(i) BASIS OF ACCOUNTING
 
 The financial statements are prepared under historical cost convention
 on accrual basis and are in accordance with the requirements of the
 Companies Act, 1956, and comply with the Accounting Standards specified
 by the Institute of Chartered Accountants of India.
 
 (ii) FIXED ASSETS. DEPRECIATION AND TREATMENT OF EXPENDITURE DURING
 CONSTRUCTION
 
 a) All Fixed Assets are valued at cost, which include expenditure
 incurred in acquisition and construction/installation and other related
 expenses & difference in foreign exchange liability related to assets
 acquired in foreign currency in accordance with Notification dated 31st
 March, 2009.
 
 b) Depreciation for the year has been provided on straight- line method
 at the rates prescribed in Schedule XIV to the Companies Act, 1956.
 Depreciation on additions to and deductions from assets during the year
 is provided on a pro-rata basis.
 
 c) Leasehold Land is amortised over the lease period.
 
 (iii) INTANGIBLE ASSETS
 
 Expenditure incurred for acquiring Software is stated at acquisition
 cost less accumulated amortisation. They are amortised over their
 useful life not exceeding five years.
 
 (iv) ASSETS GIVEN ON OPERATING LEASE
 
 a) All assets given on operating lease are capitalized as Fixed Assets
 and shown separately in the Fixed Assets Schedule.
 
 b) Depreciation has been provided for on assets given on operating
 lease on straight-line method at the rates prescribed in Schedule XIV
 to the Companies Act, 1956.  Depreciation on additions to and
 deductions from assets during the year is provided on pro-rata basis.
 
 (v) VALUATION OF INVENTORY
 
 a) Raw Materials and General Stores are valued at cost or realisable
 value, whichever is less, excluding Cenvat and VAT credit, by FIFO
 method.
 
 b) Work in Process is valued at raw material cost plus estimated
 overheads or realisable value, whichever is less but excluding Cenvat
 and VAT credit.
 
 c) Finished Goods valued at cost including estimated overheads or net
 realisable value whichever is less. The value includes excise duty
 paid/payable on such goods.
 
 d) Scrap is valued at realisable value. This value includes excise duty
 payable thereon.
 
 (vi) SALES
 
 Sales are inclusive of Excise duty and Sales Tax and net of returns,
 claims, discount etc. Domestic Sale is recognised at the point of
 dispatch/billing & Exports Sale is recognised on the date of Bill of
 Lading.
 
 (vii) EMPLOYEE RETIREMENT BENEFITS:
 
 1) Post-Employment Employee Benefits a) Defined Contribution Plans:
 
 The Company has Defined Contribution Plan for Post employment benefits
 in the form of Provident Fund for all employees which is administered
 by Regional Provident Fund Commissioner.  Provident Fund is classified
 as defined contribution plan as the Company has no further obligation
 beyond making the contributions. The Company''s contribution to Defined
 Contribution Plan is charged to the Profit and Loss Account as and when
 incurred.
 
 b) Defined Benefit Plans:
 
 Funded Plan: The Company has defined benefit plan for Post-employment
 benefit in the form of Gratuity for all employees which is administered
 through Life Insurance Corporation (LIC).
 
 Liability for above defined benefit plan is provided on the basis of
 valuation, as at the Balance Sheet date, carried out by an independent
 actuary. The actuarial method used for measuring the liability is the
 Projected Unit Credit method.
 
 2) Other Long-term Employee Benefit:
 
 Liability for Compensated Absences (unutilized leave benefit) is
 provided on the basis of valuation, as at the Balance Sheet date,
 carried out by an independent actuary. The actuarial valuation method
 used for measuring the liability is the Projected Unit Credit method in
 respect of past service.
 
 3) Termination benefits are recognized as an expense as and when
 incurred.
 
 4) The actuarial gains and losses arising during the year are
 recognized in the Profit and LossAccount of the year without resorting
 to any amortization.
 
 (viii) SALES TAX INCENTIVE
 
 Sales Tax deferred under the Incentive Scheme of Govt, of Maharashtra
 has been shown as unsecured Loans.
 
 (ix) INVESTMENTS
 
 Long term Investments are stated at cost or fair value, whichever is
 less, temporary fall in market value, if any, is not provided for.
 Current Investments are carried at lower of cost and fair value.
 
 (x) FOREIGN CURRENCY TRANSACTIONS
 
 a) Foreign currency transactions are recorded at the exchange rate
 prevailing at the time of the transaction.
 
 b) Foreign currency transactions remaining unsettled at the year end
 and not covered by forward contract are translated at the exchange rate
 prevailing at the year end. Premium/ discount on forward contracts are
 amortized over the period of the contract.
 
 c) The difference in translation of monetary assets and liabilities and
 realised gains and losses on foreign exchange transactions are
 recognised in the Profit and LossAccount except, as referred in para
 (d) below.
 
 d) Company has exercised option as per Notification dated 31 st March,
 2009 to account for gain/loss in foreign exchange liability for fixed
 assets acquired in foreign currency.
 
 (xi) BORROWING COSTS
 
 Borrowing costs that are attributable to the acquisition of fixed
 assets are capitalised for the period until the asset is ready for its
 intended use. Other borrowing costs are recognised as an expense in the
 period in which they are incurred.
 
 (xii) TAXES
 
 Tax expense for the year comprises of current income tax & wealth tax
 and deferred income tax. Current income tax provision has been
 determined on the basis of reliefs, deductions available under the
 Income Tax Act. Deferred tax is recognized for all timing differences,
 subject to the consideration of prudence, applying the tax rates and
 tax laws which have been enacted or substantively enacted by the
 Balance Sheet date. Deferred tax assets is recognised only to the
 extent that there is virtual certainty that the assets will be realised
 in future.
 
 (xiii) PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Assets are neither recognized nor disclosed in the financial
 statements. Contingent Liabilities are disclosed separately.
 
 (xiv) IMPAIRMENT
 
 Impairment of assets are assessed at each Balance Sheet date and loss
 is recognized whenever the recoverable amount of an asset is less than
 its carrying amount.
 
 (xv) EXCISE DUTY
 
 Excise Duty payable on products is accounted for at the time of
 dispatch of goods from the factory but is accrued for finished goods
 stocks held at the year end.
 
 Excise Duty related to the difference between the closing stock and
 opening stock of finished goods has been recognized separately in the
 Profit and Loss account under schedule of Manufacturing Expenses.