1.  IMPAIREMENT 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 impairment loss will be recognized wherever the carrying
 amount of an asset exceeds its estimated recoverable amount. The
 recoverable amount is greater of the assets net selling price and
 value in use. In assessing the value in use, the estimated future cash
 flows are discounted to the present value using the weighted average
 cost of capital.
 
 2.  INVESTMENTS
 
 (a) Long Term Investments made by the Company are carried at cost.
 However permanent diminution in value of investments, if any, is
 provided for.
 
 (b) Current investments are carried at lower of cost or market value
 determined on individual investment , basis.
 
 3.  INVENTORIES
 
 Inventories are valued at lower of cost or estimaied net realisable
 value. Cost of inventories is computed on FIFO basis. Work inprogress
 includes cost of material (net of available Cenvat credit and other set
 offs), labour and factory overheads, finished product also includes
 excise duty on product manufactured.
 
 4.  REVENUE RECOGNITION
 
 (a) A sale is recognised on dispatch to customers and includes excise
 duty charged to customers. Sales are stated exclusive of Sales tax/M
 Vat.
 
 (b) Revenue from services-is recognised on completion of the services
 and is stated exclusive of service tax.
 
 (c) Dividend income is recognised when the right to receive the
 dividend is established.
 
 (d) Interest income is recognised on the time proportion basis.
 
 5.  COST OF PURCHASE
 
 Cost of raw material, bought out components, outside processing
 charges, stores and spares, consumables purchased is accounted for in
 the books of accounts net of available Cenvat credit and other set
 offs.
 
 6.  EMPLOYEE BENEFITS
 
 (a) Benefit in the form of Provident Fund and Pension Schemes whether
 in pursuance of law or otherwise which are defined contribution is
 accounted on actual basis and charged to Profit & Loss account.
 
 (b) Payment for present liability of future payment of gratuity is
 being made to approved gratuity fund, which fully covers the same under
 cash accumulation policy of the Life Insurance Corporation of India.
 The employees gratuity is a defined benefit funded plan. The present
 value of the obligation under such defined benefit plan is determined
 based on the actuarial valuation using the Projected Unit Credit Method
 as at the date of Balance Sheet and the short fall in the fair value of
 the Plan Assets is recognized as an obligation.
 
 (c) Defined Contribution to Life Insurance Corporation of India for
 employees covered under Superannuation Scheme are accounted at the rate
 of 13% of such employees annual salary.
 
 (d) Payment for present liability of future payment of Privilege Leave
 Benefits is being made to Group Leave Encashment Fund, which fully
 covers the same under cash accumulation policy of the Life Insurance
 Corporation of India. The present value of the obligation under such
 defined plan is determined based on the actuarial valuation using the
 Projected Unit Credit Method as at the date of Balance Sheet.
 
 7.  RESEARCH AND DEVELOPMENT
 
 Expenditure on research and development and patents are charged to
 Profit and Loss account in the year in which they are incurred except
 in case of development of new products undertaken where the same are
 deferred & expensed out over a reasonable period for which the benefit
 is received / expected to receive after commercial viability of the
 products. Depreciation on assets used specifically for development
 purposes is charged at the rates applicable to similar class of assets.
 
 8.  FOREIGN CURRENCY TRANSACTIONS -
 
 (a) Foreign currency transaction relating to purchase and sale of goods
 and services are recorded at the exchange rates prevailing at the time
 of transaction and adjusted to the rates prevailing at the time of
 settlement of the transaction during the accounting year and are
 recognized in Profit and Loss account.
 
 (b) Current assets and Current liabilities remaining unsettled at the
 close of the accounting period are converted at the year-end exchange
 rates.
 
 (c) In respect of fixed assets acquired out of foreign currency loans,
 the corresponding loan liabilities are restated at the rate prevailing
 at the year end or at rates covered by forward contracts (where
 applicable) and resultant differences are adjusted to the cost of fixed
 assets.
 
 (d) Whenever foreign currency loan is availed by the company for
 working capital requirement, the difference between the forward rate
 and the exchange rate at the date of the transaction is recognized as
 income or expense over the life of the contract and recognized in the
 relevant Profit and Loss account.
 
 9.  DEFERRED REVENUE EXPENDITURE
 
 Deferred Revenue expenditures are amortised proportionately over a
 period of five / six years.
 
 10.  CONTINGENCIES AND EVENTS OCCURRING AFTER BALANCE SHEET
 
 Accounting for contingencies (gains and losses) arising out of
 contractual obligations are made only on the basis of mutual
 acceptances.
 
 Events occurring after the date of Balance Sheet are considered upto
 the date of adoption of the accounts, where material.
 
 11.  TAXATION
 
 (a) Provision for Income Tax is made on the basis of the estimated
 taxable income for the current accounting year in accordance with the
 Income Tax Act, 1961.
 
 (b) The deferred tax for timing differences between the book and tax
 profits for the year is accounted for using the tax rates and laws that
 have been enacted or substantively enacted as of the Balance Sheet
 date.
 
 (c) Deferred tax assets arising from timing differences are recognized
 to the extent there is reasonable certainty that these would be
 realised in future.
 
 12.  Related Party
 
 Disclosure in term of Accounting Standard 18 on RELATED PARTY
 DISCLOSUREfor the year 2010-2011 is asperANNEXURE-1
 
 13.  Segmental Reporting
 
 Disclosure in term of Accounting Standard 17 on SEGMENTAL
 REPORTINGfor the year 2010-2011 is as perANNEXURE-2
 
 14 The figures of previous year has been regrouped/rearranged where
 necessary to make them comparable with those of the current year.