1.  Basis of preparation of financial statements:
 
 The financial statements are prepared under the historical cost
 convention on accrual basis and in accordance with Indian Generally
 Accepted Accounting Principles (GAAP) as specified in Companies
 (Accounting Standards) Rules, 2006, provisions of the Companies Act,
 1956 and comply with the Accounting Standards issued by the Institute
 of Chartered Accountants of India.
 
 2.  Use of Estimates:
 
 The Preparation of the financial statements in conformity with the
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported amount of assets and
 liabilities and disclosure of contingent liabilities as on the date of
 the financial statements and the reported amount of revenues and
 expenses during the reporting period. Difference between the actual
 results and estimates are recognized in the period in which the results
 are known /materialized.
 
 3.  Fixed Assets :
 
 Fixed Assets are stated at cost of acquisition (net of Cenvat and VAT
 wherever applicable) or construction less accumulated depreciation and
 impairment loss, if any. Cost includes any directly attributable cost
 of bringing each asset to its working condition for intended use.
 Assets under installation or under construction as at balance sheet
 date are shown as capital work in progress together with project
 expenses and advances to suppliers/contractors.
 
 4.  Depreciation:
 
 Depreciation in respect of all assets acquired up to 30th June, 1985 is
 provided on ''Written Down Value'' method. For additions on or after 1st
 July, 1985 Straight Line Method of depreciation has been adopted. The
 rates charged are as specified in Schedule XIV of the Companies Act,
 1956.
 
 5.  Impairment of Assets:
 
 An impairment loss is recognized whenever the carrying amount of an
 asset exceeds its recoverable amount. The recoverable amount is the
 greater of the net selling price and value in use. In assessing the
 value in use, the estimated future cash flows are discounted to their
 present value based on an appropriated discount factor. The impairment
 loss recognized in the prior accounting years is reversed if there has
 been a change in the estimate of recoverable amount.
 
 6.  Investments:
 
 Current investments are carried at the lower of cost or quoted/fair
 value, computed category-wise. Long term investments are stated at cost
 and provision is made for any diminution in such value, which is not
 temporary in nature.
 
 7.  Valuation of Inventories:
 
 a.  Raw Materials including consumables and stores are valued at lower
 of Cost and net realizable value. Cost is arrived on FIFO Basis.
 
 b.  Semi-finished and Finished Goods are valued at cost of materials
 together with relevant factory overheads or net realizable value
 whichever is lower. Due consideration is given to the saleability of
 the stock and no obsolete or unserviceable\damaged items are included.
 
 8.  Revenue Recognition :
 
 a.  Insurance and Duty Drawback on export are accounted for as and when
 admitted by the appropriate authorities.  Values of advance licenses
 unutilized are accounted on accrual basis by netting off purchase
 value.
 
 b.  Commission on sales is accounted as and when accepted.
 
 c.  Sales are recognized on dispatch of goods to customers and include
 sales value of goods and excise duty and other receipts connected with
 sales.
 
 d.  Liability for Excise Duty on finished goods is accounted for as and
 when they are cleared from the factory premises.
 
 e.  Customs Duty on goods lying in Customs Bonded Warehouses is charged
 in the year of clearance of the goods when it becomes payable.
 
 f.  CENVAT benefit on total purchase is accounted for by reducing the
 purchase cost of the materials\fixed assets wherever applicable.
 
 9.  Employee Benefits:
 
 a.  Company''s defined contributions made to provident fund of
 government are charged to profit & loss account on accrual basis.
 
 b.  Contribution to Gratuity Fund and provision for Leave Encashment is
 based on actuarial valuation carried out as on the Balance Sheet date
 as per Projected Unit Credit Method.
 
 10.  Foreign Currency Transactions:
 
 Foreign Currency transactions are accounted at the exchange rates
 prevailing on the date of transactions. Foreign currency current assets
 and current liabilities outstanding at the balance sheet date are
 translated at the exchange rate prevailing on that date and the
 resultant gain or loss is recognized in the profit & loss account.
 Also, in cases where they relate to the acquisition/construction of
 fixed assets, they are recognized in Profit & Loss accounts.
 
 11.  Borrowing Cost:
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets up to the date when they are ready for their intended
 use and other borrowing costs are charged to profit & loss account.
 
 12.  Operating Lease :
 
 Assets acquired on lease where a significant position of risks and
 rewards of ownership are retained by Leasor are classified as Operating
 Lease. Lease rentals are charged to profit & loss account as incurred.
 Initial direct costs in respect of assets taken on operating lease are
 expensed off in year in which cost are incurred.
 
 Assets given on lease where a significant position of risks and rewards
 of ownership are retained by Leasor are classified as Operating Lease.
 Lease rentals are credited to profit & loss account on accrual.
 
 13.  Taxation:
 
 Provision for taxation is made on the basis of the taxable profits
 computed for the current accounting period in accordance with the
 Income Tax Act, 1961.
 
 Deferred Tax resulting from timing difference between book profit and
 taxable profit for the year is accounted for using the tax rates and
 laws that have been enacted or substantially enacted as on the balance
 sheet date. The deferred tax asset is recognized and carried forward
 only to the extent that there is a certainty that the asset will be
 adjusted in future.
 
 14.  Contingent Liabilities & Provision:
 
 Claims against the Company not acknowledged as debts are treated as
 contingent liabilities. Provision in respect of contingent liabilities
 if any, is made when it is probable that a liability may be incurred
 and the amount can be reasonably estimated.