a. Accounting Convention
 
 The Financial Statements are prepared to comply in all material aspects
 with all the applicable Accounting Standards notified by the Companies
 (Accounting Standards) Rules, 2006 and the relevant provisions of the
 Companies Act, 1956.
 
 c.  Foreign Currency Translation
 
 Transactions in Foreign Exchange are accounted for at the exchange
 rates prevailing on the date of the transaction.  The exchange
 differences arising out of the settlements, including those on
 liabilities relating to fixed assets are dealt with in the Profit and
 Loss Account. Monetary assets and liabilities are restated at the year
 end rates and the resultant gains or losses are recognized in the
 Profit and Loss account.
 
 d.  Investments
 
 Long term Investments are stated at cost less provision, if any, for
 diminution other than temporary dimunition in the value of such
 investments. Current investments are valued at lower of cost and net
 realizable/fair value.
 
 e.  Inventories
 
 Inventories are valued at lower of cost and net realizable value,
 except for ghee, a by-product, which is valued at net realizable value.
 Cost is determined on the basis of the weighted average method. It
 includes all the appropriate allocable overheads and excise duty
 wherever applicable. Provision for inventory obsolescence is made based
 on the best estimates of management.
 
 f.  Research and Development
 
 The revenue expenditure is charged against the profits for the year in
 which it is incurred. Capital expenditure is accounted in the same way
 as fixed assets.
 
 g.  Employee Benefits
 
 The Company has a Defined Contribution plan for post employment benefit
 namely Superannuation Fund which is recognized by the income tax
 authorities. This fund is administered through trustees and the
 Companys contribution thereto is charged to revenue every year.
 
 The Companys contributions to State plans namely Employees State
 Insurance Fund and Employees Pension Scheme 1995 are charged to
 revenue every year.
 
 The Company has Defined Benefit plans namely leave encashment
 /compensated absences for workers, Gratuity and Provident Fund for all
 employees and post-employment medical assistance scheme for certain
 employees, the liability for which is determined on the basis of an
 actuarial valuation at the end of the year. The Gratuity Fund and
 Provident Fund are recognized by the income tax authorities and are
 administered through trustees. The post-employment medical assistance
 scheme is an insured benefit plan wherein the Company annually pays
 insurance premium to NIC (National Insurance Company) and the liability
 for future premiums in respect of the underlying benefits is determined
 on the basis of an actuarial valuation at the year end. The Company
 provides for compensated absences for management, executive and staff
 (Short term defined benefit) during the year on an arithmetical basis.
 
 Actuarial gains and losses comprise experience adjustments and the
 effects of changes in actuarial assumptions and are recognised
 immediately in the Profit and Loss Account as income or expense.
 
 Termination benefits are recognised as an expense immediately.
 
 h.  Revenue Recognition
 
 Sales comprise of value of sale of goods (net of returns/estimated
 returns) excluding sales tax and trade discounts but including excise
 duty. Sales are recognized when the title of the goods is passed to the
 customer. Insurance and other Claims are recognized on an accrual
 basis. Dividend income is accounted for in the year in which the right
 to receive the same is established. Interest on Investments is
 recognized on a time proportion basis taking into account the amounts
 invested and the fixed rate of interest. Also, Refer Note 22(c).
 
 i.  Taxation
 
 Tax expense/(saving) is the aggregate of current year tax and deferred
 tax charged/(credited) to the Profit and Loss Account for the year.
 
 a) Current Tax
 
 Provision for taxation is based on assessable profits of the Company as
 determined under the Income Tax Act, 1961. The Company also provides
 for such disallowances made on completion of assessments pending
 appeals, as considered appropriate depending on the merits of each
 case. Provision for taxation for the Companys financial year ended
 December 31, 2010 has been determined based on the results for 3 months
 ended March 31, 2010 (Assessment Year 2010-2011) and for the 9 months
 ended December 31, 2010 (Assessment Year 2011-2012). The ultimate
 liability for the Assessment Year 2011-2012, however, will be
 determined on the total income of the Company for the year ending on
 March 31, 2011.
 
 b) Deferred Tax
 
 Deferred tax assets & liabilities resulting from timing differences
 between book profits and tax profits are accounted for under the
 liability method and measured at substantially enacted rates of tax at
 the Balance Sheet date to the extent that there is reasonable/virtual
 certainty that sufficient future taxable income will be available
 against which such deferred tax asset/virtual liability can be
 realized.
 
 c) Fringe Benefits Tax
 
 Provision for Fringe Benefits Tax is made in respect of employee
 benefits and other specified expenses as determined under the Income
 Tax Act, 1961.
 
 j.  Borrowing Costs
 
 The interest on working capital management is charged against the
 profits for the year in which it is incurred.  Interest on borrowings
 for capital assets is capitalized till the date of commencement of
 commercial use of the asset.
 
 k.  Leases
 
 Lease rentals in respect of operating leases are charged to the Profit
 and Loss Account on a straight line basis over the term of the lease.
 
 l.  Provisions and Contingent Liabilities
 
 A provision is recognized when there is a present obligation as a
 result of past events for which it is probable that an outflow of
 resources will be required to settle the obligation and in respect of
 which a reliable estimate can be made. These are reviewed at each
 balance sheet date and adjusted to reflect the current best estimates.
 Contingent liabilities are disclosed after an evaluation of the facts
 and legal aspects of the matters involved.