1.1 Basis of accounting and preparation of financial statements
 
 The financial statements of the Company have been prepared, in
 accordance with Generally Accepted Accounting principles in India
 (Indian GAAP), to comply with the mandatory Accounting Standards
 prescribed by the Company (Accounting Standards) Rules, 2006 except for
 certain assets and liabilities which are measured on fair value basis
 as permitted by the Scheme of Arrangement approved by the Honorable
 High Court of Karnataka and the relevant provisions of the Companies
 Act, 1956. The Financial Statements have been prepared on accrual basis
 under the historical cost convention except for certain categories of
 fixed assets that are carried at revalued amounts. The accounting
 policies adopted in the preparation of the financial statements are
 consistent with those followed in the previous year except for change
 in the accounting policy for accounting of exchange fluctuation on
 restatement of long term foreign currency borrowings
 
 1.2 Tangible fixed assets
 
 Fixed assets are carried at cost less accumulated depreciation and
 impairment losses, if any. The cost of fixed assets includes interest
 on borrowings attributable to acquisition of qualifying fixed assets up
 to the date the asset is ready for its intended use and other
 incidental expenses incurred up to that date. Exchange differences
 arising on restatement / settlement of long-term foreign currency
 borrowings relating to acquisition of depreciable fixed assets are
 adjusted to the cost of the respective assets and depreciated over the
 remaining useful life of such assets. SubSequent expenditure relating
 to fixed assets is capitalised only if such expenditure results in an
 increase in the future benefits from such asset beyond its previously
 assessed standard of performance.
 
 Capital work-in-progress:
 
 Projects under which assets are not ready for their intended use and
 other capital work- in-progress are carried at cost, comprising direct
 cost, related incidental expenses and attributable interest.
 
 1.3 Intangible assets
 
 Intangible assets are carried at cost less accumulated amortisation and
 impairment losses, if any. The cost of an intangible assets comprises
 its purchase price, including any import duties and other taxes (other
 than those subsequently recoverable from the taxing authorities), and
 any directly attributable expenditure on making the asset ready for its
 intended use and net of any trade discounts and rebates. Subsequent
 expenditure on an intangible assets after its purchase / completion is
 recognised as an expense when incurred unless it is probable that such
 expenditure will enable the asset to generate future economic benefits
 in excess of its originally assessed standards of performance and such
 expenditure can be measured and attributed to the asset reliably, in
 which case such expenditure is added to the cost of the asset.
 
 Refer Note 1.5 for accounting for research and development expenses.
 
 1.4 Depreciation/amortisation
 
 Depreciation is provided under the straight-line method at the rates
 and in the manner prescribed under Schedule XIV of the Companies Act,
 1956, based on technical estimates that indicate the useful lives would
 be comparable with or higher than those arrived at using these rates,
 
 In the case of following intangible assets depreciation is
 provided/amortised under the straight line method over the useful life
 of assets as follows:
 
 Product and process development : 5 Years
 
 Software licenses : 3 Years
 
 The estimated useful life of the intangible assets and its amortisation
 period are reviewed at the end of each financial year and the
 amortisation method is revised to reflect the changed pattern.
 
 With respect to assets carried at revalued amounts as permitted under
 the Scheme of amalgamation, depreciation is recorded under the straight
 line method over the balance remaining useful life of the assets.
 Individual assets costing less than Rs.5,000 are depreciated in full in
 the year of purchase.
 
 1.5 Research and development costs
 
 Revenue expenditure pertaining to research is charged to the Statement
 of Profit and Loss. Development costs of products are also charged to
 the Statement of Profit and Loss unless a product''s technological
 feasibility has been established, in which case such expenditure is
 capitalised. The amount capitalised comprises expenditure that can be
 directly attributed or allocated on a reasonable and consistent basis
 to creating, producing and making the asset ready for its intended use.
 Fixed assets utilised for research and development are capitalised and
 depreciated in accordance with the policies stated for tangible fixed
 assets and intangible assets.
 
 1.6 Impairment of assets
 
 As at each Balance Sheet date, the carrying amount of fixed assets is
 tested for impairment if impairment conditions exist. An impairment
 loss is recognized when the carrying amount of an asset exceeds its
 recoverable amount. Recoverable amount is determined:
 
 (a) in the case of an individual asset, at the higher of the net
 selling price and value in use.
 
 (b) in the case of cash generating units, at the higher of the unit''s
 net selling price and the value in use.
 
 Value in use is determined as the present value of estimated future
 cash flows from the continuing use of an asset and from its disposal at
 the end of its useful life.
 
 1.7 Investments
 
 Current investments are carried at lower of cost and fair market value.
 Provision is made to recognize decline, if any, in the carrying value.
 
