1.  Basis of Preparation of Financial Statements
 
 The financial statements have been prepared under the historical cost
 convention, except where impairment is made and on accrual basis in
 accordance with accounting principles generally accepted in India and
 the provisions of the Companies Act, 1956 and comply with Accounting
 Standards as notified by the Companies (Accounting Standards) Rules,
 2006.  Accounting policies have been consistently applied by the
 Company and are consistent with those used in the previous year.
 
 2.  Use of Estimates
 
 The presentation of financial statements requires estimates and
 assumptions to be made that affect the value of assets and liabilities
 as well as revenues and expenses as reported in the financial
 statements. The difference between the actual result and estimates are
 recognised during the period in which they are materialized / known.
 
 3.  Fixed Assets
 
 Fixed Assets are stated at their original cost net of cenvat/value
 added tax and includes amounts added on revaluation, less accumulated
 depreciation and impairment loss, if any. The cost includes interest,
 financial charges, freight, taxes and other incidental expenses incurred
 for acquisition and installation of the assets. Assets revalued are
 stated at values determined by the valuers.
 
 4.  Intangible Assets
 
 Intangible assets are recognised when it is probable that the future
 economic benefits that are attributable to the asset will fow to the
 enterprises and the cost of the asset can be measured reliably.
 
 5.  Depreciation and Amortisation
 
 a) Depreciation on fixed assets including revalued assets have been
 provided on Straight Line Method at the rates and in the manner
 prescribed in the Schedule XIV to the Companies Act, 1956. Depreciation
 on additions to Fixed Assets is provided for on pro-rata basis from the
 date of addition/acquisition till the end of the year and on assets
 sold/discarded/demolished to the date of disposal. The depreciation on
 revalued portion of assets is adjusted against the revaluation reserve.
 
 b) Depreciation on assets whose actual cost does not exceed Rs. 5,000/-
 each is provided at 100% of the cost as specified in Schedule XIV to the
 Companies Act, 1956.
 
 c) Computer software/System Development: Over a period of five years.
 
 6.  Capital Work-In-Progress
 
 Projects under commissioning and other capital work-in-progress are
 carried at cost, comprising direct cost, related incidental expenses,
 interest and other financing costs payable on funds specifically 
 borrowed to the extent they relate to the period till assets are ready 
 for intended use.
 
 7.  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 assets 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.
 
 8.  Valuation of Inventories
 
 a) Raw materials (including goods in transit) are valued at cost, on
 first-in-first-out basis.
 
 b) Work-in-process is valued at cost. Cost for this purpose includes
 direct cost and attributable overheads.
 
 c) Finished goods are valued at lower of cost or net realisable value.
 Cost for this purpose includes direct cost, attributable overheads and
 excise duty.
 
 d) Stores, fuel, dyes, chemicals and packing materials are valued at
 cost on first-in-first-out basis.
 
 9.  Recognition of Income and Expenditure
 
 a) Domestic sales are recognised on transfer of risk and reward which
 generally coincides with dispatch of goods to the customers.
 
 b) Export sales are accounted for on the basis of date of bill of
 lading.
 
 c) Sales are inclusive of excise duty, dyeing charges, conversion
 charges and are net of shortage and discounts excluding value added
 tax.
 
 d) Interest income is recognised on time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 e) Cost/expenditure is recognised on accrual, as they are incurred
 except payments of leave travel allowances and reimbursement of medical
 expenses to the staff, being immaterial, are accounted on cash basis.
 
 f) The claims against the company are accounted on acceptance basis.
 
 10.  Foreign Exchange Transactions
 
 Transactions in foreign currencies are accounted at the exchange rate
 prevailing on the date of transaction. Gains and losses resulting from
 the settlement of such transactions and from the translation of
 monetary assets and liabilities denominated in foreign currencies, are
 recognised in the Profit and loss account. In case of forward contracts
 (non speculative), the exchange differences are dealt with in the Profit
 and loss account over the period of contracts.
 
 11.  Employee Benefits
 
 a) Employee benefits comprise both defined contribution and defined 
 benefit plans.
 
