(a) Basis of Accounting
 
 The financial statements are prepared as per historical cost convention
 and in accordance with the generally accepted accounting principles in
 India, the provisions of the Companies Act, 1956, and the applicable
 Accounting Standards referred to in section 211(3C) of the Companies
 Act, 1956. All income and expenditure having material bearing on the
 financial statements are recognised on accrual basis.
 
 (b) Use of Estimates
 
 The presentation of the financial statements in conformity with the
 generally accepted accounting principles requires the management to
 make estimates and assumptions that affect the reported amount of
 assets and liabilities, revenues and expenses and disclosure of
 contingent liabilities. Such estimates and assumptions are based on
 managements evaluation of relevant facts and circumstances as on the
 date of financial statements.  The actual outcome may diverge from
 these estimates.
 
 (c) Fixed Assets and Depreciation / Amortisation
 
 (i) Tangible fixed assets and depreciation
 
 Tangible fixed assets acquired by the Company are reported at
 acquisition cost, with deductions for accumulated depreciation and
 impairment losses, if any.
 
 The acquisition cost includes the purchase price (excluding refundable
 taxes) and expenses directly attributable to the asset to bring it to
 the site and in the working condition for its intended use. Examples of
 directly attributable expenses included in the acquisition cost are
 delivery and handling costs, installation, legal services and
 consultancy services.
 
 Where the construction or development of any such asset requiring a
 substantial period of time to set up for its intended use, is funded by
 borrowings, the corresponding borrowing costs are capitalised up to the
 date when the asset is ready for its intended use.
 
 Depreciation is provided on a straight line basis at rates and in the
 manner specified in Schedule XIV to the Companies Act, 1956, unless the
 use of a higher rate or an accelerated charge is justified through
 technical estimates. Fixed assets costing less than Rs. 5,000 are fully
 depreciated in the year of purchase. Extra shift depreciation is
 applied to applicable items of plant and machinery for days additional
 shifts are worked.  Freehold land is not depreciated since it is deemed
 to have an indefinite economic life. The premium paid for acquiring
 leasehold land is amortised over the period of lease on a straight line
 basis.
 
 (ii) Intangible assets and amortisation
 
 Intangible assets other than goodwill are valued at cost less
 amortisation. These generally comprise of costs incurred to acquire
 computer software licences and implement the software for internal use
 (including software coding, installation, testing and certain data
 conversion) as well as costs paid to acquire studies for obtaining
 approvals from registration authorities of products having proven
 technical feasibility.
 
 Research costs are charged to earnings as they arise.
 
 Costs incurred for applying research results or other knowledge to
 develop new products, are capitalised to the extent that these products
 or registrations are expected to generate future financial benefits.
 Other development costs are expensed as and when they arise.
 
 Goodwill comprises the portion of a purchase price for an acquisition
 that exceeds the market value of the identifiable assets, with
 deductions for liabilities, calculated on the date of acquisition, on
 the share in the acquired companys assets acquired by the Company.
 
 Intangible assets are reported at acquisition value with deductions for
 accumulated amortisation and any impairment losses.
 
 Amortisation takes place on a straight line basis over the assets
 anticipated useful life. The useful life is determined based on the
 period of the underlying contract and the period of time over which the
 intangible asset is expected to be used and generally does not exceed
 10 years.
 
 An impairment test of intangible assets is conducted annually or more
 often if there is an indication of a decrease in value. The impairment
 loss, if any, is reported in the Profit and Loss Account.
 
 (d) Impairment of assets
 
 The carrying values of assets of the Companys cash-generating units
 are reviewed for impairment annually or more often if there is an
 indication of decline in value. If any indication of such impairment
 exists, the recoverable amounts of those assets are estimated and
 impairment loss is recognised, if the carrying amount of those assets
 exceeds their recoverable amount. The recoverable amount is the greater
 of the net selling price and their value in use. Value in use is
 arrived at by discounting the estimated future cash flows to their
 present value based on appropriate discount factor.
 
 (e) Investments
 
 Long term investments are valued at cost, less provision for diminution
 other than temporary, in value, if any.  Current investments are valued
 at the lower of cost and fair value.
 
 (f) Inventory
 
 Inventories are valued at the lower of cost and net realisable value.
 
 In case of raw materials, packing materials, stores and spare parts and
 traded finished goods, cost are determined in accordance with
 continuous moving weighted average principle. Costs include purchase
 price, non-refundable taxes and delivery and handling costs.
 
 Cost of finished goods and work-in-progress are determined using the
 absorption costing principles. Cost includes cost of materials
 consumed, labour and a systematic allocation of variable and fixed
 production overheads. Excise duties at the applicable rates are also
 included in the cost of finished goods.
 
