(a) Basis of Accounting:
 
 The Financial Statements are prepared as a going-concern under
 historical cost convention on an accrual basis and in accordance with
 the Companies Act, 1956 except those items covered under Accounting
 Standard-30 on Financial instruments: Recognition and Measurement
 which have been measured at their fair value. Accounting policies not
 stated explicitly otherwise are consistent with generally accepted
 accounting principles.
 
 (b) Use of Estimates:
 
 The presentation 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 during the reporting period. Difference
 between the actual results and the estimates are recognised in the
 period in which the results are known / materialised.
 
 (c) Borrowing Cost:
 
 Borrowing Cost attributable to the acquisition or construction of
 qualifying assets are capitalised as part of the cost of such assets
 upto the date when such assets are ready for intended use. Other
 borrowing costs are charged as expense in the year in which they are
 incurred.
 
 (d) Fixed Assets:
 
 Fixed Assets are stated at cost (net of Modvat/Cenvat/Value Added Tax)
 less accumulated depreciation and impairment loss.
 
 (e) Expenditure During Construction Period:
 
 All pre-operative project expenditure (net of income accrued) incurred
 upto the date of commercial production is capitalised.
 
 (f) Depreciation:
 
 (i) Depreciation has been provided on Fixed Assets on straight line
 method at the rates and in the manner specified in Schedule XIV to the
 Companies Act, 1956, except in respect of additions arising on account
 of Insurance spares, on additions / extensions forming an integral part
 of existing plants and on the revised carrying amount of the assets
 identified as impaired on which depreciation has been provided over
 residual life of the respective fixed assets.
 
 (ii) Amortisation of leasehold land and buildings has been done in
 proportion to the period of lease.
 
 (iii) Fixed Assets where ownership vests with the Government / Local
 authorities are amortised at the rates of depreciation specified in
 Schedule XIV to the Companies Act, 1956.
 
 (g) Intangible Assets:
 
 Intangible Assets are stated at cost of acquisition less accumulated
 amortisation. Technical know-how is amortised over the useful life of
 the underlying plant. Amortisation is done on straight line basis.
 Software is amortised on Straight Line basis over the useful life of
 the Asset.
 
 (h) Investments:
 
 (i) Investments are classified as investments in Subsidiaries (valued
 at cost), Associates (valued at cost), Available for Sale, Held for
 Trading and Held to Maturity within the meaning of Accounting
 Standard-30 on Financial Instruments: Recognition and measurement
 read with the limited revisions of Accounting Standard-21 on
 Consolidated Financial Statements & Accounting Standard-23 on
 Accounting for Investments in Associates.
 
 (ii) Investments are recorded as Long Term Investments unless they are
 expected to be sold within one year. Investments in subsidiaries and
 associates are valued at cost less any provision for impairment.
 Investments are reviewed for impairment if events or changes in
 circumstances indicate that the carrying amount may not be recoverable.
 
 (iii) Investments classified as Available for Sale are initially
 recorded at cost and then remeasured at subsequent reporting dates to
 fair value. Unrealised gains / losses on such investments are
 recognised directly in Investment Revaluation Reserve Account. At the
 time of disposal, derecognition or impairment of the investments,
 cumulative gain or loss previously recognised in the Investment
 Revaluation Reserve Account is recognised in the Profit & Loss Account.
 
 (iv) Investments classified as Held for Trading that have a market
 price are measured at fair value & gain / loss arising on account of
 fair valuation is routed through Profit & Loss Account & those that do
 not have a market price and whose fair value cannot be reliably
 measured are carried at cost.
 
 (v) Investments classified as Held to Maturity are measured at
 amortised cost using an effective interest rate method.
 
 (i) Inventories:
 
 (i) Inventories are valued at lower of cost or net realisable value
 except for scrap and by-products which are valued at net realisable
 value.
 
 (ii) Cost of inventories of finished goods and work-in-process includes
 material cost, cost of conversion and other costs.
 
 (iii) Cost of inventories of raw material and material cost of finished
 goods and work-in-process is determined on First In First Out (FIFO)
 basis except stores and spare parts which are valued at weighted
 average cost.
 
 (j) Premium on Redemption of Debentures :
 
 Premium on redemption of debentures is provided for on an accrual basis
 and charged to Profit & Loss Account using an effective interest rate
 method.
 
 (k) Foreign Currency Transactions :
 
 (i) Transactions denominated in foreign currencies are normally
 recorded at the exchange rate prevailing at the time of the
 transaction.
 
 (ii) Monetary items denominated in foreign currencies at the year end
 are restated at year end rates. In case of monetary items which are
 hedged by derivative instruments, the valuation is done as per
 Accounting Standard-30, Financial Instruments: Recognition and
 Measurement read with accounting policy on derivative instruments. The
 fair value of foreign currency contracts are calculated with reference
 to current forward exchange rates for the contracts with similar
 maturity profile.
 
 (iii) Non-monetary foreign currency items are carried at cost.
 
 (iv) Any income or expense on account of exchange difference either on
 settlement or on translation is recognised in the Profit & Loss Account
 except in respect of long term Foreign Currency monetary Items which
 are not covered by Accounting Standard (AS 30) on Financial
 instruments; Recognition and Measurement relatable to acquisition of
 depreciable fixed assets, such difference is adjusted to the carrying
 cost of the depreciable fixed assets. In respect of other long-term
 Foreign Currency Monetary items, the same is transferred to Foreign
 Currency Monetary Translation Difference Account and amortised over
 the balance period of such long term Foreign Currency Monetary items
 but not beyond 31 March 2011.
 
