1.1 Basis of Preparation
 
 The financial statements of the company have been prepared in
 accordance with the Generally Accepted Accounting Principles in India
 (Indian GAAP). The company has prepared these financial statements to
 comply in all material respects with the accounting standards notified
 under the Companies (Accounting Standards) Rules, 2006 (as amended) and
 the relevant provisions of the Companies Act, 1956. The financial
 statements have been prepared on an accrual basis and under the
 historical cost convention.
 
 The accounting policies adopted in the preparation of financial
 statements are consistent with those of previous year.
 
 1.2 Presentation and disclosure of Financial Statements
 
 For the year ended 31st March, 2012, the revised Schedule VI notified
 under the Companies Act, 1956, has become applicable to the Company,
 for preparation and presentation of its Financial Statements. The
 adoption of revised Schedule VI does not impact recognition and
 measurement principles followed for preparation of financial
 statements. However, it has significant impact on presentation and
 disclosures made in the financial statements. The company has also
 reclassified the previous year figures in accordance with the
 requirements applicable in the current year.
 
 1.3 Use of Estimates
 
 The preparation of financial statements requires the management to make
 estimates and assumptions considered in the reported amounts of assets
 and liabilities (including contingent liabilities) as on the date of
 the financial statements and the reported income and expenses during
 the reporting period. The estimates and assumptions used in the
 financial statements are based upon the Management''s evaluation of the
 relevant facts and circumstances as on the date of financial
 statements. Management believes that the estimates used in the
 preparation of the financial statements are prudent and reasonable.
 Future results may vary from theses estimates.
 
 1.4 Revenue Recognition
 
 i) Sales
 
 Revenue from sale of goods is recognized:
 
 (i) When all the significant risks and rewards of ownership are
 transferred to the buyer and the company retains no effective control
 of the goods transferred to a degree usually associated with ownership:
 and
 
 (ii) No significant uncertainty exists regarding the amount of the
 consideration that will be derived from the sale of goods.
 
 ii) Export Incentives
 
 Revenue in respect of the above benefits is recognized on post export
 basis.
 
 iii) Dividend
 
 Dividend income is recognized when the right to receive the payment is
 established.
 
 iv) Interest
 
 Interest Income is recognized on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 1.5 Investments
 
 Long term Investments are carried at cost less provision, if any, for
 diminution in value which is other than temporary, and current
 investments are carried at lower of cost and fair value.
 
 1.6 Inventories
 
 Inventories are valued at cost or net realizable value, whichever is
 lower except for waste which is valued at net realizable value. The
 cost in respect of the various items of inventory is computed as under:
 
 i) In respect of Raw Materials on FIFO basis.
 
 ii) In respect of Work in process and Finished Goods, at weighted
 average cost of raw material plus conversion cost & packing cost
 incurred to bring the goods to their present condition & location.
 
 iii) In respect of trading goods, on specific identification method.
 
 iv) In respect of Consumable Stores on weighted average basis.
 
 1.7 Foreign Currency Transactions
 
 (a) Foreign Branch (Integral)
 
 (i) Fixed assets are translated at the rates on the date of
 purchase/acquisition of assets and Inventories are translated at the
 rates that existed when costs were incurred.
 
 (ii) All foreign currency monetary items outstanding at the year end
 are translated at the year-end exchange rates. Income and expenses are
 translated at average rates of exchange and depreciation is translated
 at the rates referred to in (a)(i) above for fixed assets.
 
 The resulting exchange gains & losses are recognized in the profit and
 loss account.
 
 (b) Other foreign currency transactions:
 
 (I) Transactions in foreign currency are accounted for at the exchange
 rate prevailing on the date of transaction except sales that are
 recorded at rate notified by the customs for invoice purposes. Such
 rate is notified in the last week of every month and is adopted for
 recording export sales of next month.
 
 (ii) Foreign currency monetary items are reported using the closing
 rate. Exchange differences arising on the settlement of monetary items
 or on reporting the same at balance sheet date are recognized as income
 or expenses in period in which they arise, except the exchange
 difference in case of fixed assets which have been adjusted to the cost
 of fixed assets.
 
 (iii) Foreign currency non monetary items, which are carried in terms
 of historical cost, are reported using exchange rate at the date of
 transaction.
 
 1.8 Fixed Assets
 
 (i) Fixed Assets
 
 Fixed Assets are stated at acquisition cost including inward freight,
 duties, taxes and incidental expenses relating to acquisition net of
 subsidy relating to specific fixed asset and accumulated depreciation.
 
 (ii) Capital work in progress
 
 Capital work in progress includes cost of assets at site, construction
 expenditure for acquisition of capital assets and pre-operative
 expenditure pending allocation to fixed assets.
 
