a) Accounting Convention :
 
 i) The Financial statements have been prepared under the historical
 cost convention on the accrual basis of accounting and in accordance
 with the requirements of Accounting Standards prescribed by the
 Companies (Accounting Standards) Rules, 2006 and the provisions of the
 Companies Act, 1956, to the extent applicable.
 
 ii) The preparation of financial statements requires the management of
 the Company to make certain estimates and assumptions that affect the
 reported balances of assets and liabilities and disclosures relating to
 the contingent liabilities as at the date of the financial statements
 and reported amounts of income and expenditure for the year. Actual
 results may differ from those estimates. Any revision to such estimates
 is recognised prospectively.
 
 b) Fixed assets and Depreciation
 
 i) Fixed assets are stated at original cost net of tax / duty credits
 availed if any, less accumulated depreciation.  Cost include
 pre-operative expenses and all expenses related to acquisition and
 installation of the concerned assets.
 
 ii) Depreciation on Fixed assets is provided on straight line method in
 accordance with the rates specified under Schedule XIV of the Companies
 Act, 1956. Individual assets costing Rs.5,000/- or less are depreciated
 fully in the year of purchase.
 
 c) Investments
 
 Long term investments held by the Company are stated at cost. Provision
 for diminution, if any, in the value of long- term investments is made,
 if the diminution is other than temporary. Current investments are
 stated at lower of cost or net realisable value.
 
 d) Inventories
 
 Raw Materials and Stores & Spares are valued at cost on FIFO basis.
 Finished goods and Work-in-Progress are valued at lower of the cost
 including related overheads or estimated net realisable value.
 
 e) Foreign Currency Transactions
 
 i) Foreign currency transactions are recorded at exchange rates
 prevailing on the date of such transaction.
 
 ii) Foreign Currency assets and liabilites at the year end are
 realigned at the exchange rate prevailing at the year end and
 difference on realignment is recognised in the Statement of Profit &
 Loss.
 
 f) Revenue Recognition:
 
 i) The Company generally follows the mercantile system of accounting
 and recognises income and expenditure on an accrual basis except those
 with significant uncertainties.
 
 ii) Sale of goods is recognised when the risk and rewards of ownership
 are passed on to the customers, which is generally on despatch of
 goods.
 
 iii) Dividend, interest, export incentives and Other Income are
 accounted on accrual basis except those items with significant
 uncertainities.
 
 g) Taxes on Income
 
 a) Current tax on income for the period is determined on the basis of
 taxable income and tax credits computed in accordance with the
 provisions of the Income Tax Act, 1961 and based on the expected
 outcome of assessment/appeals.
 
 b) Deferred tax is recognised on timing differences between the
 accounting income and the taxable income for the year, and quantified
 using the tax rates and laws enacted or substantively enacted as on the
 Balance Sheet date.
 
 c) Deferred tax assets are recognised and carried forward to the extent
 that there is a reasonable certainity that sufficient future income
 will be available against which such deferred tax assets can be
 realised.
 
 h) Retirement Benefits
 
 i) Defined Contribution Plans:
 
 Employee benefits in the form of Employee Provident and Pension Funds
 and Employee State Insurance plan are considered as Defined
 Contribution Plans and the contributions are charged to the Statement
 of Profit & Loss of the year when the contributions to the said funds
 are due.
 
 ii) Defined Benefit Plans:
 
 Retirement benefits are considered as Defined Benefit Plans and are
 provided for on the basis of an actuarial valuation using the projected
 unit credit method as at the date of Balance Sheet. Actuarial
 gain/losses, if any, are immediately recognised in the Statement of
 Profit & Loss as income and expense.
 
 i) Employees stock Options(ESOS) :
 
 In respect of Employees stock Options(ESOS) the excess of market price
 on the date of grant over the exercise price is recognised as deferred
 compensation cost and amortised over the vesting period.
 
 j) Impairment of Fixed assets:
 
 As at each balance sheet date, the carrying amount of assets is tested
 for impairment so as to determine;
 
 i) the provision for impairment loss, if any, required or;
 
 ii) the reversal, if any, required of impairment loss recognised in
 previous periods.
 
 Impairment loss is recognised when the carrying amount of an asset
 exceeds its recoverable amount.
 
 k) Borrowing Cost:
 
 i) Borrowing costs attributable to the acquisition or construction of
 qualifying assets are capitalised as part of such assets. All other
 borrowing costs are charged to revenue.
 
 ii) A qualifying asset is an asset that necessarily requires
 substantial period of time to get ready for its intended use or sale.
 
 l) Contingent Liabilities:
 
 Contigent liabilities are disclosed by way of Notes to the Accounts.
 
 m) Cash flow statements
 
 Cash flow are reported using the indirect method, whereby net profit
 before tax is adjusted for the effects of transaction of a non cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments. The cash flow comprises regular revenue generating, investing
 and financing activities of the Company. Cash and cash equivalents in
 the balance sheet comprise of cash at bank and in hand and short term,
 highly liquid investments that are readily convertible into known
 amounts of cash and which are subject to an insignificant risk of
 changes in value.