1.  Basis of Accounting:
 
 a) The financial statements are prepared under historical cost
 convention, except for certain Fixed Assets which are revalued, using
 the accrual system of accounting in accordance with the accounting
 principles generally accepted in India (Indian GAAP) and the
 requirements of the Companies Act, 1956, including the mandatory
 Accounting Standards as prescribed by the Companies (Accounting
 Standard) Rules, 2006.
 
 b) Use of Estimates
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles (GAAP) requires the management of the
 Company to make estimates and assumptions that affect the reported
 balances of assets and liabilities and disclosures relating to the
 contingent liabilities as at the date of the financial statements and
 reported amounts of income and expenses during the year. Example of
 such estimates include provisions for doubtful debts, employee
 retirement benefits plans, provision for income tax and the useful
 lives of fixed assets. The difference between the actual results and
 estimates are recognised in the period in which results are known or
 materialised.
 
 2.  Fixed Assets/Capital Work in Progress:
 
 a) Fixed Assets are stated at cost, except for certain fixed assets
 which have been stated at revalued amounts, less accumulated
 depreciation/ amortisation and impairment loss, if any. The cost is
 inclusive of freight, installation cost, duties, taxes, financing cost
 and other incidental expenses related to the acquisition and
 installation of the respective assets but does not include tax/duty
 credits availed.
 
 b) Capital Work in Progress is carried at cost, comprising of direct
 cost, attributable interest and related incidental expenditure. The
 advances given for acquiring fixed assets are shown under Capital Work
 in Progress.
 
 3.  Joint Ventures for Oil and Gas Fields:
 
 In respect of unincorporated joint ventures in the nature of Production
 Sharing Contracts (PSC) entered into by the Company for oil and gas
 exploration and production activities, the Companys share in the
 assets and liabilities as well as income and expenditure of Joint
 Venture Operations are accounted for, according to the Participating
 Interest of the Company as per the PSC and the Joint Operating
 Agreements on a line-by-line basis in the Companys Financial
 Statements. In respect of joint ventures in the form of incorporated
 jointly controlled entities, the investment in such joint venture is
 treated as long term investment and carried at cost. The decline in
 value, other than temporary, is provided for.
 
 4.  Exploration, Development Costs and Producing Properties:
 
 The Company follows the Full Cost method of accounting for its oil
 and natural gas exploration and production activities. Accordingly, all
 acquisition, exploration and development costs are treated as capital
 work-in-progress and are accumulated in a cost centre. The cost centre
 is not normally smaller than a country except where warranted by major
 difference in economic, fiscal or other factors in the country. When
 any well in a cost centre is ready to commence commercial production,
 these costs are capitalised from capital work-in-progress to producing
 properties in the gross block of assets regardless of whether or not
 the results of specific costs are successful.
 
 5.  Abandonment Costs:
 
 The full eventual estimated liability towards costs relating to
 dismantling, abandoning and restoring well sites and allied facilities
 is recognised as liability for abandonment cost based on evaluation by
 experts at current costs and is capitalised as producing property. The
 same is reviewed periodically.
 
 6.  Depreciation, Amortisation and Depletion:
 
 The Company provides depreciation on fixed assets held in India on
 written down value method in the manner and at the rates specified in
 the Schedule XIV to the Companies Act, 1956, except, a) on Fixed Assets
 of Consumer Electronics Divisions other than Glass Shell Division and;
 b) on office buildings acquired after 1st April, 2000, on which
 depreciation is provided on straight line method at the rates specified
 in the said Schedule or based on useful life of assets whichever is
 higher. Depreciation on fixed assets held outside India is provided on
 straight line method at the rates prescribed in the aforesaid Schedule
 or based on useful life of assets whichever is higher.  Producing
 Properties are depleted using the Unit of Production Method.
 
 The rate of depletion is computed in proportion of oil and gas
 production achieved vis-a-vis proved reserves. Leasehold Land is
 amortised over the period of lease.
 
 Intangibles: Intangible assets are amortised over a period of five
 years.
 
