i) Accounting Conventions
 
 The consolidated financial statements are prepared under historical
 cost conventions and as a going concern basis following the accrual
 basis of accounting and in accordance with the generally accepted
 accounting principles (GAAP) in India.
 
 ii) Principles of Consolidation
 
 The accounts of subsidiaries including foreign subsidiaries have been
 consolidated with the parent companies accounts in accordance with
 Accounting Standard-21 on Consolidated Financial Statements and
 investments in Associates have been accounted for using the equity
 method as per Accounting Standard-23 on Accounting for Associates in
 Consolidated Financial Statements as specified in the Companies
 (Accounting Standard) Rules, 2006.
 
 Consolidated Financial Statements have been made by adding together
 like items of assets, liabilities, income and expenses.  The
 inter-company transactions and unrealized profits/(losses) thereon have
 been eliminated in full.
 
 Goodwill/Capital Reserves represent the difference between the cost of
 control in the subsidiaries/associates, over the book value of net
 assets at the time of acquisition of control in the
 subsidiaries/associates.
 
 Foreign subsidiaries are considered as non-integral foreign operation
 as per Accounting Standard-11, on The effect of Changes in Foreign
 Exchange Rates. The financial statements of the same have been
 converted using the following methods:
 
 Components of Profit & Loss Account except opening & closing stock have
 been converted using monthly average rate of the reported year.
 
 Components of Balance Sheet have been converted using the rates at the
 balance sheet date, except balance of Profit & Loss Account. Resultant
 foreign exchange translation difference has been recognized as Foreign
 Currency Translation Reserve.
 
 iii) Use of estimates
 
 The preparation of the consolidated financial statements in conformity
 with the generally accepted accounting principles requires management
 to make estimates and assumptions that affect the reported amounts of
 revenues, expenses, assets and liabilities for the year under review
 and disclosure of contingent liabilities on the date of the
 consolidated financial statements.  Actual results could differ from
 these estimates. Any revision to accounting estimates is recognized
 prospectively in the current and future periods.
 
 iv) Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the company and revenue can be reliably
 measured
 
 a.  In respect of Sales : When the significant risks and rewards of
 ownership of goods have been passed on to the buyer, which generally
 coincides with delivery / shipment of goods to customers.
 
 b.  In respect of Interest Income : On time proportion basis taking
 into account the amount outstanding and the rate applicable.
 
 c.  In respect of Service Income : When the s erv i c es are performed
 as per contract.
 
 d.  In respect of Dividend Income : When right to receive payment is
 established.
 
 e.  In respect of Insurance Claims : On Settlement of Claims Revenue
 from product sales is recognised inclusive of Excise duty but exclusive
 of Sales Tax / Value added Tax (VAT) and net of returns, Sales Discount
 etc. Sales Returns are accounted for when goods are returned.
 
 v) Fixed Assets
 
 Fixed assets are stated at historical cost, which comprises cost of
 purchase/construction cost, cost of borrowing and other cost directly
 attributable to bring the assets at its working condition and location
 for its intended use. Expenditures during construction period are
 allocated to the relevant assets in the ratio of costs of respective
 assets.
 
 vi) Depreciation on Fixed Assets
 
 Depreciation on Fixed Assets is provided on Straight Line Method (SLM)
 at the rates and in the manner prescribed in Schedule XIV of the
 Companies Act, 1956.
 
 In case of foreign subsidiaries, depreciation is provided on Straight
 Line Method (SLM) over the useful life of the assets.
 
 Mining lease is amortised over the life of the asset. Amortisation is
 calculated in proportion of actual production when measured against the
 resources available in the mine.
 
 Mine Development is activities undertaken to gain access to mineral
 reserves. Typically this includes sinking shafts, permanent
 excavations, building transport infrastructure and roadways. All costs
 relating to mine development are capitalised and are amortised over the
 estimated reserve in that developed area of the mine. Amortisation is
 calculated in proportion to actual production when measured against
 mineable resources in the mine area developed on which the expenses
 were incurred. The carrying value of mine development is reviewed to
 ensure it is not in excess of its recoverable amount.
 
