A.  Fixed Assets and Intangible Assets
 
 1.  Fixed Assets are carried at cost of acquisition or construction
 (inclusive of freight, duties, taxes and expenses related to
 acquisition and installation and commissioning) less accumulated
 depreciation.
 
 2.  Intangible Assets are recorded at the consideration paid for
 acquisition.
 
 B.  Depreciation and Amortisation
 
 1.  Depreciation on Fixed Assets is provided on Written Down Value
 Method, as per the provisions of Schedule XIV to the Companies Act,
 1956.
 
 2.  Computer Software (Intangible Asset) is amortised over a period of
 three years.
 
 C.  Investments
 
 Investments are carried at cost of acquisition. A provision for
 diminution is made to recognise decline other than temporary, in the
 value of investments.
 
 D.  Valuation of Inventories
 
 Category of Inventory Basis of valuation
 
 1.  Stores and Spares, Raw Material (other than Molasses), Purchased
 Bagasse, Molasses in process, Sugar in Process, Crops in progress,
 Petroleum Products and Finished Goods
 
 At cost or net realisable value, whichever is less. Cost is generally
 arrived at on Weighted Average Method.
 
 2 Molasses, Own Bagasse and Scrap
 
 At net realisable value.
 
 E.  Retirement Benefits
 
 Retirement benefits have been recognized in accordance with AS-15
 (revised 2005) and accordingly,
 
 a.  liability for balance of leave as on the last date of the year is
 fully provided on actuarial basis;
 
 b.  liability on account of retirement benefits such as provident fund
 and superannuation fund are administered through separate funds.
 Contributions to provident fund and superannuation fund are accounted
 for at respective specified rates.
 
 c.  gratuity is accounted on the basis of actuarial valuation and
 funded through a trust, which has taken out a policy with Life
 Insurance Corporation of India.
 
 F .  Revenue Recognition
 
 a.  Revenue in respect of insurance / other claims, interest, subsidy,
 Carbon Emission Reduction Units, etc. is recognised only when it is
 reasonably certain that the ultimate collection will be made.
 
 b.  Sales Value is inclusive of Excise Duty and net of sales tax, where
 applicable.
 
 G .  Foreign Currency Transactions
 
 All foreign currency transactions are accounted for at the rates
 prevailing on the date of the transaction.  The exchange differences on
 settlement / conversion are adjusted to Profit & Loss Account.
 
 In respect of amount payable in foreign currency covered by forward
 contracts, the premium is recognised over the period of contract.
 
 H.  Subsidies Received
 
 1.  Subsidies received towards fixed assets are reduced from gross book
 value of the concerned fixed assets.
 
 2.  Subsidies received relating to revenue expenditure are deducted
 from related expense.  
 
 I.  Borrowing Costs
 
 1.  Borrowing costs that are attributable to acquisition, construction
 or erection of qualifying assets incurred during the period of
 acquisition or construction, are capitalised as part of the cost of the
 asset.
 
 2.  Other borrowing costs are recognised as expenditure in the period
 in which they are incurred.
 
 J.  Taxation
 
 Tax on income for the current period is made in accordance with the
 provisions of the Income Tax Act, 1961. Deferred Tax is recognised on
 timing differences between the accounting income and the taxable income
 for the period. The tax effect is calculated on the accumulated timing
 differences at the end of the accounting period based on the prevailing
 enacted regulations or those that may be subsequently enacted.