I.   BASIS OF PREPARATION
 
 The financial statements have been prepared in accordance with
 generally accepted accounting principles in India (Indian GAAP) under
 the historical cost convention on an accrual basis in compliance with
 all material aspect of the Accounting Standard (AS) Notified by the
 Companies Accounting Standard Rules, 2006 (as amended), and the
 relevant provisions of the Companies Act, 1956. The accounting policies
 have been consistently applied by the Company, and are consistent with
 those used in the previous year except for the change in the accounting
 policy as specified below.
 
 All assets and liabilities have been classified as current or
 non-current as per the Company''s normal operating cycle and other
 criteria set out in the Revised Schedule VI to the Companies Act, 1956.
 Based on the nature of products and the time between the acquisition of
 assets for processing and their realisation in cash and cash
 equivalents, the Company has ascertained its operating cycle as up to
 twelve months for the purpose of current and non-current classification
 of assets and liabilities.
 
 II.  CHANGE IN ACCOUNTING POLICY
 
 (a) Presentation and Disclosure of the Financial Statements
 
 The financial statements for the year ended March 31, 2011, had been
 prepared as per the then applicable, pre-revised Schedule VI to the
 Companies Act, 1956. Consequent to the notification of Revised Schedule
 VI under the Companies Act, 1956, the financial statements for the year
 ended March 31, 2012, are prepared as per the Revised Schedule VI.
 Accordingly, the previous year figures have also been reclassified to
 conform to this year''s classification. The adoption of Revised Schedule
 VI for previous year figures does not impact any recognition and
 measurement principles followed for the preparation of financial
 statements.
 
 (b) Exchange Difference
 
 The Company has opted to avail the choice provided under paragraph 46A
 of AS-11: The Effects of Changes in Foreign Exchange Rates inserted
 vide Notification dated December 29, 2011. Consequently, the following
 exchange differences on long-term foreign currency monetary items,
 which were until now being recognised in the Statement of Profit and
 Loss, are now being dealt with in the following manner:
 
 (i) Foreign exchange difference on account of a depreciable asset is
 adjusted in the cost of the depreciable asset, which would be
 depreciated over the balance life of the asset.
 
 (ii) In other cases, the foreign exchange difference is accumulated in
 a Foreign Currency Monetary Item Translation Difference Account, and
 amortised over the balance period of such long-term asset/liability.
 
 The above change in accounting policy does not have any impact on the
 current financial year,
 
 III. USE OF ESTIMATES
 
 The preparation of financial statements in conformity with Indian GAAP
 requires the management to make judgements, estimates and assumptions
 that affect the reported amounts of revenues, expenses, assets and
 liabilities and the disclosure of contingent liabilities, at the end of
 the reporting period. Although these estimates are based on the
 management''s best knowledge of current events and actions, uncertainly
 about these assumptions and estimates could result in the outcomes
 requiring a material adjustment to the carrying amounts of assets or
 liabilities in future periods.
 
 IV.  TANGIBLE FIXED ASSETS AND DEPRECIATION
 
 Tangible Fixed Assets are stated at cost, less accumulated depreciation
 and impairment loss, if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use.
 
 Depreciation on Tangible Fixed Assets is provided on Straight-Line
 Method at the rates and in the manner prescribed under the Schedule XIV
 of the Companies Act, 1956, except in case of following, where
 depreciation is equally charged over the estimated useful lives of the
 assets, which is higher than rates prescribed under the Schedule XIV of
 the Companies Act, 1956.
 
 V.  INTANGIBLE ASSETS AND AMORTISATION
 
 Intangible Assets are stated at acquisition cost, net of accumulated
 amortisation and accumulated impairment losses, if any. Intangible
 assets are amortised on a straight-line basis over their estimated
 useful lives.
 
 VI.  IMPAIRMENT OF ASSETS
 
 The carrying amounts of assets are reviewed at each Balance Sheet date
 if there is any indication of impairment based on internal/external
 factors. An asset is treated as impaired when the carrying cost of the
 assets exceeds its recoverable value. An impairment loss, if any, is
 charged to the Statement of Profit and Loss in the year in which an
 asset is identified as impaired. Reversal of impairment losses
 recognised in prior years is recorded when there is an indication that
 the impairment losses recognised for the assets no longer exist or have
 decreased.
 
