a) Presentation and Disclosure of Financial Statements
 
 During the year ended 30th September, 2012, the revised Schedule VI
 notified under the Companies Act, 1956, has become applicable to the
 Company for preparation and presentation of its financial statements.
 The adoption of revised Schedule - VI does not impact recognition and
 measurement principles followed for preparation of financial
 statements. However, it has significant impact on presentation and
 disclosures made in the financial statements. The Company has also
 reclassified the previous figures in accordance with the requirements
 applicable in the current year.
 
 b) Use of Estimates
 
 The preparation of financial statements in conformity with Indian GAAP
 requires the management to make judgements, estimates and assumptions
 that effect the reported amount of revenues, expenses, assets and
 liabilities and the disclosure of the contingent liabilities, at the
 end of the reporting period. Although, these estimates are based on the
 management''s best knowledge of current events and actions, actual
 results could differ from these estimates. Any revision to the
 accounting estimates is recognised in the period in which the results
 are known.
 
 c) Tangible Fixed Assets
 
 Fixed assets are stated at cost or at replacement cost in case of
 revaluation, less accumulated depreciation/amortisation and impairment
 losses, if any. Cost of acquisition or construction is inclusive of all
 incidentals and other attributable costs of bringing the asset to its
 working condition for its intended use and is net of available duty/tax
 credits.
 
 d) Intangible Fixed Assets
 
 In accordance with AS 26 - Intangible Assets are valued at cost less
 accumulated amortisation and any impairment losses.
 
 i.  Prototypes including work-in-progress developed during Research and
 Development, tractors and parts thereof used for carrying R & D
 activities and advances given for tooling are written off over a period
 of four years.
 
 ii.  Technical know-how fee and expenditure on major Software products
 are written off over a period of six years.
 
 e) Impairment of Assets
 
 Impairment is ascertained at each balance sheet date in respect of cash
 generating units as per Accounting Standard 28 - ''Impairment of Assets''
 issued by Institute of Chartered Accountants of India. An impairment
 loss is recognised in books of account in the financial year concerned
 whenever the carrying amount of an asset exceeds its recoverable
 amount. The recoverable amount is the greater of the net selling price
 and value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value based on an appropriate
 discount factor.
 
 f) Depreciation and Amortisation
 
 i.  Depreciation on Plant and Machinery is provided on Straight Line
 Method.
 
 ii.  Depreciation on all other Fixed Assets is calculated on the basis
 of Diminishing Balance Method at the rates prescribed in Schedule XIV
 of the Companies Act, 1956 except