 Long-term investments are carried individually at cost less provision
 for diminution, other than temporary in the value of the investment.
 
 1.8 Inventory
 
 Inventories comprise raw materials, packing materials, consumables,
 work in process, intermediates and finished goods. These are valued at
 the lower of cost and net realizable value. Cost is determined as
 follows: 
 
 (i) Raw materials, packing materials and consumables First in first out
 basis
 
 (ii) Work in process and Intermediates
 
 At material cost, conversion costs and appropriate share of production
 overheads
 
 (iii) Finished goods
 
 At material cost, conversion costs and an appropriate share of
 production overheads and excise duty, wherever applicable.
 
 1.9 Revenue recognition
 
 Revenue from export sales is recognized on the basis of the shipping
 bills for exports.
 
 Revenue from domestic sales is recognized based on the passage of title
 to goods which generally coincides with dispatch. Sales include excise
 duty and are stated net of discounts, other taxes, and sales returns.
 
 Income from sale of technical know-how is recognized, when the risk and
 right to use is transferred to the buyer as per terms of contract.
 
 Dividend income is recognised when the right to receive the same is
 established.
 
 Interest income is recognised on an accrual basis.
 
 1.10 Employee benefits
 
 The Company''s contribution to provident fund is charged to revenue on
 accrual basis.
 
 Leave balances standing to the credit of the employees that are
 expected to be availed in the short term are provided for on full cost
 basis. Liability for unavailed leave considered to be long term is
 carried based on an actuarial valuation.
 
 Liability for gratuity is funded with LIC and SBI Life Insurance
 Company Limited. Gratuity expenses for the year are accounted based on
 actuarial valuation carried out using Projected Unit Credit Method as
 at the end of the fiscal year. The obligation recognised in the balance
 sheet represents the present value of the defined benefit obligation as
 adjusted for unrecognized past service cost, and as reduced by the fair
 value of scheme assets. Any asset resulting from this calculation is
 limited to past service cost, plus the present value of available
 refunds and reductions in future contributions to the scheme.
 
 Short term employee benefits like medical, leave travel, etc are
 accrued based on the terms of employment on a time proportion basis.
 
 1.11 Foreign currency transactions
 
 Initial recognition
 
 Transactions in foreign currencies entered into by the Company and its
 integral foreign operations are accounted at the exchange rates
 prevailing on the date of the transaction or at rates that closely
 approximate the rate at the date of the transaction.
 
 Measurement of foreign currency monetary items at the Balance Sheet
 date
 
 Foreign currency monetary items of the Company and its net investment
 in non-integral foreign operations outstanding at the Balance Sheet
 date are restated at the year-end rates.
 
 In the case of integral operations, assets and liabilities (other than
 non-monetary items), are translated at the exchange rate prevailing on
 the balance sheet date. Non-monetary items are carried at historical
 cost. Revenue and expenses are translated at the average exchange rates
 prevailing during the year. Exchange differences arising out of these
 translations are charged to the statement of profit and loss.
 
 Treatment of exchange differences
 
 Exchange differences arising on settlement / restatement of short-term
 foreign currency monetary assets and liabilities of the Company and its
 integral foreign operations are recognised as income or expense in the
 statement of profit and loss. The exchange differences on restatement /
 settlement of loans to non-integral foreign operations that are
 considered as net investment in such operations are accumulated in a
 Foreign currency translation reserve until disposal / recovery of the
 net investment.
 
 The exchange differences arising on restatement / settlement of
 long-term foreign currency monetary items are capitalised as part of
 the depreciable fixed assets to which the monetary item relates and
 depreciated over the remaining useful life of such assets.
 
 Accounting of forward contracts
 
 Premium / discount on forward exchange contracts, which are not
 intended for trading or speculation purposes, are amortised over the
 period of the contracts if such contracts relate to monetary items as
 at the Balance Sheet date.
 
 1.12 Taxes on income
 
 Income Tax comprises the current tax provision and the net change in
 the deferred tax asset or liability during the year. Deferred tax
 assets and liabilities are recognized for the future tax consequences
 arising out of temporary differences between the carrying values of the
 assets and liabilities and their respective tax bases. Deferred tax
 assets and liabilities are measured using enacted tax rates applicable
 on the Balance Sheet date.  Deferred tax assets are recognised and
 carried forward to the extent that there is a reasonable/ virtual
 certainty (as applicable) that sufficient future taxable income will be
 available against which such deferred tax asset can be realised. The
 effect on deferred tax assets and liabilities resulting from change in
 tax rates is recognized in the income statement in the period of
 enactment of the change.
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of the Indian
 Income Tax Act, 1961.
 
