1 Accounting Convention
 
 The financial statements are prepared under the historical cost
 convention, on the accrual basis of accounting, in accordance with the
 generally accepted accounting principles in India, the Accounting
 Standards presecribed in the Companies (Accounting Standard) Rules,
 2006 and the relevant provisions of the Companies Act, 1956.
 
 2 Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires the management to make
 estimates and assumptions that affect the reported balances of assets
 and liabilities as of the date of the financial statements and reported
 amounts of income and expenses during the period. Management believes
 that the estimates used in the preparation of financial statements are
 prudent and reasonable. Actual results could differ from the estimates.
 
 3 Fixed Assets
 
 Fixed Assets are stated at cost or as revalued as the case may be, less
 accumulated depreciation. Cost includes expenses related to acquisition
 and any directly attributable cost of bringing the assets to its
 intended working condition.
 
 Fixed Assets acquired under finance lease are capitalised at the lower
 of their face value and present value of the minimum lease payments.
 
 4 Intangible Assets
 
 Intangible assets are stated at cost of acquisition less accumulated
 amortisation. The cost of acquisition of trade marks is amortised
 equally over a period of ten years. Computer software is amortised over
 a period of six years on the straight line method.
 
 5 Impairment of Assets
 
 The Company reviews the carrying amounts of tangible and intangible
 assets for any possible impairment at each balance sheet date. An
 impairment loss is recognized when the carrying amount of an asset
 exceeds its recoverable amount. Impairment loss, if any, is recognised
 in the period in which impairment takes place.
 
 6 Borrowing Costs
 
 Borrowing costs that are directly attributable to the acquisition /
 construction of the qualifying asset are capitalised as a part of the
 cost of such asset, upto the date of acquisition / completion of
 construction.
 
 7 Investments
 
 Investments are classified into long-term and current investments. Long
 term investments are carried at cost.  Provision for diminution, if
 any, in the value of each long term investment is made to recognise a
 decline, other than of a temporary nature. The fair value of a long
 term investment is ascertained with reference to its market value, the
 investees assets and results and the expected cash flows from the
 investment.
 
 Current investments are stated at lower of cost and fair value.
 
 8 Inventories
 
 Inventories are valued at lower of cost and net realisable value. Cost
 is computed on weighted average basis and is net of cenvat. Finished
 goods and work in progress include cost of conversion and other costs
 incurred in bringing the inventories to their present location and
 condition. Provision is made for the cost of obsolescence and other
 anticipated losses, wherever considered necessary.
 
 9 Provisions and Contingent Liabilities
 
 Provisions are recognised in the accounts in respect of present
 probable obligations, the amount of which can be reliably estimated.
 
 Contingent Liabilities are disclosed in respect of possible obligations
 that arise from past events but their existence is confirmed by the
 occurrence or non occurrence of one or more uncertain future events not
 wholly within the control of the Company.
 
 10 Foreign Exchange Transactions
 
 (i) Transactions in foreign currency are recorded at exchange rates
 prevailing on the day of the transaction.  Monetary assets and
 liabilities denominated in foreign currency, remaining unsettled at the
 period end are translated at closing rates. The difference in
 translation of monetary assets and liabilities and realised gains and
 losses on foreign currency transactions are recognised in the Profit
 and Loss Account.
 
 (ii) Forward exchange contracts other than those entered into to hedge
 foreign currency risk of firm commitments or highly probable forecast
 transactions are translated at period end exchange rates. Premium or
 discount on such forward exchange contracts is amortised as income or
 expense over the life of the contract.
 
 (iii) Realised gain or losses on cancellation of forward exchange
 contracts are recognised in the Profit and Loss Account of the period
 in which they are cancelled.
 
 (iv) Exchange differences in respect of other unexpired foreign
 currency derivative contracts, which have been entered into to hedge
 foreign currency risks are marked to market and losses, if any, are
 recognised in the Profit and Loss Account.
 
 11 Revenue Recognition
 
 Sales are recognised when goods are supplied and are recorded net of
 returns, trade discounts, rebates, sales taxes and excise duties.
 
 Income from processing operations is recognised on completion of
 production / dispatch of the goods, as per the terms of contract.
 
 Export incentives receivable under the Duty Entitlement Pass Book
 Scheme and Duty Drawback Scheme are accounted on accrual basis.
 
 Dividend income is recognised when the right to receive the same is
 established.
 
