1.  Basis of Preparation of Financial Statements
 
 a.  The financial statements have been prepared in compliance with the
 applicable Accounting Standards issued by the Institute of Chartered
 Accountants of India, the accounting standards as specified in
 Companies (Accounting Standards) Rules 2006, prescribed by Central
 Government and the relevant provisions of the Companies Act, 1956.
 Accounting policies have been consistently applied except where a newly
 issued accounting standard is initially adopted or a revision to an
 existing accounting standard requires changes in the accounting policy
 hitherto in use.
 
 b.  The financial statements have been prepared under historical cost
 convention on an accrual basis.
 
 2.  Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the reported amounts of revenues and expenses
 during the reporting period. Difference between the actual results and
 estimates are recognized in the period in which the results are known
 /materialized.
 
 3.  Fixed Assets
 
 Fixed Assets are stated at cost less accumulated depreciation and
 impairment losses. Cost includes capital cost, freight, duties, taxes
 and other incidental expense incurred during the construction /
 installation stage attributable to bringing the assettoworking
 condition for its intended use.
 
 4.  Depreciation and Amortization
 
 a.  Depreciation on Fixed Assets is being provided on written down
 value method at the rate and in the manner specified in Schedule XIV of
 the Companies Act, 1956.
 
 b.  Assets acquired on lease is amortized over the period of lease in
 equal installments.
 
 5.  Intangible Assets
 
 Intangible assets are recognized if it is probable that future economic
 benefits that are attributable to the asset will flow to the company
 and the cost of the assets can be measured reliably.
 
 Intangible Assets are amortized overtheir respective individual
 estimated useful lives on a straight line basis.
 
 6.  Impairment of Assets
 
 Asateach balance sheetdate, the carrying amountof assets is tested for
 impairment so as to determine
 
 a.  the provision for impairment loss, if any, required or
 
 b.  the reversal, if any, required for impairment loss recognized in
 previous periods.
 
 Impairment loss is recognized when the carrying amountof an asset
 exceeds its recoverable amount.  Recoverable amount is determined
 
 a.  in the case of an individual asset, at the higher of net selling
 price and the value in use.
 
 b.  in the case of a cash-generating unit (a group of assets that
 generates identified independent cash flows), at the higher of the cash
 generating unit''s selling price and the value in use.
 
 Value in use is determined as the present value of estimated future
 cash flow from the continuing use of an asset and from its disposal
 atthe end of its useful life.
 
 7.  Borrowing Cost
 
 Borrowing Cost attributable to the acquisition or construction of
 qualifying assets are capitalised as a part of the cost of such assets.
 All other borrowing costs are charged to revenue.
 
 8.  Inventories
 
 a.  Inventories are valued at lower of cost and estimated net
 realisable value. Cost is determined on ''First-in First-out'', ''Specific
 Identification'', or Weighted Averages'' basis as applicable. Cost of
 Inventories Comprises of all cost of purchase, cost of conversion and
 other costs incurred in bringing the inventories to their present
 location and condition. Cost of semi finished and finished goods are
 determined on absorption costing method.
 
 b.  All raw materials purchased are simultaneously issued for
 production. Accordingly material-in-process includes such raw materials
 as well. Semi Finished Goods are goods manufactured and pending for
 pre-shipment inspection.  Materials consumed are materials used in
 production of semi finished and finished goods only.
 
 c.  Identification of a specific item and determination of estimated
 net realizable value involve technical judgments of the management,
 which has been relied upon by the Auditors.
 
 9.  Investments
 
 Long-term investments including those held through nominees are stated
 at cost. Provision for diminution in the value of long-term investments
 (including Loans and Advances to Subsidiaries considered as a part of
 net investment) is made only if such a decline is otherthan temporary
 in the opinion of the management.
 
 Current investments are carried at lowerof cost and fair value.
 
 10.  Revenue Recognition
 
 Sale of Goods:
 
 Revenue from sales of goods is recognized when risk and rewards of
 ownership of the products are passed on to the customers, which is
 generally on dispatch of goods and is stated net of returns, trade
 discounts, claims etc.
 
