The Financial Statements are prepared to comply in all material aspects
 with all the applicable accounting principles in India, the applicable
 accounting standards notified under Section 211(3C) of the Companies
 Act, 1956 and the relevant provisions of the Companies Act, 1956.
 
 i.  Fixed Assets
 
 Fixed assets revalued (basis indicated in Note 11.2 below) are stated
 at revalued amounts less depreciation. Other fixed assets are stated at
 cost of acquisition (net of CENVAT credit) or construction less
 depreciation.
 
 Cost of Computer Software are capitalised in the period in which the
 software is implemented for use, where it is expected to provide future
 enduring economic benefit.  Capitalisation costs include license fees
 and cost of implementation / system integration services.
 
 Impairment loss is recognised wherever the carrying amount of fixed
 assets of a cash generating unit exceeds its recoverable amount i.e.
 net selling price or value in use, whichever is higher.
 
 ii.  Borrowing Cost
 
 Borrowing costs attributable to acquisition or construction of
 qualifying assets (assets which require substantial period of time to
 get ready for its intended use) are capitalised as part of the cost of
 such assets. All other borrowing costs are charged to revenue.
 
 iii.  Government Grants
 
 Grants of Capital nature (not related to specific fixed assets) are
 credited to Capital Reserve. Grants related to revenue are credited to
 related expense account.
 
 iv.  Depreciation
 
 Depreciation on the incremental amount added on revaluation in respect
 of revalued item is calculated on straight line method at rates
 considered applicable by valuers.
 
 Computer Software capitalised are amortised over a period of three
 years from the date of capitalisation.
 
 Depreciation on original cost of fixed assets is provided either on
 straight line basis or on written down value method at rates specified
 in Schedule XIV to the Companies Act, 1956.
 
 Also refer Note 11.1 below.
 
 v.  Foreign Currency Transaction
 
 Transactions in foreign currency are accounted for at the exchange
 rates prevailing on the date of transaction. Monetary assets and
 liabilities relating to foreign currency transactions remaining
 unsettled at the Year-end are translated at the prevailing exchange
 rates and the resultant gains/ losses are recognised in the Profit and
 loss Account.
 
 The premium or discount in respect of forward exchange contracts are
 appropriately recognised in the Profit and loss Account over the period
 of the contract. Exchange difference arising on such contracts is
 accounted for in the reporting period in which the exchange rate
 changes.
 
 vi.  Investments
 
 long Term Investments are valued at cost less provision for diminution
 (other than temporary) in the carrying amount thereof as determined by
 the Board of Directors based on periodical review.
 
 vii. Inventories
 
 Inventories are valued at lower of cost and net realisable value. Cost
 of Stores and Spares is determined on weighted average basis. Cost of
 Raw Materials is determined on First In First Out basis.
 
 Cost of Finished Goods includes raw material cost (determined on the
 basis indicated above), other material cost on weighted average basis,
 appropriate share of overheads and excise duty payable on subsequent
 clearance from the factory.
 
 viii. Recognition of Income and Expenditure
 
 (a) Sale of carbon black is recognised on completion of sale of goods
 and the sale of power is recognised based on power offltake by the
 customer.
 
 (b) Items of income and expenditure are recognised on accrual (except
 where there are significant uncertainties) and prudent basis.
 
 ix.  Employee Benefits
 
 a.  Defined Contribution Plans
 
 Annual contribution payable pursuant to the Company''s superannuation
 scheme to a separate superannuation fund established by the Company for
 payment of pensions to the employees covered under the scheme and
 monthly contributions payable to the provident funds maintained with
 separate Trusts established for Head Office and Durgapur Plant
 employees and with Regional Provident Fund Commissioners (RPFCs) for
 other employees are recognized as charge on accrual basis. The Company
 has an obligation to make additional contribution to the Trust in case
 of inadequacy of the aggregate funds available with the Trustees
 (mainly comprising net annual return from investments of the Trust) for
 distribution of annual interest on the balances of the beneficiaries at
 applicable interest rate notified by the Government.
 
 b.  Defined Benefit Plans
 
 liabilities accrued on account of gratuity [covered under policies with
 life Insurance Corporation of India (lIC)], leave encashment benefits
 payable to the employees on cessation of their employment and
 liabilities accrued towards post employment medical benefits extended
 to certain categories of employees [comprising payment of annual
 medical insurance premium to cover hospitalizations and reimbursement
 of domiciliary medical expenses within a defined monetary limit] are
 determined by actuarial valuation at the Year-end based on the
 Projected Unit Credit method and are recognized as charge on accrual
 basis.
 
 c.  Termination Benefits
 
 Compensation paid under Voluntary Retirement Scheme is recognised as
 expense immediately.
 
 d.  Actuarial gains/-osses are recognized immediately in the Profit and
 loss Account as income/expense for the year in which they occur.
 
 x.  Research and Development
 
 Revenue expenditure on research and development is charged off during
 the period in which it is incurred.
 
 xi.  Taxes on Income
 
 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 recognized, subject to consideration of prudence in
 respect of deferred tax asset, on timing differences, being the
 difference between taxable income and accounting income that originates
 in one period and are capable of reversal in one or more subsequent
 periods and is measured using tax rate and laws that have been enacted
 or substantively enacted by the Balance Sheet date. Deferred tax assets
 on unabsorbed depreciation and carry forward of losses under tax laws
 are not recognized unless there is virtual certainty that there will be
 sufficient future taxable income available to realize such assets.
 Deferred tax assets are periodically reviewed to reassess realization
 thereof.
 
