a.  Accounting Convention
 
 The financial statements have been prepared under the historical cost
 convention and following the accrual method of accounting in accordance
 with the applicable mandatory accounting Standards notifed by the
 Companies (Accounting Standards) Rules, 2006 and the relevant
 provisions of Companies Act, 1956.
 
 b.  Use of Estimates
 
 The preparation of financial statements, in conformity with the
 generally accepted accounting principles, requires estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities on the date of financial statements and the reported amount
 of revenues and expenses during the reporting year. Differences between
 the actual results and the estimates are recognized in the year in
 which the results are known / materialized.
 
 c.  Fixed Assets
 
 Fixed assets are assets held with the intention of being used for
 purpose of producing or providing goods and services and is not held
 for sale in the ordinary course of business. The Cost of Fixed assets
 comprise the purchase price including import duties and other non
 refundable taxes or levies and any directly attributable cost to bring
 the asset to the working condition for intended use. Further any trade
 discounts and rebates are deducted in arriving at the cost.
 
 Intangible assets are identifable non-monetary assets, without physical
 substance, held for use in the production or supply of goods or
 services, for rental to others, or for administrative purposes. The
 intangible assets are separately acquired and are capable of being
 measured reliably. The cost of intangible asset comprises the purchase
 price including import duties and other non refundable taxes or levies
 and any directly attributable cost on making the asset ready for
 intended use.
 
 d.  Depreciation & amortization
 
 Fixed assets are depreciated as per straight line method on all assets
 in accordance with the rates prescribed under Schedule XIV of Companies
 Act, 1956. Intangible assets are amortized over a period of 5 years
 through Straight Line Method.
 
 e.  Investments
 
 Long-term investments are stated at cost less provision for diminution
 in value other than temporary, if any. Short-term investments are
 valued at Cost or Fair Value whichever is lower.
 
 f.  Earnings per share (EPS)
 
 The earnings considered in ascertaining the company’s Basic EPS is the
 attributable net Profit or loss to the equity shareholders as per AS-20
 “Earnings per Share”. The number of shares used in computing Basic EPS
 is the weighted average number of shares outstanding during the period.
 The Diluted EPS is calculated on the same basis as Basic EPS, after
 adjusting for the effects of potential dilutive equity shares unless
 the effect of the potential dilutive equity shares is anti-dilutive.
 
 g.  Revenue Recognition
 
 i) Sales are accounted on basis of despatches.
 
 ii) Sales include equipment billed but despatch of which is withheld at
 the request of the customer.
 
 iii) In respect of Construction contracts, executed over a period of
 more than one financial year, the company recognizes revenue on the
 basis of percentage of completion method as per AS-7 (Revised)
 “Construction Contracts”.
 
 iv) Construction contracts revenue is based on the ratio of cost
 incurred to date to total estimated cost and physical work done as
 estimated by the technical staff.
 
 v) Other Income – a) Interest income is accounted at applicable coupon
 rates on respective investments, on time basis.  b) Dividend income is
 accounted as and when received.
 
 h.  Inventories
 
 Raw materials, work in progress, consumables, stores and spares have
 been valued at cost, ascertained on weighted average basis. Work in
 progress value includes all direct costs and applicable production
 overheads to bring the goods to the present location and condition.
 Loose tools acquired during the year have been fully written off.
 
 i.  Foreign currency Transactions
 
 i) Transactions in foreign currencies are recorded at the exchange
 rates prevailing on the date of acquisition. Monetary items are
 translated at the rates prevailing on reporting dates. The exchange
 difference between rate prevailing on the date of transaction and on
 the date of settlement and also on translation of monetary items at the
 reporting date is recognized as income or expense.
 
 ii) The company uses foreign exchange forward contracts to hedge its
 exposure to movements in foreign exchange rates.  Forward contracts are
 not used for speculation purposes. The gain or loss on the forward
 contract is charged to the Profit and loss account, proportionately over
 the duration of the hedge, in accordance with Accounting Standard 11
 (Revised).
 