 7.  Impairment of Assets:
 
 The Fixed Assets or a group of assets (cash generating unit) and
 Producing Properties are reviewed for impairment at each Balance Sheet
 date. In case of any such indication, the recoverable amount of these
 assets or group of assets is determined, and if such recoverable amount
 of the asset or cash generating unit to which the asset belongs is less
 than its carrying amount, the impairment loss is recognised by writing
 down such assets and Producing Properties to their recoverable amount.
 An impairment loss is reversed if there is change in the recoverable
 amount and such loss either no longer exists or has decreased.
 
 8.  Investments:
 
 a) Current Investments: Current Investments are carried at lower of
 cost or quoted/fair value.
 
 b) Long Term Investments: Quoted Investment are valued at cost or
 market value whichever is lower. Unquoted Investments are stated at
 cost. The decline in the value of the unquoted investment, other than
 temporary, is provided for.
 
 Cost is inclusive of brokerage, fees and duties but excludes Securities
 Transaction Tax.
 
 9.  Inventories:
 
 Inventories including crude oil stocks are valued at cost or net
 realisable value whichever is lower. Cost of inventories comprises all
 costs of purchase, conversion and other costs incurred in bringing the
 inventories to their present location and condition. Cost is determined
 on Weighted Average Basis.
 
 10.  Borrowing Costs:
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of a qualifying asset are capitalised as
 part of the cost of that asset. A qualifying asset is one that
 necessarily takes substantial period of time to get ready for intended
 use. Other borrowing costs are recognised as an expense in the period
 in which they are incurred.
 
 11.  Excise and Customs Duty:
 
 Excise Duty in respect of finished goods lying in factory premises and
 Customs Duty on goods lying in customs bonded warehouse are provided
 for and included in the valuation of inventory.
 
 12.  CENVAT/Value Added Tax:
 
 CENVAT/ Value Added Tax Benefit is accounted for by reducing the cost
 of the materials/ fixed assets/ services.
 
 13.  Revenue Recognition:
 
 a) Revenue is recognised on transfer of significant risk and reward in
 respect of ownership.
 
 b) Sale of Crude Oil and Natural Gas are exclusive of Sales Tax. Other
 Sales/turnover includes sales value of goods, services, excise duty,
 duty drawback and other recoveries such as insurance, transportation
 and packing charges but excludes sales tax and recovery of financial
 and discounting charges.
 
 c) Insurance, Duty Drawback and other claims are accounted for as and
 when admitted by the appropriate authorities.
 
 d) Dividend on investments is recognised when the right to receive is
 established.
 
 14.  Foreign Currency Transactions:
 
 a) Transactions in foreign currencies are recorded at the exchange rate
 prevailing on the date of transactions. Foreign Currency Monetary
 Assets and Liabilities are translated at the year end rate. The
 difference between the rate prevailing on the date of transaction and
 on the date of settlement as also on translation of Monetary Items at
 the end of the year is recognised, as the case may be, as income or
 expense for the period.
 
 b) Forward contracts other than those entered into to hedge foreign
 currency risk on unexecuted firm commitments or of highly probable
 forecast transactions are treated as foreign currency transaction and
 accounted accordingly. Exchange differences arising on such contracts
 are recognised in the period in which they arise and the premium
 paid/received is recognised as expenses/income over the period of the
 contract. Cash flows arising on account of roll over/cancellation of
 forward contracts are recognised as income/expenses of the period in
 line with the movement in the underlying exposure.
 
 c) All other derivative contracts including forward contract entered
 into for hedging foreign currency risks on unexecuted firm commitments
 and highly probable forecast transactions which are not covered by the
 existing Accounting Standard (AS) 11, are recognised in the financial
 statements at fair value as on the Balance Sheet date, in pursuance of
 the announcement of the Institute of Chartered Accountants of India
 (ICAI) dated 29th March, 2008, on accounting of derivatives.  The
 resultant gains and losses on fair valuation of such contracts are
 recognised in the Profit and Loss Account.
 
 15.  Translation of the financial statements of foreign branch:
 
 a) Revenue items are translated at average rates.
 
 b) Opening and closing inventories are translated at the rate prevalent
 at the commencement and close, respectively, of the accounting year.
 
 c) Fixed assets are translated at the exchange rate as on the date of
 the transaction. Depreciation on fixed assets is translated at the
 rates used for translation of the value of the assets to which it
 relates.
 
 d) Other current assets and current liabilities are translated at the
 closing rate.
 
