(a) Basis of accounting and preparation of financial statements
 
 The financial 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 financial 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 financial 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 Management''s 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 Management''s estimate of the useful life /
 remaining useful life.
 
 Vehicles acquired on finance 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 (part of office equipments) to four years
 (from six years used earlier), based on a review of useful life of such
 assets.
 
 Computer softwares are fully depreciated over a period of six years,
 based on the review of useful life of such assets.
 
 Assets costing individually upto Rs. 5,000/- are fully depreciated 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 statement of profit and loss. 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 reflected 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 classified as finance 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
 finance lease are depreciated over their estimated useful life or the
 lease term whichever is lower.
 
 Assets acquired under lease where the significant portion of risks and
 rewards of ownership are retained by the lessor are classified as
 operating lease. Lease rentals are charged to the statement of profit
 and loss 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 finished 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 finished 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.
 
 Work-in-progress 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) Trade receivables and loans and advances
 
 Trade receivables and loans and advances are stated after making
 adequate provision for doubtful receivables and loans 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 and sale of scrap is recognised on transfer
 of all significant 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 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 statement of profit and loss. 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 on 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 fluctuations 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 the contract. Exchange differences on forward contracts are
 recognised in the statement of profit and loss in the reporting period
 in which the exchange rates change.
 
 (l) 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 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 ICAI
 notification issued in March 2008 in relation to such transactions.
 
 (m) Taxes on income
 
 Income-tax expense comprises current tax (i.e. amount of tax for the
 year determined in accordance with the Income-tax laws) and deferred
 tax charge or credit (reflecting 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 first are considered to reverse
 first.  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 reflect 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 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 the guidance note
 issued by Institute of Chartered Accountants of India (''ICAI''), the
 said asset is created by way of a credit to the statement of profit and
 loss. 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 specified period.
 
 (n) Employee benefits
 
 (i) Short-term employee benefits
 
 All employee benefits falling due wholly within twelve months of
 rendering the services are classified as short-term employee benefits,
 which include benefits 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 benefits
 
 Contributions to defined 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 defined benefit in the form of gratuity and medical
 benefits. The cost of providing benefit 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 Officers'' 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 officers of
 the Company who have been employed up to the date of 15 September 2005
 and any manager or officer 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 benefits
 
 All employee benefits (other than post-employment benefits and
 termination benefits) 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.
 
 (iv) Voluntary retirement scheme benefits
 
 Voluntary retirement scheme benefits are recognised as an expense in
 the year they are incurred.
 
 (o) 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.
 
 (p) 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 benefits will be required to settle the
 obligation and a reliable estimate can be made. Provisions are reviewed
 regularly and are adjusted where necessary to reflect 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 benefits expected to be received under it, are recognised
 when it is probable that an outflow of resources embodying economic
 benefits will be required to settle a present obligation as a result of
 an obligating event based on a reliable estimate of such obligation.
 
 (q) Earnings per share
 
 Basic Earnings Per Share (''EPS'') 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
 financing 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 statement of profit and loss.