1.  System of Accounting:
 
 The Company follows mercantile system of accounting and recognizes
 income and expenditure on an accrual basis. Financial Statements are
 prepared under historical cost convention, in accordance with the
 Generally Accepted Accounting Principles in India (GAAP) and comply in
 all material aspects, with mandatory accounting standards as notified
 by the Companies (Accounting Standard) Rules 2006, relevant provisions
 of the Companies Act 1956 and statements issued by the Institute of
 Chartered Accountants of India. The significant accounting policies
 followed by the Company are set out below. Management has made certain
 estimates and assumptions in conformity with the GAAP in the
 preparation of these financial statements, which are reflected in the
 preparation of these financial statements.
 
 2.  Revenue Recognition:
 
 Revenue is recognized to the extent it is probable that the economic
 benefits will flow to the Company and the revenue can be reliably
 measured.
 
 a.  Domestic sales are accounted on despatch of products to customers
 and export sales are accounted on the basis of dates of bill of lading.
 Sales are disclosed net of sales tax, discounts and returns, as
 applicable.
 
 b.  Export incentives / interest income and income on investments are
 accounted on accrual basis.
 
 3.  Fixed Assets, Capital Work-in-Progress and Depreciation:
 
 a.  Fixed Assets:
 
 Fixed assets are stated at cost of acquisition or construction less
 depreciation. Cost comprises the purchase price and other attributable
 costs, including interest and finance costs incurred till the asset is
 commissioned.
 
 b.  Capital Work-in-Progress:
 
 Capital work-in-progress includes the cost of fixed assets that are not
 ready for their intended use and is stated upto the amount expended
 till the date of balance sheet.
 
 c.  Depreciation:
 
 Depreciation is provided on the straight line method at the rates and
 in manner laid down in Schedule XIV to the Companies Act, 1956.
 Leasehold Land is amortized over the period of lease. Software is
 amortised over five years on straight line basis
 
 4.  Inventories:
 
 Inventories are valued at the lower of cost and net realizable value.
 Cost of inventories comprise all costs of purchase, cost of conversion
 and other costs incurred in bringing the inventories to their present
 location and condition. Cost is determined on First In First Out
 method.
 
 5.  Taxation
 
 Income tax comprises current tax and deferred tax charge or release.
 The deferred tax charge or credit is recognized using current tax
 rates. Deferred tax assets are recognized only to the extent there is
 reasonable certainty of realization in future. Such assets are reviewed
 as at each Balance Sheet date to reassess realization.
 
 6.  Foreign Exchange Transactions:
 
 Transactions in foreign currency are recorded at exchange rates
 prevailing on the dates of respective transactions. The difference in
 translation and realized gains and losses on foreign exchange
 transactions are recognized in the Profit and Loss Account.
 
 7.  Employee Benefits:
 
 Short-term employee benefits (i.e. benefits payable within one year)
 are recognized in the period in which the employee service is rendered.
 
 Year''s accrued liability on account of Gratuity and Leave encashment
 benefit [only for employees of erstwhile India Foils Limited (IFL)]
 payable to employees under defined benefit plan is ascertained on the
 basis of actuarial valuation made on the Balance Sheet date and
 provided in the accounts. For other employees Gratuity is considered
 actuarial and accounted for as per actuarial valuation done by SBI Life
 Insurance Company Ltd. Under the Group Gratuity scheme and leave
 encashment is accounted for as per actuarial valuation done by an
 actuary.
 
 Contributions towards provident funds are recognized as expense.
 
 Contribution to Provident Fund in respect of certain employees of
 erstwhile IFL is made to the Trusts administered by the Company, and in
 respect of other employees is made to the office of the Employees''
 Provident Fund Commissioner, under Employees'' Provident Funds and
 Miscellaneous Provisions Act, 1952. The interest rate payable to the
 members of the Trusts administered by the Company is not lower than the
 rate of interest declared annually by the Central Government under
 Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and
 shortfall, if any, is made good by the Company.
 
 Year''s accrued liability on account of Pension Scheme for certain
 employees of erstwhile IFL under defined benefit plan upto 31st
 December, 2000 is ascertained and provided for on the basis of
 actuarial valuation made on the Balance Sheet date. The said Pension
 Scheme was amended from defined benefit plan to defined contribution
 plan effective 1st January 2001 and the benefits under the defined
 benefit plan were frozen as on 31st December 2000.  Year''s accrued
 liability in respect of the aforesaid defined contribution plan is
 ascertained as per the Company''s policy and charged as expense for the
 year.
 
 8.  Borrowing Cost
 
 Borrowing costs that are attributable to the acquisition or
 construction of a qualifying assets are capitalized as part of cost of
 such assets till such time as the assets is ready for its intended use.
 A qualifying asset is an asset that necessarily requires a substantial
 period of time to get ready for its intended use. All other borrowing
 costs are recognized as expenses in the period in which they are
 incurred.
 
 9.  Financials Derivatives Hedging Transactions.
 
 In respect of derivatives contracts, premium paid and gains / losses on
 settlement are recognized in the profit and Loss account.
 
 10.  Provision, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes.  Contingent Assets are neither recognized nor disclosed in the
 financial statements.
 
 11.  Impairment of Assets
 
 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 will be recognized wherever the carrying
 amount of an asset exceeds its recoverable amount. A previously
 recognized impairment loss if further provided or reversed depending on
 changes in circumstances.
 
 12.  Earnings Per Share
 
 Basic earnings per share are 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 period. For the
 purpose of calculating diluted earnings per share, the net profit or
 loss for the period attributable to equity shareholders and weighted
 average number of shares outstanding during the period is adjusted for
 the effects of all dilutive potential equity shares.
 
 13.  Leases
 
 Operating lease payments are recognized as expenses on a straight line
 basis over the term of lease.