a) Basis of Accounting
 
 The financial statements have been prepared to comply in all material
 respects with the notifed accounting standards by Companies (Accounting
 Standards) Rules,2006 (as amended) and the relevant provisions of the
 Companies Act, 1956. The financial statements have been prepared in
 accordance with the generally accepted Accounting Principles in India
 under the historical cost convention on and accrual basis, except in
 case of assets for which provision for impairment is made and
 revaluation is carried out. The accounting policies are consistent with
 those used in the previous year.
 
 b) Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make certain
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and disclosure of contingent liabilities at the date of
 the financial statements and the results of operations during the
 reporting period. Although these estimates are based upon management’s
 best knowledge of current events and actions, actual results could
 differ from these estimates.
 
 c) Fixed Assets
 
 Fixed assets are stated at cost (or revalued amounts, as the case may
 be), less accumulated depreciation, amortisation and impairment losses,
 if any. Cost comprises the purchase price and other attributable costs
 to bring the asset to its working condition for its intended use.
 
 Direct overhead expenditure incurred on projects under implementation
 is treated as unallocated capital expenditure pending allocation to the
 assets and are included under Capital work-in-progress.
 
 Borrowing costs relating to acquisition of fixed assets which take
 substantial period of time to get ready for its intended use are also
 included to the extent they relate to the period till such assets are
 ready to be put to use.
 
 d) Depreciation
 
 i. Depreciation on Fixed Assets is provided on Written Down
 Value/Straight Line method as per Schedule XIV of the Companies Act,
 1956.
 
 ii.  Fixed Assets costing rupees fve thousand or less are fully
 depreciated in the year of acquisition.
 
 iii.  The cost of leasehold Land is amortised over the lease period.
 
 iv.  Improvements to premises taken on lease are amortised over the
 Primary lease period of three years.
 
 e) Intangible Assets
 
 i. Costs incurred towards purchase of computer software is amortised
 over the useful lives of such software as estimated by the management
 which is of three years.
 
 ii. Expenditure incurred to acquire water drawing rights from
 Government/Local authorities or other parties is amortised over the
 primary period of right to use the facilities which is ten years for
 the time being
 
 f) Impairment
 
 i. The carrying amounts of assets are reviewed at each balance sheet
 date if there is any indication of impairment based on
 internal/external factors. An impairment loss is recognised wherever
 the carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the greater of the asset’s net selling price and
 value in use. In assessing value in use, the estimated future cash fows
 are discounted to their present value at the
 
 Schedules annexed to and forming part of the accounts for the year
 ended 31st March 2011
 
 weighted average cost of capital. After impairment, depreciation is
 provided on the revised carrying amount of the asset over its remaining
 useful life.
 
 ii. Reversal of impairment losses recognised in prior years is recorded
 when there is an indication that the impairment losses recognised for
 the asset are no longer exist or have decreased.
 
 g) Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classifed as current investments. All other
 investments are classifed as long-term investments. Current investments
 are carried at lower of cost and fair value determined on an individual
 investment basis. Long-term investments are carried at cost.  However,
 provision for diminution in value of each long term investment is made
 to recognise a decline other than temporary in nature.
 
 h) Inventories
 
 i. Raw materials, components, stores and spares are valued at lower of
 cost and net realisable value. However, raw materials and other items
 held for use in the production of inventories are not written down
 below cost if the fnished products in which they will be incorporated
 are expected to be sold at or above cost. Cost is determined at
 weighted average basis.
 
 ii.  Goods in transit and standing crops are valued at Cost
 
 iii. Finished goods, Work in progress, Scrap, by-products, loose tools
 and other stock in trade are valued at lower of cost and net realisable
 value.
 
 iv. Cost includes direct materials, labour and a proportion of
 manufacturing overheads based on normal operating capacity. Cost is
 determined on a weighted average basis and Cost of fnished goods
 includes excise duty.Cost of traded goods includes purchase and allied
 costs incurred to bring the inventory to its present condition and
 location, determined on weighted average basis.
 
 v.  Net realisable value is the estimated selling price in the ordinary
 course of business, less estimated selling costs.
 
 i) Revenue Recognition
 
 Revenue is recognised to the extent that it is probable that the
 economic benefits will fow to the Company and the revenue can be
 reliably measured. Specifcally the following basis is adopted:
 
 i.  Sale of Goods:
 
 Revenue is recognised when the signifcant risks and rewards of
 ownership of goods have passed to the buyer, which generally coincides
 with delivery. Sales are inclusive of excise duty and value added
 tax/sales tax and is net of sales returns and discounts. Revenue from
 export sales is recognised on the date of bill of lading.
 
 ii.  Interest:
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 iii.  Dividends:
 
 Dividend is recognised when the right to receive payment is established
 by the balance sheet date.
 
 iv.  Export benefits:
 
 Export Entitlements in the form of Duty Drawback and Duty Entitlement
 Pass Book (DEPB) Schemes are recognised in the profit and Loss account
 on realisation.
 
 v.  Other Sundry incomes
 
 a) Insurance claims, conversion escalations and income from sale of
 VERs (Variable Emission Reduction) are accounted for on realisation.
 
 b) Appropriate Guarantee Commission is charged on a time proportion
 basis to subsidiaries on the guarantees given on their behalf unless
 the terms of sanction otherwise provided at the time of sanctioning of
 loan facilities to subsidiaries.
 
 j) Foreign Currency Transactions
 
 i.  Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 ii.  Conversion
 
 Foreign currency liability/assets not covered by forward contracts are
 restated at the exchange rates prevailing at the year end.
 
 iii.  Exchange differences
 
 Exchange differences arising, on the settlement of monetary items or on
 reporting Company’s monetary items at rates different from those at
 which they were initially recorded during the year or reported in
 previous financial statements, are recognised as income or as expenses
 in the year in which they arise except those arising from investments
 in non-integral operations.
 
 iv.  Forward Exchange Contracts (Derivative Instruments) not intended
 for trading or speculation purposes.
 
