1.1 Basis of preparation of financial statements
 
 The financial statements have been prepared and presented under the
 historical cost convention on the accrual basis of accounting and
 comply with the Accounting Standards (AS) issued by the Companies
 (Accounting Standard) Rules, 2006 and the relevant provisions of the
 Companies Act, 1956, to the extent applicable. The financial statements
 are presented in Indian rupees rounded off to the nearest thousand.
 
 1.2 Accounting estimates
 
 The preparation of financial statements in conformity with the
 generally accepted accounting principles in India (Indian GAAP)
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities and the disclosure of
 contingent liabilities on the date of the financial statements. Actual
 results could differ from those estimates. Any revision to accounting
 estimates is prospectively recognised in current and future periods.
 
 1.3 Fixed assets and depreciation
 
 Fixed assets are stated at cost less accumulated depreciation. The cost
 of fixed assets includes non refundable taxes and duties, freight and
 other incidental expenses related to the acquisition and installation
 of the respective assets.  Depreciation on fixed assets is provided on
 the straight line method, in the manner and as per the rates specified
 in Schedule XIV to the Companies Act, 1956 except for assets costing Rs.
 5,000 or less, which are depreciated fully in the year of purchase.
 Leasehold land is amortised over the remaining period of the lease.
 
 Assets retired from active use and held for disposal are stated at the
 lower of cost or net realizable value less costs of disposal.
 
 Advances paid towards acquisition of fixed assets outstanding at each
 Balance Sheet date and the cost of fixed assets not ready for their
 intended use at the Balance Sheet date are disclosed under capital work
 -in -progress.
 
 1.4 Intangible assets and amortization
 
 Intangible assets are recognized when the asset is identifiable, is
 within the control of the Company, it is probable that the future
 economic benefits that are attributable to the asset will flow to the
 Company and cost of the asset can be reliably measured. Intangible
 assets are recorded at their acquisition price and are amortised over
 their estimated useful lives on a straight line basis, commencing from
 the date the assets are available for use. The useful life of the
 intangible assets is reviewed by the management at each Balance Sheet
 date. Computer software is amortised over the period of 3 years and
 other intangibles over a period of 5 years.
 
 1.5 Impairment of assets
 
 In accordance with AS 28-lmpairment of Assets , the carrying amounts of
 the Company''s assets including intangible assets are reviewed at each
 Balance Sheet date to determine whether there is any indication of
 impairment. If any such indication exists, the assets recoverable
 amount is estimated, as the higher of the net selling price and the
 value in use. An impairment loss is recognized whenever the carrying
 amount of an asset exceeds its recoverable amount. If at the Balance
 Sheet date, there is an indication that a previously assessed
 impairment loss no longer exists, the recoverable amount is reassessed
 and the asset is assessed at the recoverable amount subject to a
 maximum of depreciable historical cost.
 
 1.6 Investments
 
 Investments that are readily realizable and intended to be held for not
 more than twelve months are classified as current investments. All
 other investments are classified as long term investments.
 
 Long term investments are stated at cost less any other- than-
 temporary diminution in value, determined separately for each
 individual investment. Current investments are carried at lower of cost
 and fair value. The comparison of cost and fair value is done
 separately in respect of each category of investments.
 
 1.7 Inventories
 
 Inventories are stated at lower of cost and net realizable value.  The
 cost is determined on the basis of Weighted Average method and includes
 expenditure in acquiring the inventories and bringing them to their
 existing location and condition.  Materials-in-transit are stated at
 purchase cost.
 
 In the case of manufactured inventories, cost includes an appropriate
 share of production overheads. Finished goods inventory includes excise
 duty payable.
 
 Net realizable value is the estimated net sales realization in the
 ordinary course of business. The comparison of cost and net realizable
 value is made on an item-by-item basis.
 
 The net realizable value of work-in-progress is determined with
 reference to the net sales realization of related finished goods.
 
 Raw materials and other supplies held for use in production of finished
 goods are not written down below cost, except in cases where the
 material prices have declined and it is estimated that the cost of the
 finished goods will exceed their net realizable value. In such cases,
 the materials are valued at the lower of replacement cost or ultimate
 net realizable value.
 
 1.8 Revenue recognition
 
 Revenue from sale of goods is recognised on transfer of all significant
 risks and rewards of ownership to the buyer which is at the point of
 shipment or dispatch of goods. Sales are accounted net of amounts
 recovered towards sales tax and trade discounts.
 
 Export incentives receivable are accrued for when the right to receive
 the credit is established and there is no significant uncertainty
 regarding the ultimate collection of export proceeds.
 