 3.1 Raw Material Purchase is net of Rs. 3,106.15 lakhs (Previous Year -
 Rs. 1,407.28 lakhs) being benefits under various duty exemption schemes
 pertaining to exports / deemed exports.
 
 10. Advances recoverable in cash or in kind or for value to be received
 includes Rs.0.59 lakhs (Previous Year - Rs.0.77 lakhs)(Schedule 10) due
 by an Officer of the Company, maximum amount due at any time during the
 Year - Rs.0.77 lakhs (Previous Year - Rs.0.93 lakhs).
 
 11.1 For the purpose of these accounts, following methods and rates of
 depreciation have been used for depreciating the original cost of fixed
 assets:
 
 (a) Certain items of Plant and Machinery being energy saving devices
 added during the period ended 31st March, 1987: Under Straight line
 method at rates specified in Schedule XIV of the Companies Act, 1956.
 
 (b) Other assets added up to 31st March, 1987: Under written down value
 method at rates specified in Schedule XIV of the Companies Act, 1956.
 
 (c) Additions since 1st April, 1987: Under Straight line method
 
 at rates specified in Schedule XIV of the Companies Act, 1956.
 
 11.2 Based on the valuation reports submitted by the valuers appointed
 for the purpose, certain items of the Company''s fixed assets [viz.,
 land (Freehold/-easehold), Acquisition and Development Expenses,
 Buildings on such land, Flats, Electrical Installations, Plant and
 Machinery and Railway Siding] were revalued on 30th November, 1984, on
 30th September, 1991 and also on 30th September, 2001 (except Railway
 Siding) after considering the following factors:
 
 - estimated current market value pertaining to land
 (Freehold/-easehold), Acquisition and Development Expenses, Buildings
 on such land and Flats
 
 - Values of Electrical Installations, Plant and Machinery and Railway
 Siding (when applicable) based on their current cost of replacement
 
 - Adjustments for the condition, the standard of maintenance,
 depreciation up to valuation dates, etc.
 
 The resultant revaluation surplus of Rs.1,011.07 lakhs, Rs.2,994.04
 lakhs and Rs. 5,995.27 lakhs arising from the aforesaid revaluations
 were transferred to Revaluation Reserve in the Company''s annual
 accounts for the years 1983l84, 1990l 91 and 2000l01 respectively.Such
 Revaluation Reserves have however been fully adjusted in earlier years.
 
 11.3 Depreciation for the year ended 31st March, 2011 on items of fixed
 assets revalued include an additional charge of Rs. 214.22 lakhs
 (Previous Year - Rs. 255.84 lakhs) over that calculated on original
 cost at rates prescribed under Schedule XIV of the Companies Act, 1956
 as amended during 1993l94 representing depreciation on the incremental
 amounts added on revaluation calculated at the rates considered
 applicable by the valuers.
 
 11.4 Capital Work in Progress includes Capital Advances unsecured,
 considered good l Rs.2,660.84 lakhs (31st March, 2010 - Rs. 2,604.94
 lakhs).
 
 11.5 Capital Work in Progress as at 31st March 2011 includes Raw
 Materials Consumed Rs 1,183.24 lakhs( Previous Year-Nil), Salaries,
 Wages and Bonus Rs 107.66 lakhs (Previous Year- Nil),Contibution to
 Provident Fund, Super Annuation Fund, Gratuity ,Other Funds Rs 7.24
 lakhs(Previous Year-Nil), labour and Staff Welfare Rs 7.43 lakhs
 (Previous Year- Nil),Consumption of Stores and spares parts Rs 17.48
 lakhs ( Previous Year-Nil), Rent Rs 8.42 lakhs ( Previous Year-
 Nil),Rates and Taxes Rs 4.09 lakhs (Previous Year-Nil) Repairs and
 MaintenancelOthers Rs 13.61 lakhs(Previous Year- Nil),Insurance Rs 9.31
 lakhs (Previous Year - Nil) incurred on various projects under
 implementation.
 
 13.According to the letters of undertaking given by the Company to the
 concerned Financial Institutions, its investments in equity shares of
 Maple Circuits limited and Norplex Oak India limited cannot be pledged,
 charged or otherwise encumbered or disposed off without their prior
 consent, during the currency of the loan facilities granted by the
 Financial Institutions to the said companies.