The financial statements are prepared to comply in all material aspects
 with the applicable accounting principles in India, the Accounting
 Standards issued by the Institute of Chartered Accountants of India and
 the relevant provisions of the Companies Act, 1956. The signifcant
 accounting policies are as follows:
 
 A.  Basis of Accounting:
 
 The financial statements are prepared in accordance with the historical
 cost convention.
 
 B. Use of Estimates:
 
 The preparation of financial statements requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities, disclosure of contingent amounts as at the date of the
 financial statements and reported amounts of revenues and expenses
 during the reporting period. Actual results could differ from these
 estimates. Any revision to accounting estimates is recognised
 prospectively when revised.
 
 C.  Fixed Assets / Capital Work in Progress:
 
 Expenditure, which is of capital nature, is capitalised. Such
 expenditure includes purchase price, import duties, levies, and
 attributable cost of bringing the asset to its operating condition. The
 assets acquired on Hire Purchase basis have been capitalised at the
 gross value and interest thereon is charged to Profit and Loss Account.
 Projects under commissioning and other Capital Work-in-Progress are
 carried at costs, comprising direct cost, related incidental expenses
 and interest on borrowings.
 
 D. Depreciation / Amortisation:
 
 I.  Tangible Assets
 
 Depreciation has been calculated in accordance with Section 205(2) (b)
 of the Companies Act, 1956, as under:
 
 a.  The depreciation is provided from the date the assets are put to
 use, on straight-line method at the rates prescribed under Schedule XIV
 of the Companies Act, 1956, except following Assets which are
 depreciated over period of its estimated useful life:
 
     Asset             Estimated Useful Life
 
 i) Porta Cabin        5 years
 
 ii) Form Box          5 years
 
 iii) Templates        5 years
 
 b.  The Company provides 100% depreciation on fxed assets with value
 less than or equal to ` 5,000 as per the provisions
 of Schedule XIV of the Companies Act 1956.
 
 c.  Leasehold Improvements are amortised over the primary lease period.
 
 II.  Intangible Assets
 
 a.  These are amortised over their useful life, not exceeding fve
 years.
 
 b.  Deferred Revenue Expenditure is written off in the year of
 expenditure.
 
 III.  Leasehold land, which are given by Central/State Government
 authorities are not amortised in view of the long tenure of the lease.
 
 E.  Investments:
 
 Long term investments are stated at cost less permanent diminution in
 value, if any.
 
 F.  Valuation of Inventories:
 
 Raw Materials, Stock in Process, Stores and Spares are valued at cost
 and net of credits under the scheme of Cenvat Rules and VAT Rules.
 Finished goods are valued at cost, or Market Value / Contract Price,
 whichever is less. Cost is determined on a weighted average basis.
 Excise duty is included in the value of fnished goods.
 
 G. Revenue Recognition:
 
 I.  Sales are inclusive of Excise Duty, Duty Drawback but net of Sales
 Tax, Returns, Trade Discounts and incentives.
 
 II.  Revenue from long term contracts are recognized on the percentage
 of completion method, in proportion that the contract costs incurred
 for work performed up to the reporting date bear to the estimated total
 contract costs.  Contract revenue earned in excess of billing has been
 refected under “Other Current Assets” and billing in excess of contract
 revenue has been refected under “Current Liabilities” in the balance
 sheet. Full provision is made for any loss in the year in which it is
 frst foreseen.
 
 III.  Dividend Income is recognised when the right to receive dividend
 is established. Interest Income is recognized on time proportion basis.
 
 H. Foreign Exchange Transactions:
 
 Foreign Currency transactions are recorded at exchange rates prevailing
 on the date of respective transactions. Monetary assets and liabilities
 related to foreign currency transactions remaining unsettled at the end
 of the year are translated at year-end rates. The differences in
 translation of monetary assets and liabilities and realised gains and
 losses on foreign exchange transactions are recognised in the Profit and
 Loss Account.
 
 The Company uses derivative financial instruments such as forward
 exchange contracts to hedge its risks associated with foreign currency
 fuctuation.
 
 Gain or loss on restatement of forward exchange contracts for hedging
 underlying outstanding at the balance sheet date are recognised in the
 profit and loss account for the year in which it occurs. The premium or
 discount on such contracts is recognised in the profit and loss account
 over the period of the contract.
 
