1 Basis of Accounting:
 
 The financial statements are prepared under the historical cost
 convention on the Accrual Concept of accountancy in accordance with
 the accounting principles generally accepted in India and they comply
 with the Accounting Standards prescribed in the Companies [Accounting
 Standards] Rules, 2006 issued by the Central Government and other
 pronouncement issued by Institute of Chartered Accountants of India to
 the extent applicable and with the applicable provisions of the
 Companies Act, 1956.
 
 2 Use of Estimates:
 
 The preparation of Financial Statements in conformity with the
 Accounting Standards generally accepted in India requires, the
 management to make estimates and assumptions that affect the reported
 amounts of assets and liabilities and disclosure of contingent
 liabilities as at the date of the financial statements and reported
 amounts of revenues and expenses for the reporting period while actual
 results could differ from these estimates. Any revision to accounting
 estimates is recognised prospectively in current and future periods.
 
 3 Fixed Assets and Depreciation:
 
 A Fixed Assets are stated at historical cost of acquisition/
 construction less accumulated depreciation and impairment loss. Cost
 [Net of Input tax credit received/ receivable] includes related
 expenditure and pre-operative & project expenses for the period up to
 completion of construction/assets are put to use. The loss or gain on
 exchange rates on long term foreign currency loans attributable to
 fixed assets, effective from April 1, 2007 is adjusted to the cost of
 respective fixed assets.
 
 B Depreciation is provided on straight line method as per Section 205
 (2) (b) of the Companies Act,1956 at the rates prescribed in Schedule
 XIV thereto.
 
 C Depreciation on impaired assets is calculated on its residual value,
 if any, on a systematic basis over its remaining useful life.
 
 D Leasehold land is amortized over the period of the lease.
 
 E Trade Marks, Technical Know-how Fees and other similar rights are
 amortised over their estimated economic life of ten years.
 
 F Capitalised costs incurred towards purchase/ development of software
 are amortised using straight line method over its useful life of four
 years as estimated by the management at the time of capitalisation.
 
 G Depreciation on additions/ disposals of the fixed assets during the
 year is provided on pro-rata basis according to the period during which
 assets are put to use.
 
 H Where the actual cost of purchase of an asset is below Rs. 10,000/-,
 the depreciation is provided @ 100 %.
 
 4 Impairment of Assets:
 
 The Company, at each balance sheet date, assesses whether there is any
 indication of impairment of any asset and/ or cash generating unit. If
 such indication exists, assets are impaired by comparing carrying
 amount of each asset and/ or cash generating unit to the recoverable
 amount being higher of the net selling price or value in use. Value in
 use is determined from the present value of the estimated future cash
 flows from the continuing use of the assets.
 
 5 Borrowing Costs:
 
 A Borrowing costs that are directly attributable to the acquisition/
 construction of a qualifying asset are capitalised as part of the cost
 of such assets, up to the date, the assets are ready for their intended
 use.  B Other borrowing costs are recognised as an expense in the
 period in which they are incurred.  C Borrowing costs also include
 exchange rate differences arising from foreign currency borrowings to
 the extent that they are regarded as an adjustment to interest costs.
 
 6 Expenditure during the Construction Period:
 
 The expenditure incidental to the expansion/ new projects are allocated
 to Fixed Assets in the year of commencement of the commercial
 production.
 
 7 Investments:
 
 A Long term and strategic investments are stated at cost, less any
 diminution in the value other than temporary.  B Current investments
 are stated at lower of cost and fair value determined on individual
 investment basis.
 
 C Investments in shares of foreign subsidiary and other Companies are
 expressed in Indian currency at the rates of exchange prevailing at the
 time when the original investments were made.
 