 All costs relating to the pre-production of coal were capitalized as
 Pre Production Expenses and are amortised over the estimated life of
 reserves in the mine. Amortisation is calculated in proportion to
 actual production when measured against mineable resources in the mine
 seam for which the expenses were incurred. The carrying value of
 pre-production is reviewed by directors to ensure it is not in excess
 of its recoverable amount.
 
 vii) Inventories
 
 1.  Inventories are valued as under:
 
 a.  Raw Materials : At Cost or Net Realisable Value whichever is lower
 
 b.  Finished Products : At Cost or Net Realisable Value whichever is
 lower
 
 c.  Stores, Spares and Components
 
 At Cost or Net Realisable Value whichever is lower
 
 d.  Stock in process : At Raw material Cost plus estimated cost of
 conversion upto the stage of completion or Net Realisable Value
 whichever is lower.
 
 Cost includes all direct cost and applicable manufacturing and
 administrative overheads.
 
 2.  Inventories are valued on FIFO basis.
 
 3.  Variation, if any, between books and physical stocks detected on
 physical verification, obsolete & slow moving stocks are adjusted in
 accounts as found appropriate.
 
 viii) Investments
 
 Long term investments are stated at cost. Provision is made when
 diminution in the value of investments is considered permanent in
 nature.
 
 Current investments are stated at lower of cost and market value.
 
 ix) Foreign Exchange Transactions
 
 a.  Initial Recognition:
 
 Foreign Exchange transactions are recorded normally at the exchange
 rates prevailing on the date of the transactions.
 
 b.  Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of transaction and non-monetary items which are carried at
 the fair value or other similar denominated in a foreign currency are
 reported using the exchange rates that existed when the values were
 determined.
 
 Foreign Currency Convertible Bonds (FCCBs) are treated as fully
 convertible into equity shares
 
 c.  Exchange differences
 
 Exchange differences arising on settlement of transactions or on
 reporting monetary items of the Company at the rate different from
 those at which they were initially recorded during the year, or
 reported in previous financial statement, are recognised as income or
 expenses in the year in which they arise except in case where they
 relate to acquisition of fixed assets.
 
 d.  Forward Exchange Contract not intended for trading or speculative
 purposes
 
 The premium or discount arising at the inception of forward exchange
 contract is amortized as expenses or income over the life of the
 respective contract. Exchange differences on such contracts are
 recognised in the statement of Profit or Loss in the year in which
 exchange rate changes. Any profit or loss arising on cancellation or
 renewal of forward exchange contract is recognised as income or as
 expenses for the year.
 
 x) Provisions, Contingent Liabilities and Contingent Assets
 
 The Company makes a provision when there is present obligation as a
 result of past event that probably requires an outflow of resources and
 a reliable estimate can be made of the amount of the obligation. A
 disclosure for contingent liabilities is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources.  Contingent Assets are disclosed when
 an inflow of economic benefit is probable and/or certain.
 
 xi) Borrowing Costs
 
 Borrowing Costs that are attributable to the acquisition and
 construction of qualifying assets are capitalised as a part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for its intended use.  Other
 borrowing costs of the year are charged to revenue in the period in
 which they are incurred.
 
 xii) Taxation
 
 Current Tax is determined as the amount of tax payable in respect of
 taxable income for the period.
 
 Deferred Tax Liability is recognized for all timing difference 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 are recognized only if there is reasonable
 certainty that the same will be realized and are reviewed for the
 appropriateness of its respective carrying values at each Balance Sheet
 date.
 
 Tax on Distributed Profit Payable is in accordance with the provision
 of Section 155O of the Income Tax Act, 1961 and in accordance with
 guidance note on Accounting for Corporate Dividend Tax.
 
 Wealth Tax is determined on taxable value of assets on the balance
 sheet date.
 
