a) Basis of Preparation of Financial Statement
 
 i) The financial statements have been prepared under the historical
 cost convention using the accrual basis of accounting and comply with
 all the mandatory Accounting Standards as specified in the Companies
 (Accounting Standard) Rules, 2006 (as amended) and relevant provisions
 of the Companies Act, 1956, as adopted consistently by the Company.
 
 ii) Use of Estimates
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles (GAAP) requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and the disclosure of contingent liabilities on the
 date of the financial statements. Actual results could differ from
 those estimates. Any revision to accounting estimates is recognised in
 the period in which such revision are made.
 
 b) Inventories
 
 i) Inventories are valued at lower of cost or Net Realisable Value.
 
 ii) Cost of inventories have been computed to include all costs of
 purchases, cost of conversion and other costs incurred in bringing the
 inventories to their present location and condition.
 
 iii) The basis of determining cost for various categories of
 inventories are as follows:
 
 Raw material : Weighted Average Cost
 
 Traded / Finished goods : Weighted Average Cost Stores and Spares :
 Weighted Average Cost
 
 c) Cash Flow Statement
 
 i) Cash & Cash Equivalents (for purpose of cash flow statement)
 
 Cash comprises cash on hand and demand deposit with banks. Cash
 equivalents are short-term balances (with an original maturity of three
 months or less from the date of acquisition), highly liquid investments
 that are readily convertible into known amounts of cash and which are
 subject to insignificant risk of changes in value.
 
 ii) Cash Flow Statement
 
 Cash flows 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.
 
 d) Prior Period and Exceptional Items
 
 i) All identifiable items of Income and Expenditure pertaining to prior
 period are accounted through Prior Period items.
 
 ii) Exceptional items are generally non-recurring items of income and
 expense within profit or loss from ordinary activities, which are of
 such size, nature or incidence that their disclosure is relevant to
 explain the performance of the Company for the year.
 
 e) Depreciation
 
 i) Depreciation on Fixed Assets is provided on straight-line method at
 rates and in the manner specified in Schedule XIV to the Companies Act,
 1956 read with the relevant circulars issued by the Ministry of
 Corporate Affairs.
 
 ii) Depreciation in respect of tangible assets for power generation
 project is provided on straight line method considering the rates
 provided in Appendix III of the Regulation issued by the Central
 Electricity Regulatory Commission (CERC) dated 19th January, 2009 or
 rates prescribed under schedule XIV of the Companies Act, 1956
 whichever is higher. The following categories of the assets have higher
 rates as per aforesaid CERC Regulation as compared to the rates
 mentioned in Schedule XIV to the Companies Act, 1956.
 
 Land (Leasehold) : 3.34%
 
 Building : 3.34%
 
 Plant & Machinery : 5.28%
 
 iii) Depreciation on Leasehold improvements is provided per estimated
 useful life amortised over the balance of the lease period.
 
 iv) Individual assets costing less than Rs. 5,000/- are fully depreciated
 in the year of purchase.
 
 v) Intangible Assets in the form of Software which are an integral part
 of Computer Systems are amortised at the same rate as that of Computer
 Systems.
 
 f) Revenue Recognition
 
 i) Sales of goods are recognised on shipment or dispatch to customer
 and net of value added tax and return.
 
 ii) Dividend income from investments and interest income from mutual
 funds is recognised when the Company''s right to receive payment is
 established.
 
 iii) Income from services rendered is accounted for when the work is
 performed.
 
 iv) Interest income is recognised on time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 v) Profit/Loss on sale of investments are recognised on the contract
 date.
 
 vi) Export benefits under various scheme announced by the Central
 Government under Exim policies are accounted for on accrual basis to
 the extent considered receivable, depending on the certainty of
 receipt.
 
 g) Fixed Assets
 
 i) Fixed assets are stated at cost of acquisition or construction. They
 are stated at historical cost less accumulated depreciation and
 impairment losses, if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use. Borrowing cost relating to acquisition / construction
 of fixed assets which take substantial period of time to get ready for
 its intended use are also included to the extent they relate to the
 period till such assets are ready to be put to use.
 
 ii) Expenditure on account of modification/alteration in plant and
 machinery, which increases the future benefit from the existing asset
 beyond its previous assessed standard of performance, is capitalized.
 