 Minimum alternative tax (''MAT'') paid in accordance to the tax laws,
 which gives rise to future economic benefits in the form of adjustment
 of future tax liability, is considered as an asset if there is
 convincing evidence that the Company will pay normal income tax in
 future years. Accordingly, MAT is recognized as an assets in the
 balance sheet when it is probable that the future economic benefit
 associated with it will flow to the Company and asset can be measured
 reliably.
 
 1.13 Leases
 
 Lease arrangements, where the risks and rewards incident to ownership
 of an asset substantially vest with the lessor, are classified as
 operating leases and the lease rentals thereon are recognised in the
 statement of profit and loss on accrual basis.
 
 1.14 Employee stock option scheme
 
 Employee stock options are accounted in accordance with the guidelines
 stipulated by SEBI and Guidance Note on Accounting for Employee
 Share-based Payments. The difference between the market price of the
 shares underlying the options granted on the date of grant of option
 and the option price is expensed under employee benefit expenses over
 the vesting period.
 
 1.15 Earnings per share (EPS)
 
 In determining the Earnings per share, the Company considers the net
 profit after tax.  The number of shares used in computing Basic
 Earnings per share is the weighted average number of equity shares
 outstanding during the year. The number of shares used in computing
 Diluted Earnings per share comprises the weighted average number of
 equity shares considered for deriving Basic earnings per share and also
 the weighted average number of equity shares that could have been
 issued on the conversion of all dilutive potential equity shares.
 Dilutive potential equity shares are deemed converted as of the
 beginning of the year unless issued at a later date.
 
 1.16 Provisions and contingencies
 
 A provision is recognized when the Company has a present legal or
 constructive 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. Contingent liabilities are not recognized but are disclosed
 in the notes to financial statements.
 
 1.17 Use of estimates
 
 The preparation of the financial statements in conformity with the
 Accounting Standards generally accepted in India requires that the
 management makes estimates and assumptions that affect the reported
 amounts of assets and liabilities, disclosure of contingent liabilities
 as at the date of the financial statements and the reported amounts of
 revenue and expenses during the reported period. Actual results could
 differ from those estimates.
 
 1.18 Segment
 
 Segments have been identified taking into account the nature of
 services, the differing risks and returns, the organizational structure
 and the internal reporting system. The Company prepares consolidated
 financial statements and segment information is disclosed in
 Consolidated financial statements.
 
 1.19 Insurance claims
 
 Insurance claims are accounted for on the basis of claims admitted /
 expected to be admitted and to the extent that there is no uncertainty
 in receiving the claims.
 
 1.20 Borrowing costs
 
 Borrowing costs include interest, amortisation of ancillary costs
 incurred and exchange differences arising from foreign currency
 borrowings to the extent they are regarded as an adjustment to the
 interest cost. Costs in connection with the borrowing of funds to the
 extent not directly related to the acquisition of qualifying assets are
 charged to the Statement of Profit and Loss over the tenure of the
 loan. Borrowing costs, allocated to and utilised for qualifying assets,
 pertaining to the period from commencement of activities relating to
 construction / development of the qualifying asset upto the date of
 capitalisation of such asset is added to the cost of the assets.
 Capitalisation of borrowing costs is suspended and charged to the
 Statement of Profit and Loss during extended periods when active
 development activity on the qualifying assets is interrupted.
 
 1.21 Cash flow statement
 
 Cash flows are reported using the indirect method, whereby profit /
 (loss) before extraordinary items and tax is adjusted for the effects
 of transactions of non-cash nature and any deferrals or accruals of
 past or future cash receipts or payments. The cash flows from
 operating, investing and financing activities of the Company are
 segregated based on the available information.
 
 1.22 Cash and cash equivalents (for purposes of cash flow statement)
 
 Cash comprises cash on hand and demand deposits with banks. Cash
 equivalents are short-term balances (with an original maturity of three
 months or less from the date of acquisition), highly liquid investments
 that are readily convertible into known amounts of cash and which are
 subject to insignificant risk of changes in value.
 
 1.23 Change in accounting policy
 
 During the year, the Company has exercised the option of capitalising
 the exchange difference on account of restatement of term loans taken
 in foreign currency as per Notification issued by Ministry of Corporate
 Affairs dated 29 December 2011.  Accordingly, Rs.26.60 million has been
 capitalised under respective assets categories and depreciated over the
 remaining useful life of the assets and Rs.5.75 million has been
 included in Capital work-in-progress. The depreciation expense for the
 year includes Rs.2.66 million on account of such exchange differences
 capitalised.  Consequently the net loss before tax for the year ended
 31 March 2012 is lower by Rs.29.69 million and fixed assets are higher
 by Rs. 32.35 million.