1.  (a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 The company prepares its accounts on accrual basis following the
 historical cost convention and on the basis of going concern in
 compliance with the provisions of Section 211 (3C) [Companies
 (Accounting Standards) Rules, 2006, as amended] and the other relevant
 provisions of the Companies Act, 1956.
 
 (b) PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS
 
 During the year ended 31st March, 2012 the revised Schedule VI notified
 under the Companies Act 1956, has become applicable to the company for
 preparation and presentation of financial statements. The adoption of
 revised schedule VI does not impact recognition and measurement
 principles followed for preparation of these financial statements.
 However it has significant impact on presentation and disclosures made
 in the financial statements.
 
 2.  USE OF ESTIMATES
 
 The preparation of financial statements requires the use of estimates
 and assumptions to be made that affect the reported amount of assets,
 liabilities and disclosure of contingent liabilities on the date of
 financial statements and the reported amount of revenues and expenses
 during the reporting period. Difference between the actual results and
 estimates are recognised in the period in which the results are known /
 materialised.
 
 3.  FIXED ASSETS
 
 Fixed assets are capitalised at cost of acquisition including directly
 attributable costs such as freight, insurance and specific installation
 charges for bringing the assets to their working condition for intended
 use.
 
 Emergency machinery spares of irregular use and critical insurance
 machinery spares are capitalised as part of relevant plant & machinery.
 
 Pre-operative expenditure incurred upto the date of commencement of
 commercial production is capitalized as part of fixed assets.
 
 4.  INVESTMENTS
 
 Current investments are stated at lower of cost and fair value.
 Long-term investments are stated at cost after providing for diminution
 in value where in the opinion of the management such diminution is not
 temporary in nature.
 
 5.  DEPRECIATION
 
 Depreciation is provided for on Straight Line Method at the rates and
 in the manner specified in Schedule XIV of the Companies Act, 1956
 except in respect of computers (including accessories and peripherals),
 which are depreciated fully in the year of addition. Depreciation on
 other additions/deletions is provided pro-rata from/ upto the month of
 addition/deletion.
 
 Emergency machinery spares of irregular use and critical insurance
 spares are depreciated over the balance useful life of the parent
 asset.
 
 All assets costing Rs. 5,000 or below are depreciated in full by way of a
 one time depreciation charge.
 
 6.  INVENTORY VALUATION
 
 Inventories are valued at lower of cost or net realisable value except
 in case of scrap which is taken at net realizable value. Cost for
 various items of inventory is determined as under:
 
 Net realizable value is the estimated selling price in the ordinary
 course of the business, less estimated cost necessary to make the sale.
 
 7.  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.
 
 Sale of goods
 
 Sales includes excise duty and is accounted for upon dispatch of goods
 from the factory. Gross sales and net sales are disclosed separately in
 Statement of Profit & Loss.
 
 Carbon Credit Entitlement (CERs)
 
 Insurance and other claims are accounted for as and when admitted by
 the appropriate authorities in view of uncertainty involved in
 ascertainment of final claim.
 
 In process of production, the Company also generates carbon emission
 reduction units which may be negotiated for price in international
 market under Clean Development Mechanism (CDM) subject to completing
 certain formalities and obtaining certificate of Carbon Emission
 Reduction (CER) as per Kyoto Protocol. Revenue from CER is recognized
 as and when the CER''s are certified and it is probable that the
 economic benefits will flow to the Company.
 
 Late Payment Surcharge
 
 Late payment surcharge on delayed payments is recognized as income in
 accordance with the terms of power purchase agreement (PPA) entered
 into with UPPCL and its associates.
 
 Interest
 
 Interest is recognized on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 Dividends
 
 Revenue in respect of dividends is recognised when the Shareholders
 rights to receive payment is established by the balance sheet date.
 
 8.  CONTINGENCIES AND EVENTS OCCURING AFTER THE BALANCE SHEET DATE
 
 Events occurring after the date of the Balance sheet, which provide
 further evidence of conditions that existed at the Balance Sheet date
 or that arose subsequently, are considered upto the date of approval of
 accounts by the Board of Directors, where material.
 
 9.  GOVERNMENT GRANTS
 
 Grants relating to specific fixed assets are deducted from the original
 cost of specified assets.
 
 10.  EMPLOYEES BENEFITS
 
 a) Provident Fund
 
 Company''s contribution to provident fund, being in the nature of
 defined contribution plan, are being charged to Statement of Profit &
 Loss in the period during which services are rendered by employees.
 
 b) Gratuity & Leave Encashment
 
 Provision for gratuity and leave encashment in the nature of defined
 benefit obligation is considered on the basis of Accounting Standard
 AS-15 on actuarial valuation using projected unit credit method. The
 discount rate and other financial assumptions are based on the
 parameters defined in the accounting standard.
 
 c) Other Short term benefits
 
 Expenses in respect of other short term benefits are recognized on the
 basis of the amount paid or payable for the period during which
 services are rendered by the employee.
 
