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 lacs.
 
 This is the first year of application of the revised Schedule VI to the
 Companies Act, 1956 for the preparation of the financial statements of
 the company. The revised Schedule VI introduces some significant
 conceptual changes as well as new disclosures. These include
 classification of all assets and liabilities into current and
 non-current. The previous year figures have also undergone a major
 reclassification to comply with the requirements of the revised
 Schedule VI.
 
 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 Current-non-current classification
 
 All assets and liabilities are classified into current and non-current.
 
 Assets
 
 An asset is classified as current when it satisfies any of the
 following criteria:
 
 (a) it is expected to be realised in, or is intended for sale or
 consumption in, the company''s normal operating cycle;
 
 (b) it is held primarily for the purpose of being traded;
 
 (c) it is expected to be realised within 12 months after the reporting
 date; or
 
 (d) it is cash or cash equivalent unless it is restricted from being
 exchanged or used to settle a liability for at least 12 months after
 the reporting date.
 
 Current assets include the current portion of non-current financial
 assets.  All other assets are classified as non-current
 
 Liabilities
 
 A liability is classified as current when it satisfies any of
 the following criteria:
 
 (a) it is expected to be settled in the company''s normal operating
 cycle;
 
 (b) it is held primarily for the purpose of being traded;
 
 (c) it is due to be settled within 12 months after the reporting date;
 or
 
 (d) the company does not have an unconditional right to defer
 settlement of the liability for at least 12 months after the reporting
 date. Terms of a liability that could, at the option of the
 counterparty, result in its settlement by the issue of equity
 instruments do not affect its classification.
 
 Current liabilities include current portion of non-current financial
 liabilities.  All other liabilities are classified as non-current.
 
 Operating cycle
 
 Operating cycle is the time between the acquisition of assets for
 processing and their realization in cash or cash equivalents. The
 Company''s operating cycle is less than 12 months.
 
 1.4 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 or estimated useful life of
 an asset whichever is higher, 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. Rates of
 depreciation are as follows:
 
 1.5 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. Rates of depreciation are as follows:
 
 1.6 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.
 
 1.7 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. However,
 that part of long term investments which is expected to be realized
 within 12 months after the reporting date is also presented under
 ''current assets'' as current portion of long term investments in
 consonance with the current-non-current classification scheme of
 revised Schedule VI.
 
 Long term investments (including current portion thereof) 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.
 
 1.8 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.
 
 1.9 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.
 
 1.10 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 Statement of Profit and Loss. Actuarial gains and losses are
 recognised immediately in the Statement of Profit and Loss.
 
 (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 the Statement of Profit and Loss.
 
 1.11 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 Statement of Profit and Loss.
 
 Aforeign currency monetary item is classified as long-term if it has
 original maturity of one year or more.
 
 1.12 Taxes on Income
 
 Income tax expense comprises 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 realized.
 
 1.13 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.
 
 1.14 Provisions and Contingencies
 
 Provisions
 
 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. The
 provisions are measured on an undiscounted basis.
 
 Contingencies
 
 Provision in respect of loss contingencies relating to claims,
 litigation, assessment, fines, penalties, etc. are recognised when it
 is probable that a liability has been incurred, and the amount can be
 estimated reliably.
 
 1.15 Contingent Liabilities and Contingent Assets
 
 A contingent liability exists when there is a possible but not probable
 obligation, or a present obligation that may, but probably will not,
 require an outflow of resources, or a present obligation whose amount
 cannot be estimated reliably. Contingent liabilities do not warrant
 provisions, but are disclosed unless the possibility of outflow of
 resources is remote. Contingent assets are neither recognised nor
 disclosed in the financial statements. However, contingent assets are
 assessed continually and if it is virtually certain that an inflow of
 economic benefits will arise, the asset and related income are
 recognised in the period in which the change occurs.
 
 1.16 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 Statement of Profit and Loss on a straight- line basis over the
 lease term. Lease income under operating lease is recognised in the
 Statement of Profit and Loss on a straight- line basis over the lease
 term.