a) Basis of preparation of Financial Statements :
 
 The accounts are preparer under the historical cost convention and
 materially comply with the mandatory Accounting Standards referred
 under section 211 (3C) of the Companies Act 1956 ana in the formal
 prescribed under Schedule VI of the Companies Act 1956 along with the
 required disclosures therein
 
 b) Uso of estimates :
 
 The preparation of financial statements requires management of the
 company to make estimates and assumptions that at affect the reported
 balances 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 year reported. Examples of
 such estimates include provision for doubtful debts, income taxes and
 future obligations under employee retirement benefit plans Actual
 results could other from those estimates Any revision to accounting
 estimates is recognised in accordance with the requirements of the
 respective Accounting Standard.
 
 c) Fixed Assets :
 
 Fixed assets are staled at historical cost including directly
 attributable costs Of bringing the assets to their working condition
 
 d) Depreciation :
 
 Depreciation on Fixed Assets is provided on straight line method in
 accordance with the rates and in the manner prescribed in Schedule XIV
 of the Companies Act 195E on pro-rata basis Intangible assets are being
 amortised over their useful life of 5 years
 
 c} Investments: 
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments and are earned
 at ower of cost and fair value determined on an individual investment
 oasis whereas all other investments are classified as long term
 investments and are earned at cost except provision for diminution in
 value is made to recognize a decline other than temporary as specified
 in Accounting Standard (AS-13) on Accounting for Investments.
 
 f) Investments ;
 
 Inventories are valued as under ;
 
 Raw Material is valued at lower of cost arrived on FIFO basis and net
 realisable value Stocks process is valued at lower of cost and net
 market realisable value Cost is taken upto the slage of completion of
 product inclusive of appropriate portion of overheads.
 
 Finished manufactured Goods is valued at lower of cast and net market
 realisable value.  Traded Goods is valued at lower of cost arrived on
 FIFO basis and net market realisable value
 
 g) Revenue Recognition :
 
 Sales of products are recognised when the products are dispatched
 Revenue from Service operations is recognised when the services are
 rendered Other revenue/income and cost/expenditure are accounted for on
 accrual basis
 
 h) Foreign Currency Transaction :
 
 Transactions in foreign currency are recorded at the foreign exchange
 rate prevailing on the date of the transactions Liabilities denominated
 in foreign currency are restated at the rate as on the dale of Balance
 Sheet and resulting difference is transferred to profit &, Loss account
 or the assets account as the case may be However as prescribed by the
 Notification of the Companies (Accounting Standards) Amendment Rules
 2006 on 31.03.2009 on AS-11 the foreign exchange difference relating to
 long term monetary items which are in relation to the acquisition of a
 depreciable capital asset are are addede/deducied with the cost of
 asset and is depreciated over the balance life of the asset and in
 other cases the differences are accumulated in a Foreign Currency
 Monetary Item Translation Difference Account  and amortised to the
 Profit & Loss account over the balance life of the long term monetary
 item but not exceeding 31st March 2011
 
 i> Employees Benefits :
 
 Liability is provided for employees benefits of provident fund,
 gratuity, earned leave in respect of eligible employees. Contributions
 under the defined contribution scheme are charged to revenue The
 liability in respect of defined benefit scheme like gratuity and earned
 leaves is provided in the accounts on the basis of actual valuation as
 on the balance sheet date in accordance with Accounting Standard
 (AS-15) on Employee Benefits
 
 (Revised) issued by the institute of Chartered Accountants of india
 
 j) Borrowing Costs :
 
 Interest and other borrowing costs attributable to qualifying assets
 are capitalised. Other interest and borrowing costs are changed to
 revenue
 
 k> Premises Taken on Lease :
 
 For premises taken on lease, lease rentals payable are charged to
 revenue
 
 l) Taxes on Income :
 
 Tax expense comprises current income lax. wealth tax, deferred tax and
 fringe benefit tax(including interest payable) Current income
 tax,wealth tax and fringe benefit tax is measured at the amount
 expected to be paid to the tax authorities in accordance with the
 provision of Income Tax Act 1961 Deferred lax is recognised, on timing
 difference, being the difference between taxable income and accounting
 income that originate in one period and are capable of reversal in one
 or more subsequent periods Where there is unabsorbed depreciation or
 carried forward tosses, deferred tax assets are recognised only it
 there is virtual certainty of realisation of such assets. Other
 deferred tax assets are recognised only to the extent there is
 reasonable certainty of realisation in future
 
 m) Earnings per Share (EPS) :
 
 Basic and Dilutee earning per shares are calculated by dividing the net
 profit or loss for the period attributable to the equity share holders
 by the weighted average number of equity shares outstanding during the
 period
 
 n) Miscellaneous Expenditure :
 
 Expenses incurred in connection with further issue of share capital are
 being amortised in three equal instalments.
 
 o) GDRIFCCB Issue :
 
 Expenses incurred in connection with the issue of GDR/FCCB have been
 charged with Securities Premium Account as permitted by section 78 of
 the Companies Act 1956 Premium payable on redemption of FCCB is
 provided over the life of the bonds from Securities Premium Account On
 conversion of the bonds in equity the provision for the redemption
 premium is reversed