i) accounting convention
 
 the financial statements are prepared under the historical cost
 convention and have been prepared in accordance with applicable
 Accounting standards and relevant presentational requirements of the
 companies Act, 1956.
 
 ii) use of estimates
 
 the preparation of financial statements requires the management of the
 company to make estimates and assumptions that affect the reported
 balance of assets and liabilities, revenue and expenses and disclosure
 relating to the contingent liabilities.  the management believes that
 the estimates used in preparation of financial statements are prudent
 and reasonable.  Future results could differ from these estimates. Any
 revision to accounting estimates is recognised prospectively in the
 current and future periods.
 
 iii) fixed assets, including intangible assets, and depreciation
 
 Fixed assets including intangible assets are stated at cost less
 accumulated depreciation. cost of acquisition or construction is
 inclusive of freight, duties, taxes, incidental expenses and financing
 cost of borrowed funds relating to acquisition of fixed assets up to
 the date of commissioning/commercial exploitation of assets.
 
 Leasehold land is amortised over the lease period.
 
 depreciation on fixed assets (other than land and intangible assets) is
 charged on a pro-rata basis from the month the assets are put to use at
 the straight line method rates prescribed in schedule XiV to the
 companies Act, 1956. in addition, diminution in value of fixed assets,
 if any, is included under depreciation.
 
 intangible assets comprising of product designs, prototypes, etc,
 either acquired or internally developed, are amortised over a period of
 ten years, the estimated minimum useful life of the related products.
 cost of software is amortised over a period of 5 years or less
 depending on the estimated useful life of the asset.
 
 iv) inventories
 
 loose tools, stores and machinery spares are valued at cost or under.
 stock-in-trade is valued at the lower of cost and net realisable value.
 the bases of determining cost of various categories of inventories are
 as follows:
 
 raw materials, components, loose     - moving weighted average rates
 
 tools, stores and machinery spares
 
 Work in progress and finished goods  - material cost plus appropriate
 share of labour and overheads
 
 v) employee benefits
 
 company''s contributions paid/payable during the year to provident fund,
 superannuation fund, and Employees'' state insurance corporation (ESIC)
 are recognised in the profit and loss account. in respect of certain
 employees, provident fund contributions are made to a trust
 administered by the company. the interest rate payable to the members
 of this trust shall not be lower than the statutory rate of interest
 declared by the central Government under the Employees Provident Fund
 and miscellaneous Provisions Act, 1952 and shortfall, if any, shall be
 made good by the company. the remaining contributions are made to a
 government administered provident fund towards which the company has no
 further obligations beyond its monthly contributions.
 
 defined benefits and other long term employee benefits are provided on
 the basis of an actuarial valuation made at the end of each accounting
 year. Actuarial gains or loss arising from such valuation are charged
 to revenue in the year in which they arise.
 
 vi) research and development
 
 revenue expenditure on research and development is expensed off under
 the respective heads of account in the year in which it is incurred.
 Expenditure, which results in creation of capital assets, is treated in
 the same way as expenditure on the fixed assets.
 
 vii) revenue recognition
 
 the company recognises revenue from sale of products on dispatch of
 goods to customers which coincides with the transfer of risks and
 rewards associated with the ownership of goods. Product sales
 represents amount invoiced for goods sold, inclusive of excise duty but
 net of sales tax and returns. interest income is recognised on a time
 proportionate basis taking into account the amount invested and rate
 applicable.
 
 viii) investments
 
 long term investments are stated at cost as reduced by diminution in
 value, if any. current investments are valued at lower of cost and fair
 value.
 
 ix) foreign currency transactions
 
 Foreign currency transactions are recorded at the rates of exchange
 prevailing on the date of the transactions. monetary items (assets and
 liabilities) denominated in foreign currency are translated into rupees
 at the exchange rates prevailing on the balance sheet date.
 
 Premium paid on Forward cover is amortised over the period of cover.
 Exchange differences on such contracts are recognised in profit and
 loss in the year in which the exchange rate change arises. Exchange
 differences on translation of foreign currency assets and liabilities
 and realised gains and losses on foreign exchange transactions are
 recognised in the profit and loss account.
 
 x) Provision for warranty
 
 Provision for warranty has been computed on the total sales made during
 the year, based on past experience.
 
 xi) taxation
 
 the provision for taxation for the year ended December 31, 2011
 comprises the residual tax liability for the assessment year 2011-12
 relevant to the year April 1, 2010 to march 31, 2011 and the liability,
 which has accrued on the profit for the period April 1, 2011 to
 December 31, 2011, under the provisions of the income tax Act, 1961.
 
 deferred tax is recognised, subject to the consideration of prudence,
 on timing differences, being the difference between taxable income and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods. deferred tax assets are
 recognised on unabsorbed depreciation and carried forward of losses
 based on virtual certainty that sufficient future taxable income will
 be available against which such deferred tax assets can be realised.
 
 xii) Provisions and contingent liabilities
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and is probable that there will be an out flow of resources.
 contingent liabilities are not recognised but are disclosed in the
 notes to the accounts.