(i) Basis of Preparation:
 
 The financial statements have been prepared to comply in all material
 respects with the Accounting Standards Notified by the 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 on an accrual basis.
 The accounting policies applied by the Company are consistent with
 those used in the previous year.
 
 (ii) 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
 financial statements and the results of operations during the reporting
 year end. Although these estimates are based upon the management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 (iii) Revenue Recognition:
 
 Revenue is recognised to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 (a) Revenue is recognised when the significant risks and rewards of
 ownership of the goods have passed to the buyer.
 
 (b) Dividend Income is recognised when the shareholders'' right to
 receive the payment is established by the balance sheet date. Dividend
 from subsidiaries is recognised even if the same is declared after the
 balance sheet date but pertains to period on or before the date of
 balance sheet as per the requirement of Schedule VI of the Companies
 Act, 1956.
 
 (c) Interest income is recognised on a time proportion basis taking
 into account the amount outstanding and rate applicable.
 
 (d) Due to uncertainty in realization, following incomes are accounted
 for on acceptance/actual receipt basis:- (i) Insurance and other claims
 
 (ii) Interest on doubtful loans and advances to cane growers.
 
 (iii) Compensation receivable in respect of land surrendered
 to/acquired by the Government.
 
 (iv) Fixed Assets:
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses determined, if any.  Cost comprises the purchase
 price inclusive of duties (net of cenvat credit), taxes, incidental
 expenses and erection/ commissioning expenses etc. upto the date the
 asset is ready for its intended use.
 
 Machinery spares which can be used only in connection with an item of
 fixed assets and whose use as per technical assessment is expected to
 be irregular are capitalised and depreciated over the residual life of
 the respective assets.
 
 Assets awaiting disposal are valued at the lower of written down value
 and net realisable value.
 
 (v) Impairment of Assets:
 
 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 recognised 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 a pre-tax discount rate that reflects
 current market assessments of the time value of money and risks
 specific to the asset.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 (vi) Depreciation:
 
 (a) The classification of plant and machinery into continuous and
 non-continuous process is done as per technical certification and
 depreciation thereon is provided accordingly.
 
 (b) Depreciation on fixed assets is provided as per straight line
 method, at the rates prescribed in schedule XIV of the Companies Act,
 1956 or at the rates based on the useful lives of the assets estimated
 by the management, whichever is higher.
 
 (c) Leasehold properties are depreciated over the primary period of
 lease or their respective useful lives, whichever is shorter.
 
 (d) In case of impairment, if any, depreciation is provided on the
 revised carrying amount of the assets over its remaining useful life.
 
 (vii) 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, it is recognised
 as income over the periods necessary to match them on a systematic
 basis to the costs, which it is intended to compensate.
 
 Revenue grants/subsidies, which are not related to any expenses, are
 recognised as income in Profit & Loss Account.
 
 Where the grant or subsidy relates to an asset, its value is deducted
 from the gross value of the asset concerned in arriving at the carrying
 amount of the related asset.
 
 Government grants of the nature of promoters'' contribution are credited
 to capital reserve and treated as a part of shareholders'' funds.
 
 (viii) Borrowing Costs:
 
 Borrowing costs relating to acquisition/construction of qualifying
 assets are capitalised until the time all substantial activities
 necessary to prepare the qualifying assets for their intended use are
 complete. 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 revenue.
 
 (ix) Investments:
 
 Investments that are readily realizable 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 stated at lower of cost and market rate on individual
 investment basis. Long term investments are considered at cost on
 individual investment basis, unless there is a decline other than
 temporary in the value, in which case adequate provision is made
 against such diminution in the value of investments.
 
 (x) Inventories:
 
 Raw Materials, stores and spares are valued at lower of cost and net
 realizable value. However, these items are considered to be realizable
 at cost if the finished products, in which they will be used, are
 expected to be sold at or above cost.
 
 Goods under process, finished goods (including Power Banked) and traded
 goods, are valued at lower of cost and net realizable value. Finished
 goods and Goods under process include cost of conversion and other
 costs incurred in bringing the inventories to their present location
 and condition based on normal operating capacity.
 
 Cost of inventories is computed on a weighted average basis.
 
 By products, Country crop and Saleable scraps, whose cost is not
 identifiable, are valued at estimated 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.
 
 (xi) Foreign Currency Transactions:
 
 (a) 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.
 
 (b) 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.
 
 (c) Exchange Differences
 
 Exchange differences arising on the settlement/ conversion of monetary
 items are recognised as income or expenses in the year in which they
 arise.
 
 (d) Forward Exchange Contracts not entered for trading or speculation
 purpose
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortised as expenses or income over the life of the
 respective contracts. Exchange differences on such contracts are
 recognised 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 contracts is recognised as income or
 expense for the year.
 
