1) Accounting Convention
 
 The financial statements are prepared on historical cost basis and
 based on accrual method of accounting and in accordance with applicable
 Accounting Standards.
 
 2) Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities as on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual result and estimates are recognised in the period in
 which the results are known / materialised.
 
 3) Fixed Assets
 
 Fixed assets are stated at historical cost net of cenvat, inclusive of
 financing costs till commencement of commercial production and less
 accumulated depreciation.
 
 4) Impairment of Assets
 
 The Company evaluates impairment losses on the fixed assets whenever
 events or changes in circumstances indicate that their carrying amounts
 may not be recoverable. If such assets are considered to be impaired,
 the impairment loss is then recognised for the amount by which the
 carrying amount of the assets exceeds its recoverable amount, which is
 the higher of an asset''s net selling price and value in use. For the
 purpose of assessing impairment, assets are grouped at the smallest
 level for which there are separately identifiable cash flows.
 
 5) Expenditure during Construction Period
 
 In case of new projects/expansion of existing projects, revenue
 expenditure incurred during construction/pre-operative period in so far
 as such expenses relate to the period prior to the commencement of
 commercial production are treated as part of the project cost and
 capitalised.
 
 6) Intangible Assets
 
 Certain technical know how and software cost are capitalised and
 recognised as Intangible Assets in terms of Accounting Standard -26
 Intangible Assets based on materiality, accounting prudence and
 significant economic benefits expected to flow there from for a period
 longer than one year.
 
 7) Depreciation
 
 Depreciation on Buildings, Plant and Machinery is calculated on
 straight line basis at the rates and in the manner specified in
 Schedule XIV of the Companies Act, 1956. Depreciation on Furniture,
 Fixtures, Office Equipments, Borewell and Vehicles is calculated on
 written down value basis at the rates and in the manner specified in
 Schedule XIV of the Companies Act, 1956.
 
 Intangible assets are amortised over a period of five years.
 
 8) Borrowing Cost
 
 Interest and other costs in connection with the borrowings of the funds
 to the extent related/attributed to the acquisition /construction of
 qualifying fixed assets are capitalised upto the date when such assets
 are ready for their intended use and other borrowing costs are charged
 to the Profit and Loss Account.
 
 9) Investments
 
 Long term investments are stated at cost. Provision for diminution in
 the value of long term investments is made only if such a decline is
 other than temporary in nature. Current Investments are stated at lower
 of cost or fair value.
 
 10) Inventories
 
 Inventories of finished goods, raw materials, process stock and
 property under development are carried at lower of cost and net
 realisable value. Fuel and stores & spare parts are carried at or below
 cost. Cost for raw materials, fuel, stores & spare parts are
 ascertained on weighted average /FIFO basis. Cost for finished goods
 and process stock is ascertained on full absorption cost basis and
 includes excise duty. Cost of property under development includes cost
 of land, material, labour, manufacturing and other overheads.
 
 11) Revenue Recognition
 
 Revenue is recognised based on the nature of activity, when
 consideration can be reasonably measured and there exists reasonable
 certainty of its recoverability.
 
 Revenue from sale of goods is recognised when substantial risk and
 rewards of ownership are transferred to the buyer under the terms of
 the contract.
 
 Sales value is net of discount and inclusive of excise duty and sales
 tax but does not include other recoveries such as handling charges,
 transport, octroi, etc.
 
 12) Cenvat credit
 
 Cenvat credit is accounted for on accrual basis on purchase of
 materials.
 
 13) Foreign Currency Transactions
 
 Transactions in foreign currency are recorded at the exchange rates
 prevailing at the time the transactions are effected.
 
 Monetary items denominated in foreign currency at the year end are
 restated at year end rates. In case of items which are covered by
 forward exchange contracts, the differences between the year end rates
 and rate on the date of the contract is recognised as exchange
 difference and the premium paid on forward contracts is recognised over
 the life of the contract.
 
