a.  Basis of preparation of Financial Statements
 
 The financial statements are prepared under the historical cost
 convention, on going concern basis, in terms of the Accounting
 Standards notified under the Companies (Accounting Standards) Rules,
 2006 and in compliance with Section 211 (3C) of the Companies Act,
 1956. The Company follows the mercantile system of accounting and
 recognizes income and expenditure on accrual basis to the extent
 measurable and where there is certainty of ultimate realisation in
 respect of incomes.  Accounting policies not specifically referred to
 otherwise are consistent and in consonance with the generally accepted
 accounting principles in India.
 
 The Company has prepared its financial statements in accordance with
 Schedule VI as inserted by Notification-S.O. 4471 dated 28.02.2011 (As
 amended by Notification No.F.NO.2/6/2008-CL-V, Dated 30.03.2011). The
 Schedule does not impact recognition and measurement principle followed
 for the preparation of financial statements. However it has
 necessitated significant changes in the presentation of and disclosures
 in financial statements. The company has reclassified its previous year
 figures to confirm to the classification as per the aforesaid schedule.
 
 b.  Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumptions that affect the reported amounts of income and expenses for
 the period, the reported amounts of assets and liabilities and
 disclosures relating to contingent liabilities as on the date of
 financial statements. Difference between the actual results and
 estimates are recognised in the period in which the results are known /
 materialized.
 
 c.  Fixed Assets and Depreciation
 
 i) Fixed Assets are stated at cost of acquisition or construction and
 include interest on specific borrowings for new projects upto
 commissioning.
 
 ii) Leasehold Land is being amortised over the lease period.
 
 iii) Depreciation is provided on straight line method for the fixed
 assets at Dalmiapuram, Khambalia, Wankaner and Katni Works and written
 down value method for the fixed assets at New Delhi Office at the rates
 specified in Schedule XIV to the Companies Act, 1956.
 
 d.  Impairment of Assets
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognised wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the asset''s net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value at the weighted average cost of capital. -
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 Previously recognised impairment losses are reversed to the extent the
 recoverable amount exceeds the carrying amount.
 
 e.  Intangible Assets
 
 Capital Expenditure on purchase and development of identifiable
 non-montary assets without physical substance is recognised as
 Intangible Assets in accordance with principles given under AS- 26
 Intangible Assets. These are grouped and separately shown under the
 schedule of Fixed Assets.  These are amortized over their respective
 expected useful lives not exceeding 10 years.
 
 f.  Valuation of Inventories
 
 (a) Inventories are valued at lower of historical cost or net
 realizable value. Cost of inventories comprises of cost of purchase,
 cost of conversion and other costs incurred in bringing them to their
 respective present location and condition. Materials and other supplies
 held for use in the production of inventories are not written down
 below cost if the finished products in which they will be incorporated
 are expected to be sold at or above cost. However, when there has been
 a decline in the price of materials and it is estimated that the cost
 of the finished products will exceed net realizable value, the
 materials are written down to net realizable value. In such
 circumstances, the replacement cost of the material may be the best
 available measure of their net realizable value.
 
 (b) Historical cost is determined on the basis of weighted average
 method.
 
 Excise duty is included in the valuation of finished goods and
 by-product inventory.
 
 g.  Investments
 
 Long Term Investments are stated at cost. Provision for diminution in
 the value is made in accordance with AS-13 Accounting for Investments
 if the decline/diminution is other than temporary.  Current Investments
 are stated at lower of cost or market/fair value.
 
 h.  Revenue Recognition
 
 (a) Revenue from operations is recognised in respect of export sales on
 the basis of shipment of goods to customer and in respect of domestic
 sales on dispatch from factory. Quality rebates, claims and other
 discounts are disclosed separately.
 
 (b) Domestic Sales includes excise duty. However, excise duty on sales
 is reduced from gross turnover for disclosing net turnover.
 
 (c) Inter-divisional sales is reduced from gross turnover in deriving
 net turnover. 
 
 i.  Other Income
 
 a) Claims receivable
 
 The quantum of accruals in respect of claims receivable such as from
 Railways, Insurance, Electricity, Customs Excise and the like are
 accounted for on receipt basis.
 
 b) Income from Investment
 
 Income from Investment is accounted for on accrual basis when the right
 to receive income is established.
 
 j. Foreign Currency Conversion/Transaction
 
 Foreign currency transactions are recorded on initial recognition at
 the rate prevailing on the date of transaction. Where export bills are
 negotiated with the bank, the export sales are recorded at the rate on
 the date of negotiation as the said rate approximates the actual rate
 on the date of the transaction.  Exchange differences arising on
 settlement of monetary items or on reporting such monetary items of the
 Company at rates different from those at which they were initially
 recorded during the year or reported in previous financial statements,
 are recognised as income or as expense in the year in which they arise.
 
