1.  Basis of Preparation of Financial Statements:
 
 The financial statements are prepared on an accrual basis under
 historical cost convention in accordance with the General Accepted
 Accounting Principles (GAAP) and in compliance with the applicable
 Accounting Standards specified in the Companies (Accounting Standards)
 Rules, 2006 notified by the Central Government in terms of section 211
 (3C) of the Companies Act, 1956.
 
 2.  Fixed Assets:
 
 Fixed assets are stated at cost net of cenvat / value added tax and
 includes amounts added on revaluation, less accumulated depreciation
 and impairment loss. All costs, including financing costs till the
 asset is put to use are capitalised. Assessment of indication of
 impairment of an asset is made at the year-end and impairment loss, if
 any, is recognized.
 
 3.  Depreciation:
 
 Depreciation on Assets (other than those given on lease) is provided at
 rates specified in Schedule XIV of the Companies Act, 1 956 under the
 Straight Line Method.
 
 Depreciation on leased assets is provided by the Straight Line Method
 at rates specified in Schedule XIV of the Companies Act, 1956 or at a
 rate resulting in amortisation of the depreciable value of the asset
 over the primary lease period, whichever is higher.
 
 Additions, consequent to the revaluation, are depreciated with
 reference to the remaining useful life of each asset, as determined by
 the valuer. Such depreciation is adjusted against transfer of
 equivalent amount from Revaluation Reserve to Profit & Loss Account.
 
 Depreciation is provided after considering impairment of assets.
 
 Depreciation for fixed assets given to employees as per contractual
 obligations is provided at the rate of 20% p.a which is higher than the
 rates as per schedule XIV.
 
 Exchange differences on such contracts are recognised in the Profit and
 Loss Account in the year in which the exchange rate changes.
 
 Profit or loss arising on cancellation or renewal of such forward
 exchange contracts are recognised as income or expense for the year.
 
 4.  Investments:
 
 Investments are considered as long-term investments and are accordingly
 stated at cost. Provision against diminution in value is made, only if,
 considered other than of temporary nature as per criteria laid down by
 the Board of Directors.
 
 5.  Inventories:
 
 Stores & Spares are valued at cost less provision, if any.  Raw /
 Packing materials, work-in-process and finished goods are valued at
 lower of cost or net realisable value.  Stock of scrap is valued at net
 realisable value. The cost of material is arrived on First in First out
 basis.
 
 6.  Revenue Recognition:
 
 a) Sales and Related Income
 
 Sales are recognised at the point of despatch of goods, at the agreed
 rates net off discounts & rebates. Adjustments arising out of price
 variation claims are accounted on acceptance of claims by customers.
 Export benefits are accounted in the year of export.
 
 b) Revenue from contracts
 
 Revenue from Contracts is recognised on the percentage of completion
 method as soon as services are rendered.
 
 c) Interest and Other Income are accounted on accrual basis except
 those sums, which are not reasonably certain of realisation, are
 recognised on cash basis.
 
 7.  Hedging Transactions:
 
 As per the accounting policies adopted by the Company, the gain or loss
 on settlement of the hedge contract is adjusted in sales/purchase as
 the case may be, in the period in which transactions of sales/purchase
 is accounted. On each balance sheet date the outstanding contract are
 marked to market and the difference is transferred to hedging reserve
 account, as per accounting provision in Accounting Standard-30 for
 hedge of highly probable transactions/firm commitments.
 
 8.  Employee Benefits:
 
 a) Defined Contribution Plan
 
 Contribution to defined Contribution Scheme such as Provident Fund,
 Superannuation, Employee State Insurance Contribution and Labour
 Welfare Fund are charged to Profit and Loss account as and when
 incurred.
 
 b) Defined Benefit Plan/ Long term Compensated Absences
 
 The companys liability towards gratuity and compensated absences is
 determined on the basis of year end actuarial valuation done by
 independent actuary. The actuarial gains or losses determined by the
 actuary are recognised in the Profit and Loss Account as income or
 expense.
 
 9. Taxation:
 
 Current tax is determined as the amount of tax payable in respect of
 estimated taxable income for the period.  Deferred tax is recognised,
 subject to the consideration of prudence, on timing differences
 resulting from the recognition of items in the financial statements and
 in estimating current income tax provision. The carrying amount of
 deferred assets/liabilities is reviewed at each balance sheet date.