(a) basis of accounting and preparation of fnancial statements
 
 The fnancial statements are prepared under the historical cost
 convention, on the accrual basis of accounting to comply in all
 material aspects with the applicable accounting principles in India,
 the mandatory Accounting Standards (‘AS) prescribed by the Companies
 (Accounting Standard), Rules 2006, the relevant provisions of the
 Companies Act, 1956 (‘the Act) and the guidelines issued by the
 Securities and Exchange Board of India (SEBI).
 
 (b) use of estimates
 
 The preparation of the fnancial statements, in conformity with
 generally accepted accounting principles in India, requires that the
 Management makes estimates and assumptions that affect the reported
 amounts of assets and liabilities, disclosure of contingent liabilities
 as at the date of the fnancial statements and the reported amounts of
 revenue and expenses during the reporting period. Actual results could
 differ from those estimates. Any revision to accounting estimates is
 recognised prospectively in current and future periods.
 
 (c) fixed assets
 
 tangible assets
 
 Tangible assets are stated at their cost of acquisition or construction
 less accumulated depreciation. Cost includes inward freight, duties,
 taxes and expenses incidental to acquisition and installation or
 construction, net of CENVAT and VAT credit, where applicable.
 
 The cost of the fixed assets not ready for their intended use before
 such date, are disclosed as capital work- in-progress.
 
 intangible assets
 
 Intangible assets are stated at cost of acquisition less accumulated
 amortisation.
 
 (d) depreciation and amortisation
 
 Depreciation in respect of all the assets is provided on straight line
 method. The rates of depreciation prescribed in Schedule XIV to the Act
 are considered as minimum rates. If the Managements estimate of the
 useful life of a fixed asset at the time of the acquisition of the asset
 or of the remaining useful life on a subsequent review is shorter than
 envisaged in the aforesaid schedule, depreciation is provided at a
 higher rate based on the Managements estimate of the useful life /
 remaining useful life. Pursuant to this policy, vehicles acquired on
 fnance lease are depreciated over a period of 5 years.
 
 With effect from 1 April 2010, the Management has revised the estimated
 useful life for computers to four years, based on a review of useful
 life of such assets.
 
 Assets costing individually upto Rs. 5 are fully depriciated in the year
 of addition.
 
 Leasehold land is amortised over the period of primary lease.
 
 (e) impairment of assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset, including intangible, may be impaired. If any
 such indication exists, the Company estimates the recoverable amount of
 the asset. If such recoverable amount of the asset or the recoverable
 amount of the cash generating unit to which the asset belongs is less
 than its carrying amount, the carrying amount is reduced to its
 recoverable amount. The reduction is treated as an impairment loss and
 is recognised in the profit and loss account. If at the balance sheet
 date there is an indication that if a previously assessed impairment
 loss no longer exists, the recoverable amount is reassessed and the
 asset is refected at the recoverable amount subject to a maximum of
 depreciable historical cost. An impairment loss is reversed only to the
 extent that the carrying amount of asset does not exceed the net book
 value that would have been determined, if no impairment loss had been
 recognised.
 
 (f) leases
 
 Assets acquired under lease where the Company has substantially all the
 risks and rewards of ownership are classifed as fnance lease. Such
 leases are capitalised at the inception of lease at lower of the fair
 value and present value of minimum lease payments. Assets taken on
 fnance lease are depreciated over their estimated useful life or the
 lease term whichever is lower.
 
 Assets acquired under lease where the signifcant portion of risks and
 rewards of ownership are retained by the lessor are classifed as
 operating lease. Lease rentals are charged to profit and loss account on
 accrual basis.
 
 (g) inventories
 
 Inventories are valued at the lower of cost (including prime cost,
 excise duty and other overheads incurred in bringing the inventories to
 their present location and condition) and estimated net realisable
 value, after providing for obsolescence, where appropriate. The
 comparison of cost and net realisable value is made on an item-by-item
 basis. The net realisable value of materials in process is determined
 with reference to the selling prices of related fnished goods. Raw
 materials, packing materials and other supplies held for use in
 production of inventories are not written down below cost except in
 cases where material prices have declined, and it is estimated that the
 cost of the fnished products will exceed their net realisable value.
 
 The provision for inventory obsolescence is assessed regularly based on
 estimated usage and shelf life of products.
 
 Raw materials, packing materials and stores and spares are valued at
 cost computed on monthly moving weighted average basis. The cost
 includes purchase price, inward freight and other incidental expenses
 net of CENVAT and VAT credit, where applicable.
 