 Defined contribution plan :
 
 Contribution to defined contribution plans are recognised as expenses in
 the Profit and Loss Account, as they are incurred.
 
 Defined benefit plan :
 
 The Company''s liability towards Gratuity & Leave encashment is
 accounted for on the basis of an actuarial valuation done at the year
 end and is charged to the Profit and loss account.
 
 b) All short term employee benefits are accounted for on undiscounted
 basis during the accounting period based on services rendered by
 employees.
 
 12.  Research & Development
 
 Revenue expenditure, including overheads on Research and Development,
 is charged out as an expense in the year in which incurred. Expenditure
 which results in the creation of capital assets is taken as Fixed
 assets.
 
 13.  Investments
 
 Investments are classified into Current and Long-term Investments.
 Current Investments are stated at lower of cost and fair value.
 Long-term Investments are stated at cost. A provision for diminution is
 made to recognise a decline, other than temporary, in the value of
 Long-term Investments.
 
 14.  Borrowing costs
 
 Borrowing costs, which are directly attributable to acquisition,
 construction or production of a qualifying asset, are capitalized as a
 part of the cost of the asset. Other borrowing costs are recognised as
 expenses in the period in which they are incurred.
 
 15.  Operating Lease
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership over the leased term are classified as
 operating leases. Operating lease rentals are recognised as an expense,
 as applicable, over the lease period.
 
 16.  Segment Reporting
 
 Business Segment is identified and reported taking into account the
 nature of products and services, the different risks and returns and
 the internal business reporting systems. The identification of
 geographical segment is based on the areas in which major operating
 divisions of the Company operate.
 
 17.  Earnings per share
 
 Basic earnings per share are calculated by dividing the net Profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period. For the
 purpose of calculating diluted earnings per share, the net Profit or
 loss for the period attributable to equity shareholders and the
 weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 18.  Income Tax
 
 Tax expense comprises of current tax and deferred tax. Current tax and
 Deferred tax are accounted for in accordance with Accounting Standard
 22 on Accounting For Taxes on Income, issued by the ICAI. Current tax
 is measured at the amount expected to be paid to the tax authorities,
 using the applicable tax rates. Deferred income taxes reflect the impact
 of the current period timing differences between taxable income and
 accounting income for the period and reversal of timing differences of
 earlier years / period. Deferred tax assets are recognised only to the
 extent that there is reasonable certainty that sufficient future taxable
 income will be available except that deferred tax assets arising on
 account of unabsorbed depreciation and losses are recognised if there
 is virtual certainty that sufficient future taxable income will be
 available to realise the same.
 
 19.  Employee Stock Option Schemes
 
 The Company has granted Stock Options to its employees under Employees
 Stock Option Scheme, 2007 - Series ''A'' (ESOP, 2007). In respect of
 Options granted under the Employees Stock Options Plan, in accordance
 with guidelines issued by the SEBI and in compliance with the Guidance
 Note on Accounting for Employee Share-based Payments issued by the
 Institute of Chartered Accounts of India in the year 2005 and
 applicable for the period on or after 1st April 2005, the cost of stock
 options granted to employees are accounted by the Company using the
 intrinsic value method and the cost based on excess of market value
 over the exercise price is recognised in Profit & Loss Account, over
 vesting period on time proportion basis and included in the ''Salaries,
 wages, bonus etc'' in Schedule L of the Financial Statements.  Should
 any employee leave in the subsequent year, before exercise of the
 Option, the value of Option accrued in their favour is written back to
 the General Reserve.
 
 20.  Provisions and Contingent Liabilities
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event; it is probable that an outfow of resources
 embodying economic benefit will be required to settle the obligation, in
 respect of which a reliable estimate can be made. Provisions are not
 discounted to its present value and are determined based on best
 estimate required to settle the obligation at the Balance Sheet date.
 These are reviewed at each Balance Sheet date and adjusted to reflect
 the current best estimates. A contingent liability is disclosed, unless
 the possibility of an outfow of resources embodying the economic benefit
 is remote.