a.  Basis of presentation
 
 The accompanying financial statements have been presented for the
 period ended March 31, 2012 along with comparative information for the
 year ended September 30, 2010. The accompanying financial statements
 have been prepared on a going concern basis under the historical cost
 convention on the accrual basis of accounting in conformity with
 accounting principles generally accepted in India (Indian GAAP).
 The accounting policies have been consistently applied by the Company
 and are consistent with those used in the previous year, except as
 stated hereunder.
 
 b.  Use of estimates
 
 In preparing the Company''s financial statements in conformity with
 accounting principles generally accepted in India, the Company''s
 management is required to make estimates and assumptions that affect
 the reported amounts of assets and liabilities and the disclosure of
 contingent assets and liabilities at the date of the financial
 statements and the reported amounts of revenue and expenses during the
 reporting period, the actual results could differ from those estimates.
 
 c.  Fixed assets
 
 Fixed assets are stated at cost less accumulated depreciation. Cost
 comprises the purchase price and any cost attributable to bringing the
 asset to its working condition for its intended use. Expenditure
 incurred during construction period has been added to the cost of the
 assets. These expenses have been allocated to the sugar, power
 generation and ethanol units on a reasonable basis. Subsidy received
 from the Government have been reduced from value of the respective
 assets.
 
 d.  Borrowing costs
 
 Financing cost incurred up to the date of completion of construction or
 installation of qualifying assets, on funds borrowed are capitalized as
 a part of the cost of the asset.
 
 e.  Depreciation
 
 Depreciation is provided at the rates and in the manner prescribed in
 Schedule XIV of the Indian Companies Act, 1956.  The Companies assets
 are depreciated using the straight line method. As per estimates of the
 management, these rates are representative of the economic useful life
 of these assets. No depreciation is provided on assets held for sale.
 
 f.  Leases
 
 Operating lease payments are recognized as an expense in the profit and
 loss account on a straight-line basis over the lease term. In case of
 long term leases, the expenditure to the profit and loss account is
 recognized on the basis of equated lease rentals arrived at by
 allocating the total outflow of lease rentals on the entire contractual
 period over the period of the lease.
 
 g.  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 carried at lower of cost or fair value/ market value,
 determined on an individual investment basis. Long-term investments are
 carried at cost. However, provision for diminution in value is made to
 recognize a decline other than temporary in the value of the
 investments. Profit/Loss on sale of investments is computed with
 reference to their average cost.
 
 h.  Amalgamation
 
 Accounting for Amalgamation is as per AS-14 of the Indian Accounting
 Standards as prescribed by The Institute of Chartered Accountants of
 India. The Goodwill arising on Amalgamation is amortised on the basis
 over its useful life but shall not exceed five years.
 
 i.  Inventories
 
 Inventories are valued as follows:
 
 Raw materials, stores and spares and packing materials
 
 Lower of cost and net realizable value. However, materials and other
 items held for use in the production of inventories are not written
 down below cost if the finished products in which they will be
 incorporated are expected to be sold at or above cost. Cost is
 determined on a First in First out (''FIFO'') basis.
 
 Finished goods
 
 Lower of cost and net realizable value. Cost includes direct materials,
 labour and a proportion of manufacturing overheads based on normal
 operating capacity. Cost of finished goods excludes excise duty.
 
 Work-in-process
 
 Lower of cost up to estimated stage of process and net realizable
 value. Cost includes direct materials, labour and a proportion of
 manufacturing overheads based on normal operating capacity.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and the
 estimated costs necessary to make the sale.
 
 By-products
 
 By-products are valued at cost. Inter-unit transfers of by products
 also include the cost of transportation, duties, etc.  j. Revenue
 recognition
 
 Revenue is recognized to the extent it is probable that the economic
 benefits will flow to the Company and the revenue can be reliably
 measured. Revenue from sale of goods is recognized when the significant
 risks and rewards of ownership of the goods are transferred to the
 customer and is stated net of trade discounts, excise duty, sales
 returns.
 
 Revenue from sale of power is recognized when the units generated are
 transmitted to the pooling station, in accordance with the terms and
 conditions of the power purchase agreement entered into by the Company
 with the purchasing parties.
 
 k. Foreign currency transactions
 
 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.
 
 Conversion
 
 Foreign currency monetary items are reported using the closing rate at
 the date of the Balance Sheet. 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 investments
 in foreign companies are recorded at the exchange rates prevailing on
 the date of making the investments.
 
