1.1 Basis of preparation of financial statements
 
 The financial statements are prepared under the historical cost
 convention, on accrual basis of accounting and in accordance with the
 provisions of the Companies Act, 1956 and the accounting standards
 notified by the Companies (Accounting Standards) Rules, 2006 (Indian
 GAAP), as adopted consistently by the Company.
 
 1.2 Use of Estimates
 
 The preparation of financial statements requires management to make
 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 reported amounts of revenue and
 expenses during the reported period. Actual results could differ from
 these estimates and any revision to such accounting estimates is
 recognised prospectively in the period in which the results are
 ascertained.
 
 1.3 Fixed Assets
 
 Tangible Fixed Assets are stated at cost / revalued amount less
 accumulated depreciation. Cost comprises purchase price plus
 attributable cost (including borrowing and financing cost during the
 period of construction).
 
 1.4 Depreciation /Amortisation
 
 i.  In respect of assets which have not been revalued, depreciation is
 provided on straight line method as follows
 
 - Plant and machinery, excluding air conditioners, at rates prescribed
 in Schedule XIV to the Companies Act, 1956.
 
 - Buildings, furniture and fixtures including air conditioners & office
 appliances (excluding computers), motor vehicles and computers at 4%,
 10%.  33.33% and 16.66 %p.a. respectively.
 
 ii.  The revalued assets are depreciated on straight line basis over
 the balance useful lives estimated by the valuer
 
 iii.  Freehold land is not depreciated except for improvements to land
 included therein.
 
 iv.  Patents, trademarks and brands are amortized over their legal term
 or working life, whichever is shorter
 
 v.  Brand Eveready is amortized over a working life of 40 years and
 Brand Premium Gold is amortized over a working life of 10 years.
 
 1.5 Investments
 
 Long term investments are carried at cost less provision for permanent
 diminution, if any, in the value of such investments. Current
 investments are carried at lower of cost and fair value.
 
 1.6 Inventories
 
 Inventories are valued as under
 
 i) Raw Materials and Stores and Spare Parts at lower of weighted
 average cost and net realizable value.
 
 li) Work-in-Progress and Finished Goods are valued at lower of cost and
 net realizable value where cost is worked out on weighted average
 basis. Cost includes all charges incurred in bringing the goods to the
 point of sale, including excise duty.
 
 1.7 Sales
 
 Sales comprise sale of goods less discounts as applicable and include
 excise duty but exclude Central Sales Tax / VAT
 
 1.8 Foreign Exchange Transactions
 
 Foreign Currency Transactions (FCT) and forward exchange contracts used
 to hedge FCT are initially recorded at the spot rates on the date of
 the transactions/ contracts.
 
 Monetary assets and liabilities related to foreign currency
 transactions remaining unsettled at the end of the year are translated
 at year-end rates. The difference in translation of monetary assets and
 liabilities and realised gains and losses on foreign currency
 transactions are recognised in the Profit and Loss Account.
 
 In respect of transactions covered by foreign exchange contracts, the
 difference between the contract rate and the spot rate on the date of
 the transaction is charged to the Profit and Loss Account over the
 period of the contract.
 
 1.9 Employee benefits
 
 The estimated liability for all employee benefits, both for present and
 past services which are due as per the terms of employment, are
 determined in accordance with Accounting Standard (AS) 15 issued by the
 Companies (Accounting Standards) Rules, 2006. A brief description of
 the various employee benefits are as follows:
 
 1.9.1 Pension - A defined benefit plan, the liability for which is
 determined on the basis of an actuarial valuation on the frozen corpus
 as at 31 March, 2003 and thereafter on the basis of the Company''s
 defined contribution scheme.
 
 1.9.2 Gratuity - The Company has an obligation towards gratuity, a
 defined benefit retiring plan covering eligible employees. The plan
 provides for lump sum payment to vested employees on retirement, death
 while in employment or on separation. Vesting occurs upon completion of
 five years of service. The liability, which is determined by means of
 an independent actuarial valuation, is funded with trusts sponsored by
 the Company.
 
 1.9.3 Provident Fund - This is a defined contribution plan framed in
 accordance with Indian laws, in accordance with which eligible
 employees participate.  Under the plan, both the employee and employer
 contribute monthly at a determined rate (currently upto 12% of
 employee''s salary). Contributions under the plan are made to the trust
 sponsored by the Company and the Pension Scheme framed by the Central
 Government.
 
 1.9.4 Other employee benefits include Post Retirement Medical Benefits
 and encashment of leave on separation, which are long term in nature.
 Both these benefits are unfunded and the liability for the same is
 determined by an independent actuarial valuation in accordance with the
 requirements of Accounting Standard (AS) 15 Employee Benefits.
 
 1.10 Borrowing Costs
 
 Interest and other costs in connection with the borrowing of funds by
 the Company are recognised as an expense in the period in which they
 are incurred unless activities that are necessary to prepare the
 qualifying assets for its intended use are in progress.
 
 1.11 Voluntary Retirement Schemes
 
 The cost of Voluntary Retirement Scheme which comprises lump sum
 payments to employees who opt for the same and in respect of which the
 Company has no further obligation is charged to the Profit and Loss
 Account.
 
 1.12 Deferred Tax
 
 Deferred Tax is the tax effect of timing differences i.e. the
 differences between taxable income and accounting income that originate
 in one period and are capable of reversal in one or more subsequent
 periods.
 
 1.13 Derivatives
 
 Risks associated with purchase of Zinc are covered by entering in
 derivative contracts in the form of FUTURES and OPTIONS in accordance
 with risk management policy adopted in the Board. Losses on such
 derivative contracts outstanding at the reporting date are provided on
 mark to market (MTM) basis in terms of announcement dated 29 March,
 2008 made by The Institute of Chartered Accountants of India.