1.1 Basis of preparation of financial statements
 
 The financial statements are prepared and presented under the
 historical cost convention on the accrual basis of accounting and
 comply with the Accounting Standards issued under Companies Accounting
 Standard Rules, 2006 and the relevant provisions of the Companies Act,
 1956, to the extent applicable.
 
 1.2 Use of estimates
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles in India requires management to make
 estimates and assumptions that affect the reported amount of assets and
 liabilities and disclosure of contingent liabilities on the date of the
 financial statements. Actual results may differ from those estimates.
 Any revision to accounting estimates is recognised prospectively in
 current and future periods.
 
 1.3 Fixed assets and depreciation/amortisation
 
 Tangible fixed assets
 
 Tangible fixed assets are stated at historical cost less accumulated
 depreciation. Cost comprises purchase price, duties, levies and other
 directly attributable expenses of bringing the asset to its working
 condition for the intended use.
 
 Borrowing costs directly attributable to acquisition or construction of
 those tangible fixed assets, which necessarily take a substantial
 period of time to get ready for their intended use, are capitalised.
 
 Advances paid towards acquisition of fixed assets and the cost of
 assets acquired but not ready for use as at the balance sheet date are
 disclosed under capital work-in-progress.
 
 Depreciation on tangible fixed assets, is provided using the written
 down value method at the rates specified under Schedule XIV to the
 Companies Act, 1956. In respect of fixed assets purchased during the
 year, depreciation is provided on a pro-rata basis from the date on
 which such asset is ready to be put to use.  Intangible fixed assets
 
 Intangible fixed assets are stated at historical cost less accumulated
 amortisation. Cost comprises purchase price, duties, levies and other
 directly attributable expenses of bringing the assets to its working
 condition for the intended use. Cost is amortised over its useful
 economic life based on expected benefit.
 
 1.4 Impairment of assets
 
 In accordance with accounting standard 28 on ''Impairment of assets'',
 the Company assesses at each balance sheet date whether there is an
 indication that assets of the Company may be impaired. Where any such
 indication exists the Company estimates the recoverable amount of the
 assets.The recoverable amount of the assets (or where applicable that
 of the cash generating unit to which the asset belongs) is estimated at
 the higher of its net selling price and its value in use. An impairment
 charge is recognised whenever the carrying amount of the asset or
 cash-generating unit exceeds its recoverable amount.
 
 1.5 Investments
 
 Long-term investments are carried at cost less any other than temporary
 diminution in value, determined separately for each individual
 investment. Current investments are carried at lower of cost and fair
 value.
 
 1.6 Inventories
 
 Inventories are valued at lower of cost and net realisable value. Cost
 is determined under the first-in, first- out method and includes all
 costs incurred in bringing the inventories to their present location
 and condition.  Finished goods and work-in-progress include appropriate
 proportion of costs of conversion.
 
 1.7 Revenue recognition
 
 Revenue from sale of goods is recognised on transfer of all significant
 risks and rewards of ownership to the buyer. Sales are stated net of
 excise duty, sales tax and trade discounts.
 
 Interest on deployment of surplus funds is recognized using the
 time-proportion method, based on interest rates implicit in the
 transaction based on reasonable certainty of receipt. Interest on
 advances is recognized when the ultimate collection is not uncertain.
 Dividend income is recognized when the right to receive dividend is
 established.
 
 1.8 Employee benefits
 
 (i) Post-employment Benefits: (a) Defined Contribution Plans:
 
 The Company has Defined Contribution Plans for post employment
 benefits, charged to Profit & Loss Account, in form of:
 
 - Provident Fund / Employee''s Pension Fund administered by the Regional
 Provident Fund Commissioner,
 
 - Superannuation Fund as per Company''s policy administered by Life
 Insurance Corporation of India;
 
 - Group Life Insurance cover, as per Company''s policy.  (b) Defined
 Benefit Plans:
 
 Funded Plan: The Company has Defined Benefit Plan for post employment
 benefits in the form of Gratuity for all employees administered through
 trust, funded with Life Insurance Corporation of India.
 
 Unfunded Plan: The Company has unfunded Defined Benefit Plans in the
 form of Compensated Absences [CA] and Post Retirement Medical Benefit
 (PRMB) as per Company policy.
 
 Liability for the above Defined Benefit Plans is provided on the basis
 of actuarial valuation, as at the balance sheet date, carried out by
 independent actuary. The actuarial method used for measuring the
 liability is the Projected Unit Credit Method.  (ii) The actuarial
 gains and losses arising during the year are recognized in the Profit &
 Loss Account for the year.
 
 1.9 Foreign currency transactions
 
 Foreign currency transactions are recorded at exchange rates prevailing
 on the date of the transaction.  The difference between the actual rate
 of settlement and the rate on the date of the transaction is charged or
 credited to profit and loss account.
 
 In respect of monetary current assets and liabilities denominated in
 foreign currencies the overall net gain or loss, if any, on conversion
 at the exchange rates prevailing on the date of the balance sheet is
 charged to revenue.
 
 1.10 Taxation
 
 Income tax expense comprises current tax expense and deferred tax
 expense/credit.
 
 Current tax
 
 Provision for current tax is calculated in accordance with the
 provisions of the Income-Tax Act, 1961 and is made annually based 
 on the tax liability computed after considering tax allowances and 
 exemptions.
 
 Assets and liabilities representing current tax are disclosed on a net
 basis when there is a legally enforceable right to set off and where 
 the management intends to settle the asset and liability on a net
 basis.
 
 Deferred tax
 
 Deferred tax liability or asset is recognised for timing differences
 between the profits/losses offered for income taxes and profits/
 losses as per the financial statements.Deferred tax assets and 
 liabilities are measured using the tax rates and tax laws that have 
 been enacted or substantively enacted at the balance sheet date.
 
 Deferred tax assets are recognised only to the extent there is a
 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 w.ritten-up to reflect the amount that is reasonably
 /virtually certain (as the case may be) to be realised.
 
 1.11 Earnings per share (EPS)
 
 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 dilutive equity equivalent shares
 outstanding during the year except where the results would be anti
 dilutive. The number of equity shares is adjusted for any share splits
 and bonus shares issued effected prior to the approval of the financial
 statements by the Board of Directors.
 
 1.12 Contingencies and provisions
 
 The Company creates a provision when there is present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. When there is a possible obligation or
 a present obligation in respect of which the likelihood of outflow of
 resources is remote, no provision or disclosure is made.