1 Basis of Preparation of Financial Statements
 
 The Financial Statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on accrual basis. GAAP Comprises Accounting Standards
 as specified in the Companies (Accounting Standard) Rules, 2006, the
 provisions of the Companies Act, 1956 and guidelines issued by the
 Securities and Exchange Board of India. Accounting policies have been
 consistently applied, unless otherwise stated, on going concern basis.
 
 The Company follows mercantile system of accounting and recognizes
 significant items of income and expenditure on accrual basis, unless
 stated otherwise.
 
 2.  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 financial statements and the reported amount
 of revenues and expenses during the reporting period. Difference
 between the actual results and estimates are recognized in the period
 in which the results are known / materialized.
 
 3.  Fixed Assets and Capital Work in Progress
 
 Fixed Assets are stated at cost net of CENVAT/Value Added Tax less
 accumulated depreciation and impair- ment loss if any. All costs,
 including financing costs till commencement of commercial production,
 net charges on foreign exchange contracts and adjustments arising from
 exchange rate variations attributable to the fixed assets are
 capitalized. Capital work in progress comprises outstanding advances
 paid to acquire fixed assets, and the cost of fixed assets that are not
 yet ready for their intended use at the balance sheet date.
 
 4.  Depreciation
 
 Depreciation on fixed assets is applied on the straight – line basis at
 the rates and in the manner prescribed in Schedule XIV to the Companies
 Act 1956 over the useful life of the assets.
 
 5.  Foreign Currency Transactions
 
 (a) Transactions denominated in foreign currencies are recorded at the
 exchange rate prevailing on the date of the transaction
 
 (b) Monetary items denominated in foreign currencies at the year end
 are restated at year end rates. In case of items which are covered by
 foreign exchange contracts, the transaction is recorded at the rate
 when the same was incurred. The premium paid on forward contracts is
 recognized only when the forward contract is matured.
 
 (c) Any income or expense on account of exchange difference either on
 settlement or on translation is recognized in the profit or loss
 account except in cases where they relate to acquisition of fixed
 assets, in which case they are adjusted to the carrying cost of such
 asset.
 
 6.  Investments
 
 Current Investments are carried at the lower of cost or quoted / fair
 value, computed category wise. 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.
 
 7.  Inventories
 
 Inventories are valued at lower of cost or net realizable value after
 providing for obsolescence, if any. In case of raw materials, packing
 material, stores and spares, the cost includes duties and taxes (Net of
 CENVAT/VAT, wherever applicable) and is arrived on FIFO basis. Finished
 goods & WIP cost includes the cost of raw materials, an appropriate
 share of fixed and variable overheads on the basis of standard cost
 method and other costs bringing them to their respective present
 location and condition. Obsolete, defec- tive and unserviceable stocks
 are provided for wherever required.
 
 8.  Turnover
 
 Turnover includes sale of goods, services, adjusted for discounts, net
 of returns, sales Tax, Service Tax and Excise Duty. Sales are
 recognized when goods are supplied and are recorded freight charges
 realized from customers but exclude trade discounts and rebates. Export
 incentive receivable in cash is recognized as income on export being
 made. Export sales include goods invoiced against confirmed orders /LC.
 
 9.  Employees'' Retirement Benefits
 
 The Company is making regular contribution to PF and other statutory
 funds and their contribution is charged to P&L A/c. Provision has been
 made in accounts with respect of liability for future gratuities only
 for eligible employees and leave encasement payable to the employees of
 the company as per the provisions of Payment of Gratuity Act. 1972, for
 the time being in force.
 
 10 Revenue Recognition
 
 Revenue is recognized only when it can be reliably measured and it is
 reasonable to expect ultimate col- lection. Interest is recognized on
 the time proportion basis taking into account amount outstanding and
 rate applicable. The income & expenditure are accounted for on accrual
 basis.
 
 11 Deferred revenue Expenditure
 
 Pre-operative expenditure/Deferred Revenue Expenditure are being
 amortized over a period of 5 years.
 
 12 Provision of Current and Deferred Tax
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of the Income Tax Act, 1961.
 
 Deferred tax resulting from timing Differences between taxable and
 accounting incomes is accounted for using the tax rates and laws that
 are substantively enacted as on the balance sheet date. The deferred
 tax is recognized and carried forward only to the extent that there is
 a virtual certainty supported with con- vincing evidence that the asset
 will be realized in future.
 
 The major components of deferred tax assets / liabilities arising on
 account of timing differences as at 31st March 2011 are as follows:
 
                                     AS AT 31st March (Rs in Lac) 
                                       2011           2010
 
 Deferred Tax Liabilities
 
 Timing differences                  776.98         612.00
 
 13.  Dues to Micro, Small & Medium Enterprises
 
 The classification of the suppliers under Micro, Small and Medium
 Enterprises Development Act, 2006 is made on the basis of information
 made available to the company. No principal amount or interest amount
 remain unpaid to such Micro and Small Enterprises as on 31.03.2011 and
 no payments were made to such enterprises beyond the appointed day
 during the year. Also the Company has not paid any interest in terms of
 Section 16 of the above mentioned Act or otherwise.
 
 14.  Sales / Transfers
 
 Inter-unit transfers of finished goods for captive consumption are
 valued at market price. The value of such inter-unit transfers is
 included in the material consumption of consuming units. The year end
 stock of such transferred goods is valued at cost.
 
 15.  Sundry Debtors
 
 Sundry debtors are stated after writing off- bad debts.
 
 16.  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 liabilities are not recognized but are disclosed on the
 notes. Contingent assets are neither recognized nor disclosed in the
 financial statements.
 
 17.  Expenditure during construction
 
 In respect of new projects, all expenses including interest incurred up
 to the date of commencement of commercial production are capitalized.
 In respect of substantial expansion of business at existing location
 only direct costs are capitalized together with interest on funds
 related to them up to the date of commercial production.
 
 18.  Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that takes necessarily
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to Profit & Loss Account.
 
 19 Impairment of Assets
 
 At each Balance Sheet date, the Company assesses whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount. If the carrying
 amount of the asset exceeds its recoverable amount, an impairment loss
 is recognized in the Profit & Loss Account to the extent the carrying
 amount exceeds recoverable amount. The Impairment loss recognized in
 the prior period is reversed if there has been a change in the estimate
 of Recoverable amount.
 
 20 Leases
 
 Lease rentals in respect of finance lease are segregated into cost of
 assets and interest component by applying the implicit rate of return.
 
 Assets acquired on lease where a significant portion of the risks and
 rewards of ownership are retained by the lessor are classified as
 operating leases. Lease rentals are charged to the Profit and Loss
 Account on accrual basis.