 16.  Employees Benefits:
 
 a) Short Term Employees Benefits
 
 Short Term Employees Benefits are recognized as an expense at the
 undiscounted amount in the Profit and Loss Account of the year/period
 in which the related services are rendered.
 
 b) Post Employment Benefits
 
 i) Provident Fund - Defned Contribution Plan
 
 The Company contributes monthly at a determined rate. These
 contributions are remitted to the Employees Provident Fund
 Organisation, India for this purpose and is charged to Profit and Loss
 Account on accrual basis.
 
 ii) Gratuity - Defned Benefit Plan
 
 The Company provides for gratuity to all the eligible employees.  The
 benefit is in the form of lump sum payments to vested employees on
 retirement, on death while in employment, or termination of employment
 for an amount equivalent to 15 days salary payable for each completed
 year of service. Vesting occurs on completion of five years of service.
 Liability in respect of gratuity is determined using the projected unit
 credit method with actuarial valuations as on the Balance Sheet date
 and gains/ losses are recognized immediately in the Profit and Loss
 Account.
 
 iii) Leave Encashment
 
 Liability in respect of leave encashment is determined using the
 projected unit credit method with actuarial valuations as on the
 Balance Sheet date and gains/losses are recognised immediately in the
 Profit and Loss Account.
 
 17.  Taxation:
 
 Income tax comprises of current tax and deferred tax. Provision for
 current income tax is made on the assessable income/benefits at the
 rate applicable to relevant assessment year. Deferred tax assets and
 liabilities are recognised for the future tax consequences of timing
 differences, subject to the consideration of prudence. Deferred tax
 assets and liabilities are measured using the tax rates enacted or
 substantively enacted by the Balance Sheet date. The carrying amount of
 deferred tax asset/liability are reviewed at each Balance Sheet date
 and recognised and carried forward only to the extent that there is a
 reasonable certainty that the asset will be realised in future.
 
 18.  Share Issue Expenses:
 
 Share issue expenses are written off to Securities Premium Account.
 
 19.  Premium on Redemption of Bonds/Debentures:
 
 Premium on Redemption of Bonds/Debentures are written off to Securities
 Premium Account.
 
 20.  Research and Development:
 
 Revenue expenditure pertaining to Research and Development is charged
 to revenue under the respective heads of account in the period in which
 it is incurred. Capital expenditure, if any, on Research and
 Development is shown as an addition to Fixed Assets under the
 respective heads.
 
 21.  Accounting for Leases:
 
 Where the Company is lessee:
 
 a) Operating Leases: Rentals in respect of all operating leases are
 charged to Profit and Loss Account.
 
 b) Finance Leases:
 
 i) Rentals in respect of all finance leases entered before 1st April,
 2001 are charged to Profit and Loss Account.
 
 ii) Assets acquired on or after 1st April, 2001, under finance lease or
 similar arrangements which effectively transfer to the Company,
 substantially all the risks and benefits incidental to ownership of the
 leased items, are capitalised at the lower of their fair value and
 present value of the minimum lease payments and are disclosed as leased
 assets.
 
 22.  Warranty:
 
 Provision for the estimated liability in respect of warranty on sale of
 consumer electronics and home appliances products is made in the year
 in which the revenues are recognised, based on technical evaluation and
 past experience.
 
 23.  Prior Period Items:
 
 Prior period items are included in the respective heads of accounts and
 material items are disclosed by way of Notes to Accounts.
 
 24.  Provision, Contingent Liabilities and Contingent Assets:
 
 Provisions 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 in respect of which reliable estimate can be made.
 
 Contingent Liabilities are disclosed by way of Notes to Accounts.
 Disputed demands in respect of Central Excise, Customs, Income tax,
 Sales Tax and Others are disclosed as contingent liabilities. Payment
 in respect of such demands, if any, is shown as an advance, till the
 final outcome of the matter.
 
 Contingent assets are not recognised in the financial statements.
 
 25.  Other Accounting Policies:
 
 These are consistent with the generally accepted accounting principles.