1.  Accounting Assumption
 
 The financial statements have been prepared under historical cost
 convention on an accrual basis and in accordance with the generally
 accepted accounting principles in India and the applicable Accounting
 Standards specified in the Companies (Accounting Standards) Rules,
 2006, notified by the Central Government in terms of Section 211 (3C)
 of the Companies Act, 1956.
 
 2.  Use of Estimates
 
 The preparation and presentation of financial statements in conformity
 with the generally accepted accounting principles requires the
 management of the Company to make estimates and assumptions that affect
 the reported balances of assets and liabilities and disclosures
 relating to contingent liabilities as at the date of the financial
 statements and reported amounts of income and expenses during the year.
 Examples of such estimates include provisions for doubtful debts,
 employee retirement benefit plans, provision for income taxes and the
 useful lives of fixed assets. The management believes that the
 estimates used in preparation of the financial statements are prudent
 and reasonable. The actual results could differ from these estimates
 and the differences between the actual result and estimates are
 recognised in the period in which the results are known / materialised.
 
 3.  Fixed Assets
 
 Fixed assets are stated at historical cost of acquisition or
 construction less accumulated depreciation / amortisation. All costs
 relating to the acquisition of or construction of the asset to bring it
 to the site and in working condition for its intended use are
 capitalised. The cost excludes the duty benefits admissible against
 installation of the specific assets.  Where the construction or
 development of any such asset requiring substantial period of time to
 set up for its intended use, is funded by borrowings, the corresponding
 borrowing costs are capitalised upto the date when the asset is ready
 for its intended use in accordance with the Accounting Standard-16
 Borrowing Costs.  Advances paid towards acquisition or construction
 of fixed assets and the cost of assets not put to use as at reporting
 date are disclosed under capital work-in-progress.
 
 4.  Intangible Assets
 
 Intangible assets comprising of costs incurred to acquire computer
 software licences and technical know-how are stated at cost less
 accumulated amortisation.  Where the development of any such asset
 requiring substantial period of time for its intended use, is funded by
 borrowings, the corresponding borrowing costs are capitalised upto the
 date when the asset is ready for its intended use in accordance with
 the Accounting Standard -16 Borrowing Costs.  Advances paid towards
 acquisition of intangible assets, which are not put to use as at
 reporting date, are disclosed under capital work-in-progress.
 
 6.  Impairment of Assets
 
 At each Balance Sheet date, the management makes an assessment whether
 there is any indication that an asset / cash generating units may be
 impaired. If any such indication exists, the Company estimates the
 recoverable amount of those assets / cash generating units and an
 impairment loss is recognised, if the carrying amount of those assets /
 cash generating units exceeds their recoverable amount. The recoverable
 amount is the greater of the net selling price and the value in use.
 Value in use is arrived at by discounting future cash flows to their
 present value based on appropriate discounting factor. When there is
 indication as at each Balance Sheet date, that an impairment loss
 recognised for asset in prior accounting year no longer exists or may
 have decreased such reversal of impairment loss is recognised.
 
 7.  Investments
 
 Long-term investments are stated at the cost, net of amount
 written-off, less provision for diminution in value other than
 temporary. Investments that are readily realisable and intended to be
 held for not more than a year from the date of investment are
 classified as current investments. Current investments are stated at
 lower of cost and fair value.
 
 8.  Inventories
 
 The finished and semi-finished inventories are valued at lower of cost
 on absorption basis and net realisable value.  The raw materials and
 packing materials are valued at lower of cost and net realisable value.
 However, materials and other items held for use in production of
 finished goods are not written down below cost if the products, in
 which they will be incorporated, are expected to be sold at or above
 cost. Cost is determined on a transactional weighted average basis, net
 of CENVAT benefits availed by the Company. The items imported under
 Duty Entitlement Pass Book (DEPB) / Duty Free Replenishment Certificate
 (DFRC) /Advance Licence (AL) / Special Import Licence (SIL) are valued
 inclusive of the notional duty benefits availed.  Damaged,
 unserviceable and inert stocks are suitably provided for.  Excise Duty
 and Customs Duty payable on goods held in the bonded warehouse are
 provided in the valuation of inventory.  Excise Duty payable on
 finished goods is included in the valuation of inventory.  Consumables
 and other spares, tools, etc., are valued at lower of cost
 (transactional weighted average cost, net of CENVAT benefits availed by
 the Company) and net realisable value.
 
 9.  Employee Benefits
 
 The Company has both defined contribution and defined benefit plans, of
 which some have assets in special funds or similar securities. The
 plans are financed by the Company and in the case of defined
 contribution plans by the Company along with its employees.
 
 (a) Defined Contribution Plan
 
 These are plans in which the Company pays pre-defined amounts to
 separate funds and does not have any legal or informal obligation to
 pay additional sums. These comprise of contributions to the Employees
 Provident Fund and Family Pension Fund which are reported as expenses
 in the Profit and Loss Account for the year in which the employees
 perform the services.
 
 (b) Defined Benefit Plan
 
 At the reporting date, the Companys liabilities towards Gratuity and
 Compensated absences are determined by independent actuarial valuation
 using the projected unit credit method which considers each year of
 service as giving rise to an additional unit of benefit entitlement and
 measures each unit separately to build up the final obligation. Past
 services are recognised on a straight-line basis over the average
 period until the amended benefits become vested. Actuarial gain and
 losses are recognised immediately in the Profit and Loss Account as
 income or expense. Obligation is measured at the present value of
 estimated future cash flows using a discounted rate that is determined
 by reference to market yields at the Balance Sheet date on Government
 bonds where the currency and terms of the Government bonds are
 consistent with the currency and estimated terms of the defined benefit
 obligation.  Gratuity to employees is covered under Group Gratuity Life
 Assurance Scheme of the Life Insurance Corporation of India.
 
