a.  Basis of preparation of financial statements
 
 The financial statements have been prepared to comply in all material
 respects in respects with the Accounting standards notified by
 Companies (Accounting Standards) Rules, 2006, (as amended) 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 (GAAP) requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities, the disclosure of contingent liabilities on the date
 of the financial statements and reported amounts of income and expenses
 during the period. Although these estimates are based upon management''s
 best knowledge of current events and actions, actual results could
 differ from these estimates.
 
 c.  Fixed Assets and capital work in progress
 
 Fixed Assets are stated at cost of acquisition 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 and includes freight, duties and taxes
 and other incidental expenses related to the acquisition. Borrowing
 costs directly attributable to acquisition of those fixed assets which
 necessarily take a substantial period of time to get ready for their
 intended use are also included to the extent they relate to the period
 till such assets are ready to be put to use.
 
 Capital work-in-progress includes advances paid to acquire fixed assets
 and cost of assets not ready for intended use as at the balance sheet
 date.
 
 d.  Impairment of fixed 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 exceeds its 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 using a pre-tax discount
 rate that reflects current market assessments of the time value of
 money and risks specific to the asset.
 
 ii. After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 iii. A previously recognised impairment loss is increased or reversed
 depending on changes in circumstances.  However, the carrying value
 after reversal is not increased beyond the carrying value that would
 have prevailed by charging usual depreciation if there was no
 impairment.
 
 e.  Depreciation
 
 Depreciation on assets is provided using the straight-line method based
 on rates specified in Schedule XIV of the Companies Act, 1956 or on
 estimated useful lives of assets estimated by the management, whichever
 is higher.  Individual assets costing less than 5 are depreciated fully
 in the year of purchase.
 
 f.  Leased assets
 
 Finance Lease
 
 Leases under which the Company assumes substantially all the risks and
 rewards of ownership are classified as finance leases. Such assets are
 capitalized at fair value of the asset or present value of the minimum
 lease payments at the inception of the lease, whichever is lower. Lease
 payments are apportioned between finance charges and reduction of the
 lease liability at the implicit rate of return. Finance charges are
 charged to the profit and loss account. 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.
 
 Operating Lease
 
 Leases, where the lessor, effectively retains substantially all the
 risks and benefits of ownership of the leased asset, 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.
 
 g.  inventories
 
 Inventories are stated at the lower of cost and net realisable 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 at or above
 cost. Cost of raw materials and traded goods is determined using the
 moving weighted average method and includes freight, taxes and duties
 wherever applicable.
 
 The valuation of manufactured finished goods and work in progress
 includes the combined cost of materials, labour and all applicable
 manufacturing overheads, based on normal operating capacity.
 
 Net realisable 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.
 
 h.  Revenue recognition
 
 Revenue from sale of goods is recognised on dispatch of goods to
 customers which corresponds with transfer of all significant risks and
 rewards of ownership. The amount recognized as sale is exclusive of
 sales tax, and trade and quantity discounts.
 
 Interest income on deposits is recognized on the time proportionate
 method taking into account the amount outstanding and the rate
 applicable.
 
 Royalty income is recognized on accrual basis.
 
 Income in respect of export benefits, such as duty credit entitlement
 and the transport assistance is recognized in the year of exports.
 
 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 company''s monetary items 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.
 
 j.  Taxation
 
 Tax expense comprises of current and deferred tax. Current income 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.
 
 The deferred tax charge or credit and the corresponding deferred tax
 liabilities or assets are recognized using the tax rates and tax laws
 that have been enacted or substantively enacted by the balance sheet
 date. Deferred tax assets are recognized only to the extent there is a
 reasonable certainty that the assets can be realized in future.
 
 Deferred tax assets are reviewed as at each balance sheet date and
 written down or written up to reflect the amount that is reasonably
 certain to be realized.
 
 MAT credit is recognized 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 Tax during the specified
 period.
 
 k.  Earnings per share
 
 Basic earnings per share amounts are computed by dividing net profit or
 loss for the period attributable to equity shareholders (after
 deducting preference dividends and attributable taxes) by the weighted
 average number of shares outstanding during the year.
 
 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 year are
 adjusted for the effects of all dilutive potential equity shares.
 
 I.  Government grants
 
 Grants and subsidies from the government are recognised when there is
 reasonable assurance that the grant / subsidy will be received and all
 attaching conditions will be complied with. Government grants related
 to depreciable fixed assets are treated as deferred income which is
 recognised in the profit and loss account over the useful life of the
 asset in the proportion in which the depreciation on those assets is
 charged.
 
 m.  Employee benefits
 
 i.  Short term employee benefit plans
 
 All short term employee benefit plans such as salaries, wages, bonus,
 special awards and medical benefits which fall due within 12 months of
 the period in which the employee renders the related services which
 entitles him to avail such benefits are recognized on an undiscounted
 basis and charged to the profit and loss account.
 
 ii.  Defined Contribution Plan
 
 Contributions to the provident funds are made monthly at a
 predetermined rate to the Regional Provident Fund Commissioner and
 debited to the profit and loss account on an accrual basis. There is no
 other obligation of the company except the contribution to the
 provident fund.
 
 iii.  Defined Benefit Plan
 
 The Company has an arrangement with Life Insurance Corporation of India
 (LIC) to administer its gratuity scheme. The contribution paid/payable
 is debited to the profit and loss account on an accrual basis.
 Liability towards gratuity is provided on the basis of an actuarial
 valuation using the Projected Unit Credit method and debited to the
 profit and loss account on an accrual basis. Actuarial gains and losses
 arising during the year are recognized in the profit and loss account.
 
 iv.  Leave Salary
 
 Short term encashment of accumulated leave balances are accounted for
 in the year in which the leave balances are credited to employees on
 actual basis.
 
 n.  Cash flow statements
 
 Cash flows are reported using the indirect method, whereby profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating, financing and
 investing activities of the Company are segregated.
 
 Cash and cash equivalents in the cash flow statement comprise cash at
 bank and in hand and short-term investments with an original maturity
 of three months or less.
 
 o.  Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event and 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. Provision for expenditure relating to voluntary retirement
 is made when the employee accepts the offer of early retirement.
 
 p.  Segment Reporting Policies
 
 Identification of segments
 
 The Company''s operating businesses are organized and managed separately
 according to the nature of the products 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
 operates.
 
 Segment accounting policies
 
 The accounting policies consistently used in the preparation of the
 financial statements are also applied to record revenue and expenditure
 in individual segments.
 
 Revenue and direct expenses in relation to segments are categorized
 based on items that are individually identifiable to that segment,
 while other costs, where allocable, are apportioned to the segments on
 an appropriate basis.
 
 Fixed assets used in the Company''s business or liabilities contracted,
 other than those specifically identifiable, have not been identified to
 any of the reportable segments, as such fixed assets and services are
 used interchangeably between segments.
 
 Unallocated items
 
 Certain expenses are not specifically allocable to individual segments
 as the underlying services are used interchangeably. The Company
 believes that it is not practicable to provide segment disclosures
 relating to such expenses, and accordingly, such expenses are
 separately disclosed as ''unallocable'' and directly charged against
 total income.