1.1 Basis of Preparation
 
 The financial statements have been prepared to comply in all material
 respects with the notified Accounting Standards issued by Companies
 (Accounting Standard) Rules, 2006 (as amended) and the relevant
 provisions of the Companies Act, 1956. The financial statements have
 been prepared under the historical cost convention on an accrual basis.
 The accounting policies have been consistently applied by the Company
 and are consistent with those used in the previous period.
 
 2.2 Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles (GAAP) requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and the disclosure of contingent liabilities as at the
 date of the financial statements and reported amounts of revenue and
 expenses during the reporting period. Although these estimates are
 based upon managements best knowledge of current events and actions,
 actual results could differ from these estimates. Any revision to
 accounting estimates is recognized prospectively in current and future
 periods.
 
 2.3 Fixed Assets and Intangible Assets
 
 Fixed assets and Intangible assets are stated at cost less accumulated
 depreciation/amortization and impairment losses, if any. Cost comprises
 the purchase price and any attributable cost of bringing the asset to
 its working condition for its intended use. Borrowing costs relating to
 acquisition of fixed assets which takes substantial period of time to
 get ready for its intended use are also included to the extent they
 relate to the period till such assets are ready to be put to use.
 
 2.4 Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the assets net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value at the weighted average cost of capital.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the assets over its remaining useful life. A previously
 recognised impairment loss is increased or reversed depending on
 changes in circumstances. However the carrying value after reversal is
 not increased beyond the carrying value that would have prevailed by
 charging usual depreciation if there was no impairment.
 
 2.5 Depreciation
 
 Depreciation is provided as per useful lives of assets estimated by the
 management, or at the rates prescribed under Schedule XIV of the
 Companies Act, 1956 which ever is higher. Depreciation on vehicles is
 provided under the written down value method, while other assets are
 depreciated under the straight line method.
 
 2.6 Leases
 
 Finance leases, which effectively transfer to the Company substantially
 all the risks and benefits incidental to ownership of the leased item,
 are capitalized at the lower of the fair value and present value of the
 minimum lease payments at the inception of the lease term and disclosed
 as leased assets. Lease payments are apportioned between the finance
 charges and reduction of the lease liability based on the implicit rate
 of return. Finance charges are charged directly against income.  Lease
 management fees, legal charges and other initial direct costs are
 capitalised.
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased term, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term.
 
 2.7 Inventories
 
 Inventories are valued as follows:
 
 Raw materials, components, stores and spares (including materials in
 transit)
 
 Lower of cost and net realizable value. However, materials and other
 items held for use in the production of inventories are not written
 down below cost if the finished products in which they will be
 incorporated are expected to be sold at or above cost. Cost is
 determined on a weighted average basis.
 
 Work-in-progress, semi finished goods and finished goods
 
 Lower of cost and net realizable value. Cost includes direct materials
 and labour and a proportion of manufacturing overheads based on normal
 operating capacity. Cost of finished goods includes excise duty. Cost
 is determined on a weighted average basis.
 
 Traded goods (including materials in transit)
 
 Lower of cost and net realizable value. Cost is determined on a
 weighted average basis.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion (as appropriate)
 and estimated costs necessary to make the sale.
 
 2.8 Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Revenue from sale of goods is recognised when the significant risks and
 rewards of ownership of the goods have passed to the buyer, which
 normally coincides with the dispatch of goods from the
 factory/warehouse of the Company. Excise Duty, Sales Tax & VAT -
 deducted from turnover (gross) are the amount that is included in the
 amount of turnover (gross) and not the entire amount of liability
 arised during the year
 
 Revenue from service contracts are recognised, when the rendering of
 services under a contract is completed or substantially complete.
 
 Interest income is recognized on a time proportion basis taking into
 account the amount outstanding and the rate applicable. Duty drawback
 benefit is recognised on an accrual basis based on an estimate of the
 benefit receivable. Commission Income is accounted on accrual basis as
 per the terms of the contract with the customers.
 
 2.9 Foreign Currency Translation
 
 (i) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 (ii) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction and non-monetary items which are carried
 at fair value or other similar valuation denominated in a foreign
 currency are reported using the exchange rates that existed when the
 values were determined.
 
 (iii) Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting companys monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 previous financial statements, are recognised as income or as expenses
 in the year in which they arise.
 
 2.10 Retirement and other Employee Benefits
 
 Retirement benefits in the form of Provident Fund and Superannuation
 Scheme are defined contribution schemes and the contributions are
 charged to the Profit and Loss Account of the year when the
 contributions to the respective funds are due. There are no other
 obligations other than the contribution payable under the respective
 schemes.
 
 Gratuity liability is a defined benefit obligation and is provided for
 based on an actuarial valuation on projected unit credit method
 determined at the balance sheet date.
 
 Long term compensated absences are provided for based on actuarial
 valuation at the year end.  The actuarial valuation is done as per
 projected unit credit method. Short term compensated absences are
 provided for on a full liability basis as at the balance sheet date for
 the unavailed balance of leave.
 
 Actuarial gains/losses are immediately taken to the profit and loss
 account and not deferred.
 
 2.11 Income Taxes
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Income Tax Act, 1961.  Deferred income taxes
 reflects the impact of current year timing differences between taxable
 income and accounting income for the year and reversal of timing
 differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets are recognised only to the extent that there is reasonable
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realised. In situations
 where the company has unabsorbed depreciation or carry forward tax
 losses, all deferred tax assets are recognised only if there is virtual
 certainty supported by convincing evidence that they can be realised
 against future taxable profits.
 
 At each balance sheet date the Company re-assesses unrecognised
 deferred tax assets. It recognizes deferred tax assets to the extent
 that it has become reasonably certain that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realised.  The carrying amount of deferred tax assets are reviewed at
 each balance sheet date. The Company writes-down the carrying amount of
 a deferred tax asset to the extent that it is no longer reasonably
 certain or virtually certain, as the case may be, that sufficient
 future taxable income will be available against which deferred tax
 asset can be realised. Any such write-down is reversed to the extent
 that it becomes reasonably certain or virtually certain, as the case
 may be, that sufficient future taxable income will be available.
 
 2.12 Segment Reporting Policies
 
 Identification of segments :
 
 The Companys operating businesses are organized and managed separately
 according to the nature of products and services provided, with each
 segment representing a strategic business unit that offers different
 products and serves different markets. The analysis of geographical
 segments is based on the location in which the customers are situated.
 
 Allocation of common costs :
 
 Common allocable costs are allocated to each segment according to the
 relative contribution of each segment to the total common costs.
 
 Unallocated items :
 
 Includes general corporate income and expense items which are not
 allocated to any business segment which are not allocated to any
 business segment.
 
 Segment Policies:
 
 The company prepares its segment information in conformity with the
 accounting policies adopted for preparing and presenting the financial
 statements of the company as a whole.
 
 2.13 Earnings Per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 2.14 Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event; it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. Provisions are not discounted to its
 present value and are determined based on best estimate required to
 settle the obligation at the balance sheet date.  These are reviewed at
 each balance sheet date and adjusted to reflect the current best
 estimates.