(i) Basis of preparation of financial statements
 
 The financial statements are prepared under the historical cost
 convention, on the accrual basis of accounting in accordance with the
 Generally Accepted Accounting Principles (GAAP) in India and comply
 with the accounting standards prescribed by the Companies (Accounting
 Standards) Rules, 2006, to the extent applicable, and the
 presentational requirements of the Companies Act, 1956.
 
 (ii) Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities on the date of the
 financial statements and the results of operations during the year.
 Differences between actual results and estimates are.recognised in the
 year in which the results are known or materialised. Examples of such
 estimates are estimated useful life of asset, provision for doubtful
 debts, etc. Any revision to accounting estimates is recognised in
 accordance with the requirements of the respective accounting standard.
 
 (iii) Revenue recognition
 
 Revenue from sale of machines is recognised as machines are despatched
 to the customers which coincides with the transfer of significant risks
 and rewards to the customers. The sales are recorded at invoice value,
 net of sales tax and returns but including excise duties.
 
 Revenue from installation of machines is recognised on completion of
 installation and acknowledgement by the customer.
 
 Revenue from maintenance services is recognised on an accrual basis as
 per the terms of agreements with the customers. Service revenues are
 recorded net of tax.
 
 (iv) Fixed assets
 
 Fixed assets are stated at cost, net of Cenvat (wherever claimed), less
 accumulated depreciation. Cost includes original cost of acquisition
 and any incidental expenses related to such acquisition and
 installation.
 
 (v) Depreciation and amortisation
 
 Depreciation on fixed assets is provided on the straight-line method
 over the estimated useful life of assets at rates, which are equal to
 or are higher than the rates specified in Schedule XIV to the Companies
 Act, 1956. The depreciation rates used by the Company are as follows:
 
 Depreciation on additions is provided on a pro-rata basis from the
 month of acquisition/installation. Depreciation on sale/deduction from
 fixed assets is provided for upto the date of sale/adjustment, as the
 case may be.  Modification or extension to an existing asset, which is
 of capital nature and which becomes an integral part thereof is
 depreciated prospectively over the remaining useful life of that asset.
 
 Intangible assets are amortised under the Straight Line Method over
 their estimate useful life of 3 years.
 
 Assets costing upto Rs. 5,000 per unit are fully depreciated in the
 year of purchase.
 
 (vi) Inventories
 
 Inventories are valued at lower of cost and net realisable value. The
 bases for determination of cost of various categories of inventory are
 as follows:
 
 
 
 Raw materials and components     : First in First Out (FIFO) basis
 
 Finished goods                   : Material cost plus an appropriate 
                                    share of labour and
 
                                    manufacturing overheads, wherever 
                                    applicable 
 
 Stores and spares                : First in First Out (FIFO) basis
 
 Loose tools                      : Loose tools are valued at cost 
                                    less appropriate allowance
 
 for usage and obsolescence 
 Work in process                  : Material cost plus an
                                    appropriate share of labour and
 
                                    manufacturing overheads, 
                                    wherever applicable 
 
 
 (vii) Impairment of assets
 
 The carrying amounts of assets are reviewed at each balance sheet date
 in accordance with Accounting Standard 28 Impairment of Assets, to
 determine whether there is any indication of impairment. If any such
 indication exists, the assets recoverable amount is estimated. An
 impairment loss is recognised whenever the carrying amount of an asset
 or its cash generating unit exceeds its recoverable amount. Impairment
 losses are recognised in the profit and loss account. An impairment
 loss is reversed if there has been a change in the estimates used to
 determine the recoverable amount. An impairment loss is reversed only
 to the extent that the assets carrying amount does not exceed the
 carrying amount that would have been determined net of depreciation or
 amortisation, if no impairment loss had been recognised.
 
 (viii) Foreign currency transactions
 
 The Company accounts for effects of differences in foreign exchange
 rates in accordance with Accounting Standard-11 notified by the
 Companies (Accounting Standards) Rules, 2006. Transactions in foreign
 currency are translated at the rate of exchange prevailing at the
 transaction date. Exchange differences arising on settlement during the
 year are recognised in the Profit and Loss Account.
 
 Monetary items, denominated in foreign currency, are restated at the
 exchange rate prevailing at the year-end and the overall net gain/ loss
 is adjusted to the Profit and Loss Account.
 
