1.  ACCOUNTING CONCEPTS
 
 Financial statements are based on historical cost concept. Mercantile
 system of accounting has been followed and income and expenditure are
 recognized on accrual basis.
 
 2.  FIXED ASSETS AND DEPRECIATION (IN ACCORDANCE WITH AS -10 ISSUED BY
 ICAI)
 
 Fixed assets are stated at cost of acquisition.
 
 METHOD OF PROVIDING DEPRECIATION ( IN ACCORDANCE WITH AS - 6 ISSUED BY
 ICAI ) Depreciation for Plant and Machinery has been provided on
 Straight Line Method and for other assets on Written Down Value Method.
 
 RATE OF DEPRECIATION ADOPTED
 
 On all assets acquired upto 31-03-1987, depreciation has been provided
 at the then prevailing rate of depreciation as per Income Tax rules.
 For assets acquired from 01-04-1987, rates given in Schedule XIV to the
 Companies Act, 1956 have been adopted.
 
 3.  INVESTMENTS (IN ACCORDANCE WITH AS -13 ISSUED BY ICAI)
 
 Investments.are stated at cost
 
 4.  INVENTORY VALUATION (IN ACCORDANCE WITH AS - 2 ISSUED BY ICAI)
 
 Raw Materials, Process stock and stores & spares - Valued at cost.
 
 Finished Goods - Valued at cost or Market price, whichever is lower.
 
 5.  RETIREMENT BENEFITS (IN ACCORDANCE WITH AS -15 ISSUED BY ICAI)
 
 a.  Liability for Gratuity ,
 
 i) Company''s Liability towards Gratuity in respect of Directors on
 full time employment who beneficially own shares in the Company
 carrying more than 5% of the total voting power has been provided for
 and not funded. The liability on this account, provided for and not
 funded, is Rs.24.58 lakhs as on
 
 31.03.2012
 
 ii) Company''s liability towards Gratuity in respect of all other
 employees is worked out on actuarial basis and is funded.
 
 b.  Contribution to Provident Fund is made as per the provisions of
 Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and
 remitted to the Provident Fund Commissioner.
 
 c.  Liability on account of leave salary has been provided for in
 accordance with the scheme in force.
 
 6.  RELATED PARTY DISCLOSURES (IN ACCORDANCE WITH AS -18 ISSUED BY
 ICAI)
 
 a) List of Related Parties
 
 Associate Company Nil
 
 b) Key Management Personal
 
 Name of the related Party , Nature of relationship
 
 i) Sri R.Srihari Managing Director
 
 ii) Sri S.Balakrishna Wholetime Director
 
 iii) Sri R.Padmanaban Technical Director
 
 c) Particulars of Transaction with Related Parties.
 
 I) Transaction with Associate Company Nil
 
 II) Details of Transaction relating to persons referred to in item ( b)
 above.
 
 Remuneration - Rs 34,34,511/-( Previous year - Rs. 34,42,769/-)
 
 I ill Details of Transaction relating to Interest paid for short term
 loans Rs.6,05,733/- (Previous year - Rs.3,00,000/-) ‘
 
 7.  DEFERRED TAX LIABILITY (IN ACCORDANCE WITH AS -22 ISSUED BY ICAI)
 
 Rs.
 
 Opening Deferred tax liability as on 01-04-2011 1,78,48,245
 
 Less:- Transferred from P & L account during 2011-12 1,78,48,245
 
 Closing Deferred tax liability as on 31-03-20t2 NiJ
 
 8.  CONTINGENCIES (IN ACCORDANCE WITH AS-29 ISSUED BY ICAI)
 
 Contingent liabilities are indicated by way of notes forming part of
 Accounts.
 
 9.  INCOME IN FOREIGN EXCHANGE (IN ACCORDANCE WITH AS-11 ISSUED BY
 ICAI)
 
 Export sales in foreign currency are accounted at the exchange rates
 prevailing on the date of invoice/ negotiation of documents where such
 sales are not covered by forward contracts.
 
 10.  EXPENDITURE IN FOREIGN EXCHANGE (IN ACCORDANCE WITH AS-11 ISSUED
 BY ICAI)
 
 Expenditure in foreign currency is accounted at the actual amount spent
 and provision for expenses to be paid in foreign currency has been made
 at the rate of exchange prevailing on the Balance sheet -date.