 VII. BORROWING COST
 
 Borrowing Costs attributable to acquisition and construction of
 qualifying assets are capitalised as a part of the cost of such assets
 up to the date when such assets are ready for its intended use.
 
 Other borrowing costs are charged to the Statement of Profit and Loss
 in the period in which they are incurred.
 
 VIII.  TRANSLATION OF FOREIGN CURRENCY ITEMS
 
 Transactions in foreign currency are recorded at the rate of exchange
 prevailing on the date of transaction. Foreign currency monetary items
 are reported using closing rate of exchange at the end of the year.
 With respect to long- term foreign currency items from 1st April, 2011,
 onwards, the Company has adopted following policy:
 
 (i) Foreign exchange difference on account of a depreciable asset is
 adjusted in the cost of the depreciable asset, which would be
 depreciated over the balance life of the asset.
 
 (ii) In other cases, the foreign exchange difference is accumulated in
 a Foreign Currency Monetary Item Translation Difference Account, and
 amortised over the balance period of such long term asset/liability.
 
 Exchange difference on restatement of all other monetary items is
 recognised in the Statement of Profit and Loss.  Other non-monetary
 items like fixed assets, investments in equity shares are carried in
 terms of historical cost using the exchange rate at the date of
 transaction.
 
 IX.  DERIVATIVE INSTRUMENTS
 
 Premium/Discount, in respect of forward foreign exchange contract, is
 recognised over the life of the contracts.  Exchange differences on
 such contracts are recognised in the Statement of Profit and Loss in
 the year which the exchange rates changes. Profit/Loss on
 cancellation/renewal of forward exchange contract is recognised as
 income/ expense for the year.
 
 The Company uses derivative financial instruments such as forward
 contracts, currency swap and interest rate swaps to hedge its risks
 associated with foreign currency fluctuations and interest rate. As per
 The Institute of Chartered Accountants of India (ICAI) announcement
 regarding accounting for derivative contracts, other than covered under
 AS-11, these are mark to market on the portfolio basis and net loss
 after considering the offsetting effect on the underlying hedged item
 is charged to the income statement. Net gains are ignored.
 
 X.  INVESTMENTS
 
 Investments, which are readily realisable and intended to be held for
 not more than one year from the date on which such investments are
 made, are classified as current investments. All other investments are
 classified as long-term investments.
 
 Investments are recorded at cost on the date of purchase, which
 includes acquisition charges such as brokerage, stamp duty, taxes, etc.
 Current Investments are stated at lower of cost and net realisable
 value. Long-term investments are stated at cost after deducting
 provisions made, if any, for other than temporary diminution in the
 value.
 
 XI.  INVENTORIES
 
 Raw materials, components, stores and spares, and packing material are
 valued at lower of cost and net realisable value. However, these items
 are considered to be realisable at cost if the finished products, in
 which they will be used, are expected to be sold at or above cost.
 
 Work-in-progress, finished goods and stock-in-trade are valued at lower
 of cost and net realisable value. Finished goods and work-in-progress
 include costs of conversion and other costs incurred in bringing the
 inventories to their present location and condition. Cost of
 inventories is computed on a weighted average basis.
 
 Proceeds in respect of sale of raw materials/stores are credited to the
 respective heads. Obsolete, defective and unserviceable inventory is
 duly provided for,
 
 XII. GOVERNMENT GRANTS
 
 Government Grants are recognised when there is reasonable assurance
 that the same will be received and all attaching conditions will be
 complied with. Revenue grants are recognised in the Statement of Profit
 and Loss.  Capital grants relating to specific Tangible/Intangible
 Assets are reduced from the gross value of the respective
 Tangible/Intangible Assets. Other capital grants in the nature of
 promoter''s contribution are credited to capital reserve.
 
 XIII.  REVENUE RECOGNITION
 
 Revenue is recognised to the extent that it is probable that the
 economic benefits will flow to the Company and can be reliably
 measured.
 