 Materials-in-process is valued at input material cost plus conversion
 cost as applicable.
 
 Finished goods are valued at lower of net realisable value and prime
 cost, excise duty and other overheads incurred in bringing the
 inventories to their present location and condition.
 
 (h) sundry debtors and loans and advances
 
 Sundry debtors and loans and advances are stated after making adequate
 provision for doubtful debts and advances.
 
 (i) investments
 
 Long term investments are stated at cost. A provision for diminution is
 made to recognise a decline, other than temporary, in the value of long
 term investments.
 
 Current investments are stated at lower of cost and fair value for each
 investment individually.
 
 (j) revenue recognition
 
 Revenue from sale of goods (including sale of scrap) is recognised on
 transfer of all signifcant risks and rewards of ownership to the buyer.
 The amount recognised as sale is exclusive of sales tax and net of
 trade discounts and sales returns. Sales are presented both gross and
 net of excise duty.
 
 Income from royalty and services is accounted based on contractual
 agreements.
 
 Dividend income is accounted for in the year in which the right to
 receive the same is established.
 
 Interest on investments is booked on a time-proportion basis taking
 into account the amounts invested and the rate of interest.
 
 (k) foreign currency transactions
 
 Transactions in foreign currency are recorded at exchange rates
 prevailing on the respective dates of the relevant transactions.
 Monetary assets and liabilities denominated in foreign currency are
 restated at the exchange rates prevailing at the balance sheet date.
 The gains or losses resulting from such transactions are adjusted to
 the profit and loss account. Non-monetary assets and non-monetary
 liabilities denominated in foreign currency and measured at fair value
 / net realisable value are translated at the exchange rate prevalent at
 the date when the fair value / net realisable value was determined.
 Non-monetary assets and non-monetary liabilities denominated in foreign
 currency and measured at historical cost are translated at the exchange
 rate prevalent at the date of transaction.
 
 The Company uses foreign exchange forward contracts to cover its
 exposure towards movements in foreign exchange rates. The use of
 foreign exchange forward contracts reduces the risk of fuctuations in
 exchange movements for the Company. The Company does not use the
 foreign exchange forward contract for trading or speculative purposes.
 
 Premium or discount arising at the inception of the forward contracts
 against the underlying assets is amortised as expense or income over
 the life of contract. Exchange differences on forward contracts are
 recognised in the profit and loss account in the reporting period in
 which the exchange rates change.
 
 (l) taxes on income
 
 Income tax expense comprises current tax (i.e. amount of tax for the
 year determined in accordance with the Income tax law) and deferred tax
 charge or credit (refecting the tax effects of timing differences
 between
 
 accounting income and taxable income for the year). Deferred tax in
 respect of timing differences which originate during the tax holiday
 period but reverse after the tax holiday period is recognised in the
 year in which the timing differences originate. For this purpose, the
 timing differences which originate frst are considered to reverse frst.
 The deferred tax charge or credit and the corresponding deferred tax
 liabilities or assets are recognised using the tax rates that have been
 enacted or substantively enacted by the balance sheet date. Deferred
 tax assets are recognised only to the extent where there is reasonable
 certainty that the assets can be realised in future; however, where
 there is unabsorbed depreciation or carried forward business loss under
 taxation laws, deferred tax assets are recognised only if there is a
 virtual certainty of realisation of such assets.
 
 Deferred tax assets / liabilities are reviewed as at each balance sheet
 date and written down or written up to refect the amount that is
 reasonably / virtually certain (as the case may be) to be realised.
 
 The Company offsets, the current tax assets and liabilities (on a year
 on year basis) and deferred tax assets and liabilities, where it has a
 legally enforceable right and where it intends to settle such assets
 and liabilities on a net basis.
 
 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 specifed period. In the year in
 which the MAT credit becomes eligible to be recognised as an asset in
 accordance with the recommendations contained in the guidance note
 issued by ICAI, the said asset is created by way of a credit to the
 profit and loss account. 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 Company will pay normal income tax during the specifed
 period.
 
 (m) employee benefts
 
 (i) short-term employee benefts
 
 All employee benefts falling due wholly within twelve months of
 rendering the services are classifed as short-term employee benefts,
 which include benefts like salaries, wages, short-term compensated
 absences and performance incentives and are recognised as expenses in
 the period in which the employee renders the related service.
 