 The Company recognises in the Profit and Loss Account the undiscounted
 amount of short-term employee benefits like Medical Reimbursement,
 Leave Travel Assistance, etc., during the financial year based on
 service rendered by the employees.
 
 10.  Provisions and Contingencies
 
 A provision is recognised when the Company has a present legal or
 constructive obligation as a result of past event, 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 its present value
 but are determined based on 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 estimate.
 Contingent liabilities are not recognised in the Profit and Loss
 Account but are disclosed in the Notes to the Accounts.
 
 11.  Revenue Recognition
 
 Domestic Sales are recognised at the time of despatch to the customer,
 invoicing being the conclusive event. Export Sales are recognised on
 the basis of dates of bills of lading.  Gross Sales include the excise
 duty recovered but exclude customs duty, education cess, sales tax and
 are net of trade discounts. Other recoveries charged separately in the
 invoice are set off against the respective expenditure heads.
 
 12.  Export Benefits
 
 Export entitlements under Duty Entitlement Pass Book (DEPB) and Duty
 Free Replenishment Certificate (DFRC) scheme are recognised in the
 Profit and Loss Account when the right to receive credit as per the
 terms of the scheme is established in respect of the exports.
 Obligation / Entitlement on account of Advance Licence (AL) and Special
 Import Licence (SIL) scheme for import of raw material is accounted for
 on purchase of raw material and / or export sale.  Export benefits from
 DEPB and DFRC are considered as Other Operating Income. Benefits from
 AL and SIL are netted from Materials Consumed.
 
 13.  Research and Development
 
 Expenditure incurred during research phase is recognised as expense
 when incurred.
 
 Expenditure incurred during development phase is capitalised as Fixed
 Asset(s) if it can be demonstrated that such expenditure would result
 in future economic benefit.  Other development expenditure is
 recognised as expense when incurred.
 
 14.  Foreign Currency Translations
 
 Transactions in foreign currency are recorded at the rates of exchange
 in force at the time of occurrence of the transactions.
 
 Monetary items denominated in foreign currency as at the reporting date
 are stated at the rates of exchange prevailing at the reporting date
 and resultant gains / losses are adjusted to Profit and Loss Account.
 Forward contracts to which Accounting Standard -11 The Effect of
 Change in Foreign Exchange Rates has been applied, the premium or
 discount arising at the inception of such forward exchange contracts is
 amortised as expense or income over the life of the relevant contracts.
 Exchange differences on such contracts are recognised as expense or
 income in the Profit and Loss Account in the reporting period in which
 the exchange rates change.  Derivative contracts open as at reporting
 date, other than the forward contracts to which Accounting Standard-11
 The Effect of Change in Foreign Exchange Rates has been applied, are
 marked to market keeping in view the principle of prudence.
 
 15.  Assets Taken on Lease
 
 Operating lease payments are recognised as expenditure in the Profit
 and Loss Account on a straight-line basis, representative of the time
 pattern of benefits received from the use of the assets taken on lease.
 
 16.  Loan Processing Fees
 
 The processing fees paid on availment of loans have been charged
 upfront to the Profit and Loss Account when incurred.
 
 17.  Taxation
 
 The provision for Current Income Tax is the aggregate of the balance
 provision for tax for three months ended March 31, 2010, and the
 estimated provision based on the taxable profit of remaining months
 upto December 31, 2010, the actual tax liability, for which, will be
 determined on the basis of the results for the period April 1, 2010 to
 March 31, 2011 in accordance with the Income-tax Act, 1961.  Provision
 for Fringe Benefit Tax (FBT) is made in accordance with the provisions
 of the Income-tax Act, 1961. Pursuant to enactment of Finance Act,
 2009, Fringe Benefit Tax (FBT) stands abolished w.e.f. April 1, 2009.
 Deferred Tax is recognised, on timing differences (other than those
 which are expected to be reversed during the tax holiday period), being
 the difference between taxable income and accounting income that
 originate in one period and are capable of reversal in one or more
 subsequent periods. Deferred Tax Assets are recognised if there is
 reasonable certainty that there will be sufficient future taxable
 income to realise such assets. In situations where the Company has
 unabsorbed depreciation or carry forward losses under tax laws,
 Deferred Tax Assets are recognised only to the extent that there is
 virtual certainty supported by convincing evidence that there will be
 sufficient future taxable income to realise such assets. The carrying
 amount of Deferred Tax Assets is reviewed at each Balance Sheet date
 and is written down to the extent that it is no longer reasonably /
 virtually certain that sufficient future taxable income will be
 available against which Deferred Tax Asset can be realised.
 
 18.  Earnings Per Share
 
 Basic Earnings Per Share is calculated by dividing the net profit for
 the year attributable to equity shareholders by the weighted average
 number of equity shares outstanding during the year. The weighted
 average number of equity shares outstanding during the year is adjusted
 for events of bonus issues and share split.  For the purpose of
 calculating Diluted Earnings Per Share, the net profit for the year
 attributable to equity shareholders and the weighted average number of
 equity shares outstanding during the year are adjusted for the effect
 of all dilutive potential equity shares.