 Revenue from sale of products is recognised when the significant risks
 and rewards of ownership of the goods have passed to the buyer. Sale of
 goods are recorded net of trade discounts, rebates, sales tax and
 excise duty.  Sale of power is recognised based on power off-take by
 the customer.
 
 Income from services are recognised as they are rendered based on
 agreements/arrangements with the concerned parties and recognised net
 of service tax.
 
 Fertiliser price support under Group Concession and other Scheme of
 Government of India is recognised based on management''s estimate taking
 into account known policy parameters and input price
 escalation/de-escalation.
 
 Income from Certified Emission Reductions (CERs) is recognised at
 estimated realisable value on confirmation of CERs by the concerned
 authorities.
 
 Interest Income is recognised on a time proportion basis taking into
 account the amount outstanding and applicable interest rate.
 
 Dividend income on investments is accounted for when the right to
 receive the payment is established.
 
 XIV. RETIREMENT AND OTHER EMPLOYEE BENEFITS
 
 (a) Defined Contribution Plan
 
 The Company makes defined contribution to Government Employee Provident
 Fund, Government Employee Pension Fund, Employee Deposit Linked
 Insurance, ESI and Superannuation Schemes, which are recognised in the
 Statement of Profit and Loss on accrual basis.
 
 (b) Defined Benefit Plan
 
 The Company''s liabilities under Payment of Gratuity Act, long-term
 compensated absences and pension are determined on the basis of
 actuarial valuation made at the end of each financial year using the
 projected unit credit method except for short-term compensated
 absences, which are provided for based on estimates.
 
 Actuarial gain and losses are recognised immediately in the Statement
 of Profit and Loss as income or expense. Obligation is measured at the
 present value of estimated future cash flows using a discounted rate
 that is determined by reference to market yields at the Balance Sheet
 date on Government bonds where the terms of the Government bonds are
 consistent with the estimated terms of the defined benefit obligation.
 
 In respect of certain employees, Provident Fund contributions are made
 to a Trust administered by the Company. The interest rate payable to
 the members of the Trust shall not be lower than the statutory rate of
 interest declared by the Central Government under the Employee
 Provident Fund and Miscellaneous Provisions Act, 1952, and shortfall,
 if any, shall be made good by the Company. The Company''s liability is
 actuarially determined (using the Projected Unit Credit Method) at the
 end of the year and any shortfall in the Fund size maintained by the
 Trust set up by the Company is additionally provided for. Actuarial
 losses/gains are recognised in the Statement of Profit and Loss in the
 year in which they arise.
 
 XV.  EMPLOYEE STOCK OPTIONS
 
 The stock options granted are accounted for as per the accounting
 treatment prescribed by Employee Stock Option Scheme, Employee Stock
 Purchase Guidelines, 1999, issued by Securities and Exchange Board of
 India and the Guidance Note on Accounting for Employee Share-based
 Payments, issued by the ICAI, whereby the intrinsic value of the option
 is recognised as deferred employee compensation. The deferred employee
 compensation is charged to the Statement of Profit and Loss on the
 straight-line basis over the vesting period of the option.
 
 In respect of re-pricing of existing stock option, the incremental
 intrinsic value of the option is accounted as employee cost over the
 remaining vesting period.
 
 The options that lapse are reversed by a credit to employee
 compensation expense, equal to the amortised portion of value of lapsed
 portion and credit to deferred employee compensation expense equal to
 the unamortised portion.
 
 XVI. TAXATION
 
 Tax expense comprises of current and deferred tax.
 
 Provision for current tax is made on the basis of estimated taxable
 income for the current accounting year in accordance with the Income
 Tax Act, 1961.
 
 Current tax assets and current tax liabilities are offset when there is
 a legally enforceable right to set off the recognised amounts and there
 is an intention to settle the asset and the liability on a net basis.
 
 The deferred tax for timing differences between the book and tax
 profits for the year is accounted for, using the tax rates and laws
 that have been substantively enacted as of the Balance Sheet date.
 Deferred tax assets arising from timing differences are recognised to
 the extent there is reasonable certainty that these would be realised
 in future.
 