 (ii) post-employment benefts
 
 Contributions to defned contribution schemes such as Provident Fund,
 Pension Fund etc., are recognised as expenses in the period in which
 the employee renders the related service. 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 Employees Provident Funds
 and Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be
 made good by the Company. In respect of contributions made to
 government administered Provident Fund, the Company has no further
 obligations beyond its monthly contributions. The Company also provides
 for post-employment defned beneft in the form of gratuity and medical
 benefts. The cost of providing beneft is determined using the projected
 unit credit method, with actuarial valuation being carried out at each
 balance sheet date.
 
 The Britannia Industries Limited Covenanted Staff Pension Fund Trust
 (BILCSPF) and Britannia Industries Limited Offcers Pension Fund Trust
 (BILOPF) were established by the Company to administer pension schemes
 for its employees. These trusts are managed by the trustees. The
 Pension scheme is applicable to all the managers and offcers of the
 Company who have been employed up to the date of 15 September 2005 and
 any manager or offcer employed after that date, if he has opted for the
 membership of the scheme. The Company makes a contribution of 15% of
 salary in respect of the members, each month to the trusts. On
 retirement, subject to the vesting conditions as per the rules of the
 trust, the member becomes eligible for pension, which is paid from
 annuity purchased in the name of the member by the trusts.
 
 (iii) other long-term employee benefts
 
 All employee benefts (other than post-employment benefts and
 termination benefts) which do not fall due wholly within twelve months
 after the end of the period in which the employees render the related
 services are determined based on actuarial valuation carried out at
 each balance sheet date. Provision for long term compensated absences
 is based on actuarial valuation carried out as at 1st January every
 year.
 
 (n) employee share based payments
 
 The Company measures compensation cost relating to employee stock
 options using the intrinsic value
 
 method. Compensation expense, if any, is amortised over the vesting
 period of the option on a straight line basis.
 
 (o) provisions and contingent liabilities
 
 A provision is recognised when the Company has a present obligation as
 a result of past events, for which it is probable that an outflow of
 resources embodying economic benefts will be required to settle the
 obligation and a reliable estimate can be made. Provisions are reviewed
 regularly and are adjusted where necessary to refect the current best
 estimate of the obligation. When the Company expects a provision to be
 reimbursed, the reimbursement is recognised as a separate asset only
 when reimbursement is virtually certain.
 
 A disclosure for contingent liabilities is made where there is a
 possible obligation or a present obligation that may probably not
 require an outflow of resources. When there is a possible or a present
 obligation where the likelihood of outflow of resources is remote, no
 provision or disclosure is made.
 
 Provision for onerous contracts, i.e. contracts where the expected
 unavoidable cost of meeting the obligations under the contract exceed
 the economic benefts expected to be received under it, are recognised
 when it is probable that an outflow of resources embodying economic
 benefts will be required to settle a present obligation as a result of
 an obligating event based on a reliable estimate of such obligation.
 
 (p) derivative contracts
 
 Based on the principle of prudence as provided in Accounting Standard 1
 - Disclosure of accounting policies, the Company assesses losses, if
 any, by marking to market all its outstanding derivative contracts
 [other than those accounted under Accounting Standard 11 - Effects of
 changes in foreign exchange rates (Refer to point (k) above)] at the
 Balance Sheet date and provides for such losses. The net gain, if any,
 based on the said evaluation is not accounted for in line with the
 Institute of Chartered Accountants of India (ICAI) notifcation issued
 in March 2008 in relation to such transactions.
 
 (q) earnings per share
 
 Basic earnings per share is computed by dividing the net profit
 attributable to the equity shareholders by the weighted average number
 of equity shares outstanding during the year. Diluted earnings per
 share is computed by dividing the net profit after tax by the weighted
 average number of equity shares considered for deriving basic earnings
 per share and also the weighted average number of equity shares that
 could have been issued upon conversion of all dilutive potential equity
 shares. Dilutive potential equity shares are deemed converted as of the
 beginning of the year, unless issued at a later date. In computing
 diluted earnings per share, only potential equity shares that are
 dilutive and that either reduces earnings per share or increases loss
 per share are included. The number of shares and potentially dilutive
 equity shares are adjusted retrospectively for all periods presented
 for the share splits.
 
 (r) cash flow statement
 
 Cash flows are reported using indirect method, whereby net profits before
 tax is adjusted for the effects of transactions of a non-cash nature
 and any deferrals or accruals of past or future cash receipts or
 payments.  The cash flows from regular revenue generating, investing and
 fnancing activities of the Company are segregated.
 
 (s) borrowing costs
 
 Borrowing costs directly attributable to acquisition or construction of
 those fixed assets which necessarily take a substantial period of time
 to get ready for their intended use are capitalised. Other borrowing
 costs are accounted as an expense in the profit and loss account.