a) Basis of Accounting
 
 The Company maintains its accounts on accrual basis following the
 historical cost convention in accordance with generally accepted
 accounting principles [GAAP'') except for the revaluation of certain
 fixed assets, in compliance with the provisions of the Companies Act,
 1956 and the Accounting Standards as specified in the Companies
 (Accounting Standards) Rules, 2006, prescribed by the Central
 Government. However, certain escalation and other claims, which are not
 ascertainable/acknowledged by customers, are not taken into account.
 
 The preparation of financial statements in conformity with GAAP
 requires that the management of the Company makes estimates and
 assumptions that affect the reported amounts of income and expenses of
 the periods, the reported balances of assets and liabilities and the
 disclosures relating to contingent liabilities as of the date of the
 financial statements. Examples of such estimates include the useful
 life of tangible and intangible fixed assets, provision for doubtful
 debts/advances, future obligations in respect of retirement benefit
 plans, etc. Difference, if any, between the actual results and
 estimates is recognized in the periods in which the results are known.
 
 b) Fixed Assets
 
 Fixed Assets are recorded at cost of acquisition / construction less
 accumulated depreciation and impairment losses, if any. Cost comprises
 of the purchase price and attributable cost of bringing the Assets to
 its working condition for its intended use, but excludes CENVAT /
 Service Tax / VAT credit availed.
 
 c) Borrowing Cost
 
 Financing costs relating to deferred credits or borrowed funds
 attributable to construction or acquisition of fixed assets for the
 period up to the completion of construction or acquisition of fixed
 assets are included in the cost of the assets to which they relate.
 
 d) Depreciation
 
 Plant & Machineries are depreciated on Straight Line Method at the
 rates specified in Schedule XIV to the Companies Act, 1956.
 
 In respect of all other Fixed Assets, depreciation is provided on
 Written Down Value Method, at the rates specified in Schedule XIV to
 the Companies Act, 1956.
 
 Depreciation is provided on pro-rata basis:
 
 i) From the date of addition, in case of additions during the year to
 the Fixed Assets; and
 
 ii) Up to the date of disposal, in case of disposals during the year of
 the Fixed Assets.
 
 e) Inventories
 
 Materials and other supplies are usually held for use in the production
 of finished goods. These are not written down below cost if the
 finished goodRs. in which they will be consumed are expected to be sold
 at or above cost.
 
 Inventories are valued at lower of cost or estimated net realizable
 value. The cost of inventories is arrived at on the following basis:
 
 Raw Materials and Stores : Weighted Average Cost
 
 Stock-in-Process : Raw Materials at Weighted Average Cost &
 
 absorption of Labour and Overheads
 
 Finished Goods : Raw Materials at Weighted Average Cost &
 
 absorption of Labour and Overheads
 
 f) Investments
 
 Investments are generally of Long Term nature and are stated at cost
 unless there is other than temporary decisions in their value as at 
 the date of Balance Sheet.
 
 Investments in foreign companies are stated at cost of acquisition.
 
 g) Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions are recognized only when there is a present obligation as a
 result of past events and when a reliable estimate of the amount of the
 obligation can be made. Contingent liability is disclosed for (i)
 possible obligation which will be confirmed only by the future event
 not wholly within the control of the Company or (ii) Present
 obligations arising from past events where it is not probable that an
 outflow of resources will be required to settle the obligation or a
 reliable estimate of the amount of the obligation can not be made.
 Contingent Assets are not recognized in the financial statements.
 
 h) Revenue Recognition
 
 i) Sale of goods is generally recognized on dispatch to customers and
 is shown net of recoveries.
 
 ii) Income on turnkey contracts is accounted for on the basis of
 billings made on customers against mutually agreed billing schedules.
 
 Advances received from customers in respect of contracts, which are not
 in relation to work performed th i eon, are shown as Advance from
 Customers.
 
 Amounts retained by customers until satisfaction of conditions
 specified in the contract for release of such amounts are reflected as
 Sundry debtors.
 
 Credits are taken for claims in respect of cost escalation and extra
 work as and when and to the extent admitted by customers.
 
 Provision is made in full for claims or penalties payable arising out
 of delays in completion or from any other causes as and when admitted.
 
 iii) Interest revenues are recognized on a time proportion basis taking
 into account the amount outstanding and the rate applicable.
 
 iv) Dividend from investments in Shares is accounted for on the basis
 of the date of declaration of dividend falling within the accounting
 year.
 
 (v) Consistent with past practice, export incentives are accounted for
 as and when the claims thereof have been admitted by the authorities.
 
 i) Foreign Currency Transactions
 
 i) Transactions in foreign currencies are generally recorded by
 applying to the foreign currency amount, the exchange rate existing at
 the time of the transaction. However, where Forward Exchange Contracts
 are entered into, the forward rates specified in the related Forward
 Exchange Contracts have been used as the basis of measuring and
 recording the transactions.
 
 ii) Gains or losses on settlement, in a subsequent period of
 transactions entered into in an earlier period are credited or charged
 to the Profit and Loss Account.
 
 j) Miscellaneous Expenditure
 
 Expenditures like Technical Know How Expenditures, which are having the
 benefits of enduring nature, are treated as miscellaneous expenditure
 and are being written off over a period as may be decided by the
 management.
 
 k) Retirement Benefits
 
 Retirement benefits to employees are being provided for byway of
 payments to Gratuity and Provident Funds.
 
 a.  The rate of escalation in Salary (p.a.) considered in actuarial
 valuation is worked out after taking into account inflation, seniority,
 promotion and other relevant factors such as supply and demand in the
 employment market. Mortality rates are obtained from the relevant data
 of Life Insurance Corporation of India.
 
 b.  The liability for the Gratuity Rs. 516.20 Lacs (Previous Year Rs.
 574.57 Lacs.) as shown in the balance sheet is after adjusting the Fair
 value of plan assets (Invested with L1C/SBI) as at March 31, 2011 ofRs.
 590.80 Lacs (Previous Year Rs. 472.86 Lacs.)
 
 (ii) Liability in respect of Superannuation benefits extended to
 eligible employees is contributed by the Company to Life Insurance
 Corporation of India against a Master Policy @ 15% of the basic Salary
 of all the eligible employees. The Company is providing for the
 outstanding Liability amount allocable to the broken period beyond the
 balance sheet date.
 
 iii) Liability in respect of Provident Fund is provided for on actual
 contribution basis.
 
 1) As regards Insurance premium and Guarantee Commission, the Company
 is providing for prepaid amount allocable to period falling beyond the
 date of Balance Sheet under review.
 
 m) Impairment of Assets
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 profit & loss account in the year in which the asset is identified as
 impaired. The impairment loss recognized in prior periods is reversed
 if there has been a change in the estimate of recoverable amount.