1.  Basis for preparation of financial statements
 
 The financial statements are prepared under historical cost convention,
 on accrual basis, in accordance with the generally accepted accounting
 principles in India and to comply with the Accounting Standards
 prescribed in the Companies (Accounting Standards) Rules, 2006 issued
 by the Central Government in exercise of the power conferred under
 sub-section (1) (a) of Section 642 and the relevant provisions of the
 Companies Act, 1956 (the Act).
 
 2.  Use of Estimates
 
 The preparation of the financial statements in conformity with
 generally accepted accounting principles requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and disclosure of contingent liabilities on the date of
 the financial statements and the results of operations during the
 reporting periods. Although these estimates are based upon management''s
 best knowledge of current events and actions, actual results could
 differ from those estimates and revisions, if any, are recognized in
 the current and future periods.
 
 3.  Fixed Assets and Depreciation/Amortisation
 
 (i) Fixed assets are stated at cost less accumulated
 depreciation/amortisation. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use.
 
 (ii) Fixed assets under construction, advances paid towards acquisition
 of fixed assets and cost of assets not ready for use as at the year-
 end, are disclosed as capital work-in- progress.
 
 (iii) Expenses incurred relating to project prior to commencement of
 commercial production are classified as Pre-operative expenses pending
 allocation and are disclosed under Capital work in progress (net of
 income earned during the project development stage).
 
 (iv) Depreciation on fixed assets is provided on straightline method
 (except intangible assets which are amortised over the period of three
 years) on pro rata basis from the date of addition at the rates and in
 the manner prescribed in Schedule XIV to the Companies Act, 1956 which
 are as under:
 
 Asset category       Rate of Depreciation/
                      Amortization
 
 Computers            16.21% p.a.
 
 Office equipments    4.75% p.a.
 
 Furniture and 
 fixtures             6.33% p.a.
 
 Vehicles             9.50% p.a.
 
 Building             1.63% p.a.
 
 Leasehold 
 improvements         Over the period of lease
                      or estimated useful life,
                      if shorter
 
 Assets costing Rs. 5,000 or less are individually depreciated at the
 rate of one hundred percent.
 
 4.  Revenue Recognition
 
 Interest income
 
 Income from interest is accounted for on time proportion basis taking
 into account the amount outstanding and the applicable rate of
 interest.
 
 5.  Taxation
 
 Provision for tax comprises current income tax and deferred tax.
 Current income tax is determined in respect of taxable income with
 deferred tax being determined as the tax effect of timing differences
 representing the difference between taxable income and accounting
 income that originate in one period, and are capable of reversal in one
 or more subsequent period(s). Such deferred tax is quantified using
 rates and laws enacted or substantively enacted as at the end of the
 financial year.
 
 6.  Foreign Currency Transactions
 
 Transactions in foreign currency and non monetary assets are accounted
 for at the exchange rate prevailing on the date of the transaction. All
 monetary items denominated in foreign currency are converted at the
 year end exchange rate. The exchange differences arising on such
 conversion and on settlement of the transactions are recognized in the
 Pre-operative expenses pending allocation account.
 
 7.  Employee Benefits
 
 Expenses and liabilities in respect of employee benefits are recorded
 in accordance with Revised Accounting Standard 15 - Employee Benefits
 (Revised 2005)
 
 i) Gratuity
 
 Gratuity is a post employment benefit and is in the nature of a defined
 benefit plan. The liability recognized in the balance sheet in respect
 of gratuity is the present value of the defined benefit obligation at
 the balance sheet date, together with adjustments for unrecognized
 actuarial gains or losses and past service costs.  The defined benefit
 obligation is calculated at or near the balance sheet date by an
 independent actuary using the projected unit credit method.
 
 Actuarial gains and losses arising from past experience and changes in
 actuarial assumptions are charged or credited to the Pre-operative
 expenses pending allocation account in the year in which such gains or
 losses are determined.
 
 ii) Provident Fund
 
 The Company makes contribution to statutory provident fund in
 accordance with Employees Provident Fund and Miscellaneous Provision
 Act, 1952 which is a defined contribution plan and contribution payable
 is recognized as an expense in the period in which services are
 rendered by the employee.
 
 iii) Compensated Absences
 
 Liability in respect of compensated absences becoming due or expected
 to be availed within one year from the balance sheet date is recognized
 on the basis of undiscounted value of estimated amount required to be
 paid or estimated value of benefit expected to be availed by the
 employees. Liability in respect of compensated absences becoming due or
 expected to be availed more than one year after the balance sheet date
 is estimated on the basis of an actuarial valuation performed by an
 independent actuary using the projected unit credit method.
 
 iv) Other short term benefits
 
 Expense in respect of other short term benefits is recognized on the
 basis of the amount payable for the period during which services are
 rendered by the employee.
 
 8.  Leases
 
 Leases of assets under which significant risks and rewards of ownership
 are effectively retained by the lessor are classified as operating
 leases. Lease payments under an operating lease are recognized as
 expense in the Pre-operative expenses pending allocation account on a
 straight line basis over the lease term.
 
 9.  Impairment of Assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset 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 and the reduction is treated as an impairment loss and is
 recognized in the Profit and Loss Account. If at the balance sheet date
 there is an indication that 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 depreciated
 historical cost.
 
 10.  Contingent Liabilities and Provisions
 
 Depending upon the facts of each case and after due evaluation of legal
 aspects, claims against the Company not acknowledged as debts are
 treated as contingent liabilities. In respect of statutory dues
 disputed and contested by the Company, contingent liabilities are
 provided for and disclosed as per original demand without taking into
 account any interest or penalty that may accrue thereafter. The Company
 makes a provision when there is a present obligation as a result of a
 past event where the outflow of economic resources is probable and a
 reliable estimate of the amount of obligation can be made.  Possible
 future or present obligations that may but will probably not require
 outflow of resources or where the same cannot be reliably estimated,
 have been disclosed as a contingent liability in the financial
 statements.
 
 11.  Miscellaneous Expenditure
 
 Miscellaneous expenditure on account of increase in share capital and
 other related expenses are written off over a period of 5 years from
 the date of commencement of commercial production. Any reimbursements
 received from the depository are credited to Miscellaneous
 expenditure in the year such reimbursement is received.
 
 12.  Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is one that necessarily takes a
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to the profit and loss account as incurred
 
 13.  Earnings Per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.
 
 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 are
 adjusted for the effects of dilutive potential equity shares.