 (xii) Retirement Benefits:
 
 (a) Retirement benefits in the form of Provident and Pension Funds are
 defined contribution schemes and are charged to Profit and Loss Account
 of the year when the contributions to the respective funds are due.
 
 (b) Gratuity liability being a defined benefit obligation is provided
 for on the basis of actuarial valuation on projected unit credit method
 made at the end of each year.
 
 (c) Long term compensated absences are provided for based on actuarial
 valuation on projected unit credit method made at the end of each year.
 
 (d) Actuarial gains/losses are immediately taken to profit and loss
 account and are not deferred.
 
 (xiii) Taxation:
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to tax authorities in
 accordance with Income Ta x Act, 1961 enacted in India. Deferred income
 tax reflects the impact of current year timing differences between
 taxable income and accounting income for the year and reversal of
 timing differences of earlier years.
 
 The deferred tax for timing differences between the book and tax profit
 for the year is accounted for using the tax rates and laws that have
 been enacted or substantively enacted as of the Balance Sheet date.
 Deferred tax asset is recognised only to the extent that there is
 reasonable certainty that sufficient future taxable income will be
 available against which such deferred tax asset can be realised. If the
 Company has carry forward unabsorbed depreciation and tax losses,
 deferred tax asset is recognised only to the extent that there is
 virtual certainty supported by convincing evidence that sufficient
 taxable income will be available in future against which such deferred
 tax asset can be realised.
 
 The carrying amount of deferred tax assets is reviewed at each balance
 sheet date. The Company writes-down the carrying amount of 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 asset 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 taxable income will be available in future.
 
 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.
 
 Minimum Alternative Tax (MAT) credit is recognised as an asset only
 when and to the extent that there is convincing evidence that the
 Company will pay normal income tax during the specified period. In the
 year in which the MAT credit becomes eligible to be recognised 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 the Company will pay normal Income Tax during the
 specified period.
 
 (xiv) Segment Reporting:
 
 (a) Identification of Segments:
 
 The Company has identified that its operating segments are the primary
 segments. 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 analysis of geographical segments is
 based on the areas in which the customers of the Company are located.
 
 (b) Inter Segment Transfers:
 
 The Company accounts for inter segment transfers at mutually agreed
 transfer prices.
 
 (c) Allocation of Common Costs:
 
 Common allocable costs are allocated to each segment on case to case
 basis applying the ratio, appropriate to each relevant case. Revenue
 and expenses which relate to the enterprise as a whole and are not
 allocable to segments on a reasonable basis are included under the head
 Unallocated – Common.
 
 The accounting policies adopted for segment reporting are in line with
 those of the Company.
 
 (xv) Fixed Assets Acquired under Lease
 
 (a) Finance Lease
 
 Assets acquired under lease agreements which effectively transfer to
 the Company substantially all the risks and benefits incidental to
 ownership of the leased items, are capitalised at the lower of the fair
 value and present value of minimum lease payment at the inception of
 the lease term and disclosed as leased assets. Lease payments are
 apportioned between the finance charges and the reduction of the lease
 liability so as to achieve a constant rate of interest on the remaining
 balance of their liability. Finance charges are charged directly to the
 expenses account.
 
 (b) Operating Lease
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of the ownership of the leased assets are classified as
 operating leases. Operating lease payments are recognised as an expense
 in the profit and loss account.
 
 (xvi) Share Issue Expenses:
 
 Share issue expenses are adjusted against Securities Premium Account.
 
 (xvii) Earning per Share:
 
 Basic Earning per Share is calculated by dividing the net profit or
 loss for the year attributable to equity shareholders by the weighted
 number of equity shares outstanding during the year.
 
 For the purpose of calculating diluted earning per share, net profit or
 loss for the year attributable to equity share holders and the weighted
 average number of shares outstanding during the year are adjusted for
 the effect of all dilutive potential equity shares.
 
 (xviii) Excise Duty:
 
 Excise Duty is accounted for at the point of manufacture of goods and
 accordingly, is considered for valuation of stocks as on the Balance
 Sheet date.
 
 (xix) Cash and Cash equivalents
 
 Cash and cash equivalents in the cash flow statement comprise of cash
 at bank and in hand and short-term investments with an original
 maturity of three months or less.
 
 (xx) Provisions:
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event and 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 made in terms of
 Accounting Standard 29 are not discounted to its present value and are
 determined based on the best estimate required to settle the
 obligation, at the Balance Sheet date. These are reviewed at each
 Balance Sheet date and adjusted to reflect the current management
 estimates.
 
 (xxi) Derivative Instruments:
 
 As per the announcement made by the Institute of Chartered Accountants
 of India, 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 of the underlying hedged item is
 charged to the income statement. Net gains are ignored as a matter of
 prudence.