(a) Basis of preparation
 
 The financial statements are prepared on accrual basis under the
 historical cost convention, modified to include revaluation of certain
 assets, in accordance with applicable Accounting Standards (AS)
 specified in the Companies (Accounting Standards) Rules, 2006 and
 presentational requirements of the Companies Act, 1956.
 
 (b) Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles in India (GAAP) requires management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities and the disclosure of contingent liabilities on
 the date of the financial statements and the result of operations
 during the year. Differences between actual results and estimates are
 recognised in the year in which the results are known or materialised.
 Examples of such estimates are estimated useful life of assets,
 provision for doubtful debts and retirement benefits, etc. Actual
 results could differ from those estimates. Any revision to accounting
 estimates is recognised prospectively in current and future periods.
 
 (c) Fixed assets
 
 Fixed Assets are stated at cost or at revalued amounts less accumulated
 depreciation. Cost of fixed assets includes all incidental expenses and
 
 interest costs on borrowings, attributable to the acquisition of
 qualifying assets, upto the date of commissioning of assets.
 
 Foreign currency exchange differences to the extent covered under AS-11
 [amended vide MCA notification no. G.S.R. 225 (E) dated 31 March 2009]
 are capitalised as per the policy stated in note (k) below.
 
 (d) Depreciation/ amortisation
 
 - Leasehold land and cost of leasehold improvements are amortised over
 the period of lease or their useful lives, whichever is shorter.
 
 - Depreciation on other fixed assets (excluding software) is provided
 using the straight line method at the rates based on useful lives of
 assets estimated by the management, which are equal to or higher than
 the rates prescribed under Schedule XIV to the Companies Act, 1956.
 
 - Fixed assets individually costing up to Rs. five thousand are
 depreciated at the rate of 100%.
 
 - Additional depreciation on account of revaluation of assets is
 transferred from/ charged to the Revaluation Reserve account.
 
 - Software are amortised on straight line method over a period of three
 years.
 
 (e) Impairment
 
 The carrying amounts of the Companys assets are reviewed at each
 balance sheet date to determine whether there is any indication of
 impairment. If any such indication exists, the assets recoverable
 amount is estimated as higher of its net selling price and value in
 use.  An impairment loss is recognised whenever the carrying amount of
 an asset or its cash generating unit exceeds its recoverable amount.
 Impairment losses are recognised in the profit and loss account.
 
 An impairment loss is reversed if there has been a change in the
 estimates used to determine the recoverable amount. An impairment loss
 is reversed only to the extent that the assets carrying amount does
 not exceed the carrying
 
 amount that would have been determined net of depreciation or
 amortisation, had no impairment loss been recognised.
 
 (f) Borrowing costs
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets to the extent that they relate to the period till such
 assets are ready to be put to use. A qualifying asset is one that
 necessarily takes substantial period of time to get ready for its
 intended use.  All other borrowing costs are charged to profit and loss
 account.
 
 (g) 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 the lower of cost and fair value. Long-term
 investments are carried at cost less diminution, other than temporary
 in value.
 
 (h) Inventories
 
 - Stores and spare parts are valued at cost or under, computed on
 weighted average basis.
 
 - Raw materials, work-in-progress and finished goods are valued at the
 lower of cost and net realizable value. Finished goods and
 work-in-progress include material cost and appropriate portion of
 manufacturing and other overheads. Cost is ascertained on a weighted
 average basis.
 
 (i) Revenue recognition
 
 i) Sale of goods
 
 - Revenue from sale of products is recognised when the products are
 dispatched against orders from customers in accordance with the
 contract terms, which coincides with the transfer of risks and rewards.
 
 - Sales are stated inclusive of excise duty and net of rebates, trade
 discounts, sales tax and sales returns.
 
 ii) Sale of power
 
 - Sale of power is recognised on the basis of actual quantity of power
 sold with reference to the contracted rate.
 
 iii) Claims lodged with insurance companies
 
 - Claims lodged with the insurance companies are accounted for on an
 accrual basis, to the extent these are measurable and ultimate
 collection is reasonably certain.
 
 iv) Dividend
 
 - Dividend from investments is recognised when the right to receive
 dividend is established.
 
 (j) Operating leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased asset are classified as
 operating lease. Operating lease charges are recognised as an expense
 in the Profit and Loss Account on a straight-line basis over the lease
 term.
 
 (k) Foreign exchange transactions and forward contracts
 
 Foreign exchange transactions
 
 i) Foreign currency transactions are accounted for at the exchange rate
 prevailing on the date of the transaction. All monetary foreign
 currency assets and liabilities are converted at the exchange rates
 prevailing at the date of the balance sheet. All exchange differences
 other than in relation to acquisition of fixed assets and other long
 term foreign currency monetary liabilities are dealt with in the profit
 and loss account.
 
 ii) In accordance with notification no. GSR 225 (E) dated 31 March 2009
 of Ministry of Corporate Affairs, exchange differences arising in
 respect of long term foreign currency monetary items:
 
 - used for acquisition of depreciable capital asset, are added to or
 deducted from the cost of asset and are depreciated over the balance
 life of asset.
 
