Basis of Preparation
 
 The financial statements have been prepared to comply in all material
 respects with the Notified accounting standard by Companies Accounting
 Standards Rules, 2006 and the relevant provisions of the Companies Act,
 1956. The 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. The accounting policies have been
 consistently applied by the Company and are consistent with those used
 in the previous year. The previous year figures are being regrouped
 wherever necessary for comparative evaluations. The significant
 accounting policies followed by the Company are stated below:
 
 Use of Estimates
 
 The preparation of financial statements is in conformity with generally
 accepted accounting principles which require management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and disclosure of contingent liabilities at the date of
 the financial statements and the results of operations during the
 reporting period end. Although these estimates are based upon
 management''s best knowledge of current events and actions, actual
 results could differ from these estimates.
 
 1.  Method of accounting
 
 a) Revenues and Costs are recognized on accrual basis.
 
 b) Capital issue expenses are charged to Securities Premium Account.
 
 c) Warranty period maintenance cost, being insignificant, is accounted
 when incurred.
 
 2.  Fixed assets and depreciation
 
 a) Fixed assets are stated at cost less accumulated depreciation &
 impairment losses, if any. Cost comprises of all expenses attributable
 for bringing the assets to their working condition for 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
 
 b) Depreciation on fixed assets, other than leased assets, is provided
 as per useful lives of the assets estimated by the management, or at
 the rates prescribed under Schedule XIV of the Companies Act, 1956
 whichever is higher as under :
 
 - on the fixed assets acquired upto 31.12.1988, on written down value
 as appearing in the books on 1.1.1989.
 
 - on the fixed assets acquired after 31.12.1988 on straight line basis,
 other than assets lying at Chennai Division, which are depreciated on
 written down value method.
 
 - assets costing less than Rs.5,000 acquired after 15.12.93 are
 depreciated at 100%
 
 c) Leased assets are depreciated on straight line basis over the period
 of lease.
 
 d) Patents and Trade marks are amortized over a period of ten years.
 
 e) Miscellaneous expenditure is written off over a period of five
 years.
 
 f) Product Development expenditure are amortized over a period of 3-7
 years.
 
 g) Software is written off over a period of five years.
 
 h) Goodwill is amortized using straight line method over a period of
 five years.
 
 However, no costs are incurred in respect of para (c) to (h) during the
 year, and are applicable for historical assets only.
 
 3.  Impairment
 
 a) 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 asset''s 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.
 
 b) After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 c) A previously recognized 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.
 
 4.  Lease rental
 
 Where the Company is the lessee
 
 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
 capitalized.
 
 These assets are depreciated on the straight line method over the
 period of lease.
 
 Where the Company is the lessor
 
 Assets given under a finance lease are recognized as a receivable at an
 amount equal to the net investment in the lease. Lease rentals are
 apportioned between principal and interest on the IRR method. The
 principal amount received reduces the net investment in the lease and
 interest is recognized as revenue. Initial direct costs such as legal
 costs, brokerage costs, etc. are recognized immediately in the Profit
 and Loss Account.
 
 Assets subject to operating leases are included in fixed assets. Lease
 income is recognized in the Profit and Loss Account on a straight-line
 basis over the lease term. Costs, including depreciation are recognized
 as an expense in the Profit and Loss Account. Initial direct costs such
 as legal costs, brokerage costs, etc. are recognized immediately in the
 Profit and Loss Account. However, upon termination of operating lease,
 the assets are removed from the fixed assets and reflected under
 appropriate head of receivables in accordance with the nature of claim
 and amount.
 
 5.  Investment
 
 Investments are divided in the following segments:
 
 i) Investments in subsidiaries and associate business entities made
 with a view to long term business benefit.
 
 ii) Other investments
 
 Investments that are readily realizable 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 recognize a
 decline other than temporary in the value of the investments.
 
 6.  Inventories
 
 Inventories are valued as under:
 
 ^ Raw materials, Components, stores and spares: 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 FIFO basis.
 
 ^ Finished goods: at lower of cost and net realizable value.
 
