2.1 Basis of preparation of financial statements
 
 The Financial Statements are prepared to comply in all material aspects
 with all the applicable accounting principles in India, the applicable
 accounting standards notified u/s 21l(3C) of the Companies Act, 1956
 and the relevant provisions of the Companies Act, 1956. These financial
 statements have been prepared under the historical cost convention on
 an accrual basis except in case of assets for which provision for
 impairment is made or revaluation is carried out. The accounting
 policies have been consistently applied by the Company and are
 consistent with those applied in the previous year.
 
 2.2 Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles (GAAP) requires management to make best
 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 the results of operations during
 the reporting period. Actual results could differ from these estimates.
 Any revision to accounting estimates is recognised prospectively in the
 current and future periods.
 
 2.3 Fixed assets 
 
 Fixed assets are stated at cost (or revalued amounts, as the case may
 be), less accumulated depreciation and impairment losses, if any. Cost
 comprises purchase price and any other attributable cost of bringing
 the asset to its working condition for its intended use. Advances paid
 towards the acquisition of fixed assets outstanding at each balance
 sheet date and the cost of fixed assets not ready for their intended
 use before such date are disclosed as capital work in progress.
 
 2.4 Intangible assets
 
 Software costs relating to acquisition of product design software and
 software license fee are capitalised in the year of purchase and
 amortised on a straight-line basis over their useful lives of three
 years and five years respectively.
 
 2.5 Depreciation
 
 Depreciation is provided on straight line basis as per the following
 rates, which are determined on the basis of useful lives of the assets
 estimated by the management, or at rates specified in Schedule XIV to
 the Companies Act, whichever is higher.
 
 Leasehold assets are amortised over the period of the lease or the
 estimated useful life whichever is lower. Depreciation is charged on a
 pro-rata basis for assets purchased/sold during the year. Assets
 costing below five thousand rupees are fully depreciated in the year of
 purchase. In respect of the revalued assets, the difference between the
 depreciation calculated on the revalued amount and that calculated on
 the original cost is recouped from the revaluation reserve account.
 
 2.6 Impairment of assets
 
 2.6.1 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.
 
 2.6.2 After impairment, depreciation is provided on the revised
 carrying amount of the asset over its remaining useful life.
 
 2.6.3 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.
 
 2.7 Foreign currency transactions
 
 2.7.1 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.
 
 2.7.2 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.
 
 2.7.3 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.
 
 2.7.4 Forward Exchange Contracts not intended for trading or
 speculation purposes
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortised as expense or income over the life of the
 contract. Exchange differences on such contracts are recognised in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognised as income or as expense for the
 year.
 
 2.8 Inventories
 
 Inventories are stated at the lower of cost and net realisable value.
 The cost of various categories of inventories is arrived at as follows:
 
 - Stores, spares, raw materials and components - at cost determined on
 moving weighted average method.
 
 - Work-in-progress and finished goods - based on weighted average cost
 of production, including appropriate proportion of costs of conversion.
 Excise duty is included in the value of finished goods inventory.
 
 - Packing materials, loose tools and consumables, being immaterial in
 value terms, and also based on their purchase mostly on need basis, are
 expensed to the profit and loss account at the point of purchase.
 
 Contract work-in-progress is valued at cost or net realisable value,
 whichever is lower. Cost includes direct materials, labour and
 appropriate proportion of overheads including depreciation.
 
 Net Realisable value is the estimated selling price in the ordinary
 course of business less estimated costs of completion and estimated
 costs necessary to make the sale.
 
 Provision for obsolescence is made, wherever necessary.
 
 2.9 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.
 
 2.9.1 Revenues from long-term contracts
 
 Contract prices are either fixed or subject to price escalation
 clauses. Revenues are recognised on a percentage completion method
 measured by segmented portions of the contract, i.e. Contract
 Milestones. The relevant cost is recognised in the financial
 statements in the year of recognition of revenues. Recognition of
 profit is adjusted to ensure that it does not exceed the estimated
 overall contract margin. Contract revenue earned in excess of billing
 has been reflected under Other Current Assets and billing in excess
 of contract revenue has been reflected under Current Liabilities in
 the balance sheet.
 
 If it is expected that a contract will make a loss, the estimated loss
 is provided for in the books of account. Such losses are based on
 technical assessments.
 
