1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
 
 These financial statements have been prepared in accordance with the
 generally accepted accounting principles in India under the historical
 cost convention on accrual basis. These financial statements have been
 prepared to comply in all material aspects with the accounting
 standards notified under Section 211(3C) [Companies (Accounting
 Standards) Rules, 2006, as amended] and the other relevant provisions
 of the Companies Act, 1956.
 
 All assets and liabilities have been classified as current or
 non-current as per the Company''s normal operating cycle and other
 criteria set out in the Schedule VI to the Companies Act, 1956. Based
 on the nature of products and the time between the acquisition of
 assets for processing and their realisation in cash and cash
 equivalents, the Company has ascertained its operating cycle as twelve
 months for the purpose of current - non-current classification of
 assets and liabilities.
 
 2) TANGIBLE ASSETS:
 
 Fixed assets are stated at cost of acquisition less accumulated
 depreciation. Acquisition cost includes taxes, duties, freight,
 insurance and other incidental expenses related to acquisition and
 installation and are net of CENVAT credits, where applicable. Revenue
 expenses incidental and related to projects are capitalised along with
 the related fixed assets, where appropriate.
 
 3) DEPRECIATION:
 
 Depreciation on fixed assets is provided using the straight-line method
 based on useful lives of assets as estimated by the management.
 Depreciation is charged on a pro-rata basis for assets purchased / sold
 during the year. The management''s estimate of useful lives for the
 various fixed assets is given below, which is higher than the rates
 prescribed under Schedule XIV of Companies Act, 1956:
 
 Buildings 20 years
 
 Plant and Machinery
 
 - Jigs and Tools 5 years
 
 - Others 7 years Computers 3 years Furniture and Fixtures 5 years
 Vehicles 5 years Leasehold land is amortised over the period of lease.
 
 Individual assets costing less than Rs. 5,000 are depreciated in full in
 the year of purchase.
 
 4) REVENUE RECOGNITION:
 
 Revenue from the sale of products is recognised upon transfer of
 substantial risk and rewards of ownership to the customers, and is net
 of sales tax, where applicable, but inclusive of excise duty. Interest
 income on fixed deposits is recognized on a time proportion basis.
 
 5) FOREIGN CURRENCY TRANSACTIONS:
 
 Transactions in foreign currency are accounted for at the exchange
 rates prevailing on the date of transactions.
 
 Exchange differences arising on foreign currency transactions settled
 during the year are recognised in the statement of profit and loss for
 the year. All monetary items denominated in foreign currency are
 translated at exchange rates prevailing on the balance sheet date. The
 resultant exchange differences are recognised in the statement of
 profit and loss for the year.
 
 The premium or discount arising at the inception of forward exchange
 contracts, entered into to hedge the foreign currency risk of existing
 assets and liabilities, is amortized as expense or income over the life
 of the contract. Exchange differences on such contracts are recognized
 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 recognized as income or as expense for the
 year.
 
 6) WARRANTY:
 
 Product warranty costs are determined and provided for in the year, in
 which the revenues are recognised, based on past experience.
 
 7) INVENTORIES:
 
 Inventories are stated at the lower of cost and net realisable value.
 ''Cost'' is arrived at using First-In-First-Out (FIFO)/ Weighted
 Average method and includes appropriate overheads in case of
 work-in-progress and finished goods. Finished goods are stated
 inclusive of excise duty.
 
 Provision for obsolescence is made, wherever necessary.
 
 8) EMPLOYEES''BENEFITS:
 
 Benefits to employees comprise of provident fund, gratuity, leave
 encashment / compensated absences, superannuation and long service
 award.
 
 Defined Contribution Plans:
 
 - The Company has a separate Superannuation Scheme for its officers
 under the aegis of the Life Insurance Corporation of India.
 Contributions made in accordance with the scheme of the Life Insurance
 Corporation of India are charged to the Statement of profit and loss.
 
 - Contributions to the employees'' state insurance fund,
 administered by the prescribed government authorities, are made in
 accordance with the Employees'' State Insurance Act, 1948 and are
 recognized as an expense on an accrual basis.
 
 Defined Benefit Plans:
 
 - Contributions towards Company''s gratuity liability made to Life
 Insurance Corporation of India are adjusted against the gratuity
 liability determined by an independent actuary as at year-end on the
 basis of Projected Unit Credit Method and the short fall, if any,
 is charged to the statement of profit and loss. In case fair value of
 plan assets is in excess of the present value of the defined benefit
 obligations, the resultant asset is recognized as at balance sheet
 date.
 
 - Actuarial gains and losses comprise experience adjustments and the
 effects of change in actuarial assumptions and are recognised
 immediately in the statement of profit and loss as income or expense.
 
 Multi Employer Benefit:
 
 - Contribution to the provident fund and family pension fund,
 administered through a private trust, is made in accordance with the
 provisions of the Employees Provident Fund and Miscellaneous Provisions
 Act, 1952 and is recognised as an expense on an accrual basis. Further,
 the Company gets an actuarial valuation done as at year-end to
 determine liability towards guaranteed interest rates, if any, and the
 same is also recognised as an expense on an accrual basis.
 
