(i) Basis of preparation
 
 The financial statements have been prepared to comply with all material
 aspects of the mandatory Accounting Standards issued by the Institute
 of Chartered Accountants of India (''ICAI'') and the relevant provisions
 of the Companies Act, 1956 (the ''Act''). The financial statements have
 been prepared under the historical cost convention on accrual basis.
 The accounting policies have been consistently applied by the Company
 unless otherwise stated.
 
 (ii) Use of Estimates:
 
 The presentation of financial statements in conformity with the
 generally accepted accounting principles requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities and disclosures relating to contingent liabilities as at
 the date of the financial statements and the reported amount of
 revenues and expenses during the reporting year. Contingencies are
 recorded when it is probable that a liability will be incurred, and the
 amount can be reasonably estimated. Actual results could differ from
 those estimates. Differences between the actual results and estimates
 are recognised in the year in which the results are known /
 materialised.
 
 (iii) Revenue Recognition:
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the company and the revenue can be
 reliably measured.
 
 Sales of Goods:
 
 Sales are recognised when significant risks and rewards of ownership of
 goods have been passed to the buyer.
 
 Work Contracts Income:
 
 Work contracts income is recognised on completed contract method when
 the complete services are rendered.
 
 Power Generation Income:
 
 Power generation income is recognised on the basis of electrical units
 generated and eligible for captive consumption or captive consumed or
 sold as shown in the power generation reports issued by the concerned
 authorities. Power generation income is booked as the per unit
 electricity rate, being paid by the company / actually sold by the
 company.
 
 Interest:
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 Commission Income:
 
 Revenue is recognised as and when complete services are rendered.
 
 Other Income:
 
 Sales Schemes and Other Market incentives are recognized in the profit
 and loss account of the period during which it accrues. Unspent
 liabilities & credit balances are recognized in the profit and loss
 account of the period in which it is identified as not payable
 
 (iv) Inventories:
 
 Inventories of Raw Materials, Packing Materials, Goods-in-Process,
 Finished Goods, and Merchanting Goods are stated at cost or net
 realisable value, whichever is lower. Stores and Spare Parts are stated
 ''at or below cost''. Cost comprises all cost of purchase, cost of
 conversion and other costs incurred in bringing the inventories to
 their present location and condition. The excise duty in respect of
 closing inventory of finished goods is included as part of finished
 goods. Cost formula used is ''Average cost''. Due allowance is estimated
 and made for defective and obsolete items, wherever necessary, based on
 the past experience of the Company.
 
 (v) Fixed Assets :
 
 Gross fixed assets are stated at cost of acquisition including
 incidental expenses relating to acquisition and installation. Fixed
 Assets are stated at cost net of modvat / cenvat / other credits and
 includes amounts added on revaluation, less accumulated depreciation
 and impairment loss, if any. All pre- operative costs, including
 specific financing cost till commencement of commercial production, net
 charges on foreign exchange contracts and adjustment arising from
 foreign exchange rate variations attributable to the fixed assets are
 capitalised. Long-term leasehold assets are capitalized under fixed
 assets.
 
 (vi) Depreciation / Amortization
 
 Depreciation is provided on Straight Line Method at the rates and in
 the manners prescribed in Schedules XIV to the Companies Act, 1956, on
 the basis of shifts / manners of utilization of the assets.
 Depreciation on additions/ disposals during the year has been provided
 on pro-rata basis with reference to the nos. of days utilized.
 
 Long-term leasehold assets capitalized under fixed assets are amortized
 over the period of lease on straight-line method.
 
 (vii) Borrowing Cost.
 
 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
 substantial period of time to get ready for intended use. All other
 borrowing costs are charged to revenue.
 
 (viii) Foreign Currency Transactions:
 
 Transactions denominated in foreign currencies are recorded at the
 exchange rate prevailing on the date of transaction.
 
 Foreign currency current assets and current liabilities outstanding at
 the balance sheet date are translated at the exchange rate prevailing
 on that date and the net gain or loss is recognized in the profit and
 loss account.
 
 Foreign currency translation differences relating to liabilities
 incurred for purchasing of fixed assets from foreign countries are
 adjusted in the carrying cost of fixed asset for differences up to the
 year- end in the year of acquisition, whereas differences arising
 thereafter to be recognized in the profit and loss account. All other
 foreign currency gain or losses are recognized in the profit and loss
 account.
 
 (ix) Investments
 
 Pending the utilization of equity convertible warrants issued on
 preferential basis application money received and preferential issue of
 equity shares, fund raised for the purpose has been shown under this
 group, in compliance with Schedule VI of the Companies Act, 1956.
 Interest accrued and due over such investments has been shown
 separately under this group.
 
 (x) Taxation
 
 Tax expenses comprise current tax and deferred tax charge or credit.
 Current tax is determined in accordance with the provisions of the
 Income-Tax Act, 1961.
 
 Deferred tax assets and liability is recognized, on timing differences,
 being the differences between taxable income and accounting income that
 originate in one period and are capable of reversal in one or more
 subsequent periods. Deferred tax assets arising mainly on account of
 brought forward losses, unabsorbed depreciation and minimum alternate
 tax under tax laws, are recognised, only if there is a virtual
 certainty of its realisation, supported by convincing evidence. At each
 Balance Sheet date, the carrying amount of deferred tax assets are
 reviewed to reassure realisation. The deferred tax asset and deferred
 tax liability is calculated by applying tax rate and tax laws that have
 been enacted or substantively enacted by the Balance Sheet date.
 
 (xi) Operating Lease :
 
 Operating leases: Assets acquired as leases where a significant portion
 of risk and rewards of ownership are retained by the lessor are
 classified as operating lease. Lease rentals being income or expense
 are booked to the profit and loss account as incurred.
 
 Initial direct cost in respect of the lease acquired are expensed out
 in the year in which such costs are incurred.
 
 (xii) Retirement Benefits and other employee benefits :
 
 Defined contribution to provident fund is charged to the profit and
 loss account on accrual basis.
 
 Provision for gratuity liability is provided based on actuarial
 valuation made at the end of the financial year.
 
 Leave encashment expenditure is charged to profit and loss account at
 the time of leave encashed and paid. Bonus expenditure is charged to
 profit and loss account on accrual basis.
 
 (xiii) Provisions, contingent liabilities and contingent assets :
 
 A provision is recognised when the company has 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 their
 present value and are determined based on best estimates required to
 settle the obligation at the balance sheet date.  These are reviewed at
 each balance sheet date and adjusted to reflect the current best
 estimates.
 
 Contingent liabilities are disclosed by way of notes to the accounts.
 
 Contingent assets are not recognized.
 
 (xiv) Preliminary & Pre-operative Expenditure :
 
 Preliminary Expenditure has been amortised over a period of five years.
 
 Pre-operative Expenditure incurred for expansion project including
 specific financing cost till commencement of commercial production,
 attributable to the fixed assets are capitalised.
 
 (xv) Deferred Revenue Expenditure :
 
 Deferred Revenue Expenditure includes those advertisement expenditure,
 market survey expenditure and sales promotion expenditure, which in the
 opinion of the management of the company has beneficial utility for
 longer period. Such expenditure is amortized over period of five years
 on straight line basis.
 
 (xvi) Share Issue Expenses:
 
 Portion of share issue expenses being in nature of deferred revenue
 expenses incurred for raising the money through initial public offer
 for the expansion projects are amortized to profit and loss account
 over period of five years from the commencement of the relevant
 project. Additional share / warrant issue expenses incurred at the time
 of initial public offer has been written off against the share premium
 received for such shares / warrants.