 Exchange Differences
 
 Exchange Differences is charged to the revenue account except arising
 on account of such conversion related to the purchase of fixed assets
 is adjusted therewith, and other long term monetary items is adjusted
 in the Foreign Currency Monetary Item Translation Difference.
 
 Forward Exchange Contracts not intended for trading or speculation
 purposes
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortized as expense or income over the life of the
 contract. Exchange differences on such contracts are recognized in the
 profit and loss account in the period in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognized as income or as expense for the
 period.
 
 l. Employee benefits
 
 Contributions in respect of provident fund and gratuity are made to the
 appropriate authorities/trust set up by the Company for the purpose and
 charged to profit and loss account. Provisions for liabilities in
 respect of leave encashment benefits are made based on actuarial
 valuation made by an independent actuary as at the balance sheet date.
 
 m. Income tax
 
 Tax expenses comprise both current and deferred taxes.
 
 Deferred income tax reflects the impact of current period timing
 differences between taxable income and accounting income for the period
 and reversal of timing differences of earlier periods. Deferred tax is
 measured based on the tax rates and the tax laws enacted or
 substantively enacted at the balance sheet date. Deferred tax assets
 are recognized only to the extent that there is reasonable certainty
 that sufficient future taxable income will be available against which
 such deferred tax assets can be realized.  n. Miscellaneous expenditure
 
 Preliminary expenses are written-off over a period of five years from
 the year of commencement of commercial production.
 
 The Deferred Revenue Expenditure comprises of debenture issue expenses
 which is written off over a period of 5 years & expenses incurred on
 the lease units upto the date of production which is written off in
 proportion to the period of lease unexpired or 1/5th in case of long
 lease period.
 
 o.  Government grants
 
 Government grants in the nature of promoter''s contribution are credited
 to capital reserve and treated as a part of Shareholder''s funds. Other
 Government grants/ subsidy have been reduced from value of the
 respective assets.
 
 p. Financial derivatives and commodity futures
 
 Transactions in financial derivatives and commodity futures are
 accounted based on the mode of final settlement.  Transactions, which
 are ultimately settled net, without taking delivery, are recorded net
 with the gains/losses being recognized as income/expenses in the
 financial statements. Transactions, which stipulate physical delivery
 of the goods and where the company intends to take delivery, are
 recorded at gross, as purchases and sales as a part of the company''s
 sugar manufacturing activities.
 
 q. Provisions, contingent liabilities and contingent assets
 
 Provisions are recognized for liabilities that can be measured only by
 using a substantial degree of estimation, if :
 
 - The Company has a present obligation as a result of a past event
 
 - A probable outflow of resources is expected to settle the
 obligation and
 
 - The amount of the obligation can be easily estimated.
 
 Contingent Liability is disclosed in the case of
 
 - A present obligation arising from a past event, when it is not
 probable that an outflow of resources will be required to settle the
 obligation.
 
 - A possible obligation, unless the probability of outflow of
 resources is remote.
 
 Depending on facts of each case and after due evaluation of relevant
 legal aspects, claims against the Company not acknowledged as debts are
 disclosed as contingent liabilities. In respect of statutory matters,
 contingent liabilities are disclosed only for those demand(s) that are
 contested by the Company.
 
 Contingent Assets are neither recognized nor disclosed.
 
 r. Earnings per share
 
 Basic earnings per share are 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. The
 weighted average numbers of equity shares outstanding during the period
 are adjusted for events of bonus issue.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 s. Segment reporting
 
 The accounting policies adopted for segment reporting are in line with
 the accounting policies of the Company, with the following additional
 policies for segment reporting:
 
 (i) Inter segment revenue has been accounted for based on the
 transaction price agreed to between segments which is primarily market
 led.
 
 (ii) Revenue and expenses have been identified to segments on the basis
 of their relationship to the operating activities of the segment.
 
 (iii) Gains/losses from transactions in commodity futures, which are
 ultimately settled net, with/without taking delivery, are recorded as
 ''Other revenues'' under the Sugar segment.
 
 (iv) Revenue and expenses, which relate to the enterprise as a whole
 and are not allocable to segments on a reasonable basis, have been
 included under Unallocated Corporate Expenses.
 
 t. Impairment of assets
 
 As at each balance sheet date, the carrying amount of assets is tested
 for impairment so as to determine :
 
 a.  The provision for impairment loss, if any, required or
 
 b.  The reversal, if any, required of impairment loss recognized in
 previous periods.
 
 Impairment loss is recognized when the carrying amount of an asset
 exceeds its recoverable amount.