i) Basis of preparation of financial statements
 
 The financial statements have been prepared and presented under the
 historical cost convention on the accrual basis of accounting following
 generally accepted accounting principles in India (GAAP) and comply
 with the Accounting Standards prescribed by the Companies (Accounting
 Standards) Rules, 2006 (as amended) and the relevant provisions of the
 Companies Act, 1956, to the extent applicable.
 
 ii) Use of estimates
 
 The preparation of the financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities and the disclosure of
 contingent liabilities on the date of the financial statements. Actual
 results could differ from those estimates. Any revision to accounting
 estimates is recognised prospectively in current and future periods.
 
 iii) Fixed Assets
 
 a) Cost
 
 Fixed assets are stated at cost of acquisition (net of CENVAT) less
 accumulated depreciation/amortisation.  Cost of acquisition includes
 taxes, duties, freight and other costs that are directly attributable
 to bringing assets to their working condition for their intended use.
 Spares that can be used only with particular items of plant and
 machinery and such usage is expected to be irregular are capitalised.
 
 b) Depreciation/Amortisation Tangible Assets
 
 Depreciation is provided under the straight line method over useful
 lives of fixed assets, as estimated by management. Useful lives so
 estimated are in line with the useful lives derived from depreciation
 rates prescribed in Schedule XIV to the Companies Act, 1956, except for:
 
 - Toolings and certain items of plant and machinery at customers'' site
 are depreciated over a period of three years.
 
 - Leasehold lands are being amortised over the period of leases.
 
 - Spares capitalized are being depreciated over the useful lives of
 plant and machinery with which such spares can be used.
 
 Immoveable assets constructed on leasehold land are being depreciated
 over their useful lives that are higher than period of leases. Based on
 extension granted to land possession of other companies under similar
 circumstances, management believes that, in case of the Company, the
 existing period of leases will be extended beyond the useful lives of
 immoveable assets constructed thereon.
 
 Assets individually costing Rs.5,000 or less are fully depreciated in
 the year of acquisition.
 
 Intangible Assets
 
 Computer software are being amortised over their useful lives of 3
 years as estimated by management.
 
 c) Impairment of fixed assets
 
 The carrying amounts of fixed assets and capital work in progress are
 reviewed at each balance sheet date in accordance with Accounting
 Standard 28 on ''Impairment of Assets'' to determine whether there is
 any indication of impairment. If any such indication exists, the assets
 recoverable amounts are estimated at each reporting date. An impairment
 loss is recognised whenever the carrying amount of an asset or the cash
 generating unit of which it is a part exceeds the corresponding
 recoverable amount.  Impairment losses are recognised in the profit and
 loss account. An impairment loss is reversed if there has been a change
 in the estimates used to determine the recoverable amount. An
 impairment loss is reversed only to the extent that the assets carrying
 amount does not exceed the carrying amount that would have been
 determined net of depreciation or amortisation, if no impairment loss
 had been recognised.
 
 iv) Inventories
 
 Raw materials and stores and spare parts are carried at cost. Cost
 includes purchase price, duties and taxes (other than those
 subsequently recoverable by the enterprise from the taxing
 authorities), freight inwards and other expenditure incurred in
 bringing such inventories to their present location and condition.  In
 determining the cost, weighted average cost method is used. 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.
 
 Work-in-progress and manufactured finished goods are valued at the
 lower of cost and net realisable value.  The comparison of cost and net
 realisable value is made on an item by item basis. Cost of
 work-in-progress and manufactured finished goods comprises direct
 material and labour expenses and an appropriate portion of production
 overheads incurred in bringing the inventory to their present location
 and condition. Fixed production overheads are allocated on the basis of
 normal capacity of the production facilities.
 
 Traded finished goods are valued at the lower of cost of procurement
 and net realisable value.
 
 Excise duty liability is included in the valuation of closing
 Inventory of finished goods.
 
 v) Foreign Currency Transactions
 
 Foreign exchange transactions are recorded at monthly rates that
 closely approximates the actual rates during that month. Year-end
 monetary assets and liabilities denominated in foreign currencies are
 translated at the year-end foreign exchange rates. Non-monetary items
 which are carried in terms of historical cost denominated in a foreign
 currency are reported using the exchange rate at the date ofthe
 transaction.  Exchange differences arising on the 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 recognized
 as income or as expenses in the year in which they arise.
 
 vi) Taxation
 
 Income tax expense comprises current tax, fringe benefit tax for the
 relevant period (i.e. amount of taxes for the year determined in
 accordance with the Income-tax Act, 1961) and deferred tax charge or
 credit (reflecting the tax effects of timing differences between
 accounting income and taxable income for the year).  The deferred tax
 charge or credit and the corresponding deferred tax liabilities or
 assets are recognised using the tax rates that have been enacted or
 substantively enacted by the Balance Sheet date.
 
 Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realised in future.
 However, where there is unabsorbed depreciation or carried forward loss
 under taxation laws, deferred tax assets are recognised only if there
 is a virtual certainty of realisation of such assets.  Deferred tax
 assets are reviewed as at each balance sheet date and written down or
 written up to reflect the amount that is reasonably / virtually certain
 (as the case may be) to be realised.
 
 vii) Revenue
 
 Sale of Goods
 
 Revenue from sale of goods (excluding sales tax and value added tax) is
 recognised when significant risks and rewards of ownership in the goods
 is transferred to customers and it is not unreasonable to expect
 ultimate collection of the sale consideration that has been recognised
 as revenue.
 
 Sale of Services
 
 Revenue from sale of services (excluding service tax) is recognised on
 completion of service in accordance with terms of the agreement.
 
 viii) Other Income
 
 Export incentives are recognised on accrual basis against goods
 exported.
 
 ix) Government Grant
 
 Grants from the government are recognized when there is reasonable
 assurance that the grant will be received and all attaching conditions
 will be compiled with. When the grant relates to an expense item, it is
 recognized as income over the periods necessary to match them on a
 systematic basis to the costs, which it is intended to compensate.
 Where the grant relates to a depreciable asset, its value is deducted
 from the gross value of the asset concerned in arriving at the carrying
 amount of the related asset. Grants related to non depreciable assets
 are credited to Capital Reserve.
 
 x) Employee Benefits
 
 The Company''s obligations towards various employee benefits have been
 recognised as follows:
 
 I) Short term benefits
 
 Cost of accumulating compensated absences that are expected to be
 availed within a period of 12 months from the year end are recognised
 when the employees render the service that increases their entitlement
 to future compensated absences. Cost is computed based on past trends
 and is not discounted.
 
 Cost of non-accumulating compensated absences is recognised when
 absences occur. Costs of other short term employee benefits are
 recognised on accrual basis based in accordance with the terms of
 employment contract and other relevant compensation policies followed
 by the Company.
 
 II) Post Employment Benefits
 
 a) Provident Fund
 
 Monthly contributions to Provident Funds which are defined contribution
 schemes are charged to Profit and Loss Account and deposited with the
 Provident Fund authorities on a monthly basis.
 
 b) Pension
 
 The Company has a defined contribution employee retirement scheme in
 the form of pension. The Trustees of the scheme have entrusted the
 administration of the related fund to the Life Insurance Corporation of
 India (LICI). Contributions are deposited with the LICI and charged off
 on a monthly basis.
 
 c) Gratuity
 
 The Company has a defined benefit employee retirement scheme in the
 form of gratuity. The Trustees of the scheme have entrusted the
 administration of the related fund to the Life Insurance Corporation of
 India (LICI) upto September 30, 2010 and there after both to the LICI
 and SBI Life Insurance Company Limited (SBI Life). Charge for the year
 is determined on the basis of actuarial valuation made as at the
 balance sheet date on projected unit credit method of the Company''s
 year-end obligation in this regard and the value of year-end assets
 of the scheme. Actuarial gains and losses for the year are recognised in
 the profit and loss account as income or expense. Contributions were
 deposited with the LICI upto September 30, 2010 and there after
 deposited with the SBI Life based on intimations received by the
 Company.
 
 III) Other Long Term Benefits
 
 Cost of long term benefit by way of accumulating compensated absences
 that are expected to be availed after a period of 12 months from the
 period-end are recognised when the employees render the service that
 increases their entitlement to future compensated absences. Such costs
 are recognised based on actuarial valuation of related obligation on
 the reporting date. Actuarial gains and losses for the period are
 recognised in the Profit and Loss Account as income or expense.
 
 xi) Earnings per share
 
 Basic earnings per share is computed using the weighted average number
 of equity shares outstanding during the period. Diluted earnings per
 share is computed using the weighted average number of equity and
 dilutive potential equity shares outstanding during the year, except
 where the results would be anti dilutive.
 
 xii) Provisions and contingent liabilities
 
 A provision is recognised in the financial statements where there
 exists a present obligation as a result of a past event, the amount of
 which is reliably estimated, and it is probable that an outflow of
 resources will be necessary to settle the obligation. Contingent
 liability is a possible obligation that arises from past events and the
 existence of which will be confirmed only by the occurrence or
 non-occurrence of one or more uncertain future events not wholly within
 the control of the company and / or is a present obligation that arises
 from past events but is not recognised because either it is not
 probable that an outflow of resources embodying economic benefits will
 be necessary to settle the obligation, or the amount of the obligation
 cannot be reliably estimated.