 - used for the purpose other than the acquisition of depreciable
 capital asset, are accumulated in Foreign Currency Monetary Item
 Translation Difference Account (FCMITDA) and amortised over the balance
 period of such liability but not beyond 31 March 2011.
 
 iii) In case of foreign exchange forward contracts taken for underlying
 transactions, and covered by Accounting Standard 11, “Accounting for
 the effects of changes in foreign exchange rates”, the premium or
 discount is amortised as income or expense over the life of the
 contract. The exchange difference is calculated as the difference
 between the foreign currency amount of the contract translated at the
 exchange rate at the reporting date, or the settlement date where the
 transaction is settled during the reporting period, and the
 corresponding foreign currency amount translated at the later of the
 date of inception of the forward exchange contract and the last
 reporting date. Such exchange differences are recognised in the Profit
 and Loss Account in the reporting period in which the exchange rates
 change.
 
 Any profit or loss arising on the cancellation or renewal of such
 contracts is recognised as income or expense for the year.
 
 iv) Forward exchange contracts taken for highly probable/forecast
 transactions, which are not covered by Accounting Standard 11, are
 marked to market in accordance with the principles under AS 30
 “Financial Instruments: Recognition and Measurement”, which has been
 recommendatory for the accounting periods commencing on or after 1
 April 2009. The Company records the gain or loss on effective hedges in
 the Hedging Reserve until the transactions are complete. On completion,
 the gain or loss is transferred to the Profit and Loss Account of the
 period in which such transaction is concluded. To designate a forward
 contract or option as an effective hedge, management objectively
 evaluates and evidences with appropriate
 
 supporting documents at the inception of each contract whether the
 contract is effective in achieving offsetting cash flows attributable
 to the hedged risk. In the absence of a designation as effective hedge,
 a gain or loss is recognised in the Profit and Loss Account.
 
 (l) Employee benefits
 
 a) Short-term employee benefits
 
 - All employee benefits payable wholly within twelve months of
 rendering the service are classified as short- term employee benefits.
 Benefits such as salaries, wages and bonus, etc., are recognised in the
 Profit and Loss Account in the period in which the employee renders the
 related service.
 
 b) Post employment benefit
 
 - Defined contribution plan
 
 The Company deposits the contributions for provident fund to the
 appropriate government authorities and these contributions are
 recognised in the Profit and Loss Account in the financial year to
 which they relate.
 
 - Defined benefit plan
 
 The Companys gratuity scheme is a defined benefit plan. The present
 value of the obligation under such defined benefit plan is determined
 based on actuarial valuation carried out by an independent actuary,
 using the Projected Unit Credit Method, which recognises each period of
 service as giving rise to additional unit of employee benefit
 entitlement and measures each unit separately to build up the final
 obligation. The obligation is measured at the present value of the
 estimated future cash flows. The discount rates used for determining
 the present value of the obligation under defined benefit plans, is
 based on the market yields on Government securities as at the balance
 sheet date. Actuarial gains and losses are recognised immediately in
 the Profit and Loss Account.
 
 c) Other long term employee benefits
 
 Entitlements to annual leave are recognised when they accrue to
 employees. Leave entitlements can be availed while in service or
 en-cashed at the time of retirement/ termination of employment, subject
 to a restriction on the maximum number of accumulation. The Company
 determines the liability for such accumulated leave entitlements on the
 basis of actuarial valuation carried out by an independent actuary at
 the year end.
 
 (m) Taxation
 
 Income tax expense comprises current tax, deferred tax charge or
 credit. Current tax provision is made based on the tax liability
 computed after considering tax allowances and exemptions under the
 Income tax Act, 1961. The deferred tax charge or credit and the
 corresponding deferred tax liability and assets are recognised using
 the tax rates that have been enacted or substantively enacted on the
 balance sheet date.
 
 Deferred tax assets arising from unabsorbed depreciation or carry
 forward losses are recognised only if there is virtual certainty of
 realisation of such amounts. Other deferred tax assets are recognised
 only to the extent there is reasonable certainty of realisation in
 future.  Deferred tax assets are reviewed at each balance sheet date to
 reassess their realisability.
 
 The credits arising from Minimum Alternate Tax paid are recognised as
 receivable only if there is reasonable certainty that the Company will
 have sufficient taxable income in future years to utilise such credits.
 
 (n) Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period 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.
 
 (o) Provisions and contingent liabilities
 
 The Company recognises a provision when there is a present obligation
 as a result of a past event and it is more likely than not that there
 will be a outflow of resources embodying economic benefits to settle
 such obligations and the amount of such obligation can be reliably
 estimated. Provisions are not discounted to their present value and are
 determined based on the managements estimation of the outflow required
 to settle the obligation at the balance sheet date. These are reviewed
 at each balance sheet date and adjusted to reflect current management
 estimates.
 
 Contingent liabilities are disclosed in respect of possible obligations
 that have arisen from past events and the existence of which will be
 confirmed only by the occurrence or non- occurrence of future events,
 not wholly within the control of the Company.
 
 When there is an obligation in respect of which the likelihood of
 outflow of resources is remote, no provision or disclosure is made.