1.  Accounting Convention
 
 The financial statements are prepared under the historical cost
 convention, on an accrual basis and in accordance with the generally
 accepted accounting principles in India, the applicable mandatory
 Accounting Standards as notified by the Companies (Accounting Standard)
 Rules, 2006 and the relevant provisions of the Companies Act, 1956 of
 India.
 
 2.  Use of Estimates
 
 The preparation of financial statements require estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual results and estimates are recognized in the period
 in which the results are known / materialized.
 
 3.  Fixed Assets
 
 (a) Tangible Assets are stated at cost less accumulated depreciation
 and impairment loss, if any. Cost comprises of purchase price and any
 directly attributable cost of bringing the assets to its working
 condition for its intended use.
 
 (b) Intangible Assets are stated at cost less accumulated amortization.
 Cost includes any directly attributable expenditure on making the asset
 ready for its intended use.
 
 (c) Machinery spares which can be used only in connection with an item
 of Fixed Asset and whose use is not of regular nature are written off
 over the estimated useful life of the relevant asset.
 
 4.  Depreciation and Amortization
 
 (a) Depreciation on Tangible Fixed Assets has been provided using
 Straight Line Method at the rates and manner prescribed under Schedule
 XIV of Companies Act, 1956 of India.
 
 (b) Mining Rights and leasehold land are amortized over the period of
 lease on straight line basis.
 
 (c) Intangible assets are amortized over their estimated useful lives
 on straight line basis.
 
 5.  Impairment
 
 An asset is treated as impaired when the carrying cost of the asset
 exceeds its recoverable value being higher of value in use and net
 selling price. Value in use is computed at net present value of cash
 flow expected over the balance useful life of the assets. An impairment
 loss is recognized as an expense in the Profit & Loss Account in the
 year in which an asset is identified as impaired. The impairment loss
 recognized in prior accounting period is reversed if there has been an
 improvement in recoverable amount.
 
 6.  Leases
 
 Lease payments under an operating lease are recognized as expense in
 the statement of Profit & Loss Account as per terms of lease agreement.
 
 7.  Investments
 
 (a) Long term investments are carried at cost after deducting
 provision, if any, for diminution in value considered to be other than
 temporary in nature.
 
 (b) Current investments are stated at lower of cost and fair value.
 
 8.  Inventories
 
 (a) Inventories of stores and spare parts are valued at or below cost
 after providing for cost of obsolescence and other anticipated losses,
 wherever considered necessary.
 
 (b) Inventories of items other than those stated above are valued ''At
 cost or Net Realizable Value, whichever is lower''. Cost is generally
 determined on weighted average cost basis and wherever required,
 appropriate overheads are taken into account. Net Realizable Value is
 the estimated selling price in the ordinary course of business less the
 estimated cost of completion and the estimated costs necessary to make
 the sale.
 
 (c) Materials and other supplies held for use in the production of
 inventories are not written down below cost if the finished products in
 which they will be incorporated are expected to be sold at or above
 cost.
 
 9.  Foreign Currency Transactions
 
 Transactions in foreign currency are recorded at the rate of exchange
 prevailing on the date of transaction.  Year end balance of foreign
 currency transactions is translated at the year end rates. Exchange
 differences arising on settlement of monetary items or on reporting of
 monetary items at rates different from those at which they were
 initially recorded during the period or reported in previous financial
 statements are recognized as income or expense in the period in which
 they arise. Foreign currency monetary items those are used as hedge
 instruments or hedged items are accounted as per accounting policy on
 derivative financial instruments.
 
 10.  Employee benefits
 
 Employee benefits of short term nature are recognized as expense as and
 when it accrues. Long term employee benefits (e.g. long-service leave)
 and post employment benefits (e.g. gratuity), both funded and unfunded,
 are recognized as expense based on actuarial valuation at year end
 using the Projected unit credit method. Actuarial gain and losses are
 recognized immediately in the Profit & Loss Account.
 
 11.  Employee Stock Option Scheme
 
 In respect of stock option granted to employees pursuant to the
 Company''s stock option schemes, accounting is done as per the intrinsic
 value method permitted by the SEBI guidelines, 1999 and the Guidance
 Note on Share Based Payment issued by the Institute of Chartered
 Accountants of India (ICAI). The excess of market price of share as on
 date of grant of option over the exercise price is recognized as
 deferred employee compensation and is charged to Profit & Loss Account
 on straight line basis over the vesting period.
 
