i.  Basis of Preparation of Financial Statements
 
 The financial statements are prepared under the Historical cost
 convention with the generally accepted accounting principles in India
 and the provisions of the Companies Act, 1956.
 
 ii.  Use of Estimates
 
 The Preparation of Financial Statements requires estimates and
 assumptions to be made that effect the reported amount of assets and
 liabilities on the date of financial statements and reported amount of
 revenues and expenses during the reporting period. Difference between
 the actual results and estimates are recognized in the period in which
 the results are known / materialized.
 
 iii.  Own Fixed Assets
 
 Fixed Assets are stated at cost net of modvat / cenvat / value added
 tax, less accumulated depreciation and impairment loss, if any. Any
 costs, including financing costs till commencement of commercial
 production, net charges on foreign exchange contracts and adjustments
 arising from exchange rate variations to the fixed assets are
 capitalized.
 
 iv.  Leased Assets
 
 Premium Paid on Leased Assets is amortized over the lease period and
 the annual lease rentals are charged to Profit and Loss Account in the
 year it accrues.
 
 v.  Depreciation
 
 Depreciation is provided on written down value method, except for Wind
 Power Plant for which Straight Line Method is followed, at the rate and
 in the manner prescribed in Schedule XIV to the Companies Act, 1956.
 
 vi.  Impairment of Assets
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 Profit and Loss account in the year in which an asset is identified as
 impaired. The impairment loss recognized in prior accounting period is
 reversed if there has been a change in the estimate of recoverable
 amount.
 
 vii.  Investments
 
 Current investments are carried at the lower of cost and quoted / fair
 value, computed category wise. Long Term Investments are stated at
 cost. Provision for diminution in the value of long-term investments is
 made only if such decline is other than temporary in the opinion of the
 management.
 
 viii. Inventories
 
 Items of Inventories are measured at lower of cost or net realizable
 value, after providing for obsolescence, if any. Cost of inventories
 comprises of all cost of purchase including duties and taxes other than
 credits under CENVAT and is arrived on First in First out basis. Semi
 Finished goods are valued at cost or net realizable value whichever is
 lower. Finished goods are valued at cost including excise duty payable
 or net releasable value whichever is lower. Cost includes Direct
 Material, Labour cost and appropriate overheads.
 
 ix.  Foreign Currency Transactions
 
 l Gains and Loses on account of exchange differences existing out of
 reporting of long term foreign currency monetary items at rates
 different from those at which they were initially recorded during the
 period or reported in previous financial statements , in so far as they
 relate to the acquisition of a depreciable capital asset can be added
 or deducted from the cost of asset and shall be depreciated over the
 balance life of asset and in other cases ,it can be accumulated in a
 foreign currency monetary item transaction. Difference Account in the
 enterprises finan- cial statements and amortized over the balance
 period of such long asset/liability but not beyond 31st March 2011.
 
 In respect of Purchases / Sales in normal course of business, the Gain
 / Loss is charged to Profit and Loss Account.
 
 x.  Employee Retirement / Terminal Benefits
 
 The employees of the company are covered under Group Gratuity Scheme of
 Life Insurance Corpo- ration of India. The premium paid thereon is
 charged to Profit and Loss Account. Leave Encashment liability is
 provided on the basis of actuarial valuation on actual entitlement of
 eligible employees at the end of the year.
 
 xi.  Provision, Continent 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
 event and it is probable that there will be an outflow of resources.
 Contingent Liabilities which are not recognized are disclosed in notes.
 Contingent Assets are neither recognized nor disclosed in Statements.
 
 xii.  Turnover
 
 Turnover includes sale of goods, services, sales tax, service tax and
 adjusted for discounts (net), excise duty. Inter-Unit sales are
 excluded in the Main Profit and Loss account.
 
 xiii. Revenue Recognition in Case of Real Estate Transactions
 
 Revenue in case of real estate transactions is made on the basis of
 concluded on contracts for sales and purchases.
 
 xiv.  Segment Reporting
 
 Company''s operating Businesses, organized & Managed unit wise,
 according to the nature of the products and services provided, are
 recognized in segments representing one or more strategic business
 units that offer products or services of different nature and to
 different Markets.
 
 Company''s Operations could not be analyzed under geographical segments
 in considering the guiding factors as per Accounting Standard-17
 (AS-17) issued by the Institute of Chartered Accountants of India.
 
 xv.  Provision for Taxation
 
 Provision is made for Income Tax, estimated to arise on the results for
 the year, at the current rate of tax, in accordance with the Income Tax
 Act, 1961. Taxation deferred as a result of timing difference, between
 the accounting & taxable profits, is accounted for on the liability
 method, at the current rate of tax, to the extent that the timing
 differences are expected to crystallize. Deferred tax asset is
 recognized only to the extent there is reasonable certainty of
 realization in future.  Deferred tax assets are reviewed, as at each
 Balance Sheet date to re-assess realization.
 
 xvi. Excise and Customs Duty
 
 Excise and Customs Duty are accounted on accrual basis. CENVAT credit
 is accounted by crediting the amount to cost of purchases on receipt of
 goods and is utilized on dispatch of material by debiting excise duty
 account.
 
 xvii. Prior Period Expenses / Income :
 
 Prior period items, if material are separately disclosed in Profit &
 Loss Account together with the nature and amount. Extraordinary items &
 changes in Accounting Policies having material impact on the financial
 affairs of the company are disclosed.
 
 xviii.Sundry Debtors, Loans and Advances
 
 Doubtful Debts/Advances are written off in the year in which those are
 considered to be irrecov- erable.
 
 xix. Earnings per Share
 
 The Company reports basic and diluted earnings per share in accordance
 with Accounting Standard- 20 (AS-20) issued by the Institute of
 Chartered Accountants of India. Basic earnings per share are computed
 by dividing the net Profit or Loss for the year by the Weighted Average
 number of equity share outstanding during the year. Diluted earnings
 per share is computed by dividing the net profit or loss for the year
 by weighted average number of equity shares outstanding during the year
 as adjusted for the effects of all dilutive potential equity shares,
 except where the results are anti-dilutive.