A Basis of Preperation of Financial Statements
 
 The financial statements of the Company have been prepared in
 accordance with the Generally Accepted Accounting Principles in India
 (Indian GAAP) to comply with the Accounting Standards notified under
 the Companies (Accounting Standards) Rules, 2006 (as amended) and the
 relevant provisions of the Companies Act, 1956, to the extent
 applicable. The financial statements have been prepared on accrual
 basis under the historical cost convention and the accounting policies
 adopted in the preparation of the financial statements are consistent
 with those followed in the previous year.
 
 B Use of Estimates
 
 The preparation of the financial statements in conformity with Indian
 GAAP requires the Management to make estimates and assumptions
 considered in the reported amounts of assets and liabilities (including
 contingent liabilities) and the reported income and expenses during the
 year. The Management believes that the estimates used in preparation of
 the financial statements are prudent and reasonable. Future results
 could differ due to these estimates and the differences between the
 actual results and the estimates are recognised in the periods in which
 the results are known / materialise.
 
 C Inventories
 
 Items of Inventories are valued at the lower of cost (on FIFO basis)
 and the net realisable value. Cost includes all direct costs and
 applicable production overheads in bringing the goods to the present
 location and condition.
 
 D Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby net profit
 before extraordinary items and tax is adjusted for the effects of
 transactions of non-cash nature and any deferrals or accruals of past
 or future cash receipts or payments. The cash flows from operating,
 investing and financing activities of the Company are segregated based
 on the available information.
 
 E Depreciation and amortisation
 
 Depreciation has been provided on the straight-line method as per the
 rates prescribed in Schedule XIV to the Companies Act, 1956
 
 F Revenue recognition
 
 i Sale of goods
 
 Sales are recognised on transfer of significant risks and rewards of
 ownership to the buyer, which generally coincides with the dispatch of
 goods from the factory gate on the basis of excise invoice in the case
 of domestic sales. Export sales are recognised on transfer of
 significant risks and rewards of ownership to the buyer. Sales include
 excise duty but exclude sales tax and value added tax.The materials
 returned/rejected are accounted for in the year of return/rejection.
 
 ii Income from services
 
 Revenues from contracts priced on a time and material basis are
 recognised when services are rendered and related costs are incurred.
 
 iii Export incentives & other miscellaneous incomes are recognised on
 accrual basis. Export benefits are accounted for in the year of exports
 based on eligibility and when there is no uncertainty in receiving the
 same.
 
 iv Interest income is accounted on accrual basis. Dividend income is
 accounted for when the right to receive it is established.
 
 G Fixed assets
 
 Fixed assets are carried at cost less accumulated depreciation and
 impairment losses, if any. The cost of fixed assets includes interest
 on borrowings attributable to acquisition of qualifying fixed assets up
 to the date the asset is ready for its intended use and other
 incidental expenses incurred up to that date. Exchange differences
 arising on restatement / settlement of long-term foreign currency
 borrowings relating to acquisition of depreciable fixed assets are
 adjusted to the cost of the respective assets and depreciated over the
 remaining useful life of such assets. Machinery spares which can be
 used only in connection with an item of fixed asset and whose use is
 expected to be irregular are capitalised and depreciated over the
 useful life of the principal item of the relevant assets. Subsequent
 expenditure relating to fixed assets is capitalised only if such
 expenditure results in an increase in the future benefits from such
 asset beyond its previously assessed standard of performance.
 
 Capital work-in-progress: Capital work-in-progress comprises fixed
 assets that are not ready for their intended use at the reporting date.
 Capital work in progress is carries at direct cost, related incidental
 expenses and attributable interest.
 
 H Foreign currency transactions and translations
 
 i Initial recognition
 
 Transactions in foreign currencies entered into by the Company are
 accounted for at the exchange rates prevailing on the date of the
 transaction.
 
 ii Measurement of foreign currency monetary items at the Balance Sheet
 date
 
 Foreign currency monetary items (other than derivative contracts) of
 the Company outstanding at the Balance Sheet date are restated at the
 year-end rates.
 
 iii Treatment of exchange differences
 
 Exchange differences arising on settlement / restatement of short-term
 foreign currency monetary assets and liabilities of the Company are
 recognised as income or expense in the Statement of Profit and Loss.The
 exchange differences arising on restatement / settlement of long-term
 foreign currency monetary items are capitalised as part of the
 depreciable fixed assets to which the monetary item relates and
 depreciated over the remaining useful life of such assets.
 
 iv Accounting of forward contracts
 
 The Company uses foreign exchange forward and options contracts to
 hedge its exposure to movements in foreign exchange rates. The use of
 these foreign exchange forward and options contracts reduces the risk
 or cost to the Company. The Company does not use those for trading or
 speculation purposes. The resultant gain or loss from these
 transactions is recognized in the Profit and Loss account.
 
