a) Basis of accounting.
 
 i) The Financial Statements are prepared under the historical cost
 convention on accrual basis and are materially in conformity with the
 mandatory accounting standards issued under Companies (Accounting
 Standards) Amended Rules 2009 & relevant provisions of the Companies
 Act, 1956.
 
 ii) Accounting Policies not specifically referred to otherwise are
 consistent and in accordance with generally accepted accounting
 principles.
 
 b) Fixed Assets and Depreciation:
 
 Tangible Fixed Assets are stated at cost less accumulated depreciation.
 Depreciation on Buildings and Plant and Machinery is charged on
 pro-rata basis on Straight Line Method at the rates prescribed in
 schedule XIV of the Companies Act 1956. Depreciation on Fixed Assets
 costing less then Rs.5000/-, each in value, are depreciated at the rate
 of 100% in the year of purchase. Depreciation on rest of the fixed
 assets has been provided at the rates prescribed in Schedule XIV of The
 Companies Act 1956 on Written Down Value basis.
 
 c) Investments:
 
 Long term investments are carried at cost. However provision for
 diminution, if any, is made to recognize a decline, other than
 temporary, in the value of investment.
 
 d) Inventories:
 
 The bases of determining cost for various categories of inventories are
 as follows:-
 
 Stores, Spares and Loose Tools and Raw Materials: At cost (First in
 First out)
 
 Material in Transit: At cost
 
 Work in progress: At material cost plus conversion cost on the basis of
 absorption costing.
 
 Finished Goods: At material cost plus conversion cost on the basis of
 absorption costing.  (inclusive of excise duty payable)
 
 Scrap: At realizable value.
 
 Stock in Trade includes Raw Materials and Scrap.
 
 e) Impairment of Assets:
 
 At each Balance Sheet date, the Company reviews 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 & Loss Account to the extent the carrying
 amount exceeds the recoverable amount.
 
 f) Retirement Benefits:
 
 Payments to defined contribution retirement benefit schemes are charged
 as an expense as they fall due.
 
 For defined benefit schemes, the cost of providing benefits is
 determined using Projected Unit Credit Method, with actuarial valuation
 being carried out at each balance sheet date. Actuarial gain & losses
 are recognized in full in the Profit & Loss account for the period in
 which they occur. Past service cost is recognized to the extent the
 benefits are already vested, and otherwise is amortized on a
 Straight-line method over the average period until the benefits become
 vested.
 
 The retirement benefit obligation recognized in the Balance Sheet
 represents the present value of the defined benefit obligations as
 adjusted for unrecognized past service cost, and as reduced by the fair
 value of scheme assets. Any asset resulting from this calculation is
 limited to past service cost, plus the present value of available
 refunds and reductions in future contributions to the scheme.
 
 (a) Gratuity Plan
 
 The Company makes annual contribution to the Employee''s Group
 Gratuity-cum-Life Assurance scheme of the Life Insurance Corporation of
 India, a funded defined benefit plan for qualifying employees. The
 scheme provides for lump sum payment to vested employees at retirement,
 death while in employment or on termination of employment of an amount
 equivalent to 15 days salary payable for each completed year of service
 or part thereof in excess of 6 months. Vesting occurs upon completion
 of 5 years of continued service.
 
 (b) Leave Encashment Plan
 
 The Company is making a provision on actuarial basis for leave
 encashment benefit of the employees, the amount of provision & paid
 during the year is charged to Profit & Loss Account.
 
 g) Sales:
 
 The revenue from Sale of Goods is recognized on transfer of all
 significant risk & rewards of ownership to the buyer which coincides
 with dispatches of goods from factory to the customers in case of
 domestic sales. Sale value is inclusive of excise duty. Price revisions
 of goods sold are accounted for at the time of billing except in the
 case where reasonable certainty has been measured up to the date of
 Balance Sheet.
 
 Export Sale is accounted for at exchange rate notified on monthly basis
 by Central Govt. under Custom Law.  Bills outstanding on the Balance
 Sheet date are reinstated with the exchange rate on that date and the
 difference on this account is booked in the Profit & Loss Account.
 
 h) Foreign Currency Transactions:
 
 (i) Transaction in foreign currencies is converted in rupees at the
 rates prevailing on the date of transaction.  Loans and other
 outstanding balances in foreign currencies at the end of the year are
 converted at the rates prevailing on that date.
 
 Pursuant to the notification of the Companies (Accounting Standards)
 Amended Rules 2009 issued on 31st March 2009, exchange differences
 relating to long term monetary items, arising during the year, in so
 far as they relate to the acquisition of a depreciable capital asset
 are added to / deducted from the cost of the asset w.e.f 1st April 2007
 and depreciated over the balance life of the asset.
 
 (ii) Derivative Instruments and Hedge accounting:
 
 The Company uses foreign exchange forward contracts and options to
 hedge its exposure to movements in foreign exchange rates. These
 foreign exchange forward contracts and options are not used for trading
 or speculation purposes.
 
 For unexpired forward contracts or options that are designated as
 effective cash flow hedges the gain or loss from the effective portion
 of the hedge is recorded and reported directly in the shareholders''
 fund ( under the head “Hedging Reserve) and will be transferred to
 Profit and Loss account upon the occurrence of the events when the
 contracts get transacted.
 
 The Company recognizes gains or losses from forward contracts and
 options that are not designated as effective cash flow hedges for
 accounting purposes in the profit and loss account in the period in
 which they occur.
 
 i) Taxation:
 
 Income Tax provision has been made as per the provisions of the Income
 Tax Act, 1961.
 
 j ) Deferred Taxes :
 
 Deferred tax Liability/(Assets) for the year is charged to current
 year''s profit. Deferred Tax Liability (Net) is on account of timing
 difference in depreciation, leave encashment etc.
 
 k ) Prior period and extra ordinary items and changes in accounting
 policies having material impact on the financial affairs of the Company
 is disclosed appropriately.
 
 l) Material events occurring after the Balance Sheet date are taken
 into cognizance and disclosed appropriately.
 
 m) Interest on borrowed funds:-
 
 In respect of new units/major expansion the interest paid/payable on
 borrowed funds, attributable to construction of building and
 acquisition/erection of Plant & Machinery is capitalized up to the date
 of completion of construction / acquisition/erection of aforesaid
 assets.
 
 n) Provisions, Contingent Liabilities and Contingent Assets
 
 The Company makes a provision when there is a present obligation as a
 result of a past event where the outflow of economic resources is
 probable & a reliable estimate of the amount of obligation can be made.
 The disclosure is made for possible or present obligation that may
 require outflow of resources as contingent liability in the financial
 statements.
 
 o) Use of Estimates:
 
 In preparing Company''s financial statements in conformity with
 accounting principles generally accepted in India, the Management is
 required to make estimates & assumptions that affect the reported
 amount of Assets & Liabilities and the disclosure of Contingent
 Liabilities at the date of the Financial Statements and the reported
 amount of revenues & expenses during the reporting period. Actual
 results could differ from those estimates. Any revision to accounting
 estimates is recognized in the period the same is determined.
 
 p) Research and Development Costs:
 
 Revenue expenditure incurred on research and development has been
 charged to the Profit & Loss Account in the year it is incurred.
 Capital expenditure is included in respective heads under fixed assets.