 j.  cash Flows
 
 Cash fows are reported using the indirect method, whereby Profit before
 tax is adjusted for the effects of transactions of a non-cash nature
 and any deferrals or accruals of past or future cash receipts or
 payments. The cash fows from regular revenue generating, fnancing and
 investing activities of the Company are segregated.
 
 k.  Income taxes
 
 Tax expense comprises of current tax and deferred tax. Current tax is
 measured at the amount expected to be paid to the tax authorities.
 Deferred tax assets and liabilities are recognized for the future tax
 consequences attributable to timing differences between taxable income
 and accounting income which are capable of reversal in subsequent
 periods and are measured using relevant enacted tax rates.
 
 Minimum Alternative Tax (MAT) credit is recognized as an asset only
 when and to the extent there is convincing evidence that the Company
 will pay normal income tax during the specifed period. The Company
 reviews the same at each balance sheet date and reverse the carrying
 amount of MAT Credit Entitlement to the extent there is no longer
 convincing evidence to the effect that Company will pay normal Income
 Tax during the specifed period.
 
 Tax on distributable Profits payable by the Company in accordance with
 the provisions of Income-tax Act, 1961 is disclosed in accordance with
 the guidance note on Accounting for Corporate Dividend Tax issued by
 ICAI.
 
 l.  Impairment of assets
 
 At every balance sheet date, the Company determines whether the
 provisions should be made for the impairment loss on fxed assets by
 considering the indications that the carrying amount of the asset
 exceeds the recoverable amount as per recognition and measurement
 principles laid down in AS-28 “Impairment of Assets”. For the purpose
 of impairment, assets are grouped as cash generating and non cash
 generating units for which there are separately identifable cash fows.
 
 m.  Employee Benefts
 
 i) Short-term employee benefts are recognized as an expense at the
 undiscounted amount in the Profit and loss account for the year in which
 related services are rendered.
 
 ii) Defned Contribution plan:
 
 Company’s contributions paid/payable during the year towards Provident
 Fund, ESI and Medical coverage are recognized in the Profit and loss
 account
 
 iii) Defned Beneft Plan:
 
 Company’s liability towards gratuity in accordance with The Payment of
 Gratuity Act, 1972 is determined by actuarial valuation as on the
 balance sheet date. The Company contributes all the ascertained
 liabilities to SBI Life Insurance which administers the contributions
 and makes the payment at retirement, death, incapacitation or
 termination of employment.
 
 n.  Borrowing costs
 
 Borrowing costs that are attributable to acquisition or construction of
 qualifying assets are included as part of the cost of such assets.
 
 o.  Leases
 
 Finance Leases, which effectively transfer to the Company substantially
 all the risks and rewards 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 fnance
 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.
 
 If there is no reasonable certainty that the Company will obtain the
 ownership by the end of the lease term, capitalized leased assets are
 depreciated over the shorter of the estimated useful life of the asset
 or the lease term.
 
 Leases where the lessor effectively retains substantially all the risks
 and rewards of ownership of the leased term, are classifed 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.
 
 p.  Provisions
 
 i) The Company recognizes provision when there is a present obligation
 of the enterprise arising from past events, the settlement of which is
 expected to result in an outfow from the enterprise of resources
 embodying economic benefts which can be measured only by using a
 substantial degree of estimation.
 
 ii) Provision for contractual obligation has been provided for in
 accounts based on management’s assessment of the probable outcome with
 reference to the available information supplemented by experience of
 similar transactions.
 
 q.  contingent Liabilities
 
 The Company recognizes contingent liability for disclosure in notes to
 accounts, if any of the following conditions fulflled:
 
 i) a possible obligation that arises from past events and the existence
 of which will be confirmed only by the occurrence or non-occurrence of
 one or more uncertain future events not wholly within the control of
 the enterprise; or
 
 ii) a present obligation that arises from past events but is not
 recognized because:
 
 - it is not probable that an outfow of resources embodying economic
 benefts will be required to settle the obligation; or
 
 - a reliable estimate of the amount of the obligation cannot be made.