 (ix) Investments
 
 Long term investments are valued at cost. Any decline other than
 temporary, in the value of long term investments, is adjusted in the
 carrying value of such investments. Premium paid on purchase of long
 term bonds is amortised over the period of the bonds.
 
 (x) Investment income
 
 Investment income is recognised on accrual basis at the time when the
 right to receive income is established.  (xi) Research and development
 
 Revenue expenses incurred on research and development is charged off to
 the profit and loss account in the year in which these expenses are
 incurred. Capital expenditure incurred on research and development is
 included in fixed assets and depreciated at applicable rates.  (xii)
 Employee benefits
 
 All employee benefits payable/available within twelve months of
 rendering the service are classified as short- term employee benefits.
 Benefits such as salaries, wages and bonus etc., are recognised in the
 profit and loss account in the period in which the employee renders the
 related service.
 
 The Companys superannuation scheme is a defined contribution plan. The
 Companys contribution paid/payable under the scheme is recognised as
 an expense in the profit and loss account during the period in which
 the employee renders the related service.
 
 The Companys gratuity scheme is a defined benefit plan. The present
 value of the obligation under such defined benefit plan is determined
 based on actuarial valuation carried at the year end using the
 Projected Unit Credit Method, which recognises each period of service
 as giving rise to additional unit of employee benefit entitlement and
 measures each unit separately to build up the final obligation. The
 obligation is measured at the present value of the estimated future
 cash flows. Actuarial gains and losses are recognised immediately in
 the profit and loss account.
 
 The Company contributes to a registered trust to cover its liabilities
 towards employees gratuity. Liability with respect to the Gratuity
 plan determined as above and any differential between the fund amount
 as per the trust and the liabilities as per actuarial valuation is
 recognised as an asset or liability.
 
 The Companys provident fund scheme is also a defined benefit plan.
 Contributions, including shortfall, if any, to recognised trust under
 the Companys provident fund scheme are charged to the profit and loss
 account on an accrual basis.
 
 Benefits under the Companys long term compensated absences constitute
 other employee benefits. The liability in respect of leave encashment
 is provided on the basis of an actuarial valuation done by an
 independent actuary at the year end. Actuarial gains and losses are
 recognised immediately in the Profit and Loss Account.
 
 Termination benefits are recognized as an expense as and when incurred.
 
 (xiii) Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased asset are classified as
 operating leases. Operating lease charges are recognised as an expense
 in the Profit and Loss Account on a straight line basis.  (xiv) Income
 taxes
 
 Income tax expense comprises current tax/fringe benefit tax (i.e. the
 amount of tax for the period determined in accordance with the
 income-tax law) and deferred tax charge or credit (reflecting the tax
 effects of timing differences between accounting income and taxable
 income for the period). The deferred tax charge or credit and the
 corresponding deferred tax liabilities or assets are recognised using
 the tax rates that have been enacted or substantively enacted by the
 Balance Sheet date. Deferred tax assets are recognised only to the
 extent there is reasonable certainty that the assets can be realised in
 the future. However, where there is unabsorbed depreciation or carry
 forward loss under taxation laws, deferred tax assets are recognised
 only if there is a virtual certainty of realisation of such assets.
 Deferred tax assets are reviewed as at each Balance Sheet date and
 written down or written-up to reflect the amount that is
 reasonably/virtually certain (as the case may be) to be realised.  (xv)
 Provisions and contingencies
 
 The Company recognises a provision when there is a present obligation
 as a result of a past event and it is more likely than not that there
 will be an outflow of resources embodying economic benefits to settle
 such obligation and the amount of such obligation can be reliably
 estimated. Provisions are not discounted to its present value, and are
 determined based on the managements best estimate of the amount of
 obligation required at the year end. These are reviewed at each balance
 sheet date and adjusted to reflect current management estimates.
 
 Contingent liabilities are disclosed in respect of possible obligations
 that have arisen from past events and the existence of which will be
 confirmed only by the occurrence or non occurrence of future events not
 wholly within the control of the Company.
 
 When there is a possible obligation or a present obligation where the
 likelihood of an outflow of resources is remote, no disclosure or
 provision is made.
 
 (xvi) Warranty
 
 A provision is made for future warranty costs based on managements
 estimates of such future costs.