 11.  EXCISE DUTY
 
 Excise duty in respect of finished goods (including molasses) is
 accounted for at the end of period and is included in the value of
 closing stock as per ''Guidance Note on Accounting Treatment of Excise
 Duty'' issued by the Institute of Chartered Accountants of India.
 
 12.  INTANGIBLE ASSETS
 
 Items of expenditure that meet the recognition criteria as mentioned in
 Accounting Standard are classified as intangible assets and are
 amortized over the period of economic benefits not exceeding ten years.
 
 13.  BORROWING COSTS
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of qualifying assets are capitalized as part of cost of
 such assets. A qualifying asset is an asset that necessarily requires a
 substantial period of time to get ready for its intended use or sale.
 All other borrowing costs are recognized as an expense in the period in
 which they are incurred.
 
 14.  FOREIGN CURRENCY TRANSACTIONS
 
 Transactions denominated in foreign currency are accounted for at the
 exchange rate prevailing on the date of transaction. Exchange
 differences arising on account of forward contracts are dealt with in
 the Statement of Profit & Loss over the period of the contracts.
 Monetary assets and liabilities relating to foreign currency
 transactions are converted at the year end rate or at forward contract
 rate, as applicable. Gains or losses arising on cross currency forex
 swap transactions are accounted for over the period of contract.
 
 15.  TAXES ON INCOME
 
 Tax on income for the current period is determined on the basis of
 taxable income & tax credits computed in accordance with the provisions
 of the Income Tax Act 1961, and based on expected outcome of
 assessments/ appeals.
 
 Deferred Tax is recognized on timing differences between the accounting
 income and the taxable income for the year and reversal/adjustment of
 earlier year deferred tax assets / liabilities which are quantified
 using the tax rates and laws enacted or substantively enacted as on the
 Balance Sheet date.
 
 Deferred tax assets on account of unabsorbed losses and depreciation
 are recognized and carried forward to the extent that there is a
 virtual certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realised.
 Deferred tax assets are reassessed at each Balance Sheet date.
 
 MAT credit is recognized 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 Minimum
 Alternative tax (MAT) credit becomes eligible to be recognized as an
 asset in accordance with the recommendations contained in Guidance Note
 issued by the Institute of Chartered Accountants of India, the said
 asset is created by way of a credit to the Statement of Profit and Loss
 and shown as MAT Credit Entitlement. 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.
 
 16.  IMPAIRMENT OF ASSETS
 
 Where the recoverable amount of the fixed asset is lower than its
 carrying amount, a provision is made for the impairment loss. Post
 impairment, depreciation is provided for on the revised carrying value
 of the asset over its remaining useful life. The impairment loss
 recognized in prior accounting period is reversed if there is a
 favourable change in the estimate of recoverable amount.
 
 17.  PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS
 
 Contingent liabilities, if material, are disclosed by way of notes,
 contingent assets are not recognized or disclosed in the financial
 statements. A provision is recognized when an enterprise has a present
 obligation as a result of past event(s) and it is probable that an
 outflow of resources embodying economic benefits will be required to
 settle the obligation(s), in respect of which a reliable estimate can
 be made for the amount of obligation.
 
 18.  EARNING PER SHARE (EPS)
 
 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 year. Partly
 paid equity shares are treated as a fraction of an equity share to the
 extent that they were entitled to participate in dividends relative to
 a fully paid equity share during the reporting year.
 
 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 all dilutive potential equity shares.
 
 19.  LEASES
 
 Where the Company is the lessee
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Statement of Profit and Loss on a straight-line basis over the
 lease term.
 
 Where the Company is the lessor
 
 Assets subject to operating leases are included in fixed assets. Lease
 income is recognised in the Statement of Profit and Loss on a
 straight-line basis over the lease term. Costs, including depreciation
 are recognised as an expense in the Statement of Profit and Loss.
 Initial direct costs such as legal costs, brokerage costs, etc. are
 recognised immediately in the Statement of Profit and Loss.
 
 20.  SEGMENT ACCOUNTING & REPORTING Identification of segments
 
 The company''s operating business are organized and managed separately
 according to the nature of products manufactured and services provided,
 with each segment representing a strategic business unit that offers
 different products.
 
 Allocation of common costs
 
 Common allocable costs are allocated to each segment on reasonable
 basis.
 
 Unallocated Items
 
 Unallocable assets & liabilities represents the assets & liabilities
 not allocable to any segment as identified as per the Accounting
 Standard.
 
 Segment Policies
 
 The company prepares its segment information in conformity with the
 accounting policies adopted for preparing and presenting the financial
 statements of the company as a whole.
 
 21 CASH & CASH EQUIVALENTS
 
 Cash & Cash Equivalents comprise cash at bank and cash/cheque in hand
 and term deposits with banks.