1.  Basis of Accounting
 
 The financial statements are prepared under historical cost convention,
 on a going concern basis and in accordance with the applicable
 accounting standards prescribed in the Companies (Accounting Standards)
 Rules, 2006 issued by the Central Government, in consultation with the
 National Advisory Committee on Accounting Standards and relevant
 provisions of the Companies Act, 1956
 
 2.  Use of Estimates
 
 The preparation of financial statements requires management to make
 certain estimates and assumptions that affect the amounts reported in
 the financial statements and notes thereto. Differences between actual
 results and estimates are recognized in the period in which they
 materialise.
 
 3.  Fixed Assets
 
 (a) Fixed Assets are stated at cost less accumulated depreciation and
 impairment loss, if any. The cost of assets comprises of purchase price
 and directly attributable cost of bringing the assets to working
 condition for its intended use including borrowing cost and incidental
 expenditure during construction incurred upto the date of ready to use
 and share issue expenses related to funds raised for financing the
 project.
 
 (b) Capital Work in Progress
 
 Capital work in progress includes cost of assets at sites, construction
 expenditure, advances made for acquisition of capital assets and
 interest on the funds deployed.
 
 (c) Capital Commitments
 
 Estimated amount of contracts remaining to be executed exceeding rupees
 one lakh in each case are disclosed in the notes to accounts.
 
 4.  Depreciation / Amortisation
 
 Tangible Assets -
 
 (a) Cost of leasehold land is amortized over the lease period.
 
 (b) Depreciation on fixed assets other than those costing upto Rs.
 5,000 is provided on straight line method in accordance with the rates
 and in the manner specified in Schedule XIV of the Companies Act, 1956.
 
 (c) Assets costing upto Rs. 5000/- are depreciated fully in the year of
 purchase / capitalization.  Intangible Assets -
 
 (d) Software / Licenses are amortised over 3 years on Straight Line
 Method.
 
 5.  Investments
 
 (a) Long term investments are carried at cost after deducting
 provision, where the decline in value is considered as other than
 temporary in nature.
 
 (b) Current investments are valued at lower of cost or fair value.
 
 6.  Inventories
 
 Raw material, stores and spares are valued at lower of cost or net
 realizable value. Cost is determined on weighted average cost.
 
 7.  Sale / Revenue Recognition
 
 (a) Sales are net of sales tax. Revenue from sales is recognised at the
 point of dispatch when risk and reward stand transferred to the
 customers.
 
 (b) Services are net of service tax. Revenue from services is
 recognised when services are rendered and related costs are incurred.
 
 (c) Interest income is recognised on time proportion basis.
 
 (d) Dividend income is recognised, when the right to receive the
 dividend is established.
 
 8.  Foreign Currency Transactions
 
 (a) Foreign currency transactions are recorded at the exchange rate
 prevailing on the date of the transaction.
 
 (b) Monetary items denominated in foreign currencies (such as cash,
 receivables, payables etc.) outstanding at the year end, are translated
 at exchange rates applicable on year end date.
 
 (c) Non-monetary items denominated in foreign currency, (such as fixed
 assets) are valued at the exchange rate prevailing on the date of
 transaction and carried at cost.
 
 (d) Any gains or losses arising due to exchange differences arising on
 translation or settlement are accounted for in the Profit and Loss
 Account.
 
 (e) In the case of forward exchange contracts, the premium or discount
 arising at the inception of such contracts, is amortised as income or
 expense over the life of the contract as well as exchange difference on
 such contracts, i.e. difference between the exchange rate at the
 reporting / settlement date and the exchange rate on the date of
 inception / the last reporting date, is recognized as income / expense
 for the period.
 
 9.  Employee Benefits
 
 (a) Provision for gratuity and leave encashment is made on the basis of
 actuarial valuation at the end of the year. Actuarial gains or losses
 are recognized to the profit and loss account.
 
 (b) Contribution to Provident Fund and Superannuation is accounted for
 on accrual basis.
 
 10.  Borrowing Costs
 
 Borrowing cost (net of any income on the temporary investments of those
 borrowings) attributable to acquisition, construction or production of
 qualifying assets are capitalised as part of the cost till the asset is
 ready for use.  Other borrowing costs are recognized as expense in the
 period in which these are incurred.
 
 11.  Taxes on Income
 
 Provision is made for deferred tax for all timing differences arising
 between taxable income and accounting income at currently enacted or
 substantially enacted tax rates.
 
 Deferred tax assets are recognized, only if there is reasonable /
 virtual certainty that they will be realized and are reviewed for the
 appropriateness of their respective carrying values at each Balance
 Sheet date.
 
 12.  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 recognized but are disclosed in the
 Notes to Accounts. Contingent assets are neither recognized nor
 disclosed in the financial statements.
 
 13.  Impairment of Assets
 
 An asset is treated as impaired, when the carrying cost of asset
 exceeds its recoverable value. An impairment loss, if any, is charged
 to Profit and Loss account, in the year in which an asset is identified
 as impaired.