1.  Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the notified Accounting Standard by the Companies
 (Accounting Standards) Rules, 2006, (as amended) 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 and
 revaluation is carried out. The accounting policies have been
 consistently applied by the Company and are consistent with those used
 in the previous year.
 
 2.  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 at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon managements best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 3.  Fixed Assets and Capital W.I.P.
 
 a.  Fixed assets are stated at cost (or revalued amounts, as the case
 may be), less accumulated depreciation and impairment losses if any.
 Cost comprises the purchase price and any attributable cost of bringing
 the asset to its working condition for its intended use. Borrowing
 costs relating to acquisition of fixed assets which takes substantial
 period of time to get ready for their intended use are also included in
 the cost of the assets to the extent these relate to the period up to
 the date such assets are ready to be put to use.
 
 b.  Expenditure (including interest) incurred during the construction
 period is included in Capital W.I.P. and the same is allocated to
 respective fixed assets on completion of the construction.
 
 4.  Depreciation/Amortisation
 
 a.  Depreciation is charged on all assets at rates applicable under
 Schedule XIV of Companies Act, 1956, on written down value of assets.
 
 b.  Cost of leasehold land is amortised over the period of lease.
 
 c.  Intangible Assets -
 
 - Softwares are amortised on written down value of assets effectively
 over a period of 6 years.
 
 - Technical knowhow are amortised on straight line basis over a period
 of 6 years.
 
 5.  Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 to assess 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
 its value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value using a pre-tax discount
 rate that reflects current market assessments of the time value of
 money and risks specific to the asset.
 
 6.  Intangible assets
 
 Research and Development Cost:
 
 Research costs are expensed as incurred. Development expenditure
 incurred on an individual project is recognized as an intangible asset
 when the recognition criteria are met. Development expenditure
 capitalised is amortised over the period of expected future sales from
 the related project not exceeding future sales.
 
 7.  Leases
 
 Where the Company is the lessee
 
 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.
 
 8.  Government grants and subsidies
 
 Grants and subsidies from the government are recognized when there is
 reasonable assurance that the grant/subsidy will be received and all
 attaching conditions will be complied with.
 
 Capital subsidy received from the government are credited to capital
 reserve and treated as part of the shareholders funds.
 
 9.  Investments
 
 All investments are held for more than one year and classified as Long
 term investments. Long-term investments are carried at cost. A
 provision for diminution in value is made to recognise a decline other
 than temporary in the value of the investments.
 
 10.  Inventories
 
 Inventories are valued as follows:
 
 i) Raw materials, stores and components 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 a weighted average basis.
 
 ii) Contract Work-in-Progress is stated at cost till such time as the
 outcome of the job cannot be ascertained reliably and at realisable
 value thereafter.
 
 iii) Work-in-Progress and Finished goods are valued at lower of cost
 and net realisable value.
 
 Cost includes direct materials and labour and a proportion of
 manufacturing overheads based on normal operating capacity. Cost of
 finished goods includes excise duty. Cost is determined on a weighted
 average basis.
 
 iv) 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.
 
 11.  Revenue Recognition
 
 a. Revenue from long-term contracts, where the outcome can be estimated
 reliably, is recognized under the percentage of completion method by
 reference to the stage of completion of the contract activity. The
 stage of completion is measured by calculating the proportion that
 costs incurred to date bear to the estimated total costs of a contract.
 The total costs of contracts are estimated based on technical and other
 estimates. When the current estimate of total costs and revenue is a
 loss, provision is made for the entire loss on the contract
 irrespective of the amount of work done.
 
