a.  Basis of accounting and preparation 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. The financial
 statements have been prepared on accrual basis under the historical
 cost convention.
 
 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 inventory are valued at cost or net realizable value,
 whichever is lower. Cost is determined on the following basis: Stores,
 spares and raw materials - Weighted average '' Process stock and
 finished goods - Material cost plus appropriate value of overheads
 Trading goods - Weighted average cost Others (land) - At cost on
 conversion to stock-in trade
 
 d.  Depreciation on tangible fixed assets
 
 Depreciation on fixed assets is provided on the straight-line basis in
 accordance with the Companies Act, 1956 at the rates and in the manner
 specified in the Schedule XIV of the Act except as stated below: Cost
 of leasehold land is written off over the period of lease.
 
 e.  Revenue recognition
 
 Revenue including Other Income is recognized when no significant
 uncertainty as to determination or realization exists.
 
 f.  Export Benefits
 
 Export Benefit available under prevalent scheme is accrued in the year
 when the right to receive credit as per the terms of the scheme is
 established in respect of exports made and are accounted to the extent
 there is no significant uncertainty about the measurability and
 ultimate realization / utilization of such benefits.
 
 g.  Tangible fixed assets
 
 Fixed assets are recorded at cost of acquisition or construction. They
 are stated at historical cost less accumulated depreciation,
 amortisation and impairment loss, if any.
 
 h.  Foreign currency transactions and translations
 
 Transactions in foreign currency are recorded at the original rates of
 exchange in force at the time the transactions are effected. At the
 year-end, monetary items denominated in foreign currency and forward
 exchange contracts are reported using closing rates of exchange.
 Exchange differences arising thereon and on realization/payment of
 foreign exchange are accounted, in the relevant year, as income or
 expense.
 
 In case of forward exchange contracts, or other financial instruments
 that are in substance forward exchange contracts, the premium or
 discount arising at the inception of the contracts is amortised as
 expense or income over the life of the contracts. Gains/ losses on
 settlement of transactions arising on cancellation/ renewal of forward
 exchange contracts are recognized as income or expense.
 
 i.  Investments
 
 Long-term investments (excluding investment properties), are carried
 individually at cost less provision for diminution, other than
 temporary, in the value of such investments. Current investments are
 carried individually, at the lower of cost and fair value. Cost of
 investments include acquisition charges such as brokerage, fees and
 duties. Investment properties are carried individually at cost less
 accumulated depreciation and impairment, if any. Investment properties
 are capitalised and depreciated (where applicable) in accordance with
 the policy stated for Tangible Fixed Assets. Impairment of investment
 property is determined in accordance with the policy stated for
 Impairment of Assets.
 
 j.  Employee benefits
 
 a.  The Company contributes towards Provident Fund, Family Pension Fund
 and Superannuation Fund which are defined contribution schemes.
 Liability in respect thereof is determined on the basis of contribution
 as required under the statute/ rules.
 
 b.  Gratuity liability, a defined benefit scheme, and provision for
 compensated absences are accrued and provided for on the basis of
 actuarial valuations made at the period end.
 
 k.  Borrowing costs
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes a
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to revenue.
 
 I.  Operating Lease
 
 Lease arrangements where the risks and rewards incidental to the
 ownership of an asset substantially vest with the lesser are recognized
 as Operating Lease.  Operating Lease receipts and payments are
 recognized as income or expense, as the case may be, in the Statement
 of Profit and Loss on a straight-line basis over the lease term.
 
 m.  Taxes on income
 
 Tax expenses comprise both current and deferred tax at the applicable
 enacted/ substantively enacted rates. Current tax represents the amount
 of income tax payable/ recoverable in respect of the taxable income/
 loss for the reporting period.
 
 Deferred tax represents the effect of timing differences between
 taxable income and accounting income for the reporting period that
 originate in one period and are capable of reversal in one or more
 subsequent periods. Deferred Tax Assets and Liabilities are measured
 using the tax rates and tax laws that have been enacted or are
 substantively enacted by the balance sheet date. In the event of
 unabsorbed depreciation and carry forward of losses, deferred tax
 assets are recognized only to the extent that there is a virtual
 certainty supported by convincing evidence that sufficient future
 taxable income will be available to realize such assets. In other
 situations, deferred tax assets are recognized only to the extent that
 there is reasonable certainty that sufficient future taxable income
 will be available to realize these assets.
 
 n.  Impairment of tangible assets
 
 Impairment loss is provided to the extent the carrying amounf(s) of
 assets exceed their recoverable amount(s). Recoverable amount is the
 higher of an asset''s net selling price and its value in use. Value in
 use is the present value of estimated future cash-flows expected to
 arise from the continuing use of the asset and from its disposal at the
 end of its useful life. Net selling price is the amount obtainable from
 sale of the asset in an arm''s length transaction between knowledgeable,
 willing parties, less the costs of disposal.
 
 o.  Provisions and contingencies
 
 A provision is recognized when the Company has a legal and constructive
 obligation as a result of a past event, for which it is probable that
 cash outflow will be required and a reliable estimate can be made of
 the amount of the obligation. A contingent liability is disclosed when
 the Company has a possible or present obligation where it is not
 probable that an outflow of resources will be required to settle it.
 Contingent assets are neither recognized nor disclosed the financial
 statements.