 Interest income is recognised on a time proportion basis. Dividend
 income from investments is recognised when an unconditional right to
 receive payment is established.
 
 1.9 Employee benefits
 
 (a) Short term employee benefits
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short term employee benefits and are
 recognised in the period in which the employee renders the related
 service.
 
 (b) Post-employment benefits
 
 (i) Defined contribution plans: The Company''s superannuation scheme and
 state governed provident fund scheme are defined contribution plans.
 The contribution paid/payable under the schemes is recognized during
 the period in which the employee renders the related service.
 
 (ii) Defined Benefit Plans: The employees'' gratuity fund scheme and
 cash rewards at the time of retirement are the Company''s defined
 benefit plans. The present value of the obligation under each defined
 benefit plan is determined based on actuarial valuation at each Balance
 Sheet date using the Projected Unit Credit Method, which recognises
 each period of service as giving rise to additional unit of employee
 benefit entitlement and measures each unit separately to build up the
 final obligation.
 
 The obligation is measured at the present value of the estimated future
 cash flows. The discount rate used for determining the present value of
 the obligation under defined benefit plans are based on the market
 yields on Government securities as at the Balance Sheet date, having
 maturity periods approximating to the terms of related obligations.
 
 Gains or losses on the curtailment or settlement of any defined benefit
 plan are recognised when the curtailment or settlement occurs. Past
 service cost is recognised as expense on a straight-line basis over the
 average period until the benefits become vested. To the extent the
 benefits vests immediately, the expense is recognized immediately in
 the Profit and Loss account. Actuarial gains and losses are recognised
 immediately in the Profit and Loss account.
 
 (c) Long term employee benefits
 
 The obligation for long term employee benefits such as long term
 compensated absences, long service awards etc. is recognised in the
 same manner as in the case of defined benefit plans as mentioned in (b)
 (ii) above.
 
 When the benefits of a plan are improved, the portion of increased
 benefit relating to past service by employees is recognized immediately
 in Profit and Loss account.
 
 1.10 Foreign exchange transactions
 
 Foreign currency transactions are recorded at the rate of exchange
 prevailing on the date of the transaction.  Monetary foreign currency
 assets and liabilities remaining unsettled at the balance sheet date
 are translated at the rates of exchange prevailing on that date. Gains
 / losses arising on account of such translation and subsequent
 realization/settlement of foreign exchange transactions are recognized
 in the Profit and Loss account.
 
 1.11 Taxes on Income
 
 Income tax expense comprises fringe benefit tax, current tax (i.e.
 amount of tax for the period determined in accordance with the
 income-tax law) and deferred tax charge or credit (reflecting the tax
 effects of timing differences between accounting income and taxable
 income for the period).
 
 The deferred tax charge or credit and the corresponding deferred tax
 liabilities or assets are recognised using the tax rates that have been
 enacted or substantively enacted by the Balance Sheet date.
 
 Deferred tax assets are recognised only to the extent that there is
 reasonable certainty that the assets can be realised in future;
 however, where there is unabsorbed depreciation or carried forward
 losses under taxation laws, deferred tax assets are recognised only if
 there is a virtual certainty of realisation of such assets. Deferred
 tax assets are reviewed at each balance sheet date and written down or
 written-up to reflect the amount that is reasonably/ virtually certain
 (as the case may be) to be realised.
 
 1.12 Earnings per Share (''EPS'')
 
 The basic EPS is computed by dividing the net profit attributable to
 the equity shareholders for the year by the weighted average number of
 equity shares outstanding during the year.
 
 Diluted EPS is computed using the weighted average number of equity and
 dilutive equity equivalent shares outstanding during the year except
 where the results would be anti dilutive.
 
 1.13 Provisions and Contingencies
 
 A provision is recognised when there is a present 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 a
 reliable estimate can be made.  These are reviewed at each Balance
 Sheet date and adjusted to reflect the current best estimate.  A
 disclosure for a contingent liability is made when there is a possible
 or present obligation that may, but probably will not require an
 outflow of resources. When there is a possible obligation in respect of
 which the likelihood of outflow of resources is remote, no provision or
 disclosure is made.
 
 1.14 Leases
 
 Leases of assets under which all the risks and rewards of ownership are
 effectively retained by the lessor are classified as operating leases.
 Lease payments under operating lease are recognised as an expense in
 the Profit and Loss account on a straight - line basis over the lease
 term. Lease income under operating lease is recognised in the Profit
 and Loss account on a straight- line basis over the lease term.