a) Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the accounting standards notified by Companies Accounting
 Standards Rules, 2006, (as amended) and the relevant provisions of the
 Companies Act, 1956. The financial statements have been prepared under
 the historical cost convention modified by revaluation of fixed assets,
 on an accrual basis except for credits/ debits arising out of revision
 of prices on supplies, breakages, claims and subsidies which are
 accounted for in the year of their acceptance, since it is not possible
 to ascertain the exact quantum in respect thereof with reasonable
 accuracy. The accounting policies have been consistently applied by the
 Company and are consistent with those used in the previous year.
 
 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 results of operations during the reporting
 year end. Although these estimates are based upon management’s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 c) Fixed Assets
 
 Fixed assets are stated at cost or revalued amounts, as the case may
 be, less accumulated depreciation and impairment losses, if any. Cost
 comprises the purchase price and any attributable cost of bringing the
 asset to its working condition for its intended use. Borrowing costs
 relating to acquisition of fixed assets which takes substantial period
 of time to get ready for its intended use are also included to the
 extent they relate to the period till such assets are ready to be put
 to use.
 
 d) Depreciation
 
 Depreciation on Leasehold Land is provided over the unexpired lease
 period.
 
 Depreciation on Company’s proportionate share in Fly Ash Handling
 System (capital expenditure not represented by asset owned by the
 Company but installed at vendor’s location) is provided over its useful
 life of five years on straight line basis.
 
 Depreciation on all other fixed assets is provided using the Straight
 Line Method at the rates computed based on estimated useful lives
 (estimated by the management) which are equal to corresponding rates
 prescribed in Schedule XIV of the Companies Act, 1956.
 
 For this purpose, part of the Plant and Machinery has been treated as
 continuous process plant based on technical evaluation.
 
 Depreciation on the amount added to Fixed Assets on revaluation has
 been adjusted by transfer of equivalent amount from Revaluation Reserve
 to Profit and Loss Account.
 
 e) Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the asset’s net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value using the pre tax discount rate that reflect
 current market assessments of the time value of money and risk specific
 to the assets.
 
 f) Intangible Assets
 
 Computer Software
 
 Costs relating to software, which are acquired, are capitalized and
 amortized on a straight-line basis over their useful lives of five
 years.
 
 g) Government Grants and Subsidies
 
 Grants and subsidies from the Government are recognised when there is
 reasonable assurance that the grant / subsidy will be received and all
 attaching conditions will be complied with.
 
 h) Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost. However, provision for diminution in value is made to recognise a
 decline other than temporary in the value of the investments.
 
 Investment in properties being long term investments is considered at
 cost less depreciation, unless there is a decline in the value other
 than temporary, in which case adequate provision is made against the
 diminution.  Depreciation on investment properties other than perpetual
 leasehold land has been provided on Straight Line Method at the rates
 computed based on estimated useful lives (estimated by the management)
 which are equal to corresponding rates prescribed in Schedule XIV of
 the Companies Act, 1956.
 
 i) Inventories
 
 Inventories are valued as follows
 
 Raw materials, stores and  Lower of cost and net realizable value.
                            However, materials and other items held
 spares                     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. Cost is determined 
                            on transaction moving weighted 
                            average method.
 
 Work-in-process and        Lower of cost and net realizable value. Cost
                            includes direct materials (determined
 finished goods             on weighted average basis) and labour and
                            a proportion of manufacturing
                            overheads based on normal operating
                            capacity. Cost of finished goods includes
                            excise duty.
 
 Scrap/By product           Net realizable value
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and estimated
 costs necessary to make the sale.
 
 j) Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Sale of goods
 
 Revenue is recognised when the significant risks and rewards of
 ownership of the goods have passed to the buyer.  Excise Duty deducted
 from gross turnover is the amount that is included in the amount of
 turnover (gross) and not the entire amount of liability that arose
 during the year.
 
 Interest
 
 Revenue is recognized on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 Dividend
 
 Revenue is recognized when the shareholders’ right to receive payment
 is established by the balance sheet date.
 
 k) Foreign currency translation
 
 Foreign currency transactions
 
 i) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 ii) 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 the transaction; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 iii) Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting Companys monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 previous financial statements, are recognized as income or as expenses
 in the year in which they arise.
 
 iv) Forward Exchange Contracts not intended for trading or speculation
 purposes
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortized as expense or income over the life of the
 contract. Exchange differences on such contracts are recognized in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognized as income or as expense for the
 year.
 
 l) Retirement and other employee benefits
 
 i) Retirement benefits in the form of Provident Fund and Superannuation
 Fund are defined contribution schemes and the contributions are charged
 to the Profit and Loss Account of the year when the contribution to the
 respective funds are due. The Company has created an approved
 superannuation fund and accounts for the contribution made to LIC
 against an insurance policy taken with them. There are no other
 obligations other than the contribution payable to the funds.
 
 ii) Gratuity liability is a defined benefit obligation and is provided
 for on the basis of an actuarial valuation on projected unit credit
 method made at the end of each financial year. The Company has created
 an approved gratuity fund, which has taken a group gratuity cum
 insurance policy with Life Insurance Corporation of India (LIC), for
 future payment of gratuity to the employees. The Company accounts for
 gratuity liability of its employees including contract workers on the
 basis of actuarial valuation carried out at the year end by an
 independent actuary.
 
