1.1 BASIS 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.
 
 During the year ended 31st March, 2012 the revised schedule VI notified
 under the Companies Act, 1956 has become applicable to the Company for
 preparation and presentation of its financial statement. The adoption
 of revised schedule VI does not impact recognition and measurement
 principles followed for preparation of financial statements. However,
 it has significant impact on presentation and disclosure made in the
 financial statements. The Company has also reclassified the previous
 year''s figures in accordance with the requirement applicable in the
 current year.
 
 1.2 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.
 
 1.3 FIXED ASSETS AND DEPRECIATION
 
 Fixed Assets are recorded at cost of acquisition / construction less
 accumulated depreciation and impairment losses, if any. Cost Comprises
 of purchase price and any attributable cost of bringing the assets to
 its working condition for its intended use, but excluding Cenvat /
 Service Tax / VAT credit availed. 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.
 
 Depreciation has been provided on Plant & Machinery on the
 straight-line method at the rates specified in Schedule XIV of the
 Companies Act, 1956.
 
 For all other assets depreciation has been provided on written down
 value method at the rates specified in Schedule XIV of the Companies
 Act, 1956.
 
 Fixed assets individually costing Rs 5,000 or less are fully depreciated
 in the year of purchase/ installation. Depreciation on additions and
 disposals during the current reporting period is provided on a pro-rata
 basis.
 
 Intangible assets are shown at Cost of Acquisition less accumulated
 amortization. Intangible assets are amortized on straight line basis
 over their individual respective useful life. The management estimates
 the useful life of the assets as under:
 
 1.4 INVESTMENTS
 
 Investments which are expected to be realizable within twelve months
 from the Balance Sheet date are classified as current Investments. All
 other Investments are classified as Non-current Investments.
 
 Current Investments are carried at lower of the cost and fair market
 value of each investment individually. Non-current investments are
 carried at cost less provision for diminution other than temporary, in
 value if any as at the Balance sheet date.
 
 1.5 INVENTORIES
 
 Inventories are stated at Cost or Net Realizable Value whichever is
 lower after considering credit of VAT and Cenvat.  Cost of
 Raw-Material, Spares and Components is determined on weighted average
 cost.
 
 Cost of Work in Progress includes cost of raw material, appropriate
 share of labour and manufacturing overheads and valued at lower of cost
 or net realizable value.
 
 Finished Goods are valued at lower of Cost including excise duty
 payable thereon or Net realizable value.
 
 1.6 REVENUE RECOGNITION
 
 Sales are stated net of rebate and trade discount and exclude 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.
 
 All the items of expenses and income are accounted on accrual basis,
 except Dividend Income, Insurance claims, Commission and Duty Drawback
 received which are accounted on receipt basis.
 
 1.7 OPERATING LEASE
 
 Lease revenue under operating Lease is recognized as income on straight
 line basis.
 
 Lease expenses under operating lease are recognized as expense on
 straight line basis.
 
 1.8 EMPLOYEE BENEFITS
 
 (a) 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.
 
 (b) Long Term
 
 The Company has both defined contribution and defined benefit plans, of
 which some have assets in approved funds. These plans are financed by
 the Company in the case of defined contribution plans.
 
 (c) 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 and Superannuation Fund. The Company''s payments to the
 defined contribution plans are reported as expenses during the period
 in which the employee performs the services that the payment covers.
 
 (d) 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.
 
 (e) Other Employee Benefit
 
 Compensated absences which accrue to employees and which can be carried
 to future periods but are expected to be encased 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.
 
 1.9 EXCISE DUTY
 
 Excise duty payable on production and custom duty payable on imports
 are included in the value of finished goods, both in respect of goods
 cleared and lying in Bonded warehouse.
 
 1.10 FOREIGN CURRENCY TRANSACTIONS
 
 Foreign Currency transaction are recorded in the reporting currency by
 applying to the foreign currency amount the exchange rate between the
 reporting currency and the foreign currency at the date of the
 transactions.
 
 Foreign Currency Monetary items are reported using the closing rate.
 Non Monetary items which are carried in terms of historical cost
 denominated in foreign currency are reported using the exchange rate at
 the date of transaction.  Exchange differences arising on the
 settlement of monetary items or/on reporting a company''s monetary
 items at rates different from those at which they were initially
 recorded during the year or reported in previous financial statements
 are recognized as income or as expense in the year in which they arise.
 
 Monetary assets & liabilities denominated in foreign currency remaining
 unsettled at the year-end are translated at closing rates.
 
 The premium or discount arising at inception of forward exchange
 contract is amortized as expense or income over the life of the
 contract. Exchange difference on such contract is recognized in the
 statement of profit and loss.
 
 1.11 RESEARCH AND DEVELOPMENT EXPENSES
 
 All revenue expenditure related to R&D including expenses in relation
 to development of product/ processes are charged to Statement of Profit
 and loss in the period in which it is incurred.
 
 Capital expenditure on research and development is classified
 separately under tangible/intangible assets and depreciated on the same
 basis as other fixed assets.
 
 1.12 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.
 
 1.13 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 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.
 
 1.14 TAXATION
 
 Provision for Current Tax is made as per the provisions of the Income
 Tax Act, 1961.
 
 Deferred Tax resulting from timing differences that are temporary in
 nature between accounting and taxable profit is accounted for, using
 the tax rates and laws that have been enacted as on the Balance Sheet
 date. The deferred tax asset is recognized and carried forward only to
 the extent that there is a reasonable or virtual certainty, as the case
 may be, that the asset will be realized in future.
 
 1.15 EARNING PER SHARE
 
 The basic Earnings Per Share is calculated by dividing the Net profit
 or loss for the period attributable to Equity Shareholders by the
 weighted average number of Equity Shares outstanding during the current
 reporting period.
 
 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 current reporting period.
 
 1.16 CASH AND CASH EQUIVALENTS
 
 Cash and Cash equivalents comprise cash and balance with banks. The
 company considers all highly liquid investments with the remaining
 maturity at the date of purchase of three months or less and that are
 readily convertible to known amount of cash to be cash equivalent.
 
 1.17 CASH FLOW STATEMENT
 
 The Cash Flow Statement is prepared by the indirect method set
 out in Accounting Standard 3 on Cash Flow Statements issued by
 ICAI and presents the cash flows by operating, investing and financing
 activities of the Company.
 
 1.18 IMPAIRMENT OF ASSETS
 
 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. 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.
 
 1.19 PRODUCT WARRANTY EXPENSES
 
 Product warranty expenses are estimated by the management on the basis
 of technical evaluation and past experience.  Provision is made for
 estimated liability in respect of warranty cost in the period of
 recognition of revenue.