(a) Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the notified accounting standard by Companies Accounting
 Standards Rules, 2006 and the relevant provisions of the Companies Act,
 1956. The financial statements have been prepared under the historical
 cost convention on an accrual basis. The accounting policies have been
 consistently applied by the Company and are consistent with those used
 in the previous year.
 
 (b) Use of Estimates
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles requires management to make estimates
 and assumptions that effect the reported amount of assets and
 liabilities and disclosure of contingent liabilities at the date of
 financial statements and result of operations during the reported year.
 Although these estimates are based upon managements best knowledge of
 current events and actions, actual results could differ from these
 estimates.
 
 (c) Fixed Assets
 
 Fixed assets are stated at cost, less accumulated depreciation and
 impairment losses, if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use. Borrowing costs relating to acquisition of fixed
 assets which takes substantial period of time to get ready for its
 intended use are also included to the extent they relate to the period
 till such assets are ready to be put to use.
 
 In respect of accounting periods commencing on or after 7th December,
 2006, exchange differences arising on reporting of the long- term
 foreign currency monetary items at rates different from those at which
 they were initially recorded during the period, or reported in the
 previous financial statements are added to or deducted from the cost of
 the asset and are depreciated over the balance life of the asset, if
 these monetary items pertain to the acquisition of a depreciable fixed
 asset.
 
 (d) Capital Work-in-Progress
 
 All expenditure, including advances given and interest cost during the
 project construction period, are accumulated and disclosed as capital
 work-in-progress until the assets are ready for commercial use. Assets
 under construction are not depreciated. Income earned from investments
 of surplus borrowed funds during the construction/trial run period is
 reduced from capital work-in-progress.  Expenditure/income arising
 during trial run is added to/reduced from capital work-in-progress.
 
 (e) Expenditure on substantial expansion
 
 All direct capital expenditure on expansion are capitalised. As regards
 indirect expenditure on expansion, only that portion is capitalised
 which represents the marginal increase in such expenditure involved as
 a result of capital expansion. Both direct and indirect expenditure are
 capitalised only if they increase the value of the asset beyond its
 original standard of performance.
 
 (f) Depreciation
 
 (i) Fixed assets are depreciated at the rates and in the manner
 specified in Schedule XIV of the Companies Act, 1956 on written down
 value method, except for plant and machinery and railway sidings which
 are depreciated on a straight line basis. Depreciation on additions to
 / deletions from fixed assets is provided on pro-rata basis from / up
 to the date of such addition / deletion as the case may be.
 Depreciation on additions to assets due to exchange variation is
 provided over the remaining useful life of the assets.
 
 (ii) Costs relating to softwares, which are acquired, are capitalized
 and amortized @ 40 % on written down value method. The Company
 estimates useful life of 5 to 6 years of such softwares.
 
 (g) Impairment of Assets
 
 (i) The carrying amounts of assets are reviewed at each balance sheet
 date if there is any indication of impairment based on
 internal/external factors. An impairment loss is recognized wherever
 the carrying amount of an asset exceed its recoverable amount. The
 recoverable amount is the greater of the assets net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value at the weighted average
 cost of capital.
 
 (ii) After impairment, depreciation is provided on the revised carrying
 amount of the assets over its remaining useful life.
 
 (h) Revenue Recognition
 
 Revenue is recognised to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Sale of Goods
 
 Revenue is recognised when the significant risks and rewards of
 ownership of the goods have passed to the buyer. Sales is disclosed net
 of quality claims and rebates. Excise Duty deducted from turnover
 (gross) is the amount of excise duty that is included in the amount of
 turnover (gross) and not the entire amount of liability arising during
 the year.
 
 Export Benefits
 
 Export benefits are accrued whenever ascertainable.
 
 Interest
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 Dividends
 
 Revenue is recognised when the shareholders right to receive payment
 is established by the balance sheet date. Dividend from subsidiaries,
 if any, is recognised even if same are declared after the balance sheet
 date but pertains to period on or before the date of balance sheet as
 per the requirement of Schedule VI of the Companies Act, 1956.
 
 (i) Taxes on Income
 
 Tax expense comprises of current, deferred and fringe benefit tax.
 Current income tax and fringe benefit tax is measured at the amount
 expected to be paid to the tax authorities in accordance with the
 Indian Income Tax Act.  Deferred income taxes reflects 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 and deferred tax liabilities are offset, if a legally
 enforceable right exists to set off current tax assets against current
 tax liabilities and the deferred tax assets and deferred tax libilites
 relates to the taxes on income levied by same governing taxation laws.
 Deferred tax assets are recognised 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 realised. In
 situations where the Company has unabsorbed depreciation or carry
 forward tax losses, all deferred tax assets are recognised only if
 there is virtual certainty supported by convincing evidence that they
 can be realised against future taxable profits.
 
 At each balance sheet date the Company re- assesses unrecognised
 deferred tax assets. It recognises unrecognised deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be, that sufficient future taxable income will be
 available against which such deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 (j) Inventories
 
 Raw Materials, Production Consumables, Stores and Spares is valued at
 lower of cost and net realizable value. However, materials and other
 items held for use in the production of inventories are not written
 down below cost if the finished products in which they will be
 incorporated are expected to be sold above cost. Cost is determined on
 a Weighted Average basis. Work-in-progress and finished goods is valued
 at lower of cost and net realisable value. Cost includes direct
 material and labour and a proportion of manufacturing overheads based
 on normal capacity. Value of finished goods also include excise duty.
 Net realizable value is the estimated selling price in the ordinary
 course of business less estimated cost of completion and cost to make
 the sale.
 