 Any income or expense on account of exchange difference either on
 settlement or on translation is recognised in the Profit and Loss
 Account for the period in which the difference takes place.
 
 Non monetary foreign currency items are carried at historical cost.
 
 14) Prior Period Expenses/Income
 
 Material items of prior period expenses/income are disclosed
 separately.
 
 15) Employees Benefits Defined Contribution Plan
 
 The Company''s contributions paid / payable for the year to Provident
 Fund and ESIC are recognised in the Profit and Loss Account.
 
 Defined Benefit Plan
 
 The Company''s liabilities towards gratuity and leave encashment are
 determined using the projected unit credit method which considers each
 period of service as giving rise to an additional unit of benefit
 entitlement and measures each unit separately to build up the final
 obligation.  Past services are recognised on a straight line basis over
 the average period until the amended benefits become vested. Actuarial
 gain and losses are recognised immediately in the Profit and Loss
 Account as income or expense. Obligation is measured at the present
 value of estimated future cash flows using a discounted rate that is
 determined by reference to market yields at the Balance Sheet date on
 Government bonds where the currency and terms of the Government bonds
 are consistent with the currency and estimated terms of the defined
 benefit obligation.
 
 16) Employee Stock Option Scheme
 
 The Company has formulated Sintex Industries Limited Employee Stock
 Option Scheme, 2006 (ESOS) in accordance with SEBI (Employee Stock
 Option and Employee Stock Purchase Scheme) Guidelines, 1999. The ESOS
 is administered through a Trust. The accounting of employees share
 based payment plans administered through the Trust is carried out in
 terms of Guidance Note on Accounting for Employee Share-based Payments
  issued by the Institute of Chartered Accountants of India. In
 accordance with SEBI Guidelines, the excess, if any, of the closing
 market price on the day prior to the grant of the options under ESOS
 over the exercise price is amortised on a straight line basis over the
 vesting period.
 
 17) Miscellaneous Expenditure
 
 Share Issue Expenses incurred upto March, 2006 are amortised over a
 period of 5 years as per the prevailing provisions of Section 35-D of
 the Income Tax Act, 1961.
 
 18) Accounting for Tax
 
 Current tax and Fringe Benefit tax are accounted on the basis of
 estimated taxable income for the current accounting period and in
 accordance with the provisions of the Income Tax Act, 1961. Deferred
 tax resulting from Timing Differences between book and taxable profit
 is accounted for using the tax rates that have been enacted or
 substantively enacted on the Balance Sheet date. The deferred tax asset
 is recognised and carried forward only to the extent that there is a
 reasonable certainty that the assets will be realised in future.
 
 19) Leases
 
 Assets acquired under lease where the Company has substantially all the
 risks and rewards incidental to ownership are classified as finance
 leases. Such assets are capitalised at the inception of the lease at
 the lower of the fair value or the present value of minimum lease
 payments and a liability is created for an equivalent amount. Each
 lease rental paid is allocated between the liability and the interest
 cost, so as to obtain a constant periodic rate of interest on the
 outstanding liability for each period.
 
 Assets acquired on leases where a significant portion of the risks and
 rewards incidental to ownership is retained by the lessor are
 classified as Operating Lease. Lease rentals are charged to the Profit
 and Loss Account on accrual basis.
 
 20) Redemption Premium of Foreign Currency Convertible Bonds (FCCBs)
 
 Premium payable on redemption of FCCBs is fully provided and charged to
 Securities Premium Account in the year of issue.
 
 21) 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 outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 notes.  Contingent Assets are neither recognised nor disclosed in the
 financial statements.
 
 22) Financial Derivatives
 
 In respect of derivative contracts, premium paid and gains/ losses on
 settlement are charged to Profit and Loss Account. Losses arising on
 the restatement of the outstanding derivative contracts as at the year
 end by marking them to market are charged to the Profit and Loss
 Account.