A. Basis of Preparation of Financial Statements
 
 The Accounts have been prepared as a going concern under historical
 cost convention in accordance with the generally accepted accounting
 principles in India and the provisions of the Companies Act, 1956.
 
 B. Fixed Assets:
 
 All fixed assets are valued at their original cost which includes
 expenditure incurred in acquisition and construction I installation and
 other related expenses less accumulated depreciation. Capital work in
 progress is carried at cost comprising of direct cost and related
 incidental expenses.
 
 C. Intangible Assets:
 
 Intangible Assets are stated at cost of acquisition less amortization.
 
 D. Investments:
 
 Investments are stated at cost as the same are Long Term Investments.
 
 E. Inventories:
 
 Inventories are valued on FIFO basis as under:
 
 a) Raw material and components are valued at lower of Cost or Net
 Realizable Value.
 
 b) Finished Goods are valued at lower of Cost or Net Realizable Value.
 
 c) Stores, spares and consumables are valued at Cost.
 
 d) Goods in transit are valued at Cost.
 
 e) Cost of manufactured goods is ascertained at cost plus appropriate
 share of overheads.
 
 The management has written off the cost of machines & spares given on
 rental basis on the basis of evaluation of its usage of the finished
 product to bring the same to its realizable market value.
 
 F. Depreciation:
 
 Depreciation on fixed assets has been provided on Straight Line basis
 at the rates prescribed in Schedule XIV of the Companies Act, 1956.
 Intangible Assets are amortized on straight line basis over the
 estimated economic useful life.
 
 G. Impairment of Assets:
 
 The Company on an annual basis makes an assessment of any indicator
 that may lead to Impairment of Assets. If any such indications
 exist, the Company estimates the recoverable amount of the assets. If
 such recoverable amount is less than the carrying amount of the assets,
 than the carrying amount is reduced to its recoverable amount by
 treating the difference between them as impairment loss and the same is
 charged to Profit & Loss Account.
 
 H. Revenue Recognition:
 
 Sales are net of returns and claims. Income and expenditure are
 recognized on accrual basis. Revenue from contracts priced on a time and
 material basis are recognized when services are rendered and related
 costs are incurred. Revenue from maintenance contracts are recognized
 pro- rata over the period of the contract.
 
 I. Foreign Currency Transactions :
 
 Transactions denominated in foreign currencies are recorded at the
 exchange rate prevailing on the date of the transaction or that
 approximates the actual rate at the date of the transaction. Monetary
 items denominated in foreign currencies at the yearend are restated at
 year end rates. Any income or expense on account of exchange difference
 either on settlement or on translation is recognized in the Profit and
 Loss account except in case of long term liabilities, where they relate
 to acquisition of fixed assets, in which case they are adjusted to the
 carrying cost of such assets.
 
 J. Employee Benefits:
 
 Short-term employee benefits are recognized as an expense at the
 undiscounted amount in the Profit and Loss Account of the year in which
 the related service is rendered. Post employment and other long term
 employee benefits are recognized as an expense in the Profit and Loss
 account for the year in which the employee has rendered services. The
 expense is recognized at the present value of the amounts payable
 determined using actuarial valuation techniques. Actuarial gains and
 losses in respect of post employment and other long term benefits are
 charged to the Profit and Loss Account.
 
 K. Borrowing Costs:
 
 Borrowing Costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to profit and loss account.
 
 L. Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent liabilities are not recognized but are disclosed in Notes to
 Accounts.  Contingent Assets are neither recognized nor disclosed in
 financial statements.
 
 M. Taxation:
 
 The Current charge for income taxes is calculated in accordance with
 the relevant tax regulations, past assessments & legal opinion sought
 by the Company. Deferred-tax assets and liabilities are recognized for
 future tax consequences attributable to the timing differences that
 result between the profit offered for income tax and the profit as per
 the financial statements. Deferred tax assets and liabilities are
 measured as per the tax rates/laws that have been enacted
 or substantively enacted by the Balance Sheet date.