 ^ Work in progress: at lower of cost and net realizable value.
 
 ^ Cost in relation to finished goods and work in progress includes cost
 of material and appropriate share of manufacturing overheads and
 includes excise duty payable on uncleared finished goods and excise
 duty paid on goods cleared but unsold.
 
 ^ Cost of consumable spares purchased during the year is charged to the
 profit and loss account.
 
 ^ Net realizable 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.
 
 7.  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.
 
 a) Revenue from sale of goods is recognized when the significant risks
 and rewards of ownership of the goods have passed to the buyer and on
 completion of installation. Sales are recorded net of sales tax but
 include excise duty.
 
 b) Income from annual maintenance service contract is recognized on a
 straight line basis over the period of contracts. Income from other
 service contracts is recognized on completion of the service rendered.
 
 c) Income in respect of goods sold on deferred sales basis is
 recognized as sales at normal sale price. Finance income is recognized
 over the terms of the payment.
 
 d) Income from supply/erection of equipments/systems is recognized
 based on dispatches to customer/work done at project site.
 
 e) Interest Income is recognized on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 f) Dividend is recognized when the shareholders'' right to receive
 payment is established by the balance sheet date.
 
 g) Revenue from projects is recognized on acceptance of the work under
 the project by the respective project authorities.
 
 8.  Retirement and other employee benefits
 
 a) Retirement benefits in the form of Provident Fund are a defined
 contribution scheme 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 to the respective trusts.
 
 b) Gratuity liability is a defined benefit obligation and is provided
 for on the basis of an actuarial valuation on projected unit credit
 method made at the end of each financial year.
 
 c) Short term compensated absences are provided for based on estimates.
 Long term compensated absences are provided for based on actuarial
 valuation. The actuarial valuation is done as per projected unit credit
 method.
 
 d) Actuarial gains / losses are immediately taken to profit and loss
 account and are not deferred.
 
 9.  Foreign currency translation
 
 a) 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.
 
 b) 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.
 
 c) Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting Company''s monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 previous financial statements, are recognized as income or as expenses
 in the year in which they arise except those arising from investments
 in non-integral operations.
 
 Forward Exchange Contracts are not intended for trading or speculation
 purposes.
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortized as expense or income over the life of the
 contract. Exchange differences on such contracts are recognized 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 recognized as income or as expense for the
 year.
 
 10.  Taxes on Income
 
 Tax expense comprises of current, deferred and fringe benefit tax.
 Current income tax and fringe benefit tax is measured at the amount
 expected to be paid to the tax authorities in accordance with the
 Indian Income Tax Act. 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 recognized 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 realized. Deferred tax
 assets on unabsorbed depreciation and unabsorbed tax losses are
 recognized only if there is virtual certainty supported by convincing
 evidence that they can be realized against future taxable profits.
 
 At each balance sheet date the Company re-assesses unrecognized
 deferred tax assets. It recognizes unrecognized deferred tax assets to
 the extent that it has become virtually certain, that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realized.
 
 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 virtually certain, that
 sufficient future taxable income will be available against which
 deferred tax asset can be realized. Any such write-down is reversed to
 the extent that it becomes virtually certain, that sufficient future
 taxable income will be available.
 
 11.  Earnings Per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting preference dividends and attributable taxes) by the weighted
 average number of equity shares outstanding during the period. Partly
 paid equity shares are treated as a fraction of an equity share to the
 extent that they were entitled to participate in dividends relative to
 a fully paid equity share during the reporting period. The weighted
 average number of equity shares outstanding during the period is
 adjusted for events of bonus issue; bonus element in a rights issue to
 existing shareholders; share split; and reverse share split
 (consolidation of shares).
 
 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.
 
 12.  Provisions
 
 A provision is recognized 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.
 
 13.  Cash and Cash Equivalents
 
 Cash and cash equivalents in the balance sheet comprise cash at bank
 and in hand and short-term investments with an original maturity of
 three months or less.
 
 14.  Contingent Liabilities, if any, are disclosed by way of notes to
 accounts.