 Net realisable value is estimated at the expected selling price less
 estimated completion and selling costs.
 
 (g) Revenue Recognition
 
 Sales include products and services, net off trade discounts and
 exclude sales tax, state value added tax and service tax.
 
 With regard to sale of products, income is reported when practically
 all obligations connected with the transaction risks and rights to the
 buyer have been fulfilled. This usually occurs upon dispatch, after the
 price has been determined and collection of the receivable is
 reasonably certain.
 
 Income recognition for services takes place as and when the services
 are performed.
 
 Amounts received from customers specifically towards setting up /
 expansion of manufacturing facilities, linked to a contractual
 arrangement for supply of specified quantities of product manufactured
 from the said facilities at pre-determined prices, are treated as
 current liabilities and recognized as revenue in the Profit and Loss
 Account over the contracted period of supply in proportion to the
 quantities dispatched from the increased capacity.
 
 (h) Financial Income and Borrowing Cost
 
 Financial income and borrowing cost include interest income on bank
 deposits and interest expense on loans.
 
 Interest from interest-bearing assets is recognised on an accrual basis
 over the life of the asset based on the constant effective yield. The
 effective interest is determined on the basis of the terms of the cash
 flows under the contract including related fees, premiums, discounts or
 debt issuance costs, if any.
 
 Borrowing costs are recognised in the period to which they relate,
 regardless of how the funds have been utilised, except where it relates
 to financing of construction or development of assets requiring a
 substantial period of time to prepare for their intended future use.
 Interest is capitalised up to the date when the asset is ready for its
 intended use. The amount of interest capitalised (gross of tax) for the
 period is determined by applying the interest rate applicable to
 appropriate borrowings outstanding during the period to the average
 amount of accumulated expenditure for the assets during the period.
 
 (i) Foreign Currency Transactions
 
 Transactions in foreign currencies are translated to the reporting
 currency based on the exchange rate on the date of the transaction.
 Exchange differences arising on settlement thereof during the year are
 recognised as income or expenses in the Profit and Loss Account.
 
 Cash and bank balances, receivables and liabilities (monetary items) in
 foreign currencies as at the year end are valued at year end rates, and
 unrealised translation differences are included in the Profit and Loss
 Account.
 
 Investments in foreign currency (non monetary items) are reported using
 the exchange rate at the date of the transaction.
 
 The Companys forward exchange contracts are not held for trading or
 speculation. The premium/discount arising on entering into such
 contract is amortised over the life of such contracts and exchange
 differences arising on such contracts are recognised in the Profit and
 Loss Account.
 
 Hedge Accounting
 
 The Company uses currency option contracts to hedge its risks
 associated with foreign currency fluctuations relating to highly
 probable forecasted transactions. The Company designates such currency
 option contracts in a cash flow hedging relationship by applying the
 hedge accounting principles set out in Indian Accounting Standard (“Ind
 AS”) 39 Financial Instruments: Recognition and Measurement.
 
 These contracts are stated at fair value at each reporting date.
 Changes in the intrinsic value of these contracts that are designated
 and effective as hedges of future cash flows are recognised directly in
 Hedging Reserve Account under Reserves and Surplus, net of applicable
 deferred income taxes. The ineffective portion and the time value is
 recognised immediately in the Profit and Loss Account.
 
 Amounts accumulated in Hedging Reserve Account are reclassified to
 Profit and Loss Account in the same periods during which the forecasted
 transaction affects the Profit and Loss Account.
 
 Hedge accounting is discontinued when the hedging instrument expires or
 is sold, terminated, or exercised, or no longer qualifies for hedge
 accounting. For forecasted transactions, any cumulative gain or loss on
 the hedging instrument recognised in Hedging Reserve Account is
 retained there until the forecasted transaction occurs.
 
 If the forecasted transaction is no longer expected to occur, the net
 cumulative gain or loss recognised in Hedging Reserve Account is
 immediately transferred to the Profit and Loss Account for the period.
 
 (j) Employee Benefits
 
 i) Short Term
 
 Short term employee benefits are recognised as an expense at the
 undiscounted amount expected to be paid over the period of services
 rendered by the employees to the Company.
 
 ii) Long Term
 
 The Company has both defined-contribution and defined-benefit plans, of
 which some have assets in special funds or securities. The plans are
 financed by the Company and in the case of some defined contribution
 plans by the Company along with its employees.
 
 - Defined-contribution plans
 
 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, family pension fund and superannuation fund. The
 Companys payments to the defined-contribution plans are reported as
 expenses during the period in which the employees perform the services
 that the payment covers.
 
