a) Basis of Accounting
 
 The financial statements are prepared as a going concern under
 historical cost convention on accrual basis in accordance with
 Companies Act 1956 read together with early adoption of Accounting
 Standard (AS) 30 ''Financial instruments: Recognition and Measurement''
 by the Company, and the consequential limited revisions to certain
 Accounting Standards by The Institute of Chartered Accountants of India
 (ICAI) which have been measured at their fair value.  Accounting
 polices not stated explicitly otherwise are consistent with generally
 accepted accounting principles.
 
 b) Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the reported amounts of revenues and expenses
 during the reporting period. Differences between actual results and
 estimates are recognised in the periods in which the results are known
 or materialise.
 
 c) Fixed Assets (Tangible and Intangible)
 
 Fixed assets (including research and development assets) are recognised
 at cost of acquisition including expenditure up to the date of
 commissioning, net of Cenvat or value added tax less accumulated
 depreciation, amortisation and impairment loss. Grant received towards
 fixed assets is reduced from the cost of the related assets.
 
 Mine development expenditure includes leases, costs incurred for
 acquiring or developing properties or rights up to the stage of
 commercial production.
 
 d) Capital Work-In-Progress
 
 Projects under which tangible fixed assets are not yet ready for their
 intended use are carried at cost, comprising direct cost, related
 incidental expenses.
 
 e) Impairment of Fixed Assets
 
 The carrying amount of assets/cash generating units are reviewed at
 each balance sheet date, if there is any indication of impairment based
 on internal or external factors. An asset is treated as impaired when
 the carrying cost of assets exceeds its recoverable value. An
 impairment loss is recognised in the Statement of Profit and Loss where
 the carrying amount of an asset exceeds its recoverable amount. The
 impairment loss recognised in prior accounting periods is reversed if
 there has been a change in the estimate of recoverable amount.
 
 f) Depreciation and Amortisation
 
 Depreciation on fixed assets is provided using the straight- line
 method at rates prescribed under Schedule XIV of the Companies Act,
 1956 subject to the following deviations:
 
 - Additions and disposals are reckoned on the first day and the last
 day of the month respectively.
 
 - Individual items of plant and machinery and vehicles costing upto Rs.
 25000 are wholly depreciated.
 
 - In respect of additions arising on account of insurance spares, on
 additions or extension forming an integral part of existing plants and
 on the revised carrying amount of the assets identified as impaired on
 which depreciation has been provided over residual life of the
 respective fixed assets.
 
 Intangible assets are amortised over its expected useful life.
 
 Amortisation of leasehold land has been done in proportion to the
 period of lease.
 
 Mine development expenditure is amortised in proportion to the annual
 ore raised to the remaining mineable ore reserves.  In the year of
 abandonment of mine, the residual mine development expenditure is
 written off.
 
 g) Financial Asset Investments
 
 - Investments are recorded as long term investments unless they are
 expected to be sold within one year.
 
 - Investments in joint venture are valued at cost less provision for
 impairment, if any. Investments are reviewed for impairment.  
 
 - Investments classified as ''held for trading'' that have a market price
 are measured at fair value and gains and losses arising on account of
 fair valuation is routed through Statement of Profit and Loss.
 Investments in unquoted equity instruments that do not have a market
 price and whose fair value cannot be reliably measured, are measured at
 cost.
 
 - Investments classified as Available for Sale are initially recorded
 at cost and then re-measured at subsequent reporting dates to fair
 value. Unrealised gains/losses on such investments are recognised
 directly in Investment Revaluation Reserve Account. At the time of
 disposal, de-recognition or impairment of the investments, cumulative
 gain or loss previously recognised in the Investment Revaluation
 Reserve Account is recognised in the Statement of Profit and Loss.
 
 h) Inventories
 
 - Ore, concentrate (Mined Metal), work-in-progress and finished goods
 (including significant by-products) are valued at lower of cost and net
 realisable value on weighted average basis.
 