 The Company uses derivative financial instruments including forward
 exchange contracts to hedge its risk associated with foreign currency
 fuctuations.The premium or discount arising at the inception of forward
 exchange contracts is amortised as expense or income over the life of
 the contract. Exchange differences on such contracts are recognised in
 the statement of profit and loss in the year in which the exchange rates
 change.  Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognised as income or as expense for the
 year.
 
 k) Government Grants and Subsidies
 
 Grants and subsidies from the government are recognised when there is
 reasonable assurance that the grant/subsidy will be received and all
 attaching conditions will be complied with.
 
 When the grant or subsidy relates to an expense item, it is recognised
 as income over the periods necessary to match them on a systematic
 basis to the costs, which it is intended to compensate. Where the grant
 or subsidy relates to an asset, its value is deducted from the gross
 value of the assets concerned in arriving at the carrying amount of the
 related asset. Government grants in the form of non-monetary assets
 given at a concessional rate are accounted for on the basis of their
 acquisition cost.
 
 l) Borrowing Costs
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of Fixed Assets, which take substantial
 period of time to get ready for their intended use, are capitalised.
 Other Borrowing costs are recognised as an expense in the year in which
 they are incurred.
 
 m) Segment Reporting Policies
 
 i.  Identifcation of Segments:
 
 The Companys operating businesses are organised and managed separately
 according to the nature of products, with each segment representing a
 strategic business unit that offers different products and serves
 different markets.
 
 The analysis of geographical segment is based on the geographical
 location of the customers. The geographical segments considered for
 disclosure are as follows:
 
 * Sales within India include sales to customers located within India.
 
 * Sales outside India include sales to customers located outside India.
 
 ii.  Allocation of Common Costs:
 
 Common allocable costs are allocated to each segment according to the
 relative contribution of each segment to the total common costs.
 
 iii.  Unallocated Items:
 
 Includes general corporate income and expense items which are not
 allocated to any business segment.
 
 n) Retirement and Other Employee benefits
 
 i. Gratuity liability is a defned benefit obligation and is provided for
 on the basis of an actuarial valuation on projected unit credit method
 made at the end of each financial year.
 
 ii. The Provident Fund is a defned contribution scheme and the
 contributions are charged to the profit and loss account of the year
 when the contributions to the respective funds are due. There are no
 other obligations other than the contribution payable to the respective
 trusts.
 
 iii. Short term compensated absences are provided on an estimated
 basis. Long term compensated absences are provided for based on
 actuarial valuation on projected unit credit method carried by an
 actuary as at the end of the year.
 
 iv.  Actuarial gains/losses are immediately taken to profit and loss
 account and are not deferred.
 
 v. In respect of employees stock options, the excess of fair price on
 the date of grant, over the exercise price, is recognised as deferred
 compensation cost and amortised over the vesting period.
 
 vi. Compensation paid under the company’s voluntary retirement scheme
 is charged to the profit and loss account in the year of payment.
 
 o) Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased assets are classifed as
 operating leases.
 
 Where the Company is the lessee
 
 Operating lease payments are recognised as an expense in the profit and
 loss account on a straight-line basis over the lease term.
 
 Where the Company is the lessor
 
 Assets subject to operating leases are included in fixed assets. Lease
 income is recognised in the profit and loss account. Costs, including
 depreciation are recognised as an expense in the profit and loss
 account.
 
 p) Taxes on Income
 
 Current income tax is measured at the amount expected to be paid to the
 tax authorities in accordance with the Indian Income Tax Act, 1961
 enacted in India. Deferred income taxes refects the impact of current
 year timing differences between taxable income and accounting income
 for the year and reversal of timing differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the Balance Sheet date. Deferred
 tax assets are recognised only to the extent that there is reasonable
 certainty that suffcient future taxable income will be available
 against which such deferred tax assets can be realised. If the Company
 has carry forward of unabsorbed depreciation and tax losses, deferred
 tax assets are recognised only, if there is virtual certainty supported
 by convincing evidence that such deferred tax assets can be realised
 against future taxable profits.
 
 q) Provisions
 
 A provision is recognised when there is a present obligation as a
 result of past event and it is probable that an outfow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and 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 refect the current best
 estimates.
 
 r) Earnings per Share (Basic and Diluted)
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the year.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 s) Cash Flow Statement
 
 Cash fows are reported using indirect method. Cash and cash equivalents
 in the cash fow statement comprise cash at bank, cash/cheques in hand
 and Fixed Deposits with Banks.
 
 t) Others
 
 i.  The contingent liabilities are indicated by way of a note and will
 be provided/paid on crystallisation.
 
 ii.  Dividend as recommended by the board of directors is provided for
 in the accounts pending shareholders/lending institutions approval.
 
 iii.  Foreign currency convertible bonds issue expenses incurred and
 premium payable on redemption of such bonds are adjusted against
 securities premium account as permitted by section 78(2) of the
 companies act, 1956.