 - Defined-benefit plans
 
 Expenses for defined-benefit gratuity and supplemental payment plans
 are calculated as at the balance sheet date by independent actuaries in
 a manner that distributes expenses over the employees working life.
 These commitments are valued at the present value of the expected
 future payments, with consideration for calculated future salary
 increases, using a discount rate corresponding to the interest rate
 estimated by the actuary having regard to the interest rate on
 government bonds with a remaining term that is almost equivalent to the
 average balance working period of employees.
 
 iii) Other Employee Benefits
 
 Compensated absences which accrue to employees and which can be carried
 to future periods but are expected to be encashed or availed in twelve
 months immediately following the year end are reported as expenses
 during the year in which the employees perform the services that the
 benefit covers and the liabilities are reported at the undiscounted
 amount of the benefits after deducting amounts already paid.  Where
 there are restrictions on availment of encashment of such accrued
 benefit or where the availment or encashment is otherwise not expected
 to wholly occur in the next twelve months, the liability on account of
 the benefit is actuarially determined using the projected unit credit
 method.
 
 (k) Taxes on Income
 
 The Companys income taxes include taxes on the Companys taxable
 profits, adjustment attributable to earlier periods and changes in
 deferred taxes. Valuation of all tax liabilities / receivables is
 conducted at nominal amounts and in accordance with enacted tax
 regulations and tax rates or in the case of deferred taxes, those that
 have been substantially enacted.
 
 Deferred tax is calculated to correspond to the tax effect arising when
 final tax is determined. Deferred tax corresponds to the net effect of
 tax on all timing differences which occur as a result of items being
 allowed for income tax purposes during a period different from when
 they were recognised in the financial statements.
 
 Deferred tax assets are recognised with regard to all deductible timing
 differences to the extent that it is probable that taxable profit will
 be available against which deductible timing differences can be
 utilised. When the Company carries forward unused tax losses and
 unabsorbed depreciation, deferred tax assets are recognised only to the
 extent there is virtual certainty backed by convincing evidence that
 sufficient future taxable income will be available against which
 deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets is reviewed at each balance
 sheet date and reduced by the extent that it is no longer probable that
 sufficient taxable profit will be available to allow all or a part of
 the aggregate deferred tax asset to be utilised.
 
 (l) Lease Accounting
 
 (i) Operating Leases
 
 Lease of an asset whereby the lessor essentially remains the owner of
 the asset is classified as operating lease. The payments made by the
 Company as lessee in accordance with operational leasing contracts or
 
 rental agreements are expensed proportionally during the lease or
 rental period respectively. Any compensation, according to agreement,
 that the lessee is obliged to pay to the lessor if the leasing contract
 is terminated prematurely is expensed during the period in which the
 contract is terminated.
 
 (ii) Finance Leases
 
 Assets taken on finance lease after 1st April, 2001, are capitalised at
 fair value or net present value of the minimum lease payments,
 whichever is lower.
 
 Depreciation on the assets taken on lease is charged at the rate
 applicable to similar type of fixed assets as per the Companys
 accounting policy on depreciation as stated above. If the leased assets
 are returnable to the lessor on the expiry of the lease period,
 depreciation is charged in accordance with the Companys depreciation
 policy as stated above or in a straight line basis over the lease
 period, which ever is shorter.
 
 Lease payments made are apportioned between the finance charges and
 reduction of the outstanding liability in respect of assets taken on
 lease.
 
 (m) Segment Reporting
 
 The accounting policies adopted for segment reporting are in line with
 the accounting policies of the Company.  Segment Revenue, Segment
 Expenses, Segment Assets and Segment Liabilities have been identified
 to segments on the basis of their relationship to the operating
 activities of the segment. Revenue, expenses, assets and liabilities
 which relate to the Company as a whole and are not allocable to
 segments on reasonable basis, have been included under “Unallocated
 Revenue / Expenses / Assets / Liabilities”.
 
 (n) Provisions and Contingencies
 
 A provision is recognised when the Company has a present 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 reliable
 estimate can be made. Provisions (excluding retirement benefits) 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 reflect
 the current best estimates. Contingent liabilities are not recognised
 but are disclosed in the notes to the financial statement. A contingent
 asset is neither recognised nor disclosed.
 
 (o) Cash Flow Statements
 
 Cash-flow statements are prepared in accordance with “Indirect Method”
 as explained in the Accounting Standard (AS) 3 - Cash Flow Statements
 as prescribed under section 211(3C) of the Indian Companies Act 1956.
 
 p) Cash and Cash Equivalents
 
 Cash and bank balances and current investments that have insignificant
 risk of change in value, which have durations up to three months, are
 included in the Companys cash and cash equivalents in the Cash Flow
 Statement.
 
 q) Earnings per Share
 
 Basic Earnings per Share is calculated by dividing the net profit after
 tax for the year attributable to equity shareholders of the Company by
 the weighted average number of equity shares in issue during the year.