1.  Basis of preparation of Financial Statements
 
 The financial statements have been prepared to comply in all material
 respects in respects with the standards notified under the Companies
 (Accounting Standards) Rules, 2006 and the relevant provisions of
 Companies Act, 1956. The financial statements have been prepared under
 the historical cost convention on an accrual basis except in case of
 assets for which impairment is made and revaluation is carried out and
 derivative instruments. The accounting policies have been consistently
 applied by the Company and except for the changes in accounting policy
 discussed more fully below, are consistent with those used in previous
 year.
 
 2.  Use of Estimate
 
 The preparation of financial statements requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities, the disclosure of contingent liabilities on the date
 of the financial statements and the reported amounts of revenues and
 expenses during the period reported. Actual results could differ from
 those estimates. Any revision to accounting estimates is recognised in
 accordance with the requirements of the respective accounting standard.
 
 3.  Fixed Assets
 
 Fixed assets are stated at cost (or revalued amounts, as the case may
 be), less accumulated depreciation and impairment losses. Cost
 comprises the purchase price and any attributable cost of bringing the
 asset to its working condition for its intended use, net of VAT
 recoverable. Financing costs relating to construction of fixed assets
 are also included to the extent they relate to the period till such
 assets are ready to be put to use. Financing costs not relating to
 construction of fixed assets are charged to the income statement.
 
 Depreciation
 
 Depreciation on the fixed assets has been provided for on straight line
 method at the rates prescribed and in the manner specified in Schedule
 XIV to the Companies Act, 1956 for the manufacturing units. Other
 fixed assets have been continued depreciated by following written down
 value method.
 
 Impairment
 
 i. The carrying amounts of assets are reviewed at each balance sheet
 date if there are impairment indicators. An impairment loss is
 recognized wherever the carrying amount of an asset exceeds its
 recoverable amount. The recoverable amount is the greater of the
 asset''s net selling price and value in use. In assessing value in use,
 the estimated future cash flows are discounted to their present value
 at the WACC.
 
 ii. After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 iii. A previously recognised impairment loss is increased or decreased
 based on reassessment of recoverable amount, which is carried out if
 the change is significant. However the carrying value after reversal is
 not increased beyond the carrying value that would have prevailed by
 charging usual depreciation if there was no impairment.
 
 4.  Intangible Assets
 
 Intangible assets include miscellaneous expenditures that are
 capitalized if specific criteriaare met and are amortised over their
 useful life, generally not exceeding 5 years. The recoverable amount of
 an intangible asset that is not available for use or is being amortized
 over a period exceeding 5 years should be reviewed at least at each
 financial yearend even if there is no indication thatthe asset is
 impaired.
 
 5.  Leases
 
 Where the Company is the lessee
 
 Finance leases, where substantially all the risks and benefits
 incidental to ownership of the leased item, are transferred to the
 company, are capitalized at the lower of the fair value and present
 value of the minimum lease payments at the inception of the lease term
 and disclosed as leased assets. Lease payments are apportioned between
 finance charges and reduction of the lease liability based on the
 implicit rate of return. Finance charges are charged to income. Lease
 managementfees, legal charges and other initial direct costs are
 capitalised.
 
 If there is no reasonable certainty that the Company will obtain the
 ownership by the end of the lease item, capitalized leased assets are
 depreciated overthe shorter of the estimated useful life of the
 assetorthe leaseterm.
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased term, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight-line basis overthe
 leaseterm.
 
 Assets subject to operating leases are included in fixed assets. Lease
 income is recognised in the Profit and Loss Account on a straight-line
 basis overthe lease term. Costs, including depreciation are recognised
 as an expense in the Profit and Loss Account. Initial direct costs such
 as legal costs, brokerage costs, etc. are recognised immediately in the
 P&L Account.
 
 6.  Government grants and subsidies
 
 Grants and subsidies from the government are recognized when there is
 reasonable assurance that the grant/subsidy will be received and all
 attaching conditions will be complied with.
 
 When the grant or subsidy relates to an expense item, it is recognized
 as income overthe periods necessary to match them on a systematic basis
 to the costs, which it is intended to compensate. Where the grant or
 subsidy relates to an asset, its value is deducted in arriving at the
 carrying amount of the related asset.
 
 7.  Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost, less provisionfordiminution in value otherthan temporary.
 
 8.  Inventories
 
 Inventories are valued at lowerof cost or net realisable value. Cost is
 determined on the following basis:
 
 i) Raw materials and manufactured finished goods are valued at cost
 inclusive of excise duty. Cost is determined by using average cost
 method.
 
 ii) Trade Goods are valued at cost on FIFO basis.
 
 9.  Revenue Recognition
 
 Revenue is recognised to the extent that it is probable that the
 economic benefits will flow to the company and the revenue can be
 reliably measured.
 
 (i) Sale of goods
 
 Revenue is recognised when the significant risks and rewards of
 ownership of the goods have passed to the buyer. Sales revenue is net
 of sales returns, discounts and rebates.
 
 (ii) Interest
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 (iii) Dividends
 
 Revenue is recognised when the shareholders'' right to receive payment
 is established by the balance sheet date.  Dividend from subsidiaries
 is recognised even if same are declared after the balance sheet date
 but pertains to period on or before thedate of balance sheet as perthe
 requirement of schedule VI of theCompanies Act, 1956.
 
 10.  Foreign Exchange Transaction
 
 (a) Transaction denominated in foreign currencies is normally recorded
 at the exchange rate prevailing at the time of the transaction.
 
 (b) Monetary items denominated in foreign currency as at the balance
 sheet date are translated at the year end exchange rate.
 
 (c) Premium on forward cover contracts in respect of import of raw
 material is charged to profit & loss account over the period of
 contracts except in respect of liability for acquiring fixed assets, in
 which case the difference are adjusted in carrying cost of the same.