 Dividend on Investment:
 
 Revenue is recognized when the right to receive payment is established.
 
 Interest Income:
 
 Interest Income is recognized on time proportionate basis taking into
 account the Revenue is recognized on time proportionate basis.
 
 Commission Income:
 
 Revenue is recognized on the accrual basis.
 
 11.  Foreign Currency Transactions:
 
 a.  Initial Recognition:
 
 Transactions denominated in foreign currencies are normally recorded at
 the exchange rate prevailing at the time of the transaction.
 
 b.  Conversion:
 
 Monetary items denominated in foreign currencies atthe year-end are
 translated at closing rates. Non-monetary items which are carried in
 terms of historical cost denominated in foreign currency are reported
 using the exchange rate at the date of transaction and investment in
 foreign companies are recorded at the exchange rates prevailing on the
 date of making the investments.  Contingent Liabilities are translated
 at closing rate.
 
 Exchange difference arising on translation of Loan and Advances to non
 integral wholly owned subsidiaries and forming part of net investment,
 are recognized in foreign currency translation reserve.
 
 c.  Exchange Differences:
 
 Exchange differences arising on the settlement of monetary items or on
 restatement of monetary items 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 expenses in the
 year in which they arise.
 
 d.  Forward Exchange Contract not intended for trading or speculation
 purposes:
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortized as expense or income overthe life of contract.
 Exchange differences on such contract are recognized in the profit and
 loss account in the year in which the exchange rate changes. Any profit
 or loss arising on cancellation or renewal of forward exchange contract
 is recognised as income or as expense.
 
 12.  Employee Benefits
 
 a.  Short term and other long term employee benefits are recognized as
 an expense at the undiscounted amount in the profitand loss account of
 the year in which the related service is rendered.
 
 b.  Employee''s Retirement benefits are recognized as an expense in the
 profit and loss for the year in which the employee has rendered
 services. The expense is recognized at the present value of the amounts
 payable, determined using actuarial valuation techniques. Actuarial
 gains and losses in respect of post employment and other long term
 benefits are charged to the profit and loss account.
 
 c.  In respect of Employee Stock Options, the excess of market price of
 shares as at the date of grant of option granted to employee (including
 certain employees'' of subsidiaries) over the exercise price is treated
 as Employee Compensation Cost and amortized on a straight line basis
 overthe vesting period.
 
 13.  Provision for Current and Deferred Taxation
 
 Provision for current tax is made after taking into consideration
 benefits admissible underthe provisions of the Income Tax Act, 1961.
 
 Deferred tax resulting from timing difference between 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. The
 deferred tax assets are recognized if there is a virtual certainty that
 the assets will be realized in future.
 
 14.  Earning Per Share
 
 The basic earning per share is computed by dividing the net profit
 after tax for the year by the weighted average number of equity shares
 outstanding during the year. For the purpose of calculating diluted
 earnings per share, net profit after tax for the year and weighted
 average number of shares outstanding during the year are adjusted for
 the effects of all dilutive potential equity shares. Dilutive potential
 equity shares are deemed converted as of the beginning of the year,
 unless they have been issued at a later date. The dilutive potential
 equity shares are adjusted for the proceeds receivable had the shares
 been actually issued atfair value (i.e. the average market value of the
 outstanding shares)
 
 15.  Provision, Contingent Liabilities and Contingent Assets
 
 Provisionsare recognized for liabilities that can be measured only by
 using a substantial degree of estimation, if
 
 a.  the Company has a present obligation as a result of past event,
 
 b.  a probable outflow of resources is expected to settle the
 obligation and
 
 c.  the amount of the obligation can be reliably estimated
 
 Contingent Liability* disclosed in case of
 
 a.  a present obligation arising from a past event, when it is not
 probable that an outflow of resources will be required to settle the
 obligation
 
 b. a possible obligation. unless the probability of out flow of
 resources is remote. Contingent Assets are neither recognized, nor
 disclosed.
 
 Provisions, Contingent Liabilities and Contingent Assets are reviewed
 at each Balance Sheet Date.