1. Accounting Convention 
 
 The financial statements are prepared under the historical cost
 convention on the Accrual Concept of accountancy in accordance with
 the accounting principles generally accepted in India and comply with
 the accounting standards issued by the Institute of Chartered
 Accountants of India to the extent applicable and with the relevant
 provisions of the Companies Act, 1956.
 
 2. Use of Estimates 
 
 The preparation of financial statements requires management to make
 estimates and assumptions 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. Difference
 between the actual results and estimates are recognized in the period
 in which results are known / materialized.
 
 3. Fixed Assets 
 
 Tangible and Intangible Assets are stated at cost less accumulated
 depreciation and impairment losses, if any. Cost comprises of all
 expenses incurred to bring the assets to its present location and
 condition. Borrowing costs directly attributable to the acquisition /
 construction are included in the cost of fixed assets.  
 
 In case of new projects / expansion of existing projects, expenditure
 incurred during construction / preoperative period including interest
 and finance charges on specific / general purpose loans, prior to
 commencement of commercial production are capitalized. The same has
 been allocated to the respective fixed assets on completion of
 construction / erection of the capital project / fixed assets.  
 
 Capital assets (including expenditure incurred during the construction
 period) under erection / installation are stated in the Balance Sheet
 as “Capital Work in Progress.”
 
 4. Lease Assets acquired under 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.  
 
 5. Impairment of Assets At each balance sheet date, the Company reviews
 the carrying amounts of its fixed assets to determine whether there is
 any indication that those assets suffered an impairment loss. If any
 such indication exists, the recoverable amount of the asset is
 estimated in order to determine the extent of impairment loss.
 Recoverable amount is the higher of an asset’s net selling price and
 value in use. Of the asset and from its disposal are discounted to
 their present value using a pre-tax discount rate that reflects the
 current market assessments of time value of money and the risks
 specific to the asset.  
 
 6. Depreciation 
 
 All Tangible assets, except freehold land, leasehold land and capital
 work in progress, are depreciated on a straight line method at the
 rates and in the manner prescribed in Schedule XIV of the Companies’
 Act, 1959.  Depreciation on additions to / deletions from fixed assets
 made during the period is provided on pro-rata basis form / up to the
 month of such addition / deletion as the case may be.  Amortisation in
 respect of Intangible assets is provided on Straight Line basis over
 the period of under lying contract or estimated period its economic
 life.  Leasehold land is amortized over the period of lease.
 
 7. Investments 
 
 Long term investments are stated at cost. Current investments are
 stated at lower of cost and market price. Provision for diminution in
 the value of long term investments is made only if such a decline is
 other than temporary in the opinion of the management.
 
 8. Inventories 
 
 Inventories are measured at lower of cost and net realizable value.
 Cost of raw materials, stores & spares parts are ascertained on FIFO
 basis. Cost for finished goods and process stock is ascertained on full
 absorption cost basis. Cost of inventories comprises of cost of
 purchase, cost of conversion and other costs incurred in bringing them
 to their present location & condition.
 
 9. Government Grants: 
 
 Government grants are recognized when there is reasonable assurance
 that the same will be received. Revenue grants are recognized in the
 Profit and Loss account. Capital grants relation to specific fixed
 assets are reduced from the gross value of the respective fixed assets.
 
 10. Revenue Recognition 
 
 Sales are recognized when goods are supplied.  Sales are net of trade
 discounts, rebates and sales tax. It does not include interdivisional
 sale.  Revenue in respect of other item is recognized when no
 significant uncertainty as to its determination or realization exists.
 
 11.Borrowing Cast 
 
 Borrowing cast that are attributable to the acquisition, construction
 or production of qualifying assets are capitalized as part of the cast
 of such assets. A qualifying asset in one that necessarily takes a
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to revenue.
 
 12. Foreign Currency 
 
 Transactions Foreign Currency Transactions (FCT) an d forward exchange
 contracts used to hedge FCT (including firm commitments and forecast
 transactions) are initially recognized at the spot rate on the date of
 the transaction/contract. Monetary assets and liabilities relating to
 foreign currency transactions and forward exchange contracts remaining
 unsettled at the End of the year are translated at year end rates.  The
 Company has opted for accounting the exchange difference arising on
 reporting of long term foreign currency monetary items in line with
 Companies (Accounting Standards) Amendment Rules 2009 relating to
 Accounting Standard 11 (AS-11) notified by Government of India on 31st
 March, 2009. Accordingly the effect of exchange differences on foreign
 currency loans of the Company is accounted by addition or deduction to
 the cost of the assets so far it relates to depreciable capital assets
 and in other cases by transfer to “Foreign Currency Monetary Items
 Translation Difference Account” to be amortised over the balance period
 of the long term monetary items or 31st March, 2001 whichever is
 earlier. Exchange difference recognized in the Profit & Loss Account up
 to financial year ended 31st March, 2008 relating to said long term
 monetary items in foreign currency has been adjusted against opening
 revenue reserve as provided in the rules.
 
 The differences in translation of FCT and forward exchange contracts
 used to hedge FCT (excluding the long term foreign currency monetary
 items accounted in line with Companies (Accounting Standards) Amendment
 Rules 2009 on Accounting Standard 11 notified by Government of India on
 31st March, 2009) and realized gains and losses are recognized in the
 Profit and Loss Account. The outstanding derivative contracts at the
 balance sheet date other than forward exchange contracts used to hedge
 FCT are valued by marking them to market and losses, if any, are
 recognized in the Profit and Loss Account.
 
 13. Employee Benefits
 
 Short-term employee benefits are recognized as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered. 
 
 Post employment and other long term employee benefits are recognized as
 an expense in the profit and loss account for the year in which the
 employee has rendered services. The expense is recognized at the
 present value of the amount payable determined using actuarial
 valuation techniques. Actuarial gains and losses in respect of post
 employment and other long term benefits are charged to profit and loss
 account
 
 14. Financial Derivatives and Commodity Hedging Transactions 
 
 In respect of financial derivatives and commodity hedging contracts,
 premium paid, losses on restatement and gains/losses on settlement are
 charged to the profit and loss account.
 
 15. Taxes on Income 
 
 Income tax expenses for the year comprises of current tax and deferred
 tax. Current tax provision is determined on the basis of taxable income
 computed as per the provisions of the Income Tax Act. Deferred tax is
 recognized for all timing differences that are capable of reversal in
 one or more subsequent periods subject to conditions of prudence and by
 applying tax rates that have been substantively enacted by the balance
 sheet date.
 
 Minimum alternative tax (MAT) paid in accordance to the tax laws, which
 gives rise to future economic benefits in the form of adjustment of
 future income tax liability, is considered as an asset if there is
 convincing evidence that the Group will pay normal income tax in
 future. Accordingly, MAT is recognized as an asset in the balance sheet
 when it is probable that the future economic benefit associated with it
 will flow to the Group and the asset can be measured reliably. 
 
 16. Provision, Contingent Liabilities and Contingent Assets 
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 
 Contingent liabilities are not recognized but are disclosed in the
 notes.
 
 Contingent assets are neither recognized nor disclosed in the financial
 statements.
 
 17. Premium on Redemption of Bonds
 
 Premium on redemption of Foreign Currency Convertible Bands are
 adjusted against the Securities Premium Account over the life of the
 Bonds.