a) Accounting Convention
 
 The financial statements are based on historical cost and have been
 prepared on the accrual concept of accounting under the historical cost
 convention in accordance with the Generally Accepted Accounting
 Principles and comply with the mandatory Accounting Standards as
 applicable, in accordance with the relevant provisions of the Companies
 Act, 1956.
 
 b) Use of Estimates
 
 The preparation of financial statements in conformity with Indian GAAP
 requires that the management makes estimates & assumptions that affect
 the reported amount of Assets & Liabilities, disclosure of contingent
 liabilities as at the date of financial statements & reported amounts
 of Revenue & Expenses during the reported period. Actual results could
 differ from those estimates.
 
 c) Fixed Assets and Depreciation
 
 (i) Fixed Assets
 
 Fixed assets are stated at cost (net of CENVAT) less accumulated
 depreciation. Cost includes all costs relating to the acquisition and
 installation of fixed assets including interest on borrowings for
 qualifying project / Fixed Asset till the date of Commercial Production
 / the assets are put in use.
 
 Expenditure on reconditioning of machinery is capitalised where such
 expenditure results in increase in the future benefits from the asset
 and /or results in an extension of the useful life of the asset based
 on technical assessment.
 
 (ii) Depreciation
 
 Depreciation on Buildings and Plant & Machinery is provided under the
 Straight line method and on other assets under the Reducing balance
 method at the rates specified in Schedule XIV to the Companies Act,
 1956, based on technical estimates that indicate the useful lives would
 be comparable with or higher than those arrived at using these rates
 
 In cases where the useful lives are estimated to be lower than those
 considered in determining the rates specified in that Schedule,
 depreciation is provided under the Straight Line Method over the useful
 lives of the assets as follows :
 
 Reconditioned machinery and related expenditure
 
 As specifically estimated and currently ranging between 3 and 13 years
 Tools, Jig and Fixtures and Measuring gauges
 
 As per technical evaluation of their useful life and currently ranging
 from 1 ½ to 5 years.
 
 Certain imported machinery
 
 As As per technical evaluation of their useful life and currently
 ranging between 4 to 15 Years
 
 In case of diminution in value of the asset due to technological
 reasons, the difference between written down value and estimated net
 realisable value of assets is provided as depreciation in the year in
 which it is ascertained. Assets costing less than Rs. 5,000/- is 100%
 depreciated in the year of purchase.
 
 d) Inventories
 
 Raw material, stores & spares, work-in process and finished goods are
 valued at the lower of cost and estimated realisable value. Cost of
 materials is determined on Weighted Average basis. In the case of
 work-in-process and finished goods, cost includes the cost of
 conversion. Closing stock of Finished Goods includes liability towards
 Excise duty payable on clearance of goods. Imported materials in
 transit at the year-end are valued inclusive of customs duty.
 
 e) Foreign Currency Transactions
 
 Transactions in foreign currency are recorded on the basis of the
 exchange rate prevailing as on the date of transaction. Monetary Assets
 & Liabilities denominated in foreign currency at the balance sheet date
 are translated into rupees at the exchange rate prevailing on that
 date. Gains or Losses arising on settlement/restatement are charged to
 the profit & loss account.
 
 Premium in respect of Forward contract is accounted over the period of
 the contract.
 
 f) Revenue Recognition
 
 Sales: - Sales are recognised on dispatch and transfer of underlying
 risk & rewards as per contracted terms and are recorded at invoice
 value, net of Sales Taxes, but including excise duties.
 
 Export Incentives: - Export Incentives are accounted for on accrual
 basis at the time of Export of Goods if the entitlements can be
 estimated with reasonable accuracy and conditions precedents to claim
 are fulfilled.
 
 g) Research and Development
 
 Revenue expenditure on Research and Development is charged to the
 Profit and Loss Account in the year of incurrence.
 
 h) Employee Benefits
 
 (i) Short term employee benefits including salaries, social security
 contributions, short term compensated absences(such as paid annual
 leave) where the absences are expected to occur within twelve months
 after the end of the period in which the employees render the related
 employee service, profit sharing and bonuses payable within twelve
 months after the end of the period in which the employees render the
 related services and non monetary benefits (such as medical care) for
 current employees are estimated and measured on an undiscounted basis.
 
 (ii) Defined Contribution Plan
 
 Company''s contributions paid / payable during the year to Provident
 Fund, Superannuation Fund and Employee state insurance are recognised
 in the Profit and Loss Account.
 
 (iii) Defined Benefit Plan
 
 Liabilities for gratuity funded in terms of a scheme administered by a
 fund manager are determined by an independent actuarial valuation made
 at the end of each financial year. Provision for liabilities pending
 remittance to the fund is carried in the Balance Sheet.
 
 Actuarial gain and losses are recognised immediately in the statement
 of Profit and Loss Account as income or expense. Obligation is measured
 at the present value of estimated future cash flows using a discounted
 rate that is determined by reference to market yields at the Balance
 Sheet date on Government bonds where the currency and terms of the
 Government bonds are consistent with the currency and estimated terms
 of the defined benefit obligation.  (iv) Liability for Leave Encashment
 is provided based on accumulated leave credit outstanding to the
 employees as on the date of Balance Sheet.
 
 i) Events Subsequent to the Balance Sheet Date
 
 Events occurring after the balance sheet date, which have a material
 impact on the financial affairs of the Company, are taken into
 cognisance.
 
 j) Prior Period and Extraordinary Items
 
 Prior period and extraordinary items, and changes in accounting
 policies, having a material impact on the financial affairs of the
 Company are disclosed.
 
 k) Income Tax
 
 Income tax comprises the current tax provision, net change in the
 deferred tax asset or liability in the year and Fringe Benefit Tax.
 Provision for current tax is made taking into account the admissible
 deductions/ allowances and is subject to revision based on the taxable
 income for the fiscal year ending 31st March each year.
 
 Deferred tax assets and liabilities are recognised for the future tax
 consequences of temporary differences between carrying values of the
 assets and liabilities and their respective tax bases and are measured
 using enacted tax rates applicable on the Balance Sheet date.  Deferred
 tax assets are recognised subject to management''s judgment that
 realisation is virtually certain.
 
 The effect on deferred tax assets and liabilities of a change in tax
 rates is recognised in the income statement in the period of enactment
 of the change.
 
 l) Cash flow Statement
 
 Cash Flow Statement has been prepared in accordance with the indirect
 method prescribed in Accounting Standard 3.
 
 m) Impairment of Assets
 
 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 asset is treated as impaired when the carrying cost of
 assets exceeds its recoverable value. An impairment loss is charged to
 Profit and Loss Account in the year in which an asset is identified as
 impaired. The recoverable amount is 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 the present value.  A previously
 recognised impairment loss is further provided or reversed depending on
 changes in circumstances.
 
 n) Earning Per Share
 
 In determining the earning per share, the Company considers the net
 profit after tax. The number of shares used in computing basic earnings
 per share is the weighted average number of shares outstanding during
 the period. The number of shares used in computing diluted earning per
 share comprises the weighted average shares considered for deriving
 basic earning per share and also the weighted average number of equity
 shares that could have been issued on the conversion of all dilutive
 potential equity shares. Dilutive potential equity shares are deemed
 converted as of the beginning of the period unless issued at a later
 date.
 
 o) Provision & Contingencies
 
 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.
 
 Warranty expenses are provided for in the year of sale based on
 technical estimates. In addition, specific provision is also made
 against customer claims for manufacturing defects, where necessary,
 even though the same may pertain to prior years.