a) Basis of preparation of financial statements
 
 The financial statements are prepared in accordance with Generally
 Accepted Accounting Principles (GAAP) applicable in India. GAAP
 comprises mandatory accounting standards prescribed by the Companies
 (Accounting Standards) Rules, 2006 and the provisions of the Companies
 Act, 1956. Accounting policies have been consistently applied except
 where a newly issued accounting standard is initially adopted or a
 revision to an existing accounting standard requires a change in the
 accounting policy hitherto in use.  The management evaluates all
 recently issued or revised accounting standards on an on-going basis.
 
 b) Use of estimates
 
 The preparation of the financial statements in conformity with GAAP
 requires the management to make estimates and assumptions that affect
 the reported balances of assets and liabilities and disclosures of
 contingent liabilities as at the date of the financial statements and
 reported amounts of revenue and expenses for the year. The key
 estimates made by the Company in preparing these financial statements
 comprise provisions for doubtful debts, future obligations under
 employee retirement benefit plans, income taxes and the useful lives of
 assets. Actual results could differ from those estimates.
 
 c) Fixed assets and depreciation
 
 Fixed assets are stated at acquisition cost less accumulated
 depreciation and impairment losses, if any. Cost of acquisition is
 inclusive of duties, taxes, freight and other directly attributable
 costs incurred to bring the assets to its working condition for
 intended use and are net of cenvat credits as applicable.
 
 Advances paid towards the acquisition of fixed assets outstanding at
 each balance sheet date and the cost of fixed assets not ready for
 their intended use before such date are disclosed as capital work-
 in-progress.
 
 Depreciation on fixed assets is calculated on written down method at
 the applicable rates specified in Schedule XIV to the Companies Act,
 1956.  Depreciation for assets purchased / sold during a period is
 proportionately charged. All assets costing individually Rs 5,000 or
 below are fully depreciated in the year of acquisition. Lease hold land
 premium paid is amortised over the lease period on straight line basis.
 
 d) Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of leased term are classified as operating
 leases.  Operating lease payments are recognized as an expense in the
 Profit and Loss account on a straight-line basis over the term of the
 lease.
 
 e) Revenue recognition
 
 Revenues comprise of income from sale of manufactured, traded goods and
 power. Revenue from sale of manufactured and traded goods is recognized
 at the point of despatch of goods to customers which generally
 coincides with the transfer of risks and rewards of ownership of goods.
 Sales are net of returns, trade discounts and allowances. Sales exclude
 excise duty and sales tax. Revenue from sale of power is recognised on
 the basis of actual power sold and billed as per the terms of power
 purchase agreement entered into with the State Electricity Board.
 
 Income from interest on deposits is recognised on time proportion basis
 taking into account the amount outstanding and the applicable rate of
 interest.
 
 f) Inventories
 
 Inventories are valued at lower of cost and net realisable value. Cost
 includes all direct cost and applicable overheads.Net realizable value
 is the estimated selling price in the ordinary course of business less
 any applicable selling expenses. Cost is determined on weighted average
 basis.
 
 Inventories in process are valued at raw material cost plus estimated
 cost of conversion upto the stage of completion.
 
 Variation, if any, detected on physical verification of stocks and
 obsolete and slow moving stocks are adjusted in the books of account
 appropriately.
 
 g) Foreign currency transactions
 
 Foreign currency transactions are recorded at the exchange rates
 prevailing on the date of the transactions.
 
 Monetary assets and liabilities denominated in foreign currencies as at
 the balance sheet date are translated at the closing exchange rates on
 that date.
 
 In case of items, which are covered by forward exchange contracts, the
 difference between the year- end rate and the rate on the date of the
 contract is accounted for as income/expense over the life of the
 contract. Profit or loss on cancellation of forward contracts is
 recognised as income/ expense in the Statement of Profit and Loss of
 the year, in which they are cancelled. Exchange difference arising on
 foreign exchange transactions during the year are recognized in the
 profit and loss account of the year.
 
 h) Employee benefits
 
 Employee benefits provided by the Company include contributions to
 Provident fund, Gratuity benefits and Compensated absences.
 
 - Defined Contribution Plan - Provident Fund
 
 Employees are entitled to receive benefits under the provident fund,
 which is a defined contribution plan, in accordance with Employees
 Provident Fund and Miscellaneous Provisions Act, 1952. Both, the
 employee and the employer make monthly contributions to the plan at a
 predetermined rate (presently at 12%) of the employees'' basic salary.
 The Company has no further obligations under the plan beyond its
 monthly contributions.
 