 8 Inventories:
 
 A Raw Materials, Stores & Spare Parts, Packing Materials, Finished
 Goods, Stock-in-Trade and Work-in-progress are valued at lower of cost
 and net realisable value.  B Cost [Net of Input tax credit availed] of
 Raw Materials, Stores & Spare Parts, Packing Materials, Finished Goods
 & Stock-in-Trade is
 
 determined on Moving Average Method.  C Cost of Finished Goods and
 Work-in-progress is determined by taking material cost [Net of Input
 tax credit availed], labour and relevant appropriate overheads.
 
 9 Revenue Recognition:
 
 A Revenue from Sale of goods is recognised when significant risks and
 rewards of ownership of the goods have been passed to the buyer.  B
 Service income is recognised as per the terms of contracts with the
 customers when the related services are performed or the agreed
 milestones are achieved and are net of service tax wherever applicable.
 C Dividend income is recognised when the unconditional right to receive
 the income is established.  D Interest income is recognised on time
 proportionate method.  E Revenue in respect of other income is
 recognised when no significant uncertainty as to its determination or
 realisation exists.
 
 10 Foreign Currency Transactions:
 
 A The transactions in foreign currencies are stated at the rates of
 exchange prevailing on the dates of transactions.
 
 B The net gain or loss on account of exchange rate differences either
 on settlement or on translation of short term monetary items is
 recognised in the statement of Profit and Loss.
 
 C The net gain or loss on account of exchange rate differences either
 on settlement or on translation of long term monetary items including
 long term forward contracts is recognised under Foreign Currency
 Monetary Items Translation Difference Account [FCMITDA], except in
 case of foreign currency loans taken for funding of fixed assets, where
 such difference is adjusted to the cost of respective fixed assets. The
 FCMITDA is amortised during the tenure of loans but not beyond March
 31, 2020.
 
 D Investments in foreign subsidiaries are recorded in Indian currency
 at the rates of exchange prevailing at the time when the investments
 were made.
 
 E The foreign currency assets and liabilities including forward
 contracts are restated at the prevailing exchange rates at the period
 end. The premium in respect of forward contracts is accounted over the
 period of the contract.
 
 11 Derivative Instruments and Hedge Accounting:
 
 A Pursuant to ICAI Announcement Accounting for Derivatives on the
 early adoption of Accounting Standard 30 Financial Instruments:
 Recognition and Measurement which contains accounting for derivatives,
 the Company has voluntarily adopted the Standard with effect from
 October 1, 2011, to the extent that the adoption does not conflict with
 existing mandatory accounting standards and other authoritative
 pronouncements, Company law and other regulatory requirements in
 respect of accounting for derivatives and hedge accounting.
 
 B The company uses derivative instruments, such as foreign currency
 forward contracts, other non-derivative financial liabilities and
 interest rate swaps to hedge its foreign currency risks associated with
 probable forecasted sales and interest rate fluctuations. The company
 designates these hedging instruments as cash flow hedge in applying
 the recognition and measurement principles set out in the Accounting
 Standard 30.
 
 C Hedging instruments are initially measured at fair value, and are
 remeasured at subsequent reporting dates. Changes in the fair value of
 these derivatives that are designated and effective as hedges of future
 cash flows are recognised directly in Hedge Reserves [under Reserves
 & Surplus] and the ineffective portion is recognised immediately in
 the statement of Profit and Loss.
 
 D Changes in the fair value of derivative financial instruments that do
 not qualify for hedge accounting are recognised in the statement of
 Profit and Loss as they arise.
 
 E Hedge accounting is discontinued when the hedging instrument expires
 or is sold, terminated, or exercised, or no longer qualifies for hedge
 accounting. At that time for forecasted transactions, any cumulative
 gain or loss on the hedging instrument recognised in Hedge Reserve is
 retained until the forecasted transaction occurs. If a hedged
 transaction is no longer expected to occur, the net cumulative gain or
 loss recognised in Hedge Reserve is transferred to the statement of
 Profit and Loss for the period.
 
 12 Research and Development Cost:
 
 A Expenditure on research and development is charged to the statement
 of Profit and Loss of the period in which it is incurred.  B Capital
 expenditure on research and development is given the same treatment as
 Fixed Assets.
 
