i) The Financial Statements have been prepared under the
 historical cost convention in accordance with generally accepted
 accounting principles in India and comply in all material aspects with
 the applicable Accounting Standards notified under section 211 (3C) of
 the Companies Act. 1956 and the relevant provisions of the Companies
 Act. 1956 as adopted consistently by the Company.
 
 ii) Accounting policies not specifically referred to otherwise are
 consistent and in consonance with generally accepted accounting
 principles followed by the Company.  
 
 b.  Fixed Assets : Fixed Assets are valued at historical cost less
 depreciation.
 
 Attributable costs (excluding CENVAT & VAT) and expenses including
 borrowing costs for bringing the respective assets to
 workingconditionfortheirintendeduseare capitalized.
 
 c.  Depreciation : Depreciation is provided on written down value
 method as per the rates prescribed under Schedule XIV of the Companies
 Act.  1956.  However, where rates prescribed under Income Tax Act 1961.
 are higher than the rates prescribed by the Companies Act. then
 depreciation has been provided as per Income Tax rates. However 100%
 depreciation has been provided in respect of assets costing
 Rs.5.000/-and below.
 
 d.  Valuation of Inventories : Closing stock of raw materials, finished
 and semi-finished goodsare valued at lower of costand net realisable
 value. Cost has been ascertained on Weighted Average basis.
 
 e.  Revenue Recognition a) Sale is recognized on dispatch of products
 and is inclusive of Excise Duty. SalesTaxandPacking&forwardingcharges
 
 b) Service Charges are recognized as income as and when the services
 are performed and inclusive of service tax.
 
 c) Interest income is recognized on accrualbasis.
 
 d) Dividend income is recognized as and when the right to receive
 theamountisestablished.
 
 e) Insurance claims are accounted on receipt basis.
 
 f.  Foreign Exchange transactions i) All foreign currency transactions
 were initially recognized at the rate on the date of transaction.
 
 ii) Exchange differences arising on the settlement of monetary items
 were recognized as income/expense.
 
 iii) Monetary items and contingent liabilities as on the date of
 Balance Sheet are stated atthe closing rate/realistic rate.
 
 g.  Retirement Benefits i) Contributions to Government Provident /
 Pension funds are accounted on actual liability basis.
 
 ii) Liability in respect of Gratuity and Leave Encashment is provided
 based on actuarial valuation.
 
 h.  Investments : Un-quoted long term Investments are valued at cost.
 
 i.  R&D Expenditure i) Capital expenditure is included in the fixed
 assets and depreciated as per Companys policy.
 
 ii) Revenue expenditure is charged to profit & loss account of the year
 in which they are incurred and is included in the respective heads of
 expenditure.
 
 j.  Borrowing Costs : Borrowing costs that are directly attributable to
 the acquisition
 
 of qualifying assets are capitalized as part of cost of such asset.  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.
 
 k.  Cash Flow Statement : The Cash Flow Statement has been compiled
 from and is based on the Balance Sheet as at 31st March. 2011 and the
 related Profit and Loss Account for the year ended on that date. The
 Cash Flow Statement has been prepared under the indirect method as set
 out in the Accounting Standard - 3 on Cash Flow StatementissuedbylCAl
 
 L AccountingforTaxeson Income i) Current Tax: Provision for Current
 Income Tax is made on the basis of the taxable income for the year as
 determined in accordance with the provisions of I ncome Tax Act. 1961.
 
 ii) Deferred Tax: Deferred income tax is recognized, on timing
 differences, being the difference between taxable incomes and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods. The tax effect is
 calculated on the accumulated timing differences at the year end based
 on tax rates and laws, enacted or substantially enacted as of the
 Balance Sheet date.
 
 m.  Employee Stock Option Scheme: The company has granted 16.71.500
 (after restructuring the
 
 Stock Options due to split in share and bonus issue) Stock Options to
 the employees of the company. In respect of the stock options granted
 pursuant to the companys Stock Option Scheme, the intrinsic value of
 the Options (excess of market price of the share over the exercise
 price of the Option) is treated as discount and accounted as Employee
 Compensation Cost. The Employee compensation cost amounted to Rs.
 5.66.63.850/- will be amortised over the vesting period of 5 years i.e.
 from the financial year 2006-2007 as per SEBI Guidelines.
 
 n.  Impairment of Assets: The Management assesses using external and
 internal sources whether there is any indication that an asset may be 
 impaired. Impairment of an asset occurs where the carrying value exceeds 
 the present value of cash flow expected to arise from the continuing use 
 of the asset and its eventual disposal. The provision for impairment loss
 is made when recoverable amount of the asset is lower than the carrying
 amount.
 
 o.  Provisions and Contingent Liabilities and Contingent Assets:
 Provisions in respect of present obligations arising out of past
 events are made in the accounts when reliable estimate can be made
 oftheamount of obligations and it isprobable that there will be an
 outflow of resources. Contingent Liabilities are not recognized but if
 material, are disclosed in the notes to accounts. Contingent assets are
 not recognized or disclosed in the financial statements.
 
 p.  Operating Lease: Operating Lease payments are recognized as an
 expense in the Profit and Loss Account of the year to which they
 relate.