a) Basis of Accounting:
 
 The financial statements are prepared under historical cost convention,
 on a going concern basis, in accordance with the applicable accounting
 standards prescribed in the Companies (Accounting Standards) Rules,
 2006 issued by the Central Government, and relevant provisions of the
 Companies Act, 1956.
 
 b) Use of Estimates:
 
 The preparation of financial statements requires management to make
 certain estimates and assumptions that affect the amounts reported in
 the financial statements and notes thereto. Differences between actual
 results and estimates are recognized in the period in which they
 materialize.
 
 c) Fixed Assets:
 
 Fixed Assets are stated at cost less accumulated depreciation. The cost
 of assets comprises of purchase price and directly attributable cost of
 bringing the assets to working condition for its intended use including
 borrowing cost and incidental expenditure during construction incurred
 upto the date of commissioning.
 
 d) Depreciation:
 
 i. Assets acquired after 30th June'' 1978 are depreciated on the
 straight-line basis at the rates prescribed under Schedule XIV of the
 Companies Act, 1956. Certain items of Plant and Machinery pertaining to
 Industrial Machinery Division have been depreciated on a Straight-line
 basis @ 6.33% and 9.50%, as the case may be, based on the estimated
 useful life of the respective assets, as determined by the approved
 valuer.
 
 ii. Assets acquired up to 30th June 1978 have been depreciated on the
 written down value basis at the rates prescribed under Schedule XIV of
 the Companies Act, 1956.
 
 iii.  Assets costing Rs.5,000/- or less are fully depreciated in line
 with Schedule XIV of the Companies Act, 1956.
 
 iv.  Software is amortised over 5 year on Straight Line Method
 
 e) Investments:
 
 Long Term Investments are valued at costs. Provision for diminution in
 value of investments is made if, in the opinion of the management, the
 diminution is of a permanent nature.  Current Investments are valued at
 lower of cost or fair value.
 
 f) Inventories:
 
 Raw materials Finished Goods and Work-in-progress are valued at lower
 of cost or net realizable value. Cost is determined on a weighted
 average basis. Work-in-Progress is carried at lower of cost and net
 realizable value. Stores & Spare parts are carried at cost, less
 provision for obsolescence if any.
 
 g) Revenue Recognition:
 
 i. Sales are recognized at the time of transfer of title in goods.
 Sales value is inclusive of excise duty but exclusive of sales tax.
 
 ii. Services are net of service tax. Revenue from services is
 recognized when services are rendered and related costs are incurred.
 
 iii.  Interest is recognized on time proportion basis.
 
 iv.  Dividend is recognized, at the time when they are declared.
 
 h) Foreign Currency Transaction:
 
 i.  Foreign currency transactions are accounted at the rates prevailing
 on the date of transaction.
 
 ii. Monetary Assets and Liabilities denominated in foreign currencies
 are translated at the exchange rate ruling on the Balance Sheet date.
 Any gains or losses arising due to exchange differences at the time of
 translation or settlement are accounted for in the Profit and Loss
 Account.
 
 i) Employee Benefits:
 
 i. Defined Contribution plan: Retirement benefits in the Provident
 Fund, Family Pension Fund and Superannuation Scheme, which are defined
 contribution schemes, are charged to the Profit and Loss account of the
 year when the contributions accrue.
 
 ii. Defined Benefit Plan: The Liability for Gratuity, a defined benefit
 obligation, is accrued and provided for on the basis of actuarial
 valuation as at the balance Sheet date.
 
 iii. Other Long Term Benefits: Long term compensated absences are
 provided on the basis of an actuarial valuation as at the Balance Sheet
 date. Actuarial gains and losses comprising of adjustment and the
 effects of changes in actuarial assumptions are recognized in the
 Profit and Loss account for the year as income or expense.
 
 j) Taxation:
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of Income Tax Act, 1961.
 Deferred Tax resulting from timing difference 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 recognized and carried forward only to the extent
 there is reasonable certainty / virtual certainty as the case may be,
 that the asset will be realized against future taxable profits.
 
 k) Impairment of Assets:
 
 At each Balance sheet date, the management reviews the carrying amount
 of its assets and goodwill included in each Cash generating Unit to
 determine whether there is any indication that those assets were
 impaired. If any such indication exists, the recoverable amount of the
 asset is estimated in order to determine the extent of impairment loss.
 Recoverable amount of an asset is the higher of an asset''s net selling
 price and value in use. In assessing value in use, the estimated future
 cash flows from the continuing use of the asset and from its disposal
 are discounted to their present value using a pre-tax discount rate
 that reflects the current market assessments of time value and the
 risks specific to the asset. Reversal of impairment loss is recognized
 immediately as income in the profit and loss account.
 
 l) Operating Lease Granted:
 
 Lease arrangements where the risk and rewards incident to the ownership
 of an asset substantially vest with the lessor, are recognized as
 operating lease. Lease rentals under operating lease are recognized in
 profit and loss account on a straight- line basis.
 
 m) Accounting for Provisions, Contingent Liabilities and Contingent
 Assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognized 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 recognized but are disclosed in the
 Notes to Accounts. Contingent assets are neither recognized nor
 disclosed in the financial statements.