 Amounts due in respect of price escalation claims and/or variation in
 contract work are recognised as revenue only if the contract allows for
 such claims or variations and /or there is evidence that the customer
 has accepted it and it is probable that these will result in revenue
 and are capable of being reliably measured.
 
 Liquidated damages/penalties, warranties and contingencies are provided
 for, based on managements assessment of the estimated liability, as
 per contractual terms and/or acceptance.
 
 2.9.2 Revenues from sale of products and services
 
 Revenues from sale of products are recognised on despatch of goods to
 customers which corresponds to transfer of significant risk and rewards
 of ownership and are net of sales tax and trade discounts. Revenues
 from services are recognised when such services are rendered as per
 contract terms.
 
 2.9.3 Interest Income is recognised on time proportion basis taking
 into account the amount outstanding and the rate applicable.
 
 2.9.4 Export Benefits are accounted for to the extent there is
 reasonable certainty of utilisation of the same.
 
 2.10 Employee benefits
 
 2.10.1 Retirement benefits in the form of Provident Fund contributed to
 Trust set up by the employer is a defined contribution scheme and the
 contributions are charged to the Profit and Loss Account of the year
 when the contributions to the trust are due.
 
 2.10.2 Gratuity liability is defined benefit obligation and is provided
 on the basis of an actuarial valuation on projected unit credit method
 made at the end of each year. The Company funds the benefit through
 contributions to LIC. The company recognises the actuarial gains &
 losses in the profit & loss in the period in which they arise.
 
 2.10.3 Short term compensated absences are provided for based on
 estimates. Long term compensated absences are provided for based on
 actuarial valuation at the end of each year. The actuarial valuation is
 done as per projected unit credit method.
 
 2.11 Leases
 
 Where the Company is the lessee
 
 Operating Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item 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.
 
 Finance Leases
 
 The assets taken on finance lease are capitalised at the inception of
 the lease at the lower of the fair value or the present value of
 minimum lease payments and a liability is created for an equivalent
 amount. Each lease rental paid is allocated between the liability and
 interest cost, so as to obtain a constant periodic rate of interest on
 outstanding liability for each period.
 
 2.12 Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments.  All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost. However, provision for diminution in value is made to recognise a
 decline other than temporary in the value of investments.
 
 2.13 Tax Expense
 
 Tax expense comprises of current and deferred tax. Current tax is
 measured at the amount expected to be paid to the tax authorities in
 accordance with the Indian Income Tax Act. Deferred 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 and deferred tax liabilities are offset, if a legally
 enforceable right exists to set off current tax assets against current
 tax liabilities and the deferred tax assets and deferred tax
 liabilities relate to the taxes on income levied by same governing
 taxation laws. 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 situation where the company has unabsorbed depreciation or
 carry forward tax losses, deferred tax assets are recognised only if
 there is virtual certainty supported by convincing evidence that such
 deferred tax assets can be realised against future taxable profits.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The company recognises / 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 subsequently 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 against which deferred tax asset can be realized.
 
 2.14 Provisions and Contingencies
 
 A provision is recognised when there is a present obligation as a
 result of a past event, for which it is probable that an outflow of
 resources will be required to settle the obligation and in respect of
 which reliable estimate can be made.
 
 Provisions required to settle are reviewed regularly and are adjusted,
 where necessary, to reflect the current estimate of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. Where there is a possible obligation
 or a present obligation in respect of which the likelihood of outflow
 of resources is remote, no provision or disclosure is made.
 
 2.15 Segment reporting policies
 
 The Companys operating businesses are organised 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 geographical location of the customers.
 
 2.16 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 share holders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 2.17 Cash and cash equivalents
 
 Cash and cash equivalents comprise cash at bank and cash & cheques in
 hand.
 
 2.18 Derivative instruments
 
 The Company uses derivative financial instruments such as forward
 exchange contracts to hedge its risks associated with foreign currency
 fluctuations.
 
 The Foreign exchange contracts other than those covered under AS 11,
 entered for non speculative purposes, including the underlying hedged
 items, are valued on the basis of a fair value on marked to market
 basis and any loss on valuation is recognized in the profit and loss
 account, on a portfolio basis. Any gain arising on this valuation is
 not recognized by the Company in line with the principle of prudence.
 
 3 CAPITAL COMMITMENTS
 
 Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) - Rs.  356,796 thousand
 (previous year - Rs. 304,834 thousand).