a Basis of preparation of Financial Statements
 
 The accounts of the Company are prepared on going concern basis'' under
 the historical cost convention'' as per applicable accounting standards
 and generally accepted Accounting principles'' and the company adopts
 the accrual basis in the preparation of the accounts'' unless otherwise
 stated.
 
 The accounting policies adopted in the preparation of financial
 statements are consistent with those of previous year.
 
 b Change in presentation and disclosure of financial statements
 
 During the year ended 31 March 2012'' the revised Schedule VI notified
 under the Companies Act 1956'' has become applicable to the Company'' for
 preparation and presentation of its financial statements. The adoption
 of revised Schedule VI does not impact recognition and measurement
 principles followed for preparation of financial statements. However''
 it has significant impact on presentation and disclosures made in the
 financial statements. The Company has also reclassified the previous
 year figures in accordance with the requirements applicable in the
 current year.
 
 c Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make 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
 year end. Although these estimates are based upon management''s best
 knowledge of current events and actions'' actual results could differ
 from these estimates.
 
 d Tangible fixed assets
 
 i) Fixed Assets are stated at original cost of acquisition and includes
 insurance'' freight'' Finance Charge and installation expenses.
 
 ii) The costs of leasehold land shown in the balance sheet represent
 the consideration paid to RIICO at the time of transfer in favour of
 the Company.
 
 e Depreciation
 
 Depreciation on assets is provided on the straight line method at the
 rates computed based on estimated useful life of the assets which are
 equal to corresponding rates specified in Schedule XIV to the Companies
 Act'' 1956.  Lease hold land is not depreciable.
 
 f Impairment of tangible and intangible assets
 
 An asset is treated as impaired when the carrying cost of asset exceeds
 its recoverable value'' an impairement loss is charged to the statement
 of profit and loss in the year in which asset is identidied as
 impaired. The impairement loss recognised in prior accounting period is
 reversed if there has been change in the estimate of recoverable amount
 
 g Valuation of Inventories
 
 Inventories are valued as follows:
 
 Inventories are valued at cost. Cost includes cost for manufactured
 goods/process stock components of material'' custom duty'' shipping
 freight'' inland freight'' transportation cost'' consumables and labour
 charges etc. Closing stock has been calculated following FIFO method.
 
 h Foreign currency transactions
 
 Transactions in the foreign exchange are recorded at prevailing rate
 on/or near to the date of transaction. All exchange gains and losses
 are accounted for in the Profit and Loss Account.
 
 i Revenue recognition
 
 (i) Sale of goods
 
 Revenue is recognized when the significant risks and rewards of
 ownership of the goods have passed to the
 
 buyer'' usually on delivery of the goods.
 
 (ii) Income from Job Work
 
 Revenue from Job Work Contracts is recognized on an accrual basis in
 accordance with the terms of the relevant contracts.
 
 j Segment Reporting Policies
 
 The Company prepares its segment information in conformity with the
 accounting policies adopted for preparing and presenting the financial
 statements of the Company as a whole.
 
 k Retirement and other employee benefits
 
 Retirement benefits in the form of Provident Fund are defined
 contribution schemes and the contributions are charged to the Profit
 and Loss Account of the year when the contribution to the fund is due.
 There are no other obligations other than the contribution payable to
 that fund.
 
 1 Income tax
 
 Tax expense comprises current and deferred tax. Current income tax is
 measured at the amount expected to be paid to the tax authorities in
 accordance with the Income Tax Act'' 1961. Deferred income taxes reflect
 the impact of current year timing differences between taxable income
 and accounting income for the year and reversal of timing differences
 of earlier years.
 
 m Earning Per share
 
 Basic Earning Per Share is 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 Earning Per Share'' the net
 profit or loss for the year attributable to equity shareholders and the
 weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares.
 
 n Provision'' Contingent liabilities and Contingent Assets
 
 A contingent liability is a possible obligation that arises from past
 events whose existence will be confirmed by the occurrence or
 non-occurrence of one or more uncertain future events beyond the
 control of the Company or a present obligation that is not recognized
 because it is not probable that an outflow of resources will be
 required to settle the obligation. A contingent liability also arises
 in extremely rare cases where there is a liability that cannot be
 recognized because it cannot be measured reliably. The Company does not
 recognize a contingent liability but discloses its existence in the
 financial statements.