 Foreign Companies recognize tax liabilities and assets as per their
 rules and regulations.
 
 xiii) Employee Benefits
 
 a) Short Term & Post Employment Benefits
 
 Employee benefits of short-term nature are recognized as expense as and
 when those accrue. Post employments benefits are recognized as expenses
 based on actuarial valuation at year end which takes into account
 actuarial gains and losses.
 
 b) Employee Stock Option Scheme (ESOS)
 
 Aggregate quantum of options granted under the schemes in monetary term
 net of consideration of issue, to be paid in cash, are shown in the
 Balance Sheet as Employees Stock Option outstanding under Reserves &
 Surplus and as Deferred Employees Compensation under Miscellaneous
 Expenditure as per guidelines of SEBI in this respect. With the
 exercise of options and consequent issue of equity shares corresponding
 ESOS outstanding is transferred to Securities Premium Account.
 
 In case of foreign subsidiaries the fair value of options granted is
 recognised as an employee benefit expense with a corresponding increase
 in equity. The fair value is measured at grant date and recognized over
 the period during which the employee become unconditionaly entitled to
 the options. Fair value at grant date is independently determined using
 binomial method for option pricing.
 
 xiv) Indirect Taxes
 
 Excise Duty on Finished Goods Stock is accounted for at the point of
 manufacture of goods and is accordingly considered for valuation of
 finished goods stock as on Balance sheet date.  Customs duty on
 imported raw materials is accounted for on the clearance of goods from
 the Customs Authorities.
 
 In Foreign Subsidiaries
 
 Revenues, expenses and assets are recognised net of the amount of GST,
 except where the amount of GST incurred is not recoverable from the
 Australian Taxation Office. In these circumstances the GST is
 recognised as part of the cost of acquisition of the asset or as part
 of an item of the expense.  Receivables and payables in the balance
 sheet are shown inclusive of GST.
 
 xv) Miscellaneous Expenditures
 
 Miscellaneous expenditure, stated at cost, is amortized over period of
 time as under:
 
 (i) Deferred Revenue Expenses - 5 years
 
 (ii) Deferred Employees Compensation under ESOS- Amortised on straight
 line basis over vesting period.
 
 The restoration liability calculated as discounted present value in
 relation to restoration guarantee at the end of the lease is
 correspondingly represented by a Miscellaneous Expenditures as Deferred
 restoration Guarantee.
 
 The Deferred Restoration Guarantee, after deducting the change in
 liability, is amortised on a straight line basis over the life of the
 mine lease.
 
 xvi) Impairment of Assets
 
 The Company assesses at each Balance Sheet date whether there is any
 indication of an asset being impaired. An asset is treated as impaired
 when the carrying amount of assets exceeds its recoverable value, in
 which case the impairment loss is charged to the Profit and Loss
 Account of the year in which an assets is identified as impaired. The
 impairment loss, if any recognised in prior accounting periods is
 reversed if there has been a change in the estimate of recoverable
 amount.
 
 xvii) Research and development
 
 Revenue expenditure on research and development is expensed as
 incurred. Capital expenditures incurred on research and development
 having alternate uses are capitalised as fixed assets and depreciated
 in accordance with the depreciation policy of the Company.
 
 xviii) Earning per share (EPS)
 
 The basic earning per share (EPS) is computed by dividing the net
 profit after tax for the year by the weighted average number of equity
 shares outstanding during the year. For the purpose of calculating
 diluted earnings per share, net profit after tax for the year and the
 weighted average number of shares outstanding during the year are
 adjusted with the effects of all dilutive potential equity shares.  The
 dilutive potential equity shares are deemed converted as of the
 beginning of the period, unless they have been issued at a later date.
 
 xix) Prior Period Adjustments, Extra-ordinary Items and Changes in
 Accounting Policies
 
 Prior period adjustments, extraordinary items and changes in accounting
 policies having material impact on the financial affairs of the Company
 are disclosed.
 
 xx) Minority Interest
 
 Minority Interest as shown in the consolidated balance sheet comprises
 of share in equity and reserves and surplus/losses of the subsidiaries.
 
 xxi) Segment Reporting
 
 a) Identification of Segments :
 
 The Group''s Operating Businesses are organized and managed separately
 according to the nature of products and services provided, with each
 segment representing a strategic business unit that offers different
 products and serves different markets.
 
 b) Allocation of Common Costs:
 
 Common allocable costs are allocated to each segment according to sales
 of each segment to total sales of the Group.