1 ACCOUNTING CONVENTION:
 
 The Financial Statements are prepared under the historical cost
 convention on accrual basis and in accordance with Generally Accepted
 Accounting Principles in India (Indian GAAP). The said financial
 statements comply with the relevant provisions of the Companies Act
 ,1956 (the Act) and the mandatory Accounting Standards notified by the
 Central Government of India under the Companies (Accounting Standards)
 Rules 2006, to the extent applicable.
 
 2 USE OF ESTIMATES
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Management
 believes that the estimates used in the preparation of financial
 statements are prudent and reasonable. Differences, if any, between the
 actual results and the estimates are recognised in the period in which
 the results are known/materialised.
 
 3 FIXED ASSETS, DEPRECIATION AND AMORTISATION:
 
 a) Fixed assets are stated at original cost (net of CENVAT/VAT wherever
 applicable) including expenses related to acquisition and installation.
 Borrowing costs are capitalized as part of qualifying fixed assets when
 it is possible that they will result in future economic benefits. Other
 borrowing costs are expensed.
 
 b) Capital work in progress is stated at the amount expended up to the
 balance sheet date.
 
 c) Capital Subsidy relating to projects in backward area is credited to
 capital subsidy reserve on receipt and Government grants relating to
 specific assets are deducted from the cost of such assets.
 
 d) Depreciation is provided, on all depreciable assets, except
 intangible assets, on a straight line basis at the rates prescribed
 under Schedule XIV of the Companies Act, 1956 .
 
 Depreciation on assets added/ disposed off during the year is provided
 on pro-rata basis from the month of addition or up to the month prior
 to the month of disposal, as applicable.
 
 e) Intangible Assets are amortized over a period of 5 years or based on
 the period of usage/licence, whichever is lower.
 
 f) Individual assets costing less than Rs.5,000 each are depreciated in
 full in the year of acquisition.
 
 4 IMPAIRMENT OF ASSETS:
 
 At each balance sheet date, the carrying values of the tangible and
 intangible assets are reviewed to determine whether there is any
 indication that those assets have suffered an impairment loss. If any
 such indication exists, the recoverable amount of the asset is
 estimated in order to determine the extent of the impairment loss (if
 any).
 
 Where there is an indication that there is a likely impairment loss for
 a group of assets, the Company estimates the recoverable amount of the
 group of assets as a whole, and the impairment loss is recognised.
 
 5 INVESTMENTS:
 
 Investments that are intended to be held for more than a year, from the
 date of acquisition, are classified as long term investments and are
 carried at cost. However, provision for diminution is made in the value
 of investments, if such diminution is other than of temporary nature .
 
 Current investments are stated at lower of cost or fair value.
 
 6 INVENTORIES:
 
 a) Finished Goods and work-in-progress are valued at lower of cost and
 net realizable value. Cost comprises of materials, labour, and an
 appropriate proportion of production overheads and excludes interest,
 selling and distribution expenses. Material cost is computed on
 weighted average basis.
 
 b) Raw materials, stores and spares are valued at lower of cost and net
 realizable value. Cost computed on weighted average basis includes
 freight .taxes and duties net of CENVAT/VAT credit, wherever
 applicable.
 
 7 REVENUE RECOGNITION:
 
 a) Revenues are recognized and expenses are accounted on their accrual
 with necessary provisions for all known liabilities and losses. Revenue
 from Sale of goods are recognised on despatch of goods. Sales are
 accounted net of sales tax / VAT, discounts and returns as applicable.
 
 b) Revenue from rendering of services is recognised on completion of
 services, as per the terms of contracts with customers.
 
 c) Export Benefits under Advance licence scheme are recognized on
 accrual basis on completion of export obligation.
 
 d) Dividend income on investments is accounted for when the right to
 receive the payment is established.  Interest income is recognised on a
 time proportion basis considering the underlying interest rate.
 
 8 EMPLOYEE BENEFITS: SHORTTERM EMPLOYEE BENEFITS
 
 Short term employee benefits including performance incentive and
 compensated absences which are expected to occur within 12 months after
 the end of the period in which the employee renders related service are
 determined as per Company''s policy and recognized as expense based on
 expected obligation on undiscounted basis.
 
 LONG TERM COMPENSATED ABSENCES
 
 Accumulated Compensated absences which fall due beyond 12 months is
 provided for in the books on actuarial basis at the year end using
 projected unit credit method.
 
 DEFINED CONTRIBUTION PLANS
 
 Superannuation fund. Provident fund and Pension fund are defined
 contribution plans towards which the company makes contribution at
 predetermined rates to the Superannuation Trust, and the Regional
 Provident Fund Commissioner respectively. The same is debited to the
 Statement of Profit and Loss on an accrual basis.
 
 The Company also makes contributions to state plans namely Employee''s
 State Insurance Fund and Employee''s Pension Scheme 1995 and has no
 further obligation beyond making the payment to them.
 
 DEFINED BENEFIT PLAN
 
 The liability for gratuity to employees as at the Balance sheet date is
 determined on the basis of actuarial valuation using Projected Unit
 Credit method. The amount is funded to a Gratuity fund administered by
 the trustees and managed by Life Insurance Corporation of India. The
 liability thereof is paid and absorbed in the profit and loss account
 at the year end. Actuarial Gains and losses arising during the year are
 recognised in the Statement of Profit and Loss immediately.
 
