A) BASIS OF PRESENTATION
 
 The financial statements have been prepared to comply with the
 mandatory Accounting Standards prescribed in the Companies (Accounting
 Standards) Rules 2007, issued by National Advisory Committee on
 Accounting Standards and the relevant provisions of the Companies Act,
 1956. The financial statements have been prepared under the historical
 cost convention, on the basis of a going concern and on accrual basis.
 
 B) USE OF ESTIMATES
 
 The preparation of financial statements requires Management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and the disclosure of contingent liabilities on the
 date of financial statements and reported amounts of revenue and
 expenses of that year. Actual result could differ from these estimates.
 Any revision to accounting estimates is recognized prospectively.
 
 C) FIXED ASSETS
 
 (i) All fixed assets are stated at cost less accumulated depreciation.
 Expenditure during construction period In respect of new project /
 expansion is allocated to the respective fixed assets on their being
 ready for commercial use. Fixed Assets are eliminated from Financial
 statements, either on disposal or when retired from active use. Also
 refer Policy G and J below.
 
 (ii) Impairment of Assets :
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that any asset may be impaired. If any such indication
 exists, the carrying value of such assets is reduced to recoverable
 amount and the impairment loss is charged to Profit and Loss account.
 If at the Balance Sheet date there is any deduction that a previously
 assessed impairment loss no longer exists, then such loss is reversed
 and the asset is restated to that effect.
 
 D) INVESTMENTS
 
 Long term Investments are stated at cost less provision, if any, for
 other than temporary diminution in the value of investments.
 
 E) INVENTORIES
 
 Inventories are valued at lower of cost or net realisable value. Cost
 of Raw Material is computed by using Specific Identification method
 and for other inventories Weighted Average method. The cost includes
 cost of purchase, cost of conversion and other costs incurred in
 bringing the inventories to their present location and condition.
 
 F) REVENUE RECOGNITION
 
 Sales are recognized as and when risks and rewards of ownership are
 passed on to the buyer and ultimate realization of price is reasonably
 certain.
 
 Export Sales are inclusive of deemed exports while domestic sales are
 net of Value Added Tax.
 
 Claims and other incomes are recognized based on virtual certainty of
 such claims and incomes.
 
 G) BORROWING COST
 
 Borrowing Costs attributable to acquisition and construction of
 qualifying assets are capitalised as a part of the cost of such asset
 upto the date when such asset is ready for its intended use. Other
 borrowing costs are charged to Profit & Loss Account.
 
 H) DEPRECIATION
 
 Depreciation has been provided at the rates and in the manner
 prescribed in Schedule XIV to the Companies Act, 1956.
 
 Plant & Machinery and Electrical Installations have been, on technical
 assessment, considered as continuous process plants as defined in the
 said Schedule and depreciation has been provided accordingly.
 
 Depreciation on Plant & Machinery and Electrical Installations is
 provided on Straight Line Method. In respect of other assets
 depreciation is provided on Written Down Value Method.
 
 I) EMPLOYEE BENEFITS
 
 Short Term employee benefit including accrued liability for Leave
 Entitlement (other than termination benefits) which are payable within
 12 months after the end of the period in which the employee render
 service are paid/ provided during the year as per the Rules of the
 Company.
 
 Defined Contribution plans :
 
 Companys contributions paid / payable during the year to Provident and
 Family Pension Funds, Superannuation Fund (wherever opted) and
 Employees State Insurance Contribution are recognized in the Profit And
 Loss Account.
 
 Defined Benefits Plan:
 
 The Employees Gratuity Fund Scheme covered by the Group Gratuity Cum
 Life Assurance Policy of LIC of India is a defined benefit plan. The
 present value of obligation is determined based on actuarial valuation
 using projected Unit Credit Method which recognizes each period of
 service as giving rise to additional amount of employee benefit
 entitlement and measures each unit separately to build up the final
 obligation.
 
 J) FOREIGN CURRENCY TRANSACITONS
 
 Transactions in Foreign Currency are recorded at the rate of exchange
 in force at the date of transactions.
 
 Foreign Currency assets and liabilities both monetary and non monetary
 are stated at the rate of exchange prevailing at the year end and
 resultant gains/losses are recognized in the profit and loss account.
 Premium / Discount in respect of Forward Foreign Exchange contracts are
 recognized over the life of the contracts.
 
 K) TAXATION
 
 Income Tax expense comprises Current Tax, Wealth Tax (i.e. amount of
 tax for the year determined in accordance with the Income Tax Law) and
 deferred tax charge or credit (reflecting the tax effects of timing
 differences between accounting income and taxable income for the year,
 unabsorbed depreciation or carry forward loss under taxation laws).
 
 Deferred tax charge or credit and the corresponding deferred tax
 liabilities or assets are recognized using the tax rates that have been
 enacted or substantively enacted on the balance sheet date.
 
 Deferred tax assets are recognized only to the extent that there is
 reasonable certainty that the assets can be realised in future; however
 where there is unabsorbed depreciation or carry forward loss under
 Taxation laws, deferred tax assets are recognized only if there is a
 virtual certainty of realisation of such assets. Deferred tax assets
 are reviewed at each balance sheet date and written down or written up
 to reflect the amount that is reasonably / virtually certain as the
 case may be, to be realised.
 
 Tax credit is recognized in respect of Minimum Alternative Tax (MAT) as
 per the provisions of Section 115JB of the Income Tax Act, 1961 based
 on convincing evidence that the Company will pay normal income tax
 within the statutory time frame and is reviewed at each balance sheet
 date.
 
 L) PROVISIONS AND CONTINGENT LIABILITIES
 
 Provisions are recognized for liabilities that can be measured only by
 using a substantial degree of estimation, if
 
 a) the company has a present obligation as a result of a past event,
 
 b) the probable outflow of resources is expected to settle the
 obligation and
 
 c) the amount of the obligation can be reliably estimated.
 
 Where some or all of the expenditure required to settle a provision is
 expected to be reimbursed by another party, such reimbursement is
 recognized to the extent of provision or contingent liability as the
 case may be, only when it is virtually certain that the reimbursement
 will be received.
 
 Contingent liability is disclosed in the case of
 
 a) a present obligation arising from a past event, when it is not
 probable that an outflow of resources will be required to settle the
 obligation.
 
 b) a possible obligation, unless the probability of outflow of
 resources is remote.