1.1 Basis of Preparation of Financial Statements
 
 The financial statements are prepared and presented under the
 historical cost convention, on the accrual basis of accounting in
 accordance with the accounting principles generally accepted in India
 (''Indian GAAP'') and comply with the Accounting Standards issued by the
 Institute of Chartered Accountants of India (''ICAI''), The Companies
 Accounting Standard Rules, 2006 and relevant provisions of Companies
 Act, 1956 (the Act) to the extent applicable.
 
 1.2 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 and the disclosure of contingent liabilities on the
 date of the financial statements. Actual results could differ from
 those estimates. Any revision to accounting estimates is recognized
 prospectively in current and future periods.
 
 1.3 Fixed assets and depreciation
 
 Fixed assets are stated at acquisition cost less accumulated
 depreciation. The cost of fixed assets comprises its purchase price
 including import duties and other non-refundable taxes or levies and
 any directly, attributable cost of bringing the asset to the working
 condition for its intended use.
 
 Depreciation is provided on the straight-line method (''SLM'') as per the
 depreciation rates prescribed in Schedule XIV of the Act.  Capital
 Work-In-Progress includes the cost of fixed assets that are not ready
 to use at the balance sheet date and advances paid to acquire capital
 assets before the balance sheet date.
 
 1.4 Impairment of Assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset or a group of assets (cash generating unit)
 may be impaired. If any such indication exists, the Company estimates
 the recoverable amount of the asset or a group of assets. If such
 recoverable amount of the asset or the recoverable amount of the
 cash-generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognized in the profit & loss account. If at the balance sheet date
 there is an indication that a previously assessed impairment loss no
 longer exits, the recoverable amount is reassessed and the asset is
 reflected at the recoverable amount subject to a maximum of depreciable
 historical cost.
 
 1.5 Investments
 
 Investments classified as long term investment are carried at cost.
 Provision for diminution, if any, is made to recognize a decline other
 than temporary, in the value of the investment.
 
 1.6 Inventories
 
 1.  Stores and Spares parts, etc: At Cost, with moving average price on
 FIFO basis
 
 2.  Raw materials: At cost, with moving average price on FIFO basis.
 
 3.  Finished Goods: At estimated cost or net realizable value
 (whichever is lower)
 
 4.  By Products: At net realizable value.
 
 Cost comprises all cost of purchase, cost of conversion and other costs
 incurred in bringing the inventories to their present location and
 condition.
 
 1.7 Revenue recognition
 
 (a) Revenue from sale of products is recognized on transfer of all
 significant risk and rewards of ownership of products to the customers,
 which is generally on dispatch of goods. Sales are stated exclusive of
 Value Added Tax.
 
 (b) Dividend income is recognized when the right to receive the
 dividend is established.
 
 (c) Export incentives receivable are accrued for when the right to
 receive the credit is established and there is no significant
 uncertainty regarding the ultimate collection of export proceeds.
 
 1.8 Employee Benefits
 
 (a) Short Term Employee Benefits
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short-term employee benefits. Benefits
 such as salaries, wages and short term compensated absences, etc. are
 recognized in the period in which the employee renders the related
 services.
 
 (b) Post- Employment Benefits
 
 (i) Defined Contribution Plans: The Employee State Insurance Scheme and
 Contributory Provident Fund administered by Provident Fund Commissioner
 are defined contribution plans. The Company''s contribution paid/payable
 under the schemes is recognized as expense in the profit and loss
 account during the period in which the employee renders the related
 service.
 
 (ii) Defined Benefit Plans: The Company has taken Group Gratuity and
 Cash Accumulation Policy issued by the Life Insurance Corporation of
 India (LIC). The present value of the obligation under such defined
 benefit plans is determined based on actuarial valuation as advised by
 LIC, using the Projected Unit Credit method, which recognizes each
 period of service as giving rise to additional unit of employee benefit
 entitlement and measures each unit separately to build up the final
 obligation.
 
 The obligation is measured at the present value of the estimated future
 cash flows. The discount rates used for determining the present value
 of the obligation under defined benefit plans, are as advised by LIC.
 Actuarial gains and losses are recognized immediately in the Profit &
 Loss Account.
 
 1.9 Foreign Currency Transactions
 
 Transactions denominated in foreign currency are recorded at the
 exchange rate prevailing on the date of transactions. Exchange
 differences arising on foreign exchange transactions settled during the
 year are recognized in the profit and loss account of the year.
 
 Monetary assets and liabilities in foreign currency, which are
 outstanding as at the year-end, are translated at the closing exchange
 rate and the resultant exchange differences are recognized in the
 profit and loss account.
 
 Realized gain or loss on cancellation of forward exchange contract is
 recognized in the Profit and Loss Account for the year.
 
 1.10Borrowing Costs
 
 The borrowing costs that are directly attributable to the acquisition,
 construction or productions of a qualifying asset are capitalized as
 part of the cost of that asset. The amount of borrowing cost eligible
 for capitalization is determined in accordance with Accounting Standard
 (AS) 16- Borrowing Costs issued by the Institute of Chartered
 Accountants of India (ICAI) and notified under the Companies Accounting
 Standard Rules 2006.
 
 1.11Taxation
 
 Tax expenses for the current year comprises of current tax and deferred
 tax. Current tax is the amount of tax payable on the taxable income for
 the year as determined in accordance with the provisions of Income Tax
 Act 1961. Deferred tax is recognized, on timing differences between the
 taxable income and accounting income that originate in one period and
 are capable of reversal in one or more subsequent periods.
 
 1.12 Earning Per Share
 
 Basic and diluted earnings per share is computed by dividing the net
 profit attributable to equity shareholders for the year, by the
 weighted average number of equity shares outstanding during the year.
 
 1.13Provisions for contingencies
 
 Provisions comprise liabilities of uncertain timing or amount.
 Provisions are recognized when the company recognizes it has a present
 obligation as a result of past events, it is more likely than not that
 an outflow of resources will be required to settle the obligation and
 the amount can be reasonably estimated.
 
 Disclosures for contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources when there is a possible obligation or
 a present obligation in respect of which the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 Loss contingencies arising from claims, litigation, assessment, fines,
 penalties, etc. are recorded when it is probable that a liability has
 been incurred and the amount can be reasonably estimated.