 12.  Revenue Recognition
 
 Sales revenue is recognized on transfer of significant risk and rewards
 of the ownership of the goods to the buyer and stated at net of trade
 discount and rebates. Dividend income on investments is accounted for
 when the right to receive the payment is established. Export incentive,
 certain insurance, railway and other claims where quantum of accruals
 cannot be ascertained with reasonable certainty, are accounted on
 acceptance basis.
 
 13.  Borrowing Cost
 
 Borrowing costs directly attributable to the acquisition or
 construction of qualifying assets are capitalized.  Other borrowing
 costs are recognized as expenses in the period in which they are
 incurred. In determining the amount of borrowing costs eligible for
 capitalization during a period, any income earned on the temporary
 investment of those borrowings is deducted from the borrowing costs
 incurred.
 
 14.  Taxation
 
 Provision for current income tax is made in accordance with the Income
 tax Act, 1961. Deferred tax liabilities and assets are recognized at
 substantively enacted tax rates, subject to the consideration of
 prudence, on timing difference, being the difference between taxable
 income and accounting income that originate in one period and are
 capable of reversal in one or more subsequent periods.
 
 15.  Derivative Financial Instruments
 
 (a) The Company uses derivative financial instruments such as Forwards,
 Swaps, Options, etc. to hedge its risks associated with foreign
 exchange fluctuations. Risks associated with fluctuations in the price
 of the Company''s products (Copper, Alumina, Aluminium and precious
 metals) are minimized by undertaking appropriate hedging transactions.
 The fair values of all such derivative financial instruments are
 recognized as assets or liabilities at the balance sheet date. Such
 derivative financial instruments are used as risk management tools only
 and not for speculative purposes.
 
 (b) For derivative financial instruments and foreign currency monetary
 items designated as Cash Flow hedges, the effective portion of the fair
 value of the derivative financial instruments are recognized in Hedging
 Reserve and reclassified to ''Sales'', ''Raw Materials Consumed'' or ''Other
 Expenses'' in the period in which the Profit & Loss Account is impacted
 by the hedged items or in the period when the hedge relationship no
 longer qualifies as cash flow hedge. In cases where the exposure gives
 rise to a non-financial asset, the effective portion is reclassified
 from Hedging Reserve to the initial carrying amount of the
 non-financial asset as a ''basis adjustment'' and recycled to Profit and
 Loss Account when the respective non- financial asset affects the
 Profit and Loss Account in future periods. The ineffective portion of
 the change in fair value of such instruments is recognised in the
 profit and loss account in the period in which they arise If the
 hedging relationship ceases to be effective or it becomes probable that
 the expected transaction will no longer occur, hedge accounting is
 discontinued and the fair value changes arising from the derivative
 financial instruments are recognized in Other Expenses in the Profit &
 Loss Account.
 
 (c) For derivative financial instruments designated as Fair Value
 hedges, the fair value of both the derivative financial instrument and
 the hedged item are recognized in ''Sales'', ''Raw Materials Consumed'' or
 ''Other Expenses'' in the Profit & Loss Account till the period the
 relationship is found to be effective. If the hedging relationship
 ceases to be effective or it becomes probable that the expected
 transaction will no longer occur, future gains or losses on the
 derivative financial instruments are recognized in ''Other Expenses'' in
 the Profit & Loss Account.
 
 (d) If no hedging relationship is designated, the fair value of the
 derivative financial instruments is marked to market through Profit &
 Loss Account and included in ''Other Expenses''.
 
 16.  Research and Development
 
 Expenditure incurred during research phase is charged to revenue when
 no intangible asset arises from such research. Assets procured for
 research and development activities are generally capitalized.
 
 17.  Government Grants
 
 Government Grants are recognized when there is a reasonable assurance
 that the same will be received.  Revenue grants are recognized in the
 Profit & Loss Account. Capital grants relating to specific fixed assets
 are reduced from the gross value of the respective fixed assets. Other
 capital grants are credited to Capital Reserve.
 
 18.  Provisions, Contingent Liabilities and Contingent Assets
 
 Provision is recognized when there is a present obligation as a result
 of a past event that probably requires an outflow of resources and a
 reliable estimate can be made of the amount of the obligation.
 Disclosure for contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. No provision is recognized or
 disclosure for contingent liability is made when there is a possible
 obligation or a present obligation and the likelihood of outflow of
 resources is remote. Contingent Asset is neither recognized nor
 disclosed in the financial statements.