 (l) Issue expenses:
 
 Expenses of Debenture / Bond / Floating Rate Note issues are charged to
 Profit & Loss Account using an effective interest rate method. Expenses
 related to equity & equity related instruments are adjusted against the
 security premium account.
 
 (m) Employee Benefits:
 
 (i) Short-term employee benefits are recognised as an expense at the
 undiscounted amount in the Profit & Loss Account of the year in which
 the related service is rendered. Provision for compensated absences to
 employees is on actual basis for the portion of accumulated leave which
 an employee can encash.
 
 (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 expense is 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 are charged to the Profit &
 Loss Account.
 
 (n) Revenue Recognition:
 
 Revenue is recognised only when it can be reliable measured and it is
 reasonable to expect ultimate collection. Turnover includes sale of
 goods, services, scrap, excise duty, export incentives and are net of
 sales tax / Value Added Tax, rebates and discounts. Dividend income is
 recognised when right to receive the payment is established by the
 Balance Sheet Date.  Interest income is recognised on time proportion
 basis taking into account the amount outstanding and rate applicable.
 
 (o) Export incentives:
 
 Duty drawback is recognised at the time of exports and the benefits in
 respect of advance license received by the Company against export made
 by it are recognised as and when goods are imported against them.
 
 (p) Import of Copper Concentrate and Sale of Copper and Slime:
 
 In accordance with the prevailing international market practice,
 purchase of Copper Concentrate and sale of Copper and Slimes are
 accounted for on provisional invoice basis pending final invoice in
 terms of Purchase Contract / Sales Contract respectively. The cases
 where quotational period price are not finalised as at the year end are
 restated at forward LME / LBMA rates as on the date of year end and
 adjustments are made based on the metal contents as per laboratory
 assessments done by the Company pending final invoice.
 
 (q) Derivative Instruments:
 
 In order to hedge its exposure to foreign exchange, interest rate and
 commodity price risks, the Company enters into forward, option, swap
 contracts and other derivative financial instruments. The Company
 neither hold nor issue any derivative financial instruments for
 speculative purposes.
 
 Derivative financial instruments are initially recorded at their fair
 value on the date of the derivative transaction and are re-measured at
 their fair value at subsequent balance sheet dates.
 
 Changes in the fair value of derivatives that are designated and
 qualify as fair value hedges are recorded in the Profit & Loss Account.
 The hedged item is recorded at fair value and any gain or loss is
 recorded in the Profit & Loss Account and is offset by the gain or loss
 from the change in the fair value of the derivative.
 
 Changes in the fair value of derivatives that are designated and
 qualify as cash flow hedges and are determined to be an effective hedge
 are recorded in Hedging Reserve account. Any cumulative gain or loss on
 the hedging instrument recognised in Hedging Reserve is kept in Hedging
 Reserve until the forecast transaction occurs. Amounts deferred to
 Hedging Reserve are recycled in the Profit & Loss Account in the
 periods when the hedged item is recognised in the Profit & Loss Account
 or when the portion of the gain or loss is determined to be an
 in-effective hedge.
 
 Derivative financial instruments that do not qualify for hedge
 accounting are marked to market at the balance sheet date and gains or
 losses are recognised in the Profit & Loss Account immediately. Hedge
 accounting is discontinued when the hedging instrument expires or is
 sold, terminated or exercised, or no longer qualifies for hedge
 accounting. If a hedged transaction is no longer expected to occur, the
 net cumulative gain or loss recognised in Hedging Reserve is
 transferred to net profit or loss for the year.
 
 Derivatives embedded in other financial instruments or other host
 contracts are treated as separate derivatives when their risks and
 characteristics are not closely related to those of host contracts and
 the host contracts are not carried at fair value with unrealised gains
 or losses reported in the Profit & Loss Account.
 
 (r) Convertible notes:
 
 Convertible notes issued in foreign currency are convertible at the
 option of the holder into ordinary shares of the Company as per the
 terms of the issue. Conversion option which is not settled by
 exchanging a fixed amount of cash for a fixed number of shares is
 accounted for separately from the liability component as derivative and
 initially accounted for at fair value. The liability component is
 recognised initially at the difference between the fair value of the
 note and the fair value of the conversion option. Directly attributable
 costs are allocated to the liability component and the conversion
 option in proportion to their initial carrying amounts. Subsequent to
 initial recognition, the liability component of a compound financial
 instrument is measured at amortised cost using the effective interest
 rate method. The conversion option is subsequently measured at fair
 value at each reporting date, with changes in fair value recognised in
 Profit & Loss Account.  The conversion option is presented together
 with the related liability.
 
 (s) Provision for Current and Deferred tax:
 
 Provision for current tax is made after taking into consideration
 benefits admissible under 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 and laws that have
 been enacted or substantively enacted as on the balance sheet date. The
 deferred tax asset is recognised and carried forward only to the extent
 that there is reasonable/virtual certainty that asset will be realised
 in future.
 
 (t) Impairment of Assets:
 
 The carrying amount of assets are reviewed at each Balance Sheet date
 if there is any indication of impairment based on internal/external
 factors. An asset is treated as impaired when the carrying cost of
 assets exceeds its recoverable value. An impairment loss is recognised
 in the Profit & Loss Account where the carrying amount of an asset
 exceeds its recoverable amount. The impairment loss recognised in prior
 accounting periods is reversed if there has been a change in the
 estimate of recoverable amount.
 
 (u) Provision, 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.