(a) Principal Accounting Policies
 
 The financial statements have been prepared to comply in all material
 aspects with all the applicable accounting principles in India, the
 applicable accounting standards u/s 211(3C) of the Companies Act, 1956
 and the relevant provisions of the Companies Act, 1956. A summary of
 important accounting policies which have been applied consistently are
 set out below. Financial Statements have also been prepared in
 accordance with relevant presentational requirements of the Companies
 Act, 1956 of India.
 
 (b) Basis of Accounting
 
 The Financial Statements have been prepared under the historical cost
 convention.
 
 (c) Fixed Assets
 
 (i) Fixed Assets are stated at their acquisition cost (net of CENVAT
 credit), where applicable together with any incidental expenses of
 acquisition/installation. Cost of acquisition includes borrowing costs
 that are directly attributable to the acquisition/construction of
 qualifying assets. Impairment loss, if any, ascertained as per the
 Accounting Standard u/s 211 (3C) of the Companies Act, 1956.
 
 (ii) Depreciation on fixed assets, other than leasehold land, is
 provided on Straight Line Method in accordance with Schedule XIV of the
 Companies Act, 1956. Leasehold land is amortized over the period of
 lease. No depreciation is provided for freehold land.
 
 (iii) Computer software has been capitalised as Intangible Assets and
 are being amortised in equal installments over its useful life of three
 years.
 
 (iv) Profit or loss on disposal of fixed assets is recognised in Profit
 and Loss Account.
 
 (d) Investments
 
 Investments of long term nature is stated at cost, less adjustment for
 diminution, other than temporary, in the value thereof.
 
 (e) Inventories
 
 Inventories are stated at cost (net of CENVAT credit) or net realisable
 value, whichever is lower. Cost is determined on weighted average basis
 and comprises of expenditure incurred in the normal course of business
 in bringing such inventories to their location and includes, where
 applicable appropriate overheads. Obsolete, slow moving and defective
 inventories are identified at the time of physical verification and
 where necessary, provision is made for such inventories.
 
 (f) Sales
 
 Sales represent the invoiced value of goods and services supplied, net
 of value added tax (VAT)/sales tax but inclusive of excise duty.
 
 (g) Transactions in Foreign Currencies
 
 Transactions in foreign currencies are recorded in rupees by applying
 the exchange rate prevailing on the date of transaction. Transactions
 remaining unsettled are translated at the rate of exchange ruling at
 the end of the year. Exchange gain or loss arising on
 settlement/translation is recognised in the Profit and Loss Account.
 Premium or discount on forward contracts are amortised over the life of
 the contract. Foreign exchange forward contracts are revalued at the
 balance sheet date and the exchange difference between the spot rate at
 the date of the contract and the spot rate on the balance sheet date is
 recognised as gain/loss in the Profit & Loss Account.
 
 (h) Employee Benefits
 
 (I) Post Retirement Benefits:
 
 (a) Provident Fund The Company Operates defined contribution schemes
 Like Provident Fund. The Company makes regular contribution to
 Provident Fund which are fully funded and administered by Government
 and are Independent of Companys finance. Contributions are recognized
 in Profit & Loss Account on an accrual basis.
 
 (b) Gratuity Defined Benefit Plans like Gratuity Schemes are also
 maintained by the Company. The Company has taken out a policy with Life
 Insurance Corporation of India (LICI) for future payment of Gratuity
 liability to its employees. Gratuity liability is determined at the end
 of each year by LICI in accordance with the method stated in the
 Accounting Standard 15 (Revised 2005) on Employee Benefits and such
 liability has been provided for in the accounts. Annual Premium
 determined by LICI is contributed.
 
 (II) Other Employee Benefits:
 
 (a) Leave Encashment Leave encashment benefit is determined on the
 basis of independent actuarial valuation, at the end of each year in
 accordance with the method stated in AS 15 (Revised 2005) and such
 liability is provided for in the accounts and charge is recognized in
 the Profit and Loss Account.
 
 (b) Other Employee Benefits are accounted for on accrual basis.
 
 (i) Deferred Tax
 
 Deferred Tax is recognised using the liability method, at the current
 rate of taxation, on all timing differences to the extent it is
 probable that a liability or asset will crystallise. Deferred Tax
 Assets are recognised subject to consideration of prudence and are
 periodically reviewed to reassess realisation thereof.
 
 (j) Borrowing Cost
 
 Borrowing costs attributable to acquisition and/or construction of
 qualifying assets are capitalized as a part of the cost of such assets
 upto the date when such assets are ready for its intended use. Other
 borrowing costs are charged to Profit & Loss Account.
 
 (k) Leases
 
 Assets acquired as leases where a significant portion of the risk and
 rewards of ownership are retained by the lessor are classified as
 operating leases. Lease rentals are charged to the Profit and Loss
 Account on accrual basis.
 
 (l) Miscellaneous Expenditure - To the extent not written off or
 adjusted
 
 Public issue expenses have been amortized in equal installment over a
 period of five years.