The financial statements have been prepared to comply in all material respects with the notified accounting standards by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies applied by the company are consistent with those used in the previous year.

II) Revenue Recognition

Revenue/Income and Cost/Expenditure are generally accounted on accrual basis as they are earned or incurred. Incentives from various government agencies (for which the company is entitled under different schemes of the Government) are accounted for in the year of eligibility.

III) Use of Estimates The preparation of financial statements requires management to make certain estimates and assumptions that effects the amounts reported in the financial statements and notes thereto. Difference between actual results and estimates are recognized in the period in which the results are known/ materialized.

IV) Fixed Assets and Depreciation Fixed Assets

Fixed Assets are stated at cost of construction/ acquisition less accumulated depreciation and impairment losses. Cost comprises Purchase price and all other Costs of bringing the assets to its working condition for intended use. Financial costs relating to acquisition of qualifying fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use. Pre-operative expenses for major projects are also capitalised, where appropriate Depreciation

Depreciation on fixed assets is provided on straight line method in the manner and at the rates specified in schedule XIV to the Companies Act, 1956.

Impairment Loss

Company has reviewed its future earning of its cash generating unit as on 31st March 2014 in accordance with the accounting standard issued by 'The Institute of Chartered Accountant of India'. Since the carrying amount of the assets does not exceed the future recoverable amount, consequently, no adjustment is considered necessary by the Management.

V) Inventories

Inventories are valued at lower of cost or estimated net realizable value. The basis of determination of cost for different categories of inventories are as follows:

Raw Material , Store and spares At lower of cost or net realizable value on first-in first-out basis Finished Goods At lower of cost or net realizable value

Work in Progress The cost includes - Material cost, Labour and appropriate share of

manufacturing and other costs incurred in bringing the inventories to the present location and condition.

VI) Sales

Sales/Sales Returns are accounted for on dispatch of goods from/receipt of goods in the factory to/from the customers or Rejection. Sales are net of returns, if any, rejection of goods.

VII) Custom Duty and Excise Duty

Custom Duty and Excise Duty is accounted for at the time of dispatch of goods from factory.

VIII) Foreign Exchange Transactions

a) Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of transaction.

b) At the year end, monetary items denominated in foreign currencies other than those covered by forward contracts are converted into rupee equivalent at the year-end exchange rates.

c) All exchange differences arising on settlement / conversion of foreign currency transactions are recorded in the Profit and loss account

d) In respect of transactions covered by forward exchange contracts, the difference between

the forward rate and the exchange rate at the date of the transaction is recognized as income or expense over the period of contract.

IX ) Research & Development

Revenue expenditure on research & Development (other than Cost of Assets acquired) are charged to Profit and Loss Account in the year in which they are incurred.

X ) Employee Benefits

a) Short Term Employee Benefit :All employees' benefits payable within twelve months of rendering of services are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, earned leave, awards, exgratia etc. and the same are recognized in the period in which the employee renders the related service.

b) Post Employment Benefits:

i) Defined Contribution Plan:

The Company's approved superannuation scheme, provident Fund Scheme are defined contribution plans. The contribution paid / Payable under the schemes are recognized during the period in which the employee renders the related services.

ii) Defined Benefit Plan:

The employee's gratuity fund scheme is company's defined benefit plan. The present value of the obligation under such defined benefit plan is determined based on the actuarial valuation using the Project Unit Credit Method as at the date of the Balance Sheet. In case of Funded plans, the fair value of the plan asset is reduced from the gross obligation under the defined benefits plan, to recognize the obligation on the net basis.

XI ) Deferred Revenue Expenditure

Processing charges and Syndication paid for obtaining Term Loans for repayment of High cost loans has been treated as Deferred Revenue Expenditure and are written off over the period of loan.

XII) Taxation

Current tax is determined as the amount of tax payable in respect of taxable income for the period based on applicable tax rate and laws. Deferred tax is recognized on timing difference, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods and is measured using tax rate and laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are reviewed at each Balance Sheet date.

XIII) Expenditure during Construction Period

In the case expansion of existing/New units, all pre-operating expenditure especially for the project, incurred up to the date of installation, are capitalized and added pro rata to the cost of fixed assets.

XIV) Borrowing costs:

Borrowing costs attributable to the acquisition and construction of qualifying assets are added to the cost up to the date when such assets are ready for the intended use. The other borrowing costs are recognized as expense in the period in which these are incurred.

XV) Prior Period & Extraordinary Items

Prior period, extra ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.

XVI) Provision & Contingent Liabilities

The company recognises a provision when there is a 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. Where there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.