 Gain or loss on fair valuation of forward exchange contracts and
 embedded derivative contracts for hedging highly forecasted transaction
 are recognised in the profit and loss account for the year in which it
 occurs.
 
 I.  Derivative instruments (Commodity derivatives)
 
 In order to hedge its exposure to commodity price risk, the Company
 enters into non speculative hedges, such as forward, option or swap
 contracts and other appropriate derivative instruments. These
 instruments are used only for the purpose of managing the exposure to
 commodity price risk and not for speculative purposes. The premium and
 gains/ losses arising from settled derivative contracts, and mark to
 market (MTM) losses in respect of outstanding derivative contracts as
 at balance sheet date are credited for gains or charged for losses to
 the raw material consumed in so far as it relates to the derivative
 instruments taken to hedge risk of movement in price of Raw Material,
 the net MTM gains in respect of outstanding derivatives contracts are
 not recognized on conservative basis.
 
 J.  Export Obligations / Entitlements / Incentives:
 
 Beneft / (Obligation) on account of entitlement on export or deemed
 export orders, to import duty-free raw materials, under the various
 Exim Schemes are estimated and accounted in the year in which the
 export/deemed export orders are executed.
 
 K. Employee Benefts:
 
 Contributions to the recognised Provident Fund/Gratuity Fund and
 provision for other long term employee benefts- leave, defned beneft
 schemes, are made on the basis of actuarial valuations made at the end
 of each financial year are charged to the profit and loss account during
 the year.
 
 Actuarial gains and losses are recognised immediately in the profit and
 loss account.
 
 L. Operating Lease:
 
 Leases, where the lessor effectively retains substantially all the
 risks and benefts of ownership of the leased item, are classifed as
 operating leases. Operating lease payments are recognised as an expense
 in the profit and loss account on a straight-line basis over the lease
 term.
 
 M. Stock Based Compensation:
 
 In accordance with the Employee Stock Option Scheme (ESOS), the Company
 recognises the excess, if any, of the market price of the options
 granted as on the date of the grant over the exercise price of the
 options, and amortises it on a straight-line basis over the vesting
 period.
 
 N. Taxation:
 
 a.  Provision for Income Tax is made under the liability method after
 availing exemptions and deductions at the rates applicable under the
 Income Tax Act, 1961.
 
 b.  Deferred tax resulting from timing difference between book and tax
 profits is accounted for using the tax rates and laws that have been
 enacted as on the Balance Sheet Date.
 
 c.  Deferred tax assets arising on the temporary timing differences are
 recognised only if there is reasonable certainty of realisation.
 
 O. Impairment of Fixed Assets:
 
 The carrying amount of assets is reviewed periodically for any
 indication of impairment based on internal/external factors.  An
 impairment loss is recognized wherever the carrying amount of an asset
 exceeds its recoverable amount. The recoverable amount is the greater
 of the assets net selling price and value in use. In assessing value in
 use, the estimated future cash fows are discounted to their present
 value at the weighted average cost of capital. Post impairment,
 depreciation is provided on the revised carrying value of the asset
 over its remaining useful life.
 
 P.  Borrowing Costs:
 
 Interest and other costs in connection with the borrowing of the funds
 to the extent related / attributed to the acquisition / construction of
 qualifying fxed assets are capitalised up to the date when such assets
 are ready for its intended use and other borrowing costs are charged to
 the Profit & Loss Account.
 
 Q. Provisions for contingencies:
 
 A provision is recognised when:
 
 - The Company has a present obligation as a result of a past event;
 
 - It is probable that an outfow of resources embodying economic benefts
 which will be required to settle the obligation; and
 
 - A reliable estimate can be made of the amount of the obligation.
 
 A disclosure for a contingent liability is made when there is a
 possible obligation or a present obligation that may, but probably will
 not, require an outfow of resources. Where there is a possible
 obligation or a present obligation that the likelihood of outfow of
 resources is remote, no provision or disclosure is made.
 
 The Company provides for warranty cost based on a technical estimate of
 the costs required to be incurred for repairs, replacement, material
 cost, servicing and past experience in respect of warranty costs. It is
 expected that this expenditure will be incurred over the contractual
 warranty period.
 
 R. Research & Development
 
 All revenue expenses pertaining to research and development are charged
 to the profit and loss account in the year in which they are incurred
 and expenditure of capital nature is capitalised as fxed assets and
 depreciated as per the company''s policy.