 (k) Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost. However, provision for diminution in value, if any, is made to
 recognise a decline other than temporary in the value of the
 investments.
 
 (I) Foreign Currency Transactions
 
 (i) Initial Recognition
 
 Foreign currency transactions 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
 transaction.
 
 (ii) Conversion
 
 Foreign currency. monetary items are reported using the closing rate.
 Non- monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 (iii) Exchange Difference
 
 Exchange differences, in respect of accounting periods commencing on or
 after 7th December, 2006, arising on reporting of long-term foreign
 currency monetary items at rates different from those at which they
 were initially recorded during the period, or reported in previous
 financial statements, in so far as they relate to the acquisition of a
 depreciable capital asset, are added to or deducted from the cost of
 the asset and are depreciated over the balance life of the asset, and
 in other cases, are accumulated in a Foreign Currency Monetary Item
 Translation Difference Account in the enterprises financial
 statements and amortized over the balance period of such long-term
 asset/ liability but not beyond accounting period ending on or before
 31st March, 2011
 
 Exchange differences arising on the settlement of monetary items not
 covered above, or on reporting such monetary items of Company 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 expenses in the year in which they arise.
 
 (iv) Forward Exchange Contracts not intended for trading or speculation
 purposes The premium or discount arising at the inception of forward
 exchange contracts is amortised as expense or income over the life of
 the contract. Exchange differences on such contracts are recognised in
 the statement of profit and loss account in the year in which the
 exchange rates change.  Any profit or loss arising on cancellation or
 renewal of forward exchange contract is recognised as income or as
 expense for the year.
 
 (m) Earnings Per Share
 
 Basic earnings per share are 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. Partly
 paid equity shares are treated as a fraction of an equity share to the
 extent that they were entitled to participate in dividends relative to
 a fully paid equity share during the reporting period. The weighted
 average number of equity shares outstanding during the period are
 adjusted for events of 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.
 
 (n) Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event; 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. Provisions 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.
 
 (o) Cash and Cash equivalents
 
 Cash and cash equivalents in the balance sheet comprise cash in hand
 and at bank in current account, Margin deposit and term deposit with an
 original maturity of three months or less are considered as cash
 equivalent.
 
 (p) Derivative Instruments
 
 As per the ICAI announcement, accounting for derivative contract, other
 than those covered under AS 11, are marked to market on a portfolio
 basis, and the net loss after considering the offsetting effect on the
 underlying hedge item is charged to the Income statement, Net gains are
 ignored.
 
 (q) Retirement and other employee benefits
 
 (i) Retirement benefits in the form of Provident Fund is a defined
 contribution scheme and the contributions are charged to the Profit and
 Loss Account of the year when the contributions to the respective funds
 are due, There are no other obligations other than the contribution
 payable to the respective fund.
 
 (il) Gratuity liability are defined benefit obligations and are
 provided for on the basis of an actuarial valuation on projected unit
 credit method made at the end of each financial year.
 
 (Ill) Short term compensated absences are provided for based on
 estimates, Long term compensated absences are provided for based on
 actuarial valuation, The actuarial valuation Is done as per projected
 unit credit method.
 
 (Iv) Actuarial gains/losses are Immediately taken to profit and loss
 account and are not deferred.
 
 (r) Central Value Added Tax (CENVAT)
 
 CENVAT claimed on capital goods Is reduced from the cost of plant and
 machinery/capital work-in-progress. CENVAT claimed on purchases of raw
 material and other materials Is reduced from the cost of such
 materials.
 
 (s) Leases
 
 (I) Where the Company is the Lessee
 
 Lease rentals in respect of finance lease arrangements entered up to
 31st March, 2001 are segregated Into cost of the asset and interest
 components by applying an Implicit internal rate of return, The cost
 component is amortised over the useful life of the asset and the
 Interest component is recognised in the Profit and Loss Account. Lease
 payments in excess of the charge for the year are treated as prepaid
 lease rentals wherever agreement is existing and in other eases it has
 been added to the carrying cost of the fixed assets.
 
 Finance leases entered on or after 1st April, 2001, which effectively
 transfer to the Company substantially all the risks and benefits
 incidental to ownership of the leased item, are capitalized at the
 lower of the fair value and present value of the minimum lease payments
 at the inception of the lease term and disclosed as leased assets.
 Lease payments are apportioned between the finance charges and
 reduction of the lease liability based on the implicit rate of return,
 Flnane charges are charged directly against income. Lease management
 fees, legal charges and other Initial direct costs are capitalised.
 
 if there is no reasonable certainty that the Company will obtain the
 ownership by the end of the lease term, capitalized leased assets are
 depreciated over the shorter of the estimated useful life of the asset
 or the lease term.
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the 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 lease
 term.
 
 (ii) Where the Company is the Lessor
 
 Assets subject to operating lease are Included In fixed assets. Lease
 income is recognised In the Profit and Loss account on a straight line
 basis over the lease term. Costs including depreciation are recognised
 as an expense in the Profit and Loss account, initial direct costs such
 as legal costs, brokerage costs, etc are recognised Immediately In the
 Profit and Loss account.
 
 (t) Mining, Exploration and Development Expenditure
 
 Expenditure in respect of mineral, exploration and evaluation is
 charged to the profit and loss account as incurred except in following
 cases where it is capitalised:
 
 -it is expected that the expenditure will be recouped by future
 exploitation or sale; or
 
 -substantial exploration and evaluation activities have Identified a
 mineral resource but these activities have not reached a stage which
 permits a reasonable assessment of the existence of commercially
 recoverable reserves