 - Stores and spares are valued at lower of cost and net realisable
 value on weighted average basis.
 
 - Immaterial by-products, aluminum scrap, chemical lead scrap, anode
 scrap and coke fines are valued at net realisable value.
 
 i) Cash Flow Statement
 
 Cash flows are reported using the indirect method, whereby profit /
 (loss) before extraordinary items and tax is adjusted for the effects
 of transactions of non-cash nature and any deferrals or accruals of
 past or future cash receipts or payments. The cash flows from
 operating, investing and financing activities of the Company are
 segregated based on the available information.
 
 j) Revenue and Expenses
 
 Revenue on sale of products (net of volume rebates) is recognised on
 delivery of product and / or on passage of title to the buyer. Export
 benefits are recognised on recognition of export sales.
 
 All other revenue and expenses are recognised on accrual basis. Revenue
 relating to interest on staff loans, insurance or railway claims is
 recognised when recoverability is certain.
 
 Expenditure on projects is:
 
 - capitalised when projects are commissioned.
 
 - written off in other cases.
 
 Technical knowhow, not directly identifiable to any plans, layout of
 buildings or plant and machinery, etc. are written off.  Expenditure
 relating to fixed assets not owned by Company is charged to revenue.
 
 Prior period or prepaid expenses exceeding Rs. 0.05 Crores is
 appropriately disclosed.
 
 All revenue expenses on research and development are written off.
 
 k) Government Grants, Subsidies and Export Incentives
 
 Government grants and subsidies are recognised when there is reasonable
 assurance that the Company will comply with the conditions attached to
 them and the grants / subsidies will be received.
 
 Export benefits are accounted for in the year of exports based on
 eligibility and when there is no uncertainty in receiving the same.
 
 l) Foreign Currency Transactions
 
 (1) Transactions denominated in foreign currencies are normally
 recorded at the exchange rate prevailing at the time of the
 transaction.
 
 (2) Monetary items denominated in foreign currencies at the year-end
 are restated at year end rates. In case of monetary items which are
 hedged by derivative instruments, the valuation is done as per
 Accounting Standard - 30, Financial Instruments: Recognition and
 Measurement. The fair value of foreign currency contracts are
 calculated with reference to current forward exchange rates for the
 contracts with similar maturity profile.
 
 (3) Non-monetary foreign currency items are carried at cost.
 
 (4) Any income or expense on account of exchange difference either on
 settlement or on translation is recognised in the Statement of Profit
 and Loss.
 
 m) Derivative Financial Instruments
 
 In order to hedge its exposure to foreign exchange, interest rate and
 commodity price risks, the Company enters into forward option or any
 other derivative financial instruments.  The Company does not hold
 derivative financial instruments for speculative purposes. Derivative
 financial instruments are initially recorded at their fair value on the
 date of the derivative transaction and are re-measured at their fair
 value at subsequent balance sheet dates.
 
 Changes in the fair value of derivatives that are designated and
 qualify as fair value hedges are recorded in the Statement of Profit
 and Loss. The hedged item is recorded at fair value and any gain or
 loss is recorded in the Statement of Profit and Loss and is offset by
 the gain or loss from the change in the fair value of the derivative.
 
 Changes in the fair value of derivatives that are designated and
 qualify as cash flow hedges are recorded in equity.  Amounts deferred
 to equity are recycled in the Statement of Profit and Loss in the
 periods when the hedged item is recognised in the Statement of Profit
 and Loss.
 
 Derivative financial instruments that do not qualify for hedge
 accounting are marked to market at the balance sheet date and gains or
 losses are recognised in the Statement of Profit and Loss immediately.
 
 Hedge accounting is discontinued when the hedging instrument expires or
 is sold, terminated or exercised, or no longer qualifies for hedge
 accounting. Any cumulative gain or loss on the hedging instrument
 recognised in equity is kept in equity until the forecast transaction
 occurs. If a hedged transaction is no longer expected to occur, the net
 cumulative gain or loss recognised in equity is transferred to net
 profit or loss for the year.
 