 Interest income is recognised on a time proportion basis.
 
 Income on assets given on operating lease is recognised on a straight
 line basis over the lease term.
 
 12 Research and Development Expenditure
 
 Revenue expenditure on Research & Development is charged to the Profit
 and Loss Account of the year in which it is incurred. Capital
 expenditure incurred during the year on Research & Development is
 included under additions to fixed assets.
 
 13 Depreciation
 
 Leasehold land and Leasehold improvements are amortised equally over
 the lease period.
 
 Depreciation is provided on the straight line method at the rates
 specified in Schedule XIV to the Companies Act, 1956, except for
 computer hardware which is depreciated over its estimated useful life
 of 4 years.
 
 Depreciation on assets acquired during the year is provided for the
 full accounting year and no depreciation is charged on the assets
 sold/discarded during the year, except in case of major additions and
 deductions exceeding rupees one crore in which case, proportionate
 depreciation is provided.
 
 Depreciation on the revalued component is provided on the straight line
 method based on the balance useful life of the assets as certified by
 the valuers. Such depreciation is withdrawn from Revaluation Reserve
 and credited to Profit and Loss Account.
 
 14 Employee Benefits
 
 Liability is provided for the retirement benefits of provident fund,
 gratuity, leave encashment and pension benefit in respect of all
 eligible employees of the Company.
 
 (i) Defined Contribution Plan
 
 Employee benefits in the form of Provident Fund and Family Pension
 which are paid to EPFO are considered as defined contribution plans and
 the contributions are charged to the Profit and Loss Account of the
 year when the contributions to the respective funds are due.
 
 (ii) Defined Benefit Plan
 
 Retirement benefits in the form of Provident Fund which are paid to PF
 Trust, Gratuity and Pension plan for eligible employees are considered
 as defined benefit obligations and are provided for on the basis of an
 actuarial valuation, using the projected unit credit method, as at the
 date of the Balance Sheet.
 
 (iii) Other Long-Term Benefits
 
 Long-term Compensated Absences and Long Service Awards are provided for
 on the basis of an actuarial valuation, using the projected unit credit
 method, as at the date of the Balance Sheet.
 
 Actuarial gain/losses comprising of experience adjustments and the
 effects of changes in acturial assumptions are immediately recognized
 in the Profit and Loss Account.
 
 15 Incentive Plans
 
 The Company has a scheme of Performance Linked Variable Remuneration
 (PLVR) which rewards its employees based on Economic Value Addition
 (EVA). The PLVR amount is related to actual improvement made in EVA
 over the previous year when compared with expected improvements.
 
 16 Hedging
 
 The company uses forward exchange contracts to hedge its foreign
 exchange exposures and commodity futures contracts to hedge the
 exposure to oil price risks. Gains or losses on settled contracts is
 recognized in the profit and loss account. Futures contracts not
 settled as on the Balance Sheet date are marked to market and losses,
 if any, are recognized in the profit and loss account, whereas, the
 unrealized profit is ignored. Gains or losses on the commoditity
 futures contracts is recorded in the profit & loss account under cost
 of materials consumed.
 
 17 Taxes on Income
 
 Tax expense comprises both current and deferred tax. Current tax is the
 amount of tax payable on the assessable income for the year determined
 in accordance with the provisions of the Income tax Act, 1961.
 
 Deferred tax is recognized on timing differences, being the differences
 between the taxable income and accounting income that originate in one
 period and are capable of reversal in one or more subsequent periods.
 Deferred tax assets on unabsorbed tax losses and tax depreciation are
 recognized only when there is virtual certainty of their realisation
 and on other items when there is reasonable certainty that sufficient
 future taxable income will be available against which such deferred tax
 assets can be realised. The tax effect is calculated on the accumulated
 timing differences at the year end based on the tax rate and laws
 enacted or substantially enacted on the balance sheet date.
 
 18 Segment Reporting
 
 The Accounting Policies adopted for segment reporting are in line with
 the Accounting Policies of the Company.  Segment assets include all
 operating assets used by the business segments and consist principally
 of fixed assets, debtors and inventories. Segment liabilities include
 the operating liabilities that result from the operating activities of
 the business. Segment assets and liabilities that cannot be allocated
 between the segments are shown as part of unallocated corporate assets
 and liabilities respectively. Income / Expenses relating to the
 enterprise as a whole and not allocable on a reasonable basis to
 business segments are refected as unallocated corporate income /
 expenses.