a) Basis of preparation of financial statements:
 
 The financial statements are prepared under the historical cost
 convention, except for certain fixed assets which are revalued, in
 accordance with the generally accepted accounting principles in India
 and the provisions of the Companies Act, 1956.
 
 b) 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 for the reporting period. The
 difference between the actual results and estimates are recognised in
 the period in which the results are known/materialised.
 
 c) Fixed Assets:
 
 i) Fixed Assets are stated at cost net of cenvat credit and include
 amounts added on revaluation, less accumulated depreciation and
 impairment loss, if any.
 
 ii) Expenditure incurred on construction/erection of assets, which are
 incomplete as at balance sheet date, are included in Capital work in
 progress.
 
 d) Depreciation:
 
 i) Leasehold land is amortized over the period of lease.
 
 ii) Depreciation on other fixed assets (excluding land and lease land in
 perpetuity) is provided on written down value method at the rates and
 in the manner specifed in schedule XIV to the Companies Act, 1956
 
 iii) In respect of certain revalued assets, (land, buildings and plant
 & machinery) depreciation has been calculated on the revalued fgures as
 per the rates and in the manner specifed by the valuers in their
 Revaluation Report. The difference between the depreciation so computed
 and that computed as per (i) and (ii) above has been charged to the
 Revaluation Reserve.
 
 e) Impairment of Assets:
 
 In accordance with AS 28 on Impairment of Assets as notifed by the
 Companies (Accounting Standards) Rules, 2006, where there is any
 indication of impairment of the company''s assets related to cash
 generating units, the carrying amounts of such assets are reviewed at
 each balance sheet date to determine whether there is any impairment.
 The recoverable amount of such assets is estimated as the higher of its
 net selling price and its value in use. An impairment loss is
 recognised whenever the carrying amount of such assets exceeds its
 recoverable amount. Impairment Loss, if any, is recognised in the profit
 and Loss Account.
 
 f) Investments:
 
 Long term investments are valued at cost of acquisition less diminution
 if any, of a permanent nature.  Current Investments are stated at cost
 or market/fair value whichever is lower.
 
 g) Inventories:
 
 Inventories are valued at lower of cost or net realisable value. Cost
 is determined on FIFO basis.
 
 h) 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. A qualifying asset is an asset that necessarily takes a
 substantial period of time to get ready for its intended use or sale.
 All other borrowing costs are recognised as an expense in the period in
 which they are incurred.
 
 i) Revenue recognition:
 
 Revenue is recognised when it is earned and no significant uncertainty
 exists as to its realisation or collection.  License fees, rental
 income and service charges are recognised based on contractual rights.
 Interest is recognised on time proportion basis. Dividend income is
 recognised when the right to receive the same is established.
 
 j) Employee benefits: -
 
 i) Short term employee benefits are recognised as expenses at the
 undiscounted amounts in the profit & loss account of the year in which
 the related service is rendered.
 
 ii) Post employment and other long term employee benefits are recognised
 as an expense in the profit & loss account for the year in which the
 employee has rendered services. The expenses are recognised at the
 present value of the amounts payable determined using actuarial
 valuation techniques. Actuarial gains and losses in respect of post
 employment and other long term benefits (net of expected return on plan
 assets) are charged to the profit & loss account.
 
 k) Foreign Currency transactions:
 
 i) Transactions denominated in foreign currencies are recorded at the
 exchange rate prevailing at the time of the transaction.
 
 ii) Exchange differences arising as a result of the subsequent
 settlements of transactions are recognised as income or expense in the
 profit and loss account.
 
 l) Share issue expenses:
 
 Expenses in connection with issue of shares are adjusted against
 securities premium account.
 
 m) Taxes on Income:
 
 i) Provision for income tax (current tax) is determined on the basis of
 the taxable income of the current year in accordance with the Income
 Tax Act, 1961.
 
 ii) Deferred tax is recognised in respect of deferred tax assets
 (subject to the consideration of prudence) and deferred tax liabilities
 on timing differences, being the difference between taxable income and
 accounting income that originate in one year and are capable of
 reversal in one or more subsequent years
 
 n) Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outfow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 Notes on Accounts. Contingent Assets are neither recognised nor
 disclosed in the financial statements.