METHODOLOGY OF ACCOUNTING
 
 The Accounts have been prepared as per historical cost convention on an
 accrual basis.
 
 USE OF ESTIMATES
 
 The Preparation of Financial statements requires the management of the
 company to make estimates and assumptions that affect the reported
 balances of assets and liabilities and disclosures relating to the
 contingent liabilities as at the date of financial statements and
 reported amounts of income and expenses during the period.
 
 FIXED ASSETS
 
 Fixed Assets are stated at their cost of acquisition including expenses
 less accumulated depreciation and impairment losses.
 
 As asset is considered as impaired in accordance with Accounting
 Standard 28 on impairment of Assets, when at balance sheet date there
 are indications of impairment and the carrying amount of the asset, or
 where applicable the cash generating unit to which the asset belongs,
 exceeds it recoverable amount (i.e. the higher of the asset''s net
 selling price and value in use). The carrying amount is reduced to the
 recoverable amount and the reduction is recognized as an impairment
 loss in the profit and loss account.
 
 INVESTMENTS
 
 Investments are classified as current or long-term in accordance with
 the Accounting Standard 13 on Accounting for Investments.
 
 Current Investments are carried at the lower of cost or quoted / fair
 value, computed category wise. Long Term Investments are stated at
 cost. Provision for diminution in the value of long term investment
 made only if such a decline is other than temporary in the opinion of
 the management.
 
 INVENTORIES
 
 (a) Raw Materials, Work in Process and consumables are valued at cost.
 
 (b) Inventories of finished goods is valued at lower of cost or market
 value.
 
 PRELIMINARY AND PUBLIC ISSUE EXPENSES
 
 Preliminary expenses are written off in five equal annual installments
 except preliminary expenses of two divisions,
 
 which are being written off in ten equal annual installments.
 
 SALES
 
 Sales transactions are accounted at realizable value and as per the
 date of bill of lading.
 
 DEPRECIATION
 
 Depreciation is provided on straight line method in accordance with
 provision of section 205(2)(b) and at the rates prescribed in schedule
 XIV of the Companies Act, 1956 and any amendment there to from time to
 time, on pro rata basis with respect to the period of use. Depreciation
 on New assets purchased is provided from the beginning of the next
 month after the end of the month in which addition to New assets has
 taken place, or the date of putting the assets to the use, whichever is
 later.
 
 FOREIGN EXCHANGE TRANSACTIONS
 
 a.  Transactions denominated in foreign currencies are normally
 recorded at the exchange rate prevailing at the time of settlement of
 transactions. Foreign currency transactions remaining unsettled at the
 end of the year are recorded at the rate prevailing as on 31st March
 2011.
 
 b.  The net gain or loss on account of exchange differences arising on
 settlement of foreign currency transactions are recognized as income or
 expenses of the period in which they arise except that exchange
 differences related to acquisition of fixed assets are adjusted in the
 carrying amount of the related fixed assets.
 
 Pursuant to the notification of the Companies (Accounting Standards)
 Amendment Rules 2006 on 31.03.2011, which amended Accounting Standard
 11 on The Effects of changes in Foreign Exchange Rates, exchange
 differences relating to long-term monetary items are dealt with in the
 following manner. 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 and depreciated over balance life of the asset.
 
 CONTINGENT LIABILITY
 
 Contingent liabilities are defined in Accounting Standard 29 on
 Provisions, Contingent Liabilities and Contingent Assets are
 disclosed by way of notes on the balance sheet. Provisions made in
 accounts in respect of those contingencies which are likely to
 materialise into liability after the year end till the finalisation of
 accounts and have material effect on the position stated in Balance
 Sheet.
 
 PROVISION FOR CURRENT & DEFFERED TAX
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of the Income tax Act, 1961.
 Deffered tax resulting from timing difference between book and
 taxable profit is accounted for using tax rates and laws that have been
 enacted as on the balance sheet date. The deffered tax asset is
 recognised and carried forward only to the extent that there is virtual
 certainity that the future taxable income would be available.
 
 RETIREMENT BENEFITS
 
 Company''s Contribution to Provident Fund and Employee State Insu.
 Premium are charged to Profit & Loss A/c.  Gratuity and other
 retirement benefits are provided for on the basis of acturial
 valuation. In the Divisions retirement benefits are being accounted for
 on cash basis.
 
 REVENUE RECOGNITION
 
 Revenue in respect of Export benefits, interest and other claims is
 recognized only when it is reasonably certain that the ultimate
 collection will be made.
 
 SUBSIDY UNDER TUF SCHEME
 
 Capital Subsidy has been shown under Capital Reserve A/c and 1/10 of
 amount is being offered as Income every year. Interest Subsidy has been
 shown by reducing the amount of interest paid on Term Loan.