i) General:
 
 The financial statements have been prepared on the historical cost
 convention in accordance with generally accepted accounting principles.
 
 ii) Presentation and disclosure of financial statements:
 
 During the year ended 31st March 2012, the revised Schedule VI notified
 under the Companies Act, 1956 has become applicable to the Company, for
 preparation and presentation of its financial statements. The adoption
 of revised Schedule VI does not impact recognition and measurement
 principles followed for preparation of financial statements. However,
 it has significant impact on presentation and disclosures made in the
 financial statements. The Company has also reclassified the previous
 year figures in accordance with the requirements applicable in the
 current year.
 
 iii) Fixed Assets and Depreciation:
 
 a) Fixed assets are stated at historical cost net of CENVAT and VAT
 credits as reduced by accumulated depreciation.
 
 b) Depreciation on fixed assets has been provided -
 
 (i) at the rates specified in Schedule XIV of the Companies Act, 1956
 
 - on straight line method for plant and machinery and buildings and
 
 - on written down value method for electronic data processing machines
 and other fixed assets.
 
 (ii) on the basis of estimated life of the capital tools.
 
 c) Leasehold land:
 
 Premium paid on leasehold land is amortised over the lease period.
 
 d) The cost of software relating to ERP is amortised over the estimated
 useful life viz. 5 years. The cost of other intangible assets are
 amortised over the estimated useful life viz. 3 years.
 
 e) (i) The expenditure during construction period relating to the new
 projects till the commencement of commercial production is capitalised
 and allocated to fixed assets.
 
 (ii) In accordance with AS 16 - Borrowing costs issued by the ICAI, the
 borrowing costs attributable to the new projects are capitalised till
 the commencement of commercial production and included in expenditure
 during construction period and allocated to fixed assets and other
 borrowing costs are recognised in the year in which it is incurred.
 
 iv) Investments:
 
 Investments are stated at cost less provision for dimunition other than
 temporary if any, in value of such investments.
 
 v) Inventories:
 
 The stock of raw materials, stores, loose tools and goods in transit
 are valued at cost (net of CENVAT and VAT credits on weighted average
 basis). The stock of finished goods and work-in-process are valued at
 cost (net of CENVAT and VAT credits including appropriate overheads) or
 market value whichever is lower.
 
 vi) Revenue recognition:
 
 Revenue from the sale of goods is recognised when the significant risks
 and rewards of ownership have been transferred. Service revenues are
 recognised when services are rendered. Interest income is recognised on
 time proportion basis.
 
 vii) Staff terminal benefits:
 
 a) Provident Fund:
 
 Eligible employees receive benefits from Provident Fund which is
 defined contribution plan.  Both, the employees and the Company make
 monthly contributions to the regional provident fund authorities/
 Company''s Employees Provident Fund Trust, equal to specified percentage
 of eligible covered employees salary. The Company has no other
 obligations than the monthly contributions.
 
 b) Gratuity:
 
 The gratuity plan provides for a lump sum payment to vested employees
 eligible for gratuity at the time of retirement, death, incapacity or
 termination of employment. Liabilities with regard to the gratuity plan
 are determined by actuarial valuation as at the Balance Sheet date
 based upon which the Company contributes all the ascertained
 liabilities to LIC, who is the administrator of the plan.
 
 c) Superannuation:
 
 Eligible employees receive benefit from Superannuation at the time of
 retirement, death or leaving the services. The Company makes an annual
 contribution to LIC of India, equal to a specific percentage of the
 eligible employee''s basic salary. Apart from this, the Company has no
 other obligation under this head.
 
 d) Unencashed Leave Salary:
 
 Unencashed leave salary is accounted on actuarial valuation and the
 Company contributes part of the ascertained liabilities to SBI Life
 Insurance, who is the administrator of the plan.
 
 viii) Research & Development expenses:
 
 Revenue expenditure on Research & Development is charged to profit &
 loss statement in the year in which it is incurred.
 
 ix) Foreign Currency Transactions:
 
 The exchange differences arising on reporting of Long Term Foreign
 Currency Monetary Items at rates different from those at which the
 transactions were initially recorded during the financial year, in so
 far as they relate to depreciable capital assets are added to or
 deducted from the cost of the asset and are depreciated over the
 balance life of the asset and in other cases are accumulated in Foreign
 Currency Monetary Item Translation Difference Account and amortized
 over the balance period of such long term asset / liability but not
 beyond 31st March, 2020.
 
 Foreign currency transactions other than the above items outstanding at
 the year end are accounted for at year end rates and the profit / loss
 so determined and also the realised exchange gains / losses are
 recognized in the Profit and Loss Statement. In respect of Forward
 Exchange contracts, the difference between the forward rate and the
 exchange rate at the date of inception of the contract is recognized as
 income or expense over the period of the contract. Any profit or loss
 arising on cancellation or renewal of such forward exchange contracts
 is recognized as income or expense for the year.
 
 x) Export Incentives:
 
 Export incentives are recognised as revenue as and when exports are
 made.
 
 xi) Derivative Contracts:
 
 The profit / loss arising on derivative contracts is accounted for as
 income/expenditure on the date of settlement of the contract.
 
 The outstanding derivative contracts are revalued at the end of the
 year and while the net loss arising therefrom is debited to profit and
 loss statement, the net unrealised gain is ignored, except in case
 where they relate to borrowing costs that are attributable to the
 acquisition of Fixed Assets, in which case they are adjusted to the
 carrying cost of such fixed assets.
 
 xii) Operating Leases:
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased assets are classified as
 operating leases. Operating lease payments are recognised as an expense
 in the revenue account as per the lease terms.
 
 xiii) Taxes on Income:
 
 Current tax is the amount of tax payable on the taxable income for the
 year and is determined in accordance with the provisions of the Income
 Tax Act, 1961.
 
 Deferred tax is recognised on timing differences; being the differences
 between taxable income and accounting income that originate in one
 period and are capable of reversal in one or more subsequent periods.
 
 Deferred tax assets in respect of unabsorbed depreciation and carry
 forward of losses are recognised only if there is virtual certainty
 that there will be sufficient future taxable income available to
 realise such assets. Other deferred tax assets are recognised if there
 is reasonable certainty that there will be sufficient future taxable
 income available to realise such assets.
 
 xiv) Provisions and Contingencies:
 
 The Company creates a provision when there is a present obligation as a
 result of past event that probably requires an outflow of resources and
 a reliable estimate can be made of the amount of obligations. A
 disclosure of contingent liability is made when there is a possible
 obligation or a present obligation that will probably not require
 outflow of resources or where a reliable estimate of the obligation
 cannot be made.