 Contract revenue earned in excess of billing has been reflected under
 Other Current Assets and billing in excess of contract revenue is
 reflected under Current Liabilities in the balance sheet.
 
 b.  Annual maintenance contracts:
 
 Revenues from annual maintenance contracts are recognised pro-rata over
 the period of the contract as and when services are rendered
 
 c.  Revenue from sale of goods is recognised when the significant risks
 and rewards of ownership of the goods have passed to the buyer, which
 is generally on dispatch of goods. Sales are stated net of taxes(Excise
 duty and VAT) and trade discounts.
 
 d.  Commission income is recognised as and when the terms of the
 contracts are fulfilled.
 
 f.  Claims recoverable are accrued only to the extent admitted by the
 parties.
 
 g.  Export benefits are accrued only after the claims are lodged with
 the appropriate authorities, due to uncertainty involved in collecting
 necessary support documents from customers, banks etc.
 
 h.  Dividend income is recognised when the right to receive dividend is
 established.
 
 i.  Interest income is recognised on accrual basis.
 
 12.  Foreign Exchange Transactions
 
 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 restated at the exchange rate
 prevailing on the balance sheet date.  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.
 
 c.  Exchange difference
 
 Exchange differences arising on the settlement of monetary items or on
 reporting such monetary items of the company 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.
 
 d.  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.
 
 13.  Retirement and other Employee Benefits
 
 a.  Defined Contribution Plan
 
 The Companys liability towards Employees Provident Fund and
 Superannuation scheme administered through the Trusts maintained by the
 Company, are considered as Defined Contribution Plans. The Companys
 contributions paid/payable towards these defined contribution plans are
 recognised as expense in the Profit and Loss Account during the period
 in which the employee renders the related service. There are no other
 obligations other than the contributions payable to theTrusts.
 
 b.  Defined Benefit Plan Provident Fund:
 
 In respect of certain employees covered by the Exempted Provident Fund,
 the contribution towards shortfall in interest rate payable as per
 statue and the earnings of the Provident Fund Trust is considered as
 Defined Benefit Plans and debited to Profit & Loss Account.
 
 Gratuity:
 
 Companys liabilities towards Gratuity are considered as Defined
 Benefit Plans. The present value of the obligations towards gratuity
 and additional gratuity are determined based on actuarial valuation
 using the projected unit credit method. The obligation is measured at
 the present value of estimated future cash flows using a discount rate
 that is determined by reference to market yields on Government
 securities at the balance sheet date.
 
 c.  Other long term benefits
 
 Short term compensated absences are provided for based on estimates.
 Long term compensated absences are provided for based on actuarial
 valuation at the year end. The actuarial valuation is done as per
 projected unit credit method
 
 Actuarial gains/losses are taken to profit and loss account and are not
 deferred.
 
 d.  Voluntary Retirement Scheme
 
 Payments made under the Voluntary Retirement Scheme are charged to the
 Profit and Loss Account in the same year.
 
 14.  Excise Duty
 
 Excise duty on direct sales by the manufacturing units is reduced from
 the sales.
 
 Excise Duty liability on closing stock of finished goods lying at the
 manufacturing units is accounted based on the estimated duty payable as
 at the close of the year.
 
 15. Taxes on Income
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Income-tax Act, 1961 enacted in India. 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 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.
 
 At each balance sheet date the Company re-assesses unrecognised
 deferred tax assets. It recognises deferred tax assets to the extent
 that it has become reasonably certain, as the case may be, 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 reasonably certain that
 sufficient future taxable income will be available against which
 deferred tax asset can be realised. Any such write-down is reversed to
 the extent that it becomes reasonably certain that sufficient future
 taxable income will be available.
 
 16.  Segment Reporting Policies
 
 a.  Identification of segments :
 
 The Companys operating businesses are organized 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.
 
 b.  Allocation of common costs/assets & liabilities :
 
 Common allocable costs/assets and liabilites are consistently allocated
 amongst the segments on appropriate basis.
 
 c.  Unallocated items :
 
 Includes general corporate income and expense items which are not
 allocated to any business segment.
 
 d.  Segment Policies:
 
 The Company prepares its segment information in conformity with the
 accounting policies adopted for preparing and presenting the financial
 statements of the company as a whole.
 
 17.  Earning per share
 
 Basic & Diluted 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.
 
 18.  Provisions
 
 A provision is recognised when the Company 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.
 
 19. Cash and Cash equivalents
 
 Cash and cash equivalents for the purposes of cash flow statement
 comprise cash at bank and in hand and short-term investments with an
 original maturity of three months or less.