 Derivatives embedded in other financial instruments or other host
 contracts are treated as separate derivatives when their risks and
 characteristics are not closely related to those of host contracts and
 the host contracts are not carried at fair value with unrealised gains
 or losses reported in the Statement of Profit and Loss.
 
 n) Borrowing Cost
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of cost of
 such asset till such time as the asset is ready for its intended use.
 All other borrowing costs are recognised as an expense in the period in
 which they are incurred.
 
 o) Segment Reporting
 
 The Company identifies primary segments based on the dominant source,
 nature of risks and returns and the internal organisation and
 management structure. The operating segments are the segments for which
 separate financial information is available and for which operating
 profit/ loss amounts are evaluated regularly by the executive
 management in deciding how to allocate resources and in assessing
 performance.
 
 The accounting policies adopted for segment reporting are in line with
 the accounting policies of the Company. Segment revenue, segment
 expenses, segment assets and segment liabilities have been identified
 to segments on the basis of their relationship to the operating
 activities of the segment.
 
 Inter-segment revenue is accounted on the basis of transactions which
 are primarily determined based on market or fair value factors.
 
 Revenue, expenses, assets and liabilities which relate to the Company
 as a whole and are not allocable to segments on reasonable basis have
 been included under unallocated revenue / expenses / assets /
 liabilities.
 
 p) Employee Benefits
 
 i) Short term
 
 Short term employee benefits including termination benefits are
 recognised as an expense at the undiscounted amount incurred during the
 year.
 
 ii) Long term
 
 1.  Defined contribution plan and family pension scheme:
 
 The Company''s contribution to the recognised provident fund and family
 pension scheme paid or payable during the year is recognised to the
 Statement of Profit and Loss. The shortfall, if any, between the return
 guaranteed by the statute and actual earnings of the Fund is provided
 for by the Company and contributed to the Fund.
 
 2.  Defined benefit plan: Gratuity
 
 The Company accounts for the net present value of its obligations for
 gratuity benefits based on an independent external actuarial valuation
 carried out annually and determined using the projected unit credit
 method. The Company makes annual contributions to funds administered by
 trustees and managed by insurance company for amounts notified by the
 said insurance company. Actuarial gains and losses are immediately
 recognised in the Statement of Profit and Loss.
 
 3.  Other long term benefit plan : Compensated absences
 
 The Company has a scheme for leave encashment for employees, the
 liability for which is determined on the basis of an actuarial
 valuation carried out at the end of the year.
 
 q) voluntary Retirement Expenses
 
 Voluntary retirement expenses are charged to the Statement of Profit
 and Loss.
 
 r) Taxation
 
 The Company''s income taxes include taxes on the Company''s taxable
 profits, adjustment attributable to earlier periods and changes in
 deferred taxes.
 
 Provision for current tax is made after taking into account rebate and
 relief available under the Income tax Act, 1961.
 
 Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
 gives future economic benefits in the form of adjustment to future
 income tax liability, is considered as an asset, if there is convincing
 evidence that the Company will pay normal income tax. Accordingly, MAT
 is recognised as an asset in the Balance Sheet when it is probable that
 future economic benefit associated with it will flow to the Company.
 
 Deferred tax resulting from timing difference between book and
 taxable profit is accounted for using the tax rates and laws that have
 been enacted or substantively enacted as on the balance sheet date. The
 deferred tax asset is recognised only to the extent that there is a
 reasonable certainty that the future taxable profit will be available
 against which the deferred tax asset can be realised.
 
 s) Dividend
 
 Dividend payment including tax thereon is appropriated from profits for
 the year and provision is made for proposed final dividend and tax
 thereon is subject to consent of the shareholders at the annual general
 meeting.
 
 t) Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent liabilities are not recognised but are disclosed in the
 notes. Contingent assets are neither recognised nor disclosed in the
 financial statements.