 The carrying amount of deferred tax assets are reviewed at each Balance
 Sheet date. The Company writes down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 In case of unabsorbed losses and unabsorbed depreciation, all deferred
 tax assets are recognised only if there is virtual certainty supported
 by convincing evidence that they can be realised against future taxable
 profit. At each Balance Sheet date the Company reassesses the
 unrecognised deferred tax assets.
 
 Minimum Alternative Tax (MAT) credit is recognised as an asset only
 when and to the extent there is convincing evidence that the Company
 will pay normal income tax during the specified period. In the year in
 which the MAT credit becomes eligible to be recognised as an asset in
 accordance with the recommendations contained in Guidance Note issued
 by the ICAI, the said asset is created by way of a credit to the
 Statement of Profit and Loss and shown as MAT Credit Entitlement. The
 Company reviews the same at each Balance Sheet date and writes down the
 carrying amount of MAT Credit Entitlement to the extent there is no
 longer convincing evidence to the effect that the Company will pay
 normal Income Tax during the specified period.
 
 XVII.  RESEARCH AND DEVELOPMENT
 
 Revenue expenditure on research is expensed under the respective heads
 of the account in the period in which it is incurred.
 
 Development expenditure is capitalised as an asset if the following
 conditions can be demonstrated:
 
 a) The technical feasibility of completing the asset so that it can be
 made available for use or sell.
 
 b) The Company has intention to complete the asset and use or sell it.
 
 c) The Company has the ability to sell the asset.
 
 d) The future economic benefits are probable.
 
 e) The Company has ability to measure the expenditure attributable to
 the asset during its development reliably.
 
 Other development costs which do not meet the above criteria are
 expensed out during the period in which they are incurred.
 
 XVIII.  OPERATING LEASES
 
 (a) As a Lessee:
 
 Leases, where significant portion of risk and reward of ownership are
 retained by the Lessor, are classified as Operating Leases and lease
 rentals thereon are charged to the Statement of Profit and Loss on a
 straight-line basis over the lease term.
 
 (b) As a Lessor:
 
 The Company has leased certain tangible assets, and such leases, where
 the Company has substantially retained all the risks and rewards of
 ownership, are classified as operating leases.
 
 Lease income is recognised in the Statement of Profit and Loss on a
 straight-line basis over lease term.
 
 XIX. CASH AND CASH EQUIVALENT
 
 Cash and Cash Equivalents for the purpose of cash flow statement
 comprise cash on hand and cash at bank including fixed deposit with
 original maturity period of less than three months and short term
 highly liquid investments with an original maturity of three months or
 less.
 
 XX.  MEASURAMENT OF PROFIT BEFORE DEPRECIATION/AMORTISATION, INTEREST
 AND TAX (PBDIT)
 
 As permitted by the Guidance Note on the Revised Schedule VI to the
 Companies Act, 1956, the Company has elected to present PBDIT as a
 separate line item on the face of the Statement of Profit and Loss. The
 Company measures PBDIT on the basis of profit/loss from continuing
 operations. In its measurement, the Company does not include
 depreciation and amortisation expenses, finance costs and tax expenses.
 
 XXI. CASH FLOW STATEMENT
 
 Cash flows are reported using the indirect method, whereby net profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature, any deferrals or accruals of past or future operating cash
 receipts or payments and item of income or expenses associated with
 investing or financing cash flows. The cash flows from operating,
 investing and financing activities of the Company are segregated.
 
 XXII.  EARNINGS PER SHARE
 
 Basic earnings per share are calculated by dividing the net profit for
 the year attributable to equity shareholders by the weighted average
 number of equity shares outstanding during the period. Earnings
 considered in ascertaining the Company''s earnings per share is the net
 profit for the period after deducting preference dividends and any
 attributable tax thereto for the period. The weighted average number of
 equity shares outstanding during the period and for all periods
 presented is adjusted for events, such as bonus shares, other than the
 conversion of potential equity shares that have changed the number of
 equity shares outstanding, without a corresponding change in resources.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period is
 adjusted for the effects of all dilutive potential equity shares.
 
 XXIII.  CONTINGENT LIABILITIES AND PROVISIONS
 
 Contingent Liabilities are possible but not probable obligations as on
 Balance Sheet date, based on the available evidence.
 
 Provisions are recognised when there is a present obligation as a
 result of past events, 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.