 The premium or discount arising at the inception of forward exchange
 contract is amortised as an expense or income over the life of the
 contract.
 
 k. Employee Benefits
 
 (i) Defined Contribution Plan:
 
 Employee benefits in the form of the Company''s contribution to
 provident fund, pension scheme, superannuation fund and ESI are
 considered as defined contribution plan and charged to statement of
 profit and loss account of the year when the contribution to the
 respective funds are due.
 
 (ii) Defined Benefit Plan:
 
 Retirement benefits in the form of gratuity and leave encashment are
 considered as defined benefit obligations and are provided for on the
 basis of an actuarial valuation as at the date of the balance sheet
 using the projected unit credit method which considers each period of
 service as giving rise to an additional unit of benefit entitlement and
 measures each unit separately to build up the final obligation. Past
 services are recognised on a straight line basis over the average
 period until the amended benefits become vested. Obligation is measured
 at the present value of estimated future cash flows using a discounted
 rate that is determined by reference to market yields at the balance
 sheet date on Government bonds where the currency and terms of the
 Government bonds are consistent with the currency and estimated terms
 of the defined benefit obligation.
 
 (iii) The expenditure on voluntary retirement schemes is charged to
 statement of profit and loss account in the year in which it is
 incurred.
 
 I.  Segment Reporting
 
 Segmental accounting policies are in line with the accounting policies
 of the company. However, the following specific accounting policies
 have been followed for segment reporting:
 
 (a) Segment revenue includes sales and other income directly
 identifiable with/allocable to the segment including inter-segment
 revenue,
 
 (b) Expenses that are directly identifiable with/allocable to segments
 are considered for determining the segment results. The
 expenses/incomes, not allocable to any segments, are included under
 Unallocable items/others.
 
 (c) Segment assets and liabilities include those directly identifiable
 with the respective segments.  Unallocable assets and liabilities
 represent the assets and liabilities not allocable to any segment.
 
 m. Taxes on Income
 
 (a) Provision for Current Tax is made in accordance with the provisions
 of Income Tax Act, 1961.
 
 (b) In accordance with the Accounting Standard AS-22 ''Accounting for
 Taxes on Income'', Deferred Tax Liability/Asset arising from timing
 differences between book and income tax profits is accounted for at the
 tax rates which are enacted or substantively enacted at the Balance
 Sheet date to the extent these differences are expected to crystallize
 in later years. However, Deferred Tax Assets are recognised only if
 there is a reasonable/virtual certainty of realisation thereof.
 
 n. Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions are recognised in respect of obligations where, based on the
 evidence available, their existence at the Balance Sheet date is
 considered probable. Contingent liabilities are shown by way of Notes
 to Accounts in respect of obligations where, based on the evidence
 available, their existence at the Balance Sheet date is considered not
 probable. Contingent assets nether recognised in the Accounts nor
 disclosed in the notes to accounts.
 
 o.  Leases
 
 Where the Company is lessee
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item, are classified as
 operating leases. Operating lease payments are recognised as an expense
 in the statement of Profit and Loss account on a straight-line basis
 over the lease term.
 
 Where the Company is the lessor
 
 Assets subject to operating leases are included in fixed assets. Lease
 income is recognised in statement of Profit and Loss Account on a
 straight-line basis over the lease term. Costs, including depreciation
 are recognised as an expense in the statement of Profit and Loss
 Account. Initial direct costs such as legal costs, brokerage costs,
 etc. are recognised immediately in statement of Profit and Loss
 Account.
 
 p. Borrowing costs
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an assets that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalised as a
 part of the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur. Borrowing costs consist of interest
 and other costs that an entity incurs in connection with the borrowing
 of funds.
 
 q. Cash and Cash Equivalents
 
 Cash and cash equivalents in the cash flow statement comprise cash at
 bank and cash/cheques in hand and short term deposits with Banks less
 short term advances from Banks.
 
 r. Government Grants and Subsidies
 
 Government grants of the nature of promoters'' contribution are
 credited to capital reserve and treated as a part of the
 shareholders'' fund.