 I Employee benefits
 
 Employee benefits include provident fund, gratuity fund, compensated
 absences.
 
 i Defined contribution plans
 
 The Company''s contribution to provident fund and Employees State
 Insurance Scheme are considered as defined contribution plans and are
 charged as an expense as they fall due based on the amount of
 contribution required to be made.
 
 ii Defined benefit plans
 
 For defined benefit plans in the form of gratuity fund and compensated
 absences, the cost of providing benefits is determined using the
 Projected Unit Credit method, with actuarial valuations being carried
 out at each Balance Sheet date. Actuarial gains and losses are
 recognised in the Statement of Profit and Loss in the period in which
 they occur. The retirement benefit obligation recognised in the Balance
 Sheet represents the present value of the defined benefit obligation as
 adjusted for unrecognised past service cost, 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 schemes.
 
 iii Short-term employee benefits
 
 The undiscounted amount of short-term employee benefits expected to be
 paid in exchange for the services rendered by employees are recognised
 during the year when the employees render the service. These benefits
 include performance incentive and compensated absences which are
 expected to occur within twelve months after the end of the period in
 which the employee renders the related service. The cost of such
 compensated absences is accounted as under :
 
 (a) in case of accumulated compensated absences, when employees render
 the services that increase their entitlement of future compensated
 absences; and
 
 (b) in case of non-accumulating compensated absences, when the absences
 occur.
 
 iv Long-term employee benefits
 
 Compensated absences which are not expected to occur within twelve
 months after the end of the period in which the employee renders the
 related service are recognised as a liability at the present value of
 the defined benefit obligation as at the Balance Sheet date.
 
 J Borrowing costs
 
 Borrowing costs that are attributable to the acquisition of qualifying
 assets are capitalised as part of cost of such assets until its ready
 for its intended use. All other borrowing costs are charged to revenue
 and recognised as an expense in the statement of profit and loss
 account.
 
 K Segment reporting
 
 The activity of the company comprises of only manufacturing of
 aluminium products hence there is no other reportable segment as
 required by Accounting Standard-17 on Segment Reporting issued by
 the Institute of Chartered Accountants of India.
 
 L Earnings per share
 
 Basic earnings per share is computed by dividing the profit after tax
 by the weighted average number of equity shares outstanding during the
 year. Diluted earnings per share are computed using the weighted
 average number of equity and dilutive equivalent shares outstanding
 during the year, except where the results would be anti dilutive.
 
 M Taxes on income
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of the Income Tax
 Act, 1961.Deferred tax resulting from timing difference between
 taxable and accounting income is accounted for using the tax rates and
 laws that are enacted or substantively enacted as on the balance sheet
 date. Deferred tax asset is recognised and carried forward only to the
 extent that there is a virtual certainty that the asset will be
 realised in future.
 
 N Impairment of assets
 
 In accordance with Accounting Standard (AS) 28 on ''Impairment of
 Assets'' as notified by the Central Government under the Companies
 Act, 1956, the carrying amounts of the Company''s assets are reviewed
 at each balance sheet date to determine whether there is any
 impairment. The recoverable amount of the assets is estimated as the
 higher of its net selling price and its value in use. An impairment
 loss is recognised whenever the carrying amount of an asset or a
 cash-generating unit exceeds its recoverable amount. Impairment loss is
 recognised in the Statement of Profit and Loss or against revaluation
 surplus where applicable.
 
 O Provisions and contingencies
 
 A provision is recognised when the Company has a present obligation as
 a result of past events and it is probable that an outflow of resources
 will be required to settle the obligation in respect of which a
 reliable estimate can be made. Provisions (excluding retirement
 benefits) are not discounted to their present value and are determined
 based on the best estimate required to settle the obligation at the
 Balance Sheet date. These are reviewed at each Balance Sheet date and
 adjusted to reflect the current best estimates. A disclosure for a
 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 likelyhood of outflow of resources
 is remote, no provision or disclosure is made.