development fixed
 assets are not classified as research and development expenses and
 instead included under depreciation expenses.
 
 r.  Leases
 
 Lease Transactions entered into on or after April 1, 2001.
 
 (1) Assets acquired under lease where the Company has substantially all
 the risks and rewards incidental to ownership are classified as finance
 leases. Such assets are capitalized at the inception of the Lease at
 the lower of the fair value or the present value of minimum lease
 payments and a liability is created for an equivalent amount. Each
 lease rental paid is allocated between the liability and the interest
 cost, so as to obtain a constant periodic rate of interest on the
 outstanding liability for each period.
 
 (2) Assets acquired on lease where a significant portion of risk and
 rewards incidental to ownership is retained by the leaser are
 classified as operating lease. Lease rental are charged to the profit
 and loss account on accrual basis.
 
 s.  Proposed Dividend & Corporate Dividend Tax
 
 Dividend proposed by the Board of Directors along with corporate
 dividend tax is provided in the books of accounts. Approval in the
 General Meeting is pending for the same.