1.  Basis of Presentation:
 
 The financial statements have been prepared and presented under the
 historical cost convention and in accordance with the provision of
 Companies Act, 1956 and accounting standards contained in the Companies
 (Accounting Standards) Rules , 2006.
 
 2.  Use of Estimates
 
 The preparation of the financial statements are in conformity with the
 GAAP which requires that the management makes estimates and assumptions
 that affect the reported amounts of assets and liabilities, disclosure
 of contingent Labilities as at the date of the financial statements,
 and the reported amounts of revenue and expenses during the reported
 year. Actual results could differ from those estimates. Difference
 between the actual results and estimates are recognized in the period
 in which the results are known / materialized.
 
 3.  Fixed Assets:
 
 Fixed Assets comprising those acquired at the time of setting up of
 initial operations are at cost to the Company inclusive of direct and
 appropriate allocated expenses upto the date of commercial production.
 All subsequent acquisitions are capitalized at actual acquisition cost.
 
 4.  Depreciation :
 
 Effective from 1995-96 the company adopted DISA group Depreciation
 policies and rates as per straight-line method.  Consequently the
 assets acquired during the period 1995-96 to 2001-02 not exceeding CHF
 5000, (currently equivalent to about Rs.2,35,000/-) were depreciated
 fully at the time of acquisition.
 
 Effective from 01.04.2002 the Company has changed its Accounting policy
 to charge off individual assets costing less than Rs. 10,000 to revenue
 at the time of acquisition. The depreciation rates adopted for other
 assets are not less than the rates specified in Schedule XIV of the
 Companies Act, 1956.
 
 Depreciation rates adopted is 3.34 ACU- p.a in respect of Buildings, 15  ACU-
 p.a in respect of Plant  ACY- Machinery , Patterns , tools jigs and
 Fixtures, Office Equipment, Furniture  ACY- Fittings, 20  ACU- in respect of
 vehicles and 25  ACU- in respect of Computers. (Also refer SI. No. 13
 below)
 
 5.  Inventories:
 
 Raw materials, Components and Work-in-Progress are valued at lower of
 cost and net realizable value. Cost is generally ascertained on
 Weighted average basis. Scrap generated is not valued as it is not of
 significant value. Scrap is brought into books only when identified and
 sold.
 
 6.  Revenue Recognition:
 
 Revenue is recognized on accrual basis except for interest collected on
 overdues from customers which is accounted on receipt basis.
 
 7.  Foreign Currency Transactions:
 
 Transactions in foreign Currencies are recognized at exchange rate
 prevailing on the date of the transaction. All monetary Assets and
 liabilities denominated in foreign currency as at the Balance Sheet
 date are translated at the year end exchange rates.
 
 The company uses forward exchange contract to hedge its exposure to
 movements in foreign exchange rates. The premium or discount arising at
 the inception of such a forward exchange contract are amortised as
 expense or income over the life of the contract.  Exchange differences
 on such contracts are recognized in the profit and loss statement in
 the reporting period in which the exchange rates change. Any profit or
 loss arising on cancellation or renewal of such contracts is recognized
 as income or expense of the period.
 
 8.  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 its recoverable amount an impairment loss
 is recognized in the Profit and Loss Account to the extent carrying
 amount exceeds the recoverable amount.
 
 9.  Accounting for Government grants
 
 Government grants received are credited directly to Capital reserves
 under the Capital approach.
 
 10.  Employee Benefits
 
 (a) Short Term Employee Benefits
 
 All employee benefits falling due wholly within twelve months of
 rendering the service are classified as short term employee benefits.
 The benefits like salaries, wages, bonus etc. are recognised in the
 period in which the employee renders the related service.
 
 (b) Post - Employment Benefits
 
 i.  Defined Contribution Plans: The Company''s Provident Fund Scheme,
 Super Annuation Fund and Employees'' State Insurance are defined
 contribution plans. The contribution paid/payable under the schemes is
 recognised during the period in which the employee renders the related
 service.
 
 ii.  Defined Benefit Plans: The Company has taken a Group Gratuity
 Policy and Group Leave Encashment Scheme with LIC of India . These
 constitute the Defined Benefit Plans of the company.
 
 The Present Value of the Obligation under such defined benefit plans is
 determined based on the actuarial valuation using the Projected Unit
 Credit Method. The Objective of this method is to spread the cost of
 each employee''s benefits over the period that the employee works for
 the company. The allocation of cost of benefits to each year of service
 is achieved indirectly by allocating projected benefits to years of
 service. The cost allocated to each year of service is then the value
 of the projected benefit allocated to that year.
 
 The discount rates used for determining the present value of the
 obligation under defined benefit plans, is based on the market yields
 on Government securities as at the balance sheet date, having maturity
 periods approximating to the terms of related obligations.
 
 Actuarial gains and losses are recognised immediately in the Profit  ACY-
 Loss Account.
 
 In case of funded plans, the fair value of the plan assets is reduced
 from the gross obligation under the defined benefit plans to recognise
 the obligation on the net basis.
 
 11.  Provision for Current Tax and Deferred Income Tax Provision for
 current tax is made after taking into consideration benefits admissible
 under the provisions of the Income Tax Act,1961.
 
 Deferred Tax resulting from timing difference between book and taxable
 profit is accounted for using the tax rates and laws that are enacted
 or substantially enacted as on the balance sheet date. The deferred tax
 asset is recognized and carried forward only to the extent there is a
 reasonable certainty that the asset will be realized in future.
 
 12.  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 the
 notes. Contingent Assets are neither recognized nor disclosed in the
 financial statements.
 
 13.  Intangible assets
 
 Software which are not integral part of the hardware are classified as
 Intangibles and are amortized over its estimated useful life.  However
 standard utility software packages are expensed at the time of
 purchase.
 
 14.  Borrowing costs
 
 Borrowing costs that are attributable to the acquisition and or
 construction of qualifying assets are capitalized as part of the cost
 of such assets , in accordance with Accounting Standard - AS 16. A
 qualifying asset is one that necessarily takes a substantial period of
 time to be ready for its intended use.