 Termination benefits are recognized as an expense as and when incurred.
 
 9 INCOME TAX:
 
 Income tax comprises the current tax provision and the net change in
 the deferred tax asset or liability during the year. Deferred tax
 assets and liabilities are recognized for the future tax consequences of
 timing differences between the carrying values of the assets and
 liabilities and their respective tax bases. Deferred tax assets are
 recognized subject to management''s judgment that realization is more
 likely than not. Deferred tax assets and liabilities are measured using
 enacted tax rates expected to apply to taxable income in the years in
 which the timing differences are expected to be received or settled.
 The effect on deferred tax assets and liabilities arising from change in
 tax rates is recognized in the income statement in the period of
 enactment of the change.
 
 10 FOREIGN CURRENCY TRANSACTIONS:
 
 Foreign currency transactions are recorded at the rates of exchange
 prevailing on the date of the transactions .  Monetary assets and
 liabilities outstanding at the year end are translated at the rate of
 exchange prevailing at the year end and the gain or loss is recognized
 in the Statement of Profit and Loss.
 
 Exchange differences arising on actual payments/ realizations and year
 end restatements are also recognised in the statement of profit and
 loss.
 
 11 RESEARCH AND DEVELOPMENT:
 
 Revenue expenditure on research and development is charged as an
 expense in the year in which it is incurred.  Capital expenditure on
 Research and Development is included in fixed assets and depreciated in
 accordance with the depreciation policy of the company.
 
 12 PROVISIONS AND CONTINGENT LIABILITIES:
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event, that can be estimated reliably and it is
 probable that an outflow of resources will be required to settle the
 obligation in respect of which a reliable estimate can be made.
 Provisions are not discounted to its present value and are determined
 based on best estimate required to settle the obligation at the balance
 sheet date.
 
 These are reviewed at each balance sheet date and adjusted to reflect
 the current best estimates. When no reliable estimate can be made, a
 disclosure is made as contingent liability and is disclosed by way of
 notes to accounts.
 
 13 SEGMENT REPORTING:
 
 The accounting policies adopted for segment reporting are in line with
 the accounting policies of the Company with the following additional
 policies:
 
 a) Inter-segment revenues are accounted on the basis of prices charged
 to external customers.
 
 b) Revenue and expenses are identified to segments on the basis of
 their relationship to the operating activities of the segment. Revenue
 and expenses, which relate to the enterprise as a whole and not
 allocable to segments on a reasonable basis are included under Other
 un-allocable Expenditure net of un- allocable income.
 
 14 EARNINGS/(LOSS) PER SHARE:
 
 The basic earnings/ (loss) per share is computed by dividing the net
 profit attributable to equity shareholders for the year by the weighted
 average number of equity shares outstanding during the year. The number
 of shares used in computing diluted earnings per share comprises the
 weighted average shares considered for deriving basic earnings per
 share, and also the weighted average number of equity shares that could
 have been issued on the conversion of all dilutive potential equity
 shares.
 
 15 CASH FLOW STATEMENT
 
 The cash flows from operating, investing and financing activities of
 the Company are segregated based on the available information. Cash
 flows from operating activities are reported using the indirect method,
 whereby profit / (loss) before extraordinary items and tax is adjusted
 for the effects of transactions of non-cash nature and any deferrals or
 accruals of past or future cash receipts or payments.
 
 Note 2 (iii)
 
 Rights, Preferences and Restrictions attached to shares
 
 The Company has only one class of equity shares with voting rights (one
 vote per share). The dividends proposed by the Board of directors is
 subject to approval of the shareholders in the Annual General Meeting.
 In the event of liquidation of the Company, the equity shareholders are
 entitled to receive only the residual assets of the Company. The
 distribution of dividend are in the proportion to the number of equity
 shares held by the shareholders.
 
 NOTE
 
 (a) Principal amount payable to Micro and Small Enterprises (to the
 extent identified by the company from available information and relied
 upon by the auditors) as at 31st March, 2012 is Rs.29.85 lacs (Previous
 year - Rs 36.84 lacs)
 
 (b) There are no dues to Micro and Small Enterprises as per The Micro,
 Small and Medium Enterprises Development Act 2006 which are outstanding
 for more than 45 days at the Balance Sheet date. The above information
 has been determined to the extent such parties have been identified on
 the basis of information available with the company. This has been
 relied upon by the auditors.
 
 Note
 
 The unclaimed dividend of Rs. 24.09 lacs represents those relating to
 the years 2005 to 2011 and no part thereof has remained unpaid or
 unclaimed for a period of seven years from the date they became due for
 payment requiring transfer to the Investor Education and Protection
 Fund.
 
 Note: In the previous year, dividend income from subsidiary was
 recognised as income based on such declaration by the subsidiary
 company even though the same was declared after the balance sheet date
 as per requirements of old schedule VI. In the current year, such
 dividend income is recognised only when the right to receive the same
 on or before the balance sheet date is established. This method of
 recognition has resulted in a change in accounting policy. However,
 there is no impact on the current year profits on account of such
 change.