1.  Basis of preparation of Financial Statements
 
 The financial statements have been prepared to comply in all material
 respects with the standards notified under the Companies (Accounting
 Standards) Rules, 2006 and the relevant provisions of Companies Act,
 1956.  The financial statements have been prepared under the historical
 cost convention on an accrual basis except in case of assets for which
 impairment is made and revaluation is carried out and derivative
 instruments. The accounting policies have been consistently applied by
 the Company and except for the changes in accounting policy discussed
 more fully below, are consistent with those used in previous year.
 
 2.  Use of Estimate
 
 The preparation of financial statements requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities, the disclosure of contingent liabilities on the date
 of the financial statements and the reported amounts of revenues and
 expenses during the period reported. Actual results could differ from
 those estimates. Any revision to accounting estimates is recognised in
 accordance with the requirements of the respective accounting standard.
 
 3.  Fixed Assets
 
 Fixed assets are stated at cost (or re-valued amounts, as the case may
 be), less accumulated depreciation and impairment losses. Cost
 comprises the purchase price and any attributable cost of bringing the
 asset to its working condition for its intended use. Financing costs
 relating to construction of fixed assets are also included to the
 extent they relate to the period till such assets are ready to be put
 to use. Financing costs not relating to construction of fixed assets
 are charged to the income statement.
 
 Depreciation
 
 Depreciation on the fixed assets has been provided for on written down
 value method at the rates prescribed and in the manner specified in
 Schedule XIV to the Companies Act, 1956.
 
 Impairment
 
 I.  The carrying amounts of assets are reviewed at each balance sheet
 date if there are impairment indicators. An impairment loss is
 recognized 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 WACC.  
 
 ii.  After impairment, depreciation is provided on the revised
 carrying amount of the asset over its remaining useful life.  
 
 iii.  A previously recognised impairment loss is increased or decreased
 based on reassessment of recoverable amount, which is carried out if
 the change is significant.  However the carrying value after reversal
 is not increased beyond the carrying value that would have prevailed by
 charging usual depreciation if there was no impairment
 
 4.  Intangible Assets
 
 Intangible assets include miscellaneous expenditures that are
 capitalized if specific criteria are met and are amortised over their
 useful life, generally not exceeding 5 years. The recoverable amount of
 an intangible asset that is not available for use or is being amortized
 over a period exceeding 5 years should be reviewed at least at each
 financial year end even if there is no indication that the asset is
 impaired.
 
 5.  Leases
 
 Where the Company is the lessee
 
 Finance leases, where substantially all the risks and benefits
 incidental to ownership of the leased item, are transferred to the
 company, are capitalized at the lower of the fair value and present
 value of the minimum lease payments at the inception of the lease term
 and disclosed as leased assets.  Lease payments are apportioned between
 finance charges and reduction of the lease liability based on the
 implicit rate of return.  Finance charges are charged to income. Lease
 management fees, legal charges and other initial direct costs are
 capitalised.
 
 If there is no reasonable certainty that the Company will obtain the
 ownership by the end of the lease item, capitalized leased assets are
 depreciated over the shorter of the estimated useful life of the asset
 or the lease term.
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased term, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the 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 the Profit and Loss Account on a straight-line
 basis over the lease term. Costs, including depreciation are recognised
 as an expense in the Profit and Loss Account. Initial direct costs such
 as legal costs, brokerage costs, etc. are recognised immediately in the
 P&L Account.
 
 6. Inventories
 
 Inventories are valued at lower of cost or net realisable value. Raw
 material and manufactured finished goods are valued at cost inclusive
 of excise duty. Cost is determined on using average cost method.
 
 7.  Revenue Recognition
 
 Revenue is recognised to the extent that it is probable that the
 economic benefits will flow to the company and the revenue can be
 reliably measured.  
 
 (i) Sale of goods
 
 Revenue is recognised when the significant risks and rewards of
 ownership of the goods have passed to the buyer.  Sales revenue is net
 of sales returns, discounts and rebates.  
 
 (ii) Interest
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.  
 
 (iii) Dividends
 
 Revenue is recognised when the shareholders'' right to receive payment
 is established by the balance sheet date. Dividend from subsidiaries is
 recognised even if same are declared after the balance sheet date
 butpertains to period on or before the date of balance sheet as per the
 requirement of revised schedule VI of the Companies Act, 1956
 
 8.  Foreign Exchange Transaction
 
 (a) Transaction denominated in foreign currencies is normally recorded
 at the exchange rate prevailing at the time of the transaction.
 
 (b) Monetary items denominated in foreign currency as at the balance
 sheet date are translated at the year end exchange rate.
 
 (c) Premium on forward cover contracts in respect of import of raw
 material is charged to profit & loss account over the period of
 contracts except in respect of liability for acquiring fixed assets, in
 which case the difference are adjusted in carrying cost of the same.
 
 9.Employee benefits
 
 i.  Retirement benefits in the form of Provident Fund is a defined
 contribution scheme and the contributions are charged to the Profit and
 Loss Account of the year when the contributions to the statutory
 authority are due.  ii.  Gratuity liability are defined benefit
 obligations and are provided for on the basis of an actuarial valuation
 on projected unit credit method made at the end of each financial year
 
 10.  Current Tax and Deferred Tax
 
 (i) Provision for current tax is made after taking into consideration
 benefits admissible under the provision of the Income Tax Act, 1961.
 
 (ii) Deferred tax resulting from timing difference between the book and
 taxable profit is accounted for using the tax rates and laws that have
 been enacted or substantively enacted as on the balance sheet date.
 
 11.  Earning per share
 
 Basic EPS is computed using the weighted average number of equity
 shares outstanding during the year.  Diluted EPS is computed using the
 weighted average number of equity and diluted equity equivalent shares
 outstanding during the year except where the results would be
 anti-dilutive
 
 12.  Cash Flow Statement
 
 Cash flow statement is reported using the indirect method as specified
 in the Accounting standard (AS)-3, ''Cash Flow Statement'' issued by The
 Institute of Chartered Accountants of India.
 
 13.  Provision, Contingent Liabilities and Contingent Assets
 
 Provision involving substantial degree of estimation in measurement is
 recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent liabilities are not recognized but are disclosed in the
 notes. Contingent assets are neither recognized nor disclosed in the
 financial statements.