 Other Employee Benefits:
 
 - The liability for long term compensated absence and long-term
 service award is recognised in accordance with the rules of the
 Company, based on actuarial valuation by an independent actuary carried
 out at the balance sheet date on the basis of Projected Unit Credit
 Method.
 
 - The liabilities for employee benefit in form of short-term
 compensated absence (vesting as well as non-vesting) have been
 recognised at undiscounted amount, in accordance with the rules of the
 Company.
 
 - Actuarial gains and losses comprise experience adjustments and the
 effects of change in actuarial assumptions and are recognised
 immediately in the statement of profit and loss as income or expense.
 
 9) RESEARCH AND DEVELOPMENT EXPENDITURE:
 
 All revenue expenses pertaining to research and development are charged
 to the statement of profit or loss in the year in which these are
 incurred and expenditure of capital nature is capitalised as fixed
 assets.
 
 10) TAX EXPENSE:
 
 Tax expense comprises current and deferred tax. The provision for
 income tax is determined in accordance with the provisions of the
 Income Tax Act, 1961.
 
 The Company provides for deferred tax based on the tax effect of timing
 differences resulting from the recognition of items in the financial
 statements and in estimating its current income tax provision. The
 effect on deferred tax assets and liabilities of a change in tax rates
 is recognised in the statement of profit and loss using the tax rates
 and tax laws that have been enacted or substantively enacted by the
 balance sheet date. Deferred tax assets on unabsorbed depreciation or
 carry forward losses, if any, are recognised only if there is virtual
 certainty that such deferred tax assets can be realized against future
 taxable profits. In all other cases, deferred tax assets are recognised
 only to the extent there is a reasonable certainty that sufficient
 future taxable income will be available against which such deferred tax
 asset can be realised.
 
 Minimum alternative tax (MAT) credit is recognised as an asset only
 when and to the extent there is convincing evidence that the Company
 will pay income tax higher than that computed under MAT, during the
 period that MAT is permitted to be set off under the Income Tax Act,
 1961 (specified period). In the year, in which the MAT credit becomes
 eligible to be recognised as an asset in accordance with the
 recommendations contained in the Guidance Note issued by the Institute
 of Chartered Accountants of India (ICAI), the said asset is created by
 way of a credit to the statement of profit and loss and shown as MAT
 credit entitlement. The Company reviews the same at each balance sheet
 date and writes down the carrying amount of MAT credit entitlement to
 the extent there is no longer convincing evidence to the effect that
 the Company will pay income tax higher than MAT during the specified
 period.
 
 11) BORROWING COSTS:
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of qualifying asset are capitalised as part
 of the cost of that asset. Other borrowing costs are recognised as an
 expense in the period in which they are incurred.
 
 12) EARNINGS PER SHARE (EPS):
 
 In determining earnings per share, the Company considers the net profit
 after tax and includes the post tax effect of extra ordinary/
 exceptional item, if any. Basic earning per share is computed by
 dividing the net profit for the year attributable to the equity
 shareholders by the weighted average number of equity shares
 outstanding during the year and dilutive equity equivalent shares
 outstanding at the year end, except where the results would be anti
 dilutive.
 
 13) INTANGIBLE ASSETS:
 
 Intangible assets are recognised if it is probable that the future
 economic benefits attributable to the asset will flow to the enterprise
 and cost of the asset can be measured reliably in accordance with
 Accounting Standard - 26, on ''Intangible Assets''.
 
 Intangible assets, if any, are amortised on straight-line basis over
 their useful lives determined on the basis of expected future economic
 benefits. The amortization period and method is reviewed at the end of
 each financial year.
 
 14) IMPAIRMENT OF ASSETS:
 
 At each balance sheet date, the Company assesses whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount. If the carrying
 amount of the asset exceeds the recoverable amount, an impairment loss
 is recognised in the statement of profit and loss to the extent the
 carrying amount exceeds the recoverable amount.
 
 15) LEASES:
 
 For operating leases, rental income and expense is recognised on a
 straight-line basis over the lease term unless another systematic basis
 is more representative of the time pattern of the Company''s benefit.
 
 16) PROVISIONS AND CONTINGENCIES:
 
 Provisions are recognised when the Company has a present obligation as
 a result of past events, for which it is probable that an outflow of
 resources will be required to settle the obligation, and a reliable
 estimate of the amount can be made. Provisions required to settle are
 reviewed regularly and are adjusted where necessary to reflect the
 current best estimates of the obligation. A disclosure for a contingent
 liability is made when there is a possible obligation or a present
 obligation that probably will not require an outflow of resources or
 where a reliable estimate of obligation cannot be made.  
 
 17) DERIVATIVE INSTRUMENTS:
 
 The Company use derivative financial instruments such as forward
 exchange contracts and swap arrangements to hedge its risks associated
 with foreign currency fluctuations. The foreign exchange contracts, if
 any, other than those covered under AS 11, entered for non speculative
 purposes, including the underlying hedged items, are valued on the
 basis of a fair value on marked to market basis and any loss on
 valuation is recognized in the statement of profit and loss, on a
 portfolio basis. Any gain arising on this valuation is not recognized
 by the Company in line with the principle of prudence.
 
 18) CASH AND CASH EQUIVALENTS:
 
 In the cash flow statement, cash and cash equivalents include cash in
 hand, demand deposits with banks, other short-term highly liquid
 investments with original maturities of three months or less.