 (iii) Expenditure incurred during construction period
 
 In respect of new/major expansion, the indirect expenditure incurred
 during implementation period upto the date of commencement of
 commercial production, which is attributable to the construction of the
 project, is capitalized on various categories of fixed assets on
 proportionate basis. The unallocated expenses are shown in
 pre-operative expenses.
 
 1.9 (i) Cenvat Credit
 
 Cenvat Credit of excise duty paid on capital assets is recognized in
 accordance with the Cenvat Credit Rules, 2004.
 
 (ii) Excise Duty
 
 Excise duty is accounted on production of finished goods.
 
 1.10 Depreciation/Amortization
 
 (i) Depreciation has been provided under Straight Line Method at the
 rates specified in Schedule XIV of Companies Act, 1956.
 
 (ii) The leasehold land is amortized over the lease period.
 
 1.11 Borrowing Costs
 
 Borrowing costs attributable to the acquisition or construction of
 qualifying assets are capitalized as part of such assets, up to the
 date when such assets are ready for intended use. Other borrowing costs
 are charged as expenditure in the year in which they are incurred.
 
 1.12 Employee Benefits
 
 (I) Defined Contribution Plan:
 
 Contribution to Provident Fund is made in accordance with the
 provisions of the Employees Provident Fund and Miscellaneous Provision
 Act, 1952 and is charged to the profit and loss account.
 
 (ii) Defined Benefit Plans (Gratuity):
 
 The Company has a defined benefit Gratuity plan covering all its
 employees. Gratuity is covered under a scheme of Life Insurance
 Corporation of India (LIC) and contribution in respect of such scheme
 is recognized in the Profit & Loss Account. The liability/asset as at
 the Balance Sheet date is provided for based on the actuarial valuation
 carried out in accordance with Accounting Standard 15 on ''Employee
 Benefit''.
 
 (iii) Leave with wages
 
 Provision for earned leave due for the year is made on the actual
 valuation as at the close of the year.
 
 1.13 Accounting for Taxes on Income Current Taxes
 
 Current Tax is determined as the amount of tax payable in respect of
 taxable income for the period after considering tax allowances &
 exemptions.
 
 Deferred Taxes
 
 Deferred Tax is recognized, subject to consideration of prudence, on
 timing differences, being the difference between taxable income and
 accounting income that originate in one period and capable of reversal
 in one or more subsequent periods.
 
 Minimum Alternative Tax
 
 Minimum Alternative Tax credit is recognized as an asset only when & to
 the extent there is convincing evidence that the Company will pay
 normal tax during the specified period. Such asset is reviewed at each
 Balance Sheet date & the carrying amount of the MAT credit asset is
 written down to the extent there is no longer a convincing evidence to
 the effect that the company will pay normal income tax during the
 specified period.
 
 1.14 Impairment of Assets
 
 At each balance sheet date, an assessment is made whether any
 indication exists that an asset has been impaired. If any such
 indication exists, an impairment loss i.e. the amount by which the
 carrying amount of an asset exceeds its recoverable amount is provided
 in the books of account.
 
 1.15 Provisions and Contingent Liabilities
 
 (a) Provisions are recognized for liabilities that can be determined by
 using a substantial degree of estimation, if:
 
 (i) The company has a present obligation as a result of a past event;
 
 (ii) A probable outflow of resources embodying economic benefits is
 expected to settle the obligation; and
 
 (iii) The amount of the obligation can be reliably estimated
 
 (b) Contingent liability is disclosed in the case of:
 
 (i) A present obligation arising from a past event when it is not
 probable that an outflow of resources embodying economic benefits will
 be required to settle the obligation or
 
 (ii) A possible obligation, unless the probability of outflow of
 resources embodying economic benefits is remote.
 
 1.16 Earnings per share
 
 Basic earning per share is computed by dividing the net profit for the
 period attributable to equity shareholders by the weighted average
 number of shares outstanding during the period. Diluted earning per
 share is computed by taking into account the aggregate of the weighted
 average numbers of equity shares outstanding during the period and the
 weighted average number of equity shares which would be issued on
 conversion of all the dilutive potential equity shares into equity
 shares.
 
 1.17 Basis of Incorporation of integral foreign operations
 
 Figures in respect of the Company''s overseas branch in United Arab
 Emirates have been incorporated on the basis of Financial Statement
 audited by the auditors of the branch.
 
 1.18 Operating Leases
 
 Assets acquired on leases wherein a significant portion of the risks
 and rewards of ownership are retained by the lesser are classified as
 operating leases. Lease rentals paid for such leases are recognized as
 an expense on systematic basis over the term of lease.