i) Method of Accounting
 
 The accounts are prepared under the historical cost convention using
 the accrual method of accounting unless otherwise stated hereinafter.
 
 ii) Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual results and estimates are recongnised in the period
 in which the results are known/ materialized.
 
 iii) Accounting policies not significantly referred to are consistent
 with generally accepted accounting principles.
 
 iv) Fixed Assets
 
 Fixed assets are stated at cost except for land, plant & machinery and
 buildings which have been shown at revalued amount.  Cost is inclusive
 of inward freight, duties & taxes and incidental expenses related to
 acquisition. In respect of major projects involving construction,
 related pre-operational, start- up and trial run expenses form part of
 the value of the assets capitalized. As per practice, expenses incurred
 on modernization / debottlenecking/ relocation / relining of plant &
 equipment are capitalized. Fixed assets, other than leasehold land,
 acquired on lease are not treated as assets of the company and lease
 rentals are charged off as revenue expenses.
 
 Consideration is given at each balance sheet date to determine whether
 there is any indication of impairment of the carrying amount of the
 company''s fixed assets. If any indication exists, an asset''s
 recoverable amount is estimated. An impairment loss is recognized
 whenever the carrying amount of an asset exceeds its recoverable
 amount. The recoverable amount is the greater of net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value based on an appropriate
 discount factor.
 
 v) Depreciation
 
 Depreciation is calculated on fixed assets on straight line method in
 accordance with Schedule XIV to the Companies Act, 1956, Software
 system is amortized over a period of five years.
 
 vi) Investments
 
 Long term investments are stated at cost. Provision for diminution in
 the value of long term investments is made only if such a decline is
 other than temporary in the opinion of the management.  Current
 investments are stated at lower of cost and quoted / fair value.
 
 vii) Inventories
 
 Inventories are valued at lower of cost or net realizable value except
 for waste.
 
 Cost is determined using the first-in-first-out (FIFO) basis.
 
 Finished goods and stock in process include cost of conversion and
 other costs incurred in bringing the inventories to their present
 location and condition.  Wastage and rejections are valued at estimated
 realizable value.
 
 Obsolete, defective and unserviceable stocks are duly provided for.
 
 viii) Excise and other Duties
 
 Excise duty in respect of finished goods lying in factory premises is
 provided and included in the valuation of inventories. CENVAT benefit
 is accounted for by reducing the purchase cost of the fixed assets.
 
 ix) Retirement and other employee related benefits
 
 i) Short term Employee Benefits
 
 All employee benefits payable only within twelve months of rendering
 the service are classified as short-term employee benefits.  Benefits
 such as salaries, wages etc. and the expected cost of bonus, exgratia,
 and incentives are recognized in the period during in which the
 employee renders the related service.
 
 ii) Post employment Benefits
 
 a) Defined Contribution Plans
 
 State Government Provident Fund Scheme is a defined contribution plan.
 The contribution paid/payable under the scheme is recognized in the
 profit & loss account during the period, in which the employee renders
 the related service.
 
 b) Defined Benefit Plans
 
 Gratuity and Leave Encashment are defined benefit plans. The present
 value of obligation under such defined benefit plans are determined
 based on actuarial valuation under the projected unit credit method
 which recognizes each period of service as giving rise to additional
 unit of employees benefits entitlement and measures each unit
 separately to build up the final obligation.  The obligations are
 measured at the present value of future cash flows. The discount rates
 used for determining the present value having maturity periods
 approximated to the returns of related obligations.
 
 x) Foreign Currency Transactions, Derivatives instruments and hedge
 accounting:
 
 Transactions in foreign currency other than those covered by forward
 contracts are accounted for at the prevailing conversion rates at the
 close of the year and difference arising out of the settlement are
 dealt with in the Profit & Loss account.  Outstanding export documents
 when covered by foreign exchange forward contracts are translated at
 contracted rates. Other foreign currency current assets and liabilities
 outstanding at the close of the year are valued at the year end
 exchange rates.  The fluctuations are reflected under the appropriate
 revenue head.
 
 The company uses foreign currency forward contracts and currency
 options to hedge its risks associated with foreign currency
 fluctuations relating to certain firm commitments and forecasted
 transactions and not for trading or speculation purpose.
 
 xi) Research and Development
 
 Revenue expenditure on research and development is charged against the
 profit of the year in which it is incurred. Capital expenditure on
 research & development is shown as an addition to fixed assets.
 
 xii) Earnings per share
 
 Basic earning per share is calculated by dividing the net profit for
 the period attributable to equity shareholders by the weighted average
 number of equity share outstanding during the year.
 
 Diluted earning per share is calculated by dividing the net profit
 attributable to equity shareholders by the weighted average number of
 equity share outstanding during the year (adjusted for the effects of
 dilative options).
 
 xiii)Borrowing Costs
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of a qualifying asset are capitalised as part of cost of
 that asset. Other borrowing costs are recognized as an expense in the
 period in which they are incurred.
 
 xiv) Operating Leases
 
 Operating lease payments are recognized as expense in the profit & loss
 account on a straight- line basis over the lease term.
 
 xv) Events occurring after balance date
 
 Events occurring after the balance sheet date have been considered in
 the preparation of the financial statements.
 
 xvi) Contingent Liabilities
 
 Contingent liabilities as defined in Accounting Standard-29 are
 disclosed by way of notes to accounts. Provision is made if it becomes
 probable that an outflow of future economic benefit will be required
 for an item previously dealt with as a contingent liability.