 13 Excise Duty:
 
 Excise Duty is accounted gross of Cenvat benefit availed on inputs,
 fixed assets and eligible services.
 
 14 Employee Benefits:
 
 A Defined Contribution Plans:
 
 The Company contributes on a defined contribution basis to Employees''
 Provident Fund towards post employment benefits, all of which are
 administered by the respective Government authorities, and has no
 further obligation beyond making its contribution, which is expensed in
 the period to which it pertains.
 
 B Defined Benefit Plans:
 
 The gratuity scheme is administered through the Life Insurance
 Corporation of India [LIC]. The liability for the defined benefit plan
 of Gratuity is determined on the basis of an actuarial valuation by an
 independent actuary at the reporting period end, which is calculated
 using projected unit credit method.
 
 Actuarial gains and losses which comprise experience adjustment and the
 effect of changes in actuarial assumptions are recognised in the
 statement of Profit and Loss.
 
 C Leave Liability:
 
 The leave encashment scheme is administered through Life Insurance
 Corporation of India''s Employees'' Group Leave Encashment cum Life
 Assurance [Cash Accumulation] scheme. The employees of the company are
 entitled to leave as per the leave policy of the company. The liability
 on account of accumulated leave as on last day of the accounting year
 is recognised [net of the fair value of plan assets as at the balance
 sheet date] at present value of the defined obligation at the balance
 sheet date based on the actuarial valuation carried out by an
 independent actuary using projected unit credit method.
 
 D Employee Separation Costs:
 
 The compensation paid to the employees under Voluntary Retirement
 Scheme is expensed in the year of payment.
 
 15 Provision for Bad and Doubtful Debts/ Advances:
 
 Provision is made in accounts for bad and doubtful debts/ advances
 which in the opinion of the management is considered doubtful of
 recovery.
 
 16 Taxes on Income:
 
 A Tax expenses comprise of current and deferred tax.
 
 B Current tax is measured at the amount expected to be paid on the
 basis of reliefs and deductions available in accordance with the
 provisions of the Income Tax Act, 1961.
 
 C Deferred tax reflects the impact of current year timing differences
 between accounting and taxable income and reversal of timing
 differences of earlier years. Deferred tax is measured based on the tax
 rates and laws that have been enacted or substantively enacted as of
 the balance sheet date. Deferred tax assets are recognised only to the
 extent there is reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realised and are reviewed at each balance sheet date.
 
 17 Provision for Product Expiry Claims:
 
 Provision for product expiry claims in respect of products sold during
 the reporting period is made based on the management''s estimates.
 
 18 Leases:
 
 Leases are classified as operating leases where the lessor effectively
 retains substantially all the risks and benefits of the ownership of
 the leased assets. Operating lease payments are recognised as expenses
 in the statement of Profit and Loss as and when paid.
 
 19 Government Grants:
 
 A Government grants are recognised in accordance with the terms of the
 respective grant on accrual basis considering the status of compliance
 of prescribed conditions and ascertainment that the grant will be
 received.  B Government grants related to revenue are recognised on a
 systematic and gross basis in the statement of Profit and Loss over the
 period during which the related costs intended to be compensated are
 incurred.  C Government grants in the nature of incentive provided by
 the government without related costs are credited to capital reserve.
 
 20 Provisions, Contingent Liabilities and Contingent Assets:
 
 Provision is recognised when the company has a present obligation as a
 result of past events and it is probable that the outflow of resources
 will be required to settle the obligation and in respect of which
 reliable estimates can be made. A disclosure for contingent liability
 is made when there is a possible obligation, that may, but probably
 will not require an outflow of resources. When there is a possible
 obligation or a present obligation in respect of which the likelihood
 of outflow of resources is remote, no provision/ disclosure is made.
 Contingent assets are not recognised in the financial statements.
 Provisions and contingencies are reviewed at each balance sheet date
 and adjusted to reflect the correct management estimates.