 iii) Any capital expenditure in respect of assets, the ownership of
 which would not vest with the Company, is charged off to revenue in the
 year of incurrence.
 
 iv) In line with Notification No. G.S.R. 225(E) dated March, 2009
 (further amended by notification no.  G.S.R. 378 (E) dated 11.05.2011)
 issued by the Ministry of Corporate Affairs, Government of India, the
 Company has opted for adjusting the exchange difference, arising on
 long term foreign currency monetary items relating to acquisition of
 depreciable capital assets to the cost of capital and, to depreciate
 over the balance useful life of the assets.
 
 v) Expenditure related to and incurred during implementation of capital
 projects is included under Capital Work in Progress or Project
 Development Expenditure as the case may be. The same is allocated to
 the respective fixed assets on completion of construction/errection of
 the capital project / fixed assets.
 
 h) Foreign Currency Transactions
 
 i) Initial Recognition
 
 Transactions denominated in foreign currencies are recorded at the
 exchange rates prevailing on the date of the transaction.
 
 ii) Conversion
 
 At the year-end, monetary items denominated in foreign currencies,
 other than those covered by forward contracts, are converted into rupee
 equivalents at the year end exchange rates.
 
 iii) Exchange Differences
 
 All exchange differences arising on settlement and conversion of
 foreign currency transaction are included in the Statement of Profit
 and Loss.
 
 iv) Forward Exchange Contracts
 
 The Company uses foreign currency forward contracts to hedge its risks
 associated with foreign currency fluctuations relating to certain firm
 commitments and forecasted transactions.
 
 The use of such foreign currency forward contracts is governed by the
 Company''s policies approved by the management, which provide
 principles on use of such financial derivatives consistent with the
 Company''s risk management strategy. The Company does not use
 derivative financial instruments for speculative purposes.
 
 In respect of transactions covered by forward exchange contracts, the
 difference between the year end rate and the exchange rate at the date
 of contract is recognised as exchange difference and the premium paid
 on forward contracts is recognised over the life of the contracts.  i)
 Investments
 
 i) Investments that are readily realisable and intended to be held for
 not more than a year are classified as current investments. All other
 investments are classified as long term investments.
 
 ii) Long-term investments are stated at cost. 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
 
 iii) Current investments are carried at the lower of cost and
 quoted/fair value, computed category wise.
 
 iv) Investments in Equity Shares of foreign subsidiaries are expressed
 in Indian Currency at the rates of exchange prevailing at the time when
 the investment was made.
 
 j) Employee Retirement Benefits
 
 i) Defined Benefit Plan
 
 Gratuity with respect to defined benefit schemes are accrued based on
 actuarial valuations, carried out by an independent actuary as at the
 balance sheet date. These contributions are covered through Group
 Gratuity Scheme with Life Insurance Corporation of India and are
 charged against revenue.
 
 ii) Defined Contribution plans
 
 Company''s contribution to Provident Fund, Superannuation Fund,
 Employees'' State Insurance Fund are determined under the relevant
 schemes and/or statute, charged to the Statement of Profit & Loss when
 incurred.
 
 iii) Provision is made for leave encashment based on actuarial
 valuation, carried out by an independent actuary as at the balance
 sheet date.
 
 iv) Termination benefits, if any, are recognised as an expense as and
 when incurred.
 
 k) Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowing costs are charged to Statement of Profit and Loss.
 
 I) Segment Accounting
 
 Based on guiding principles given in Accounting Standard on Segment
 Reporting- AS 17 as specified in the Companies (Accounting Standard)
 Rules, 2006 (as amended), single financial report contains both
 Standalone Financial Statement and Consolidated Financial Statement of
 the Company. Hence, the required segment information has been appended
 in the Consolidated Financial Statements (CFS).
 
 m) Related Party Transactions
 
 Disclosure of transactions with Related Parties, as required by
 Accounting Standard 18 Related Party Disclosures as specified in the
 Companies (Accounting Standard) Rules 2006 (as amended), has been set
 out in a separate statement annexed to this note. Related parties as
 defined under clause 3 of the Accounting Standard 18 have been
 identified on the basis of representations made by the management and
 information available with the Company.
 
 n) Leases
 
 Lease arrangement where risk and rewards incidental to ownership of an
 asset substantially vest with the Lessor are recognised as Operating
 Leases. The Company''s significant leasing arrangements are in respect
 of operating leases for immovable property which includes residential
 premises, office, godowns, etc. The aggregate lease rental payable is
 charged as rent including lease rentals.
 
