a) Basis of preparation of financial statements
 
 The financial statements have been prepared to comply in all material
 respects in respects with the notified accounting standards under
 Companies (Accounting Standards) Rules (as amended), 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 except in case of assets for which provision for
 impairment is made and revaluation is carried out. 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 affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 c ) Revenue recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Revenue from sale of goods is recognized when significant risks and
 rewards of ownership of the goods are transferred to the customer.
 
 Export incentives are recognized on accrual basis in accordance with
 the applicable schemes formulated, by the Government of India.
 
 Revenues from job work contract are recognized as and when services are
 rendered.
 
 Dividend income on investments is accounted when the right to receive
 the dividend is established.
 
 Interest income is recognized on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 Insurance / other claims are recognized on acceptance basis.
 
 d ) Hedge accounting
 
 The Company is exposed to foreign currency fluctuations on foreign
 currency assets, liabilities and forecasted cash flows denominated in
 foreign currencies. The Company limits the effects of foreign exchange
 rate fluctuations by following established risk management policies
 including the use of forward cover derivatives. The Company enters into
 derivative contract for sale of US dollars, GBP and Euros, where the
 counterparty is a bank.
 
 The Company has adopted principles of hedge accounting as set out in
 Accounting Standard (AS) 30,Financial Instruments: Recognition and
 Measurement, to the extent that the adoption does not conflict with
 existing accounting standards and other authoritative pronouncements of
 Company Law and other regulatory requirements.
 
 Based on the recognition and measurement principles of hedge accounting
 set out in AS 30, changes in the fair values of derivative financial
 instruments designated as cash flow hedges are recognized directly in
 reserves/ equity and are reclassified to the profit and loss account
 upon the occurrence of the hedged transaction. Changes in fair value
 relating to derivatives not designated as hedges are recognized in the
 profit and loss account.
 
 e ) Fixed assets and depreciation/ amortization (tangible and
 intangible)
 
 Fixed assets are stated at cost of acquisition/construction less
 accumulated depreciation and impairment losses if any, net of grants
 received, where applicable and subsequent improvements thereto
 including taxes, duties, freight and other incidental expenses related
 to acquisition/construction.
 
 Depreciation is provided using the written down value method as per the
 useful lives of the assets estimated by the management, or at the rates
 prescribed under Schedule XIV of the Companies Act, 1956 whichever is
 higher.
 
 Assets individually costing Rs. 5,000 or less are fully depreciated in
 the year of addition. Leasehold improvements are depreciated over the
 primary lease period or useful life, whichever is lower. Process
 improvement costs capitalized as intangible assets are amortized over
 three years.
 
 f) Borrowing Costs
 
 Borrowing costs attributable to acquisition and construction of
 qualifying assets are capitalized as a part of the cost of such asset.
 Other borrowing costs are charged to Profit and Loss Account.
 
 g ) Impairment of assets
 
 At each Balance Sheet date, the Company assesses whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount. If the carrying
 amount of the asset exceeds its recoverable amount, an impairment loss
 is recognized in the Profit and Loss Account to the extent the carrying
 amount exceeds the recoverable amount. The recoverable amount is the
 greater of the asset''s 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. After
 impairment, depreciation is provided on the revised carrying amount of
 the asset over its remaining useful life.
 
 h) Inventories
 
 Raw materials, packing materials, stores, spares and consumables are
 valued at lower of cost and net realizable value. Cost is determined on
 a weighted average basis. 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 at or above cost.
 
 Finished goods and work in progress are valued at lower of cost and net
 realisable value after considering provision for obsolescence and other
 anticipated loss, wherever considered necessary. Finished goods and
 work in progress includes cost of conversion and other production
 overheads. Cost is determined on a weighted average basis. Cost of
 finished goods includes excise duty.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and estimated
 costs necessary to make the sale.
 
 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 Differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting 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 recognised as income or as expenses
 in the year in which they arise.
 
 j) Government Grants
 
 Grants and subsidies from the government are recognized when there is
 reasonable assurance that the grant/ subsidy will be received and all
 attaching conditions will be complied with.
 
 When the grant or subsidy relates to an expense item, it is netted off
 with the relevant expense. Where the grant or subsidy relates to an
 asset, its value is deducted in arriving at the carrying amount of the
 related asset.
 
 k) Investments
 
 Investments that are readily realizable 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 is made to recognize a
 decline other than temporary in the value of the investments.
 
 l) Retirement and Other Employee Benefits
 
 Defined Contribution Plans:
 
 Contributions to Provident Fund are made at pre-determined rates and
 charged to the Profit & Loss Account.  The Company''s liability is
 limited to the extent of contributions made.
 
 Defined Benefit Plans:
 
 Gratuity liability is accrued in the books based on actuarial valuation
 on projected unit credit method as at Balance Sheet date. Actuarial
 gains or losses are immediately taken to Profit and Loss Account and
 are not deferred.
 
 Other Employee Benefits:
 
 Compensated absences are provided for, on the basis of an actuarial
 valuation on projected unit credit method at the end of each financial
 year. Actuarial gains or losses are immediately taken to Profit and
 Loss Account and are not deferred.
 
 m) Taxation
 
 Tax expense comprises current and deferred tax. Current income tax is
 measured at the amount expected to be paid to the tax authorities in
 accordance with the Income-tax Act, 1961. 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
 liabilities relate 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, deferred tax asset is recognised only to
 the extent that it has timing differences the reversal of which will
 result in sufficient income or there is other convincing evidence that
 sufficient taxable income will be available against which such deferred
 tax assets can be realised.
 
 At each balance sheet date the Company re-assesses unrecognised
 deferred tax assets. It recognises 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.
 
 MAT credit is recognised as an asset only when and to the extent there
 is convincing evidence that the Company will pay normal income tax
 during the specified period. In the year in which the Minimum
 Alternative tax (MAT) credit becomes eligible to be recognized as an
 asset in accordance with the recommendations contained in Guidance Note
 issued by the Institute of Chartered Accountants of India, the said
 asset is created by way of a credit to the profit and loss account and
 shown as MAT Credit Entitlement.  The Company reviews the same at each
 balance sheet date and writes down the carrying amount of MAT Credit
 Entitlement to the extent there is no longer convincing evidence to the
 effect that Company will pay normal Income Ta x during the specified
 period.
 
 n) Accounting for leases
 
 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.
 
 o) 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.
 
 p) Segment Reporting Policies
 
 Identification of segments:
 
 The Company''s operating businesses are organized and managed separately
 according to the nature of products and services provided, with each
 segment representing a strategic business unit that offers different
 products and serves different markets. The analysis of geographical
 segments is based on the areas in which major operating divisions of
 the Company operate.
 
 Basis of allocation:
 
 Assets, liabilities, income and expenditure are allocated to each
 segment according to the relative contribution of each segment to the
 total amount. Unallocated items include general corporate items which
 are not allocated to any segment.
 
 Segment Policies:
 
 The Company prepares its segment information in conformity with the
 accounting policies adopted for preparing and presenting the financial
 statements of the Company as a whole.
 
 q) 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 is
 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.
 
 r) Cash and Cash equivalents
 
 Cash and cash equivalents in the balance sheet comprise cash at bank
 and in hand and short-term investments with an original maturity of
 three months or less.