 - Defined Benefit Plan - Gratuity
 
 Employees in India are entitled to benefits under the Payment of
 Gratuity Act, 1972, a defined benefit retirement plan covering eligible
 employees of the Company. The Plan provides a lump-sum payment to
 eligible employees at retirement or on termination of employment. The
 gratuity benefit conferred by the Company on its employees is equal to
 or greater than the statutory minimum. The year-end gratuity liability
 is determined based on actuarial valuation performed by an independent
 actuary using the Projected Unit Credit Method.
 
 - Leave encashment
 
 Liability in respect of leave encashment becoming due or expected to be
 availed within one year from the balance sheet date is recognised on
 the basis of undiscounted value of estimated amount required to be paid
 or estimated value of benefit expected to be availed by the employees.
 Liability in respect of leave encashment becoming due or expected to be
 availed more than one year after the Balance Sheet date is estimated on
 the basis of an actuarial valuation performed by an independent actuary
 using the Projected Unit Credit Method.
 
 i) Income taxes
 
 Provision for tax for the year comprises current income tax and
 deferred tax. Provision for current income tax is made based on the
 estimated tax liability in accordance with the relevant tax rates and
 tax laws.
 
 Current tax is payable on taxable profits, which differ from profit or
 loss in the financial statements.  Current tax is computed based on tax
 rates and tax laws that have been enacted or substantively enacted by
 the end of the reporting period.
 
 Deferred income taxes reflect the impact of current year timing
 differences between taxable income and accounting income for the year
 and reversal of timing differences of earlier years. Deferred tax is
 measured based on the tax rates and the tax laws enacted or
 substantively enacted at the balance sheet date. Deferred tax assets
 are recognized only to the extent that there is reasonable certainty
 that sufficient future taxable income will be available against which
 such deferred tax assets can be realized. Unrecognized deferred tax
 assets of earlier years are re-assessed and recognized to the extent
 that it has become reasonably certain that future taxable income will
 be available against which such deferred tax assets can be realized.
 
 j) Borrowing cost
 
 Borrowing costs are recognised in the financial statements in
 accordance with the Accounting Standard -16 of Companies (Accounting
 Standards) Rules, 2006. Borrowing Costs that are attributable to the
 acquisition and constructions of qualifying assets are capitalised as a
 part of the cost of such assets. A qualifying asset is one that
 necessarily takes substantial period of time to get ready for its
 intended use. Other borrowing costs of the year are charged to revenue
 in the period in which they are incurred.
 
 k) Earnings per share
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting preference dividends and attributable taxes) by the weighted
 average number of equity shares outstanding during the period. The
 weighted average number of equity shares outstanding during the period
 is adjusted for events including a bonus issue, bonus element in a
 rights issue to existing shareholders, share split and reverse share
 split (consolidation of shares). For the purpose of calculating diluted
 earnings per share, the net profit or loss for the period attributable
 to equity shareholders and the weighted average number of shares
 outstanding during the period are adjusted for the effects of all
 dilutive potential equity shares. In determining Earnings per Share,
 the Company considers the net profit after tax and includes the
 post-tax effect of any extra-ordinary / exceptional item. The number of
 shares used in computing basic earnings per share is the weighted
 average number of shares outstanding during the period.
 
 l) Provisions, contingent liabilities and contingent assets
 
 The Company creates a provision when there is present obligation as a
 result of past event that probably requires an outflow of resources and
 a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. Where there is a possible obligation
 or a present obligation in respect of which the likelihood of outflow
 of resources is remote, no provision or disclosure is made. Contingent
 assets are neither recognized nor disclosed in the financial
 statements.
 
 m) Impairment of assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset.
 Recoverable amount is the higher of the asset''s net selling price and
 its value in use. Value in use is the present value of estimated future
 cash flows expected to arise from the continuing use of an asset and
 from its disposal at the end of its useful life. If such recoverable
 amount of the asset or the recoverable amount of the cash generating
 unit to which the asset belongs is less than its carrying amount, the
 carrying amount is reduced to its recoverable amount. The reduction is
 treated as an impairment loss and is recognised in the profit and loss
 account. If at the balance sheet date there is an indication that if a
 previously assessed impairment loss no longer exists, the recoverable
 amount is reassessed and the asset is reflected at the recoverable
 amount subject to a maximum of depreciated historical cost.