 iii) Long term compensated absences are provided for based on actuarial
 valuation. The actuarial valuation is done as per projected unit credit
 method.
 
 iv) Future monthly installments payable under voluntary early
 retirement scheme in respect of the employees, who opted for the said
 scheme, are provided for as per the actuarial valuation carried out at
 the year end.
 
 v) Actuarial gains/losses are immediately taken to profit and loss
 account and are not deferred.
 
 m) Income Taxes
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with Indian Income Tax Act, 1961. Deferred income taxes
 reflect the impact of current year timing differences between taxable
 income and accounting income for the year and reversal of timing
 differences of earlier years. Deferred tax is measured based on the tax
 rates and the tax laws enacted or substantively enacted at the balance
 sheet date. Deferred tax assets are recognised only to the extent that
 there is reasonable certainty that sufficient future taxable income
 will be available against which such deferred tax assets can be
 realised. In situations where the Company has unabsorbed depreciation
 or carry forward tax losses, entire deferred tax assets are recognised
 only if there is virtual certainty supported by convincing evidence
 that such deferred tax assets can be realised against future taxable
 profits. At each balance sheet date, the Company re-assesses
 unrecognised deferred tax assets. It recognises unrecognised deferred
 tax assets to the extent
 
 that it has become reasonably certain or virtually certain, as the case
 may be, that sufficient future taxable income will be available against
 which such deferred tax assets can be realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax assets can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 MAT credit is recognised as an asset only when and to the extent there
 is convincing evidence that the Company will pay normal income tax
 during the specified year. In the year in which the Minimum Alternative
 tax (MAT) credit becomes eligible to be recognized as an asset in
 accordance with the recommendations contained in the guidance note
 issued by the Institute of Chartered Accountants of India, the said
 asset is created by way of a credit to the profit and loss account and
 shown as MAT Credit Entitlement. The Company reviews the same at each
 balance sheet date and writes down the carrying amount of MAT Credit
 Entitlement to the extent there is no longer convincing evidence to the
 effect that Company will pay normal income tax during the specified
 period.
 
 n) Expenditure on new projects and substantial expansion
 
 Expenditure directly relating to construction activity is capitalised.
 Indirect expenditure incurred during construction period is capitalised
 as part of the indirect construction cost to the extent to which the
 expenditure is indirectly related to construction or is incidental
 thereto. Other indirect expenditure (including borrowing costs)
 incurred during the construction period which is not related to the
 construction activity nor is incidental thereto is charged to the
 profit and loss account. Income earned during construction period is
 deducted from the total of the indirect expenditure.
 
 All direct capital expenditure on expansion are capitalised. As regards
 indirect expenditure on expansion, only that portion is capitalised
 which represents the marginal increase in such expenditure involved as
 a result of capital expansion. Both direct and indirect expenditure are
 capitalised only if they increase the value of the asset beyond its
 original standard of performance.
 
 o) Leases
 
 i) Where the Company is a Lessee
 
 Finance leases, which effectively transfer to the Company substantially
 all the risks and benefits incidental to ownership of the leased item,
 are capitalized at the lower of the fair value and present value of the
 minimum lease payments at the inception of the lease term and disclosed
 as leased assets. Lease payments are apportioned between the finance
 charges and reduction of the lease liability based on the implicit rate
 of return. Finance charges are charged directly against income. Lease
 management fees, legal charges and other initial direct costs are
 capitalised.
 
 If there is no reasonable certainty that the Company will obtain the
 ownership by the end of the lease term, capitalized leased assets are
 depreciated over the shorter of the estimated useful life of the asset
 or the lease term.
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased items are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss Account on a straight-line basis over the lease
 term.
 
 ii) Where the Company is a Lessor
 
 Assets subject to operating leases are included in Investments/Fixed
 Assets, as the case may be Lease income is recognised in the Profit and
 Loss Account on a straight-line basis over the lease term. Costs,
 including depreciation are recognised as an expense in the Profit and
 Loss Account.
 
 p) Borrowing Costs
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalised as
 part of the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur. Borrowing costs consist of interest
 and other costs that an entity incurs in connection with the borrowing
 of funds.
 
 q) Segment Reporting Policies
 
 Identification of segments
 
 The Company’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. The analysis of geographical
 segments is based on the areas in which major operating divisions of
 the Company operate.
 
 Unallocated items
 
 The unallocated items include general corporate income and expense
 items which are not allocated to any business segment.
 
 r) Earnings Per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the year.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the year attributable to equity shareholders and the
 weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares.
 
 s) Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event; it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on best estimate required to
 settle the obligation at the balance sheet date. These are reviewed at
 each balance sheet date and are adjusted to reflect the current best
 estimates. Provision for expenditure relating to voluntary retirement
 is made when the employee accepts the offer of early retirement.
 
 t) Cash and Cash equivalents
 
 Cash and cash equivalents in the Cash Flow Statement comprise cash at
 bank and in hand and short-term investments with an original maturity
 of three months or less.
 
 u) Derivative Instruments
 
 As per the ICAI Announcement, accounting for derivative contracts,
 other than those covered under AS-11, are marked to market on a
 portfolio basis, and the net loss after considering the offsetting
 effect on the underlying hedge item is charged to the income statement.
 Net gains are ignored.