 0) Earning Per Share
 
 The Company reports basic and diluted Earnings Per Share (EPS) in
 accordance with the Accounting Standard 20 as specified in the
 Companies (Accounting Standard) Rules, 2006 (as amended).  The Basic
 EPS has been computed by dividing the income available to Equity
 Shareholders by the weighted average number of Equity Shares
 outstanding during the accounting year. The Diluted EPS has been
 computed using the weighted average number of Equity Shares and
 dilutive potential equity shares outstanding at the end of the year.
 p) Taxes on Income
 
 1) Deferred Taxation
 
 In accordance with the Accounting Standard 22 - Accounting for Taxes on
 Income, as specified in the Companies (Accounting Standard) Rules, 2006
 (as amended), the deferred tax for timing differences between the book
 and tax profits for the year is accounted for by using the tax rates
 and laws that have been enacted or substantively enacted as of the
 Balance Sheet Date.
 
 Deferred tax assets arising from timing differences are recognised to
 the extent there is virtual certainty that the assets can be realized
 in future.
 
 Net outstanding balance in Deferred Tax account is recognised as
 deferred tax liability/asset. The deferred tax account is used solely
 for reversing timing difference as and when crystallized
 
 ii) Current Taxation
 
 Provision for taxation including wealth tax has been made in accordance
 with the direct tax laws prevailing for the relevant assessment years.
 
 The current tax charge for the Company includes Minimum Alternative Tax
 (MAT) determined under section 115JB of the Income Tax Act, 1961.
 
 q) Impairment of Fixed Assets
 
 The carrying amount of assets, other than inventories, is reviewed at
 each balance sheet date to determine whether there is any indication of
 impairment. If any such indication exists, the assets recoverable
 amount is estimated.
 
 The impairment loss is recognised whenever the carrying amount of an
 asset or its cash generation unit exceeds its recoverable amount. The
 recoverable amount is the greater of the asset''s net selling price
 and value in the uses which is determined based on the estimated future
 cash flow discounted to their present values. All impairment losses are
 recognised in the Statement of Profit and Loss.
 
 An impairment loss is reversed if there has been a change in the
 estimates used to determine the recoverable amount and is recognised in
 the Statement of Profit and Loss.  
 
 r) Provision, Contingent Liabilities and Contingent Assets
 
 Provision involving substantial degree of estimation in measurements
 are recognised 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 recognised but are disclosed in the
 notes. Contingent assets are neither recognised nor disclosed in the
 financial statements.  
 
 s) Expenditure
 
 Expenses are net of taxes recoverable, where applicable.  
 
 t) Derivative Instruments
 
 As per the Institute of Chartered Accountants of India (''ICAI'')
 Announcement, accounting for derivative contracts, derivative contract
 other than those covered under AS - 11, as specified in the Companies
 (Accounting Standard) Rules, 2006 (as amended), The effects of Changes
 in the Foreign exchange rates, are marked to market on a portfolio
 basis, and the net loss after considering the offsetting effect on the
 underlying hedge item is charged to the income statement. Net gains are
 ignored.
 
 u) Accounting for Claims
 
 i) Claims received are accounted at the time of lodgement depending on
 the certainty of receipt and claims payable are accounted at the time
 of acceptance.
 
 ii) Claims raised by Government authorities regarding taxes and duties,
 which are disputed by the Company, are accounted based on legality of
 each claim. Adjustments, if any, are made in the year in which disputes
 are finally settled.
 
 v) Proposed Dividend
 
 Dividend proposed by the Directors is provided for in the books of
 account pending approval by the members at the ensuing Annual General
 Meeting.
 
 w) Doubtful Debts/Advances
 
 Provision is made in the accounts for Debts/Advances which in the
 opinion of the management are considered doubtful of recovery.  
 
 x) Service Tax Input Credit
 
 Service tax input credit is accounted for in the books in the period in
 which the underlying service received is accounted and when there is no
 uncertainty in availing / utilising the credits.