a) Nature of Operation
 
 Company is engaged in the business of manufacturing and trading of
 Ferro Alloys and generation and supply of Wind Power.
 
 b) Basis of Accounting
 
 The financial statements have been prepared under historical cost
 convention, on accrual basis and in accordance with generally accepted
 accounting principles in India. The accounting policies are
 consistently followed by the Company.
 
 The financial statements comply, in all material respects, with
 accounting standards as notified by Companies Accounting Standards
 Rules, 2006 and the relevant provisions of the Companies Act, 1956.
 
 c) Use of Estimates
 
 The preparation of financial statements requires 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 recognised in the period
 in which the results are known/materialized.
 
 d) Fixed Assets
 
 Fixed Assets are stated at cost less accumulated depreciation and
 impairment loss, if any. The cost of an asset comprises its purchase
 price net of Cenvat credit plus any directly attributable costs of
 bringing the asset to the working condition for it’s intended use. Pre
 -operative expenses for major projects are also capitalised, where
 appropriate.
 
 e) Intangible Assets
 
 Intangible Assets are stated at cost of acquisition less accumulated
 amortization/ depletion. All costs, including financing costs till
 commencement of production, net of charges on foreign exchange
 contracts and adjustments arising from exchange rate variations
 attributable to the intangible assets are capitalised.
 
 f) Depreciation
 
 i) Depreciation on Fixed Assets is provided on Straight Line Method in
 the manner and the rates specified in Schedule XIV to the Companies
 Act, 1956 over their useful life, except on additions made to Building
 and Plant & Machineries of Ferro Alloys Units with effect from 1st
 April 2006 on which depreciation has been provided on Written Down
 Value method over their useful life.
 
 ii) Intangible assets such as softwares, etc. are amortised based upon
 their estimated useful lives of 5 years.
 
 g) Impairment
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 Profit and Loss Account in the year in which asset is identified as
 impaired. The impairment loss recognized in prior accounting period is
 reversed if there has been a change in the estimate of recoverable
 amount.
 
 h) Investments
 
 Long term Investments are stated at cost. Provision for diminution in
 the value of each long term investment is made to recognise a decline,
 other than that of temporary in nature.
 
 i) Inventories
 
 Inventories are valued at lower of cost or estimated net realisable
 value. Cost of inventories comprises of cost of purchase, cost of
 conversion and other costs including manufacturing overheads incurred
 in bringing them to their respective present location and condition.
 
 Cost Formula:
 
 Raw Materials         :    At Weighted Average Cost
 
 Work-in-Process and 
 Finished Goods        :    At Standard Cost
 
 Trading Stock and 
 Stock-in-Transit      :    At Acquisition Cost
 
 Packing Materials 
 and Stores and Spares :    At Weighted Average Cost
 
 Standard Cost of inventories approximates actual cost.
 
 Net realisable 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.
 
 Cost of finished goods includes excise duty.
 
 j) Revenue Recognition
 
 Revenue is recognised only when it can be reliably measured and it is
 reasonable to expect ultimate collection.
 
 i) Sale of Goods:
 
 Revenue is recognised when the significant risks and rewards of
 ownership of goods have passed to the buyer, which generally coincides
 with delivery. It includes excise duty but excludes value added
 tax/sales tax. Excise Duty deducted from turnover (gross) is the amount
 that is included in the amount of turnover (gross) and not the entire
 amount of liability that arose during the year.
 
 ii) Interest:
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 iii) Export Benefits:
 
 Export Entitlements in the form of Duty Drawback and Duty Entitlement
 Pass book (DEPB) scheme are recognised in the Profit and Loss Account
 when right to receive credit as per the terms of the scheme is
 established in respect of exports made and when there is no significant
 uncertainty regarding the ultimate collection of the relevant exports
 proceeds.
 
 iv) Purchases:
 
 Purchases are inclusive of freight and net of Cenvat Credit, trade
 discount and claims.
 
 k) Excise Duty and Sales Tax/Value Added Tax
 
 Excise Duty is accounted on the basis of both, payments made in respect
 of goods cleared as also provision made for goods lying in bonded
 warehouse. Sales tax / Value Added Tax paid is charged to profit and
 loss account.
 
 l) Cenvat Credit
 
 Cenvat Credit on excise duty paid goods /Fixed Assets is accounted for
 by reducing the acquisition cost of the related goods/ Fixed Assets.
 
 m) Employee Benefits
 
 Short term employee benefits are recognized as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 Post employment and other long term employee benefits are recognized as
 an expense in the profit and loss account for the year in which the
 employee has rendered services. The expense is recognized at the
 present value of the amount payable determined using actuarial
 valuation techniques. Actuarial gains and losses in respect of post
 employment and other long term benefits are charged to the profit and
 loss account.
 
 In respect of Employee Stock Option, the excess of fair price on the
 date of grant, over the exercise price, is recognized as Deferred
 Compensation cost and amortised over vesting period.
 
 n) Foreign Currency transaction 
 
 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 prevailing at the 
 date of the transaction or that approximates the actual rate at the 
 date of the transaction..
 
 ii) Conversion
 
 Monetary items denominated in foreign currencies at the year end are
 restated at the year end rates. 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;
 
 Exchange Differences
 
 Foreign currency assets and liabilities as on the Balance Sheet date
 are revalued in the accounts on the basis of exchange rates prevailing
 at the close of the period and exchange loss/gain arising there from,
 is adjusted to the cost of fixed assets or charged to the Profit & Loss
 Account, as the case may be.
 
 iii) Forward Exchange Contracts
 
 In case of transactions covered by forward contracts, the difference
 between the contract rate and exchange rate prevailing on the date of
 transaction, is adjusted to the cost of fixed assets or charged to the
 Profit & Loss Account, as the case may be, proportionately over the
 life of the contract.
 
 o) Borrowing Cost
 
 Borrowing costs relating to acquisition or construction of fixed assets
 which takes substantial period of time to get ready for its intended
 use are included in the cost of fixed assets to the extent they relate
 to the period till such assets are ready to be put to use. Other
 Borrowing costs are recognized as an expense in the year in which they
 are incurred.
 
 p) Taxation
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the period based on applicable tax rate and laws.
 
 Deferred tax is recognised subject to consideration of prudence in
 respect of deferred tax asset on timing differences being the
 difference between taxable income and accounting income that originate
 in one period and are capable of reversal in one or more subsequent
 period and is measured using tax rates and laws that have been enacted
 or substantively enacted by the Balance Sheet date. Deferred tax assets
 are reviewed at each Balance Sheet date to re-assess realization.
 
 q) Financial derivatives and Commodity Hedging Transactions
 
 In respect of derivative contracts , premium paid and gains / losses on
 settlement are recognised in the profit and loss account except in case
 where they relate to the acquisition or construction of Fixed assets,
 in which case, they are adjusted to the carrying cost of such assets.
 
 r) 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.
 
 When the grant or subsidy relates to an expense item, these are
 deducted from related expense which it is intended to compensate. Where
 the grants or subsidy relates to an asset, its value is deducted in
 arriving at the carrying amount of the related asset.
 
 s) Segment Reporting Policies 
 
 i) Identification of Segments: 
 
 Primary Segment 
 Business Segment:
 The Company’s operating businesses are organised and managed separately
 according to the nature of products, with each segment representing a
 strategic business unit that offers different products and serves
 different markets. The Identified segments are manufacturing of
 ferro-alloys and wind power.
 
 Secondary segment 
 Geographical segment:
 The analysis of geographical segment is based on the geographical
 location of customers.
 
 The geographical segments considered for disclosure are as follows:
 
 - Sales within India include sales to customers located within India.
 
 - Sales outside India include sales to customers located outside India.
 
 ii) Allocation of common Costs:
 
 Common allocable costs are allocated to each segment according to the
 relative contribution of each segment to the total common costs.
 
 iii) Unallocated Items:
 
 The corporate and other segment include general corporate income and
 expense items, which are not allocated to any business segment.
 
 t) Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized 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 recognized nor disclosed in the
 financial statements.
 
 u) Earnings Per Share
 
 Basic earning per share is 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 period.
 
 For the purpose of calculating diluted Earning Per Share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average no. of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 v) Cash Flow Statement
 
 Cash flows are reported using indirect method, whereby profit before
 tax is adjusted for the effects of transactions of a non- cash nature
 and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating, financing and
 investing activities of the Company are segregated. Cash and cash
 equivalents in the balance sheet comprise cash at bank, cash/ cheques
 in hand and short-term investments with an original maturity of three
 months or less.
 
 w) Lease Transaction
 
 Where the Company is the lessee: Leases where the lessor effectively
 retains substantially all the risks and benefits of ownership of the
 leased term, are classified as operating leases. Operating lease’s
 payments are recognized as an expense in the profit & loss Account.
 
 Where the Company is a lessor: Assets subject to operating leases are
 included in fixed assets. Lease income is recognized in the Profit &
 Loss Account. Costs including depreciation are recognized as an expense
 in the Profit & Loss Account.