i) Accounting Convention:
 
 The financial statements are prepared under the historical cost
 convention, having due regard to fundamental accounting assumptions of
 going concern, consistency and accrual, in compliance with the
 accounting standards referred to in Section 211 (3C) of the Companies
 Act, 1956.
 
 ii) Fixed Assets:
 
 a) Fixed Assets are stated at cost of acquisition or construction less
 accumulated depreciation. Attributable finance costs and expenses of
 bringing the respective assets to working condition for their intended
 use are capitalised.
 
 b) Intangible Assets: Expenses incurred by the Company on acquisition,
 development or enhancement of intangible resources are recognised as
 intangible assets if these are identifiable, controlled by the Company
 and it is probable that future economic benefit attributable to the
 asset would flow to the enterprise. Intangible assets are amortised
 from the date when they are available for use over the best estimate of
 their useful life.
 
 c) Impairment: The carrying amount of cash generating units / assets is
 reviewed at balance sheet date to determine whether there is any
 indication of impairment. If any such indication exists, the
 recoverable amount is estimated as the higher of net selling price and
 value in use. Impairment loss is recognised whenever carrying amount
 exceeds the recoverable amount. Conversely, previously recognised
 losses are reversed when the estimated recoverable amount exceeds the
 carrying amount.
 
 d) Borrowing Costs that are directly attributable to the acquisition or
 production of a qualifying asset are capitalised as part of the cost of
 those assets. Other borrowing costs are recognised as expense in the
 period in which they are incurred.
 
 H) Depreciation:
 
 Depreciation is provided on straight-line method as per the rates and
 in the manner prescribed in Schedule XIV to the Companies Act, 1956.
 
 iv) Investments:
 
 Investments are classified as long-term and current. Investments
 classified as long term are stated at cost. Provision for diminution,
 if any, in the value of long-term investments is made to recognise a
 decline other than temporary in the fair value of investments. The fair
 value of a long-term investment is ascertained with reference to its
 market value, investees assets and results and the expected cash flows
 from the investment as well as the strategic importance to the company.
 Investments classified as current are valued at lower of cost and fair
 value.
 
 v) Valuation of Inventories:
 
 All the inventories are valued at lower of cost or net realisable
 value. Cost of Raw Materials, Packing Materials, Stores and Spares is
 determined at weighted average cost. Finished goods and Semi Finished
 goods are valued at material cost, cost of conversion and excise
 wherever applicable. Scrap generated out of manufacturing process is
 valued at net realisable value except in case of sheets, optic fibre,
 CFL and Switch divisions where it is accounted for on sale.
 
 vi) Foreign Currency Transactions:
 
 Transactions in foreign currencies are recorded at the exchange rates
 prevailing on the date of the transaction. Assets and Liabilities
 denominated in foreign currency are translated at the year-end rate.
 The difference between the rate prevailing on the date of transaction
 and on the date of settlement as also on translation of Assets and
 Liabilities at the end of the year is recognised as income or expense,
 as the case may be. In accordance with the transitional provisions
 contained in The Companies (Accounting Standards) Amendment Rules 2009,
 and in conforming to the Accounting Standard 11 (AS 11), in respect of
 long term foreign currency loan taken for acquisition of assets, the
 exchange difference arising on reporting of said loan is adjusted to
 the cost of the assets.
 
 The Company uses foreign exchange forward contracts and options to
 reduce the cost or to hedge its risks associated with foreign currency
 fluctuations to underlying transactions, for certain firm commitments
 or forecasted transactions. The difference between the forward rate and
 the exchange rate at the inception of the forward contract for
 underlying transaction is recognised as income or expense over the life
 of the contract. In respect of hedge contracts, for firm commitment or
 forecasted transactions,
 
 the attributable gain or loss is accrued and taken to profit and loss
 account on periodic settlement and/or completion of contract. Loss if
 any, in respect of outstanding derivatives at the balance sheet date is
 assessed by the management based on the principle of prudence and
 charged to profit and loss account of that period.
 
 vii) Revenue Recognition:
 
 a) Sale of goods is recognised on despatches to customers which
 generally coincides with transfer of title, significant risk and
 rewards of ownership to customer and includes excise duty.
 
 b) Dividend income is accounted for when right to receive is
 established.
 
 c) Interest is recognised on time proportionate basis taking into
 account the amount outstanding and the rate applicable.
 
 d) Credits on account of Custom Duty and other benefits, which are due
 to be received with reasonable certainty, are accrued upon completion
 of exports.
 
 viii) Employee Benefits:
 
 a) Defined Contribution Plan:
 
 Contributions are made to approved Superannuation and Provident Fund.
 
 b) Defined Benefit Plan:
 
 Companys liability towards gratuity is determined using the projected
 unit credit method which consider each period of service as giving rise
 to an additional unit of benefit entitlement and measures each unit
 separately to build up the final obligation. Past Service Gratuity
 Liability is computed with reference to the service put in by each
 employee till the date of valuation as also the projected terminal
 salary at the time of exit. Actuarial gain or losses are recognised
 immediately in the Statement of Profit and Loss as income or expense.
 Obligation is measured at the present value of estimated future Cash
 Flow using a discount rate that is determined by reference to market
 yields at the Balance Sheet date on government bonds where the currency
 and terms of the government bonds are consistent with the currency and
 estimated terms of the defined benefit obligation.
 
 c) Short Term Compensated Absences:
 
 Liability on account of encashment of leave to employee is considered
 as short term compensated expense provided on actual.
 
 ix) Taxation:
 
 Income Tax expense comprises current tax and deferred tax charge or
 credit.
 
 Deferred tax for timing difference between the book and tax profit for
 the year is accounted using tax rates and tax laws that have been
 enacted or substantively enacted at the Balance Sheet date. Deferred
 Tax assets arising from the timing difference are recognised to the
 extent that there is virtual certainty that sufficient future taxable
 income will be available.
 
 x) Provisions and Contingent Liabilities:
 
 a) Provisions in respect of present obligations arising out of past
 events are made in the accounts when reliable estimates can be made of
 the amount of the obligation.
 
 b) Contingent liabilities are disclosed by way of note to the financial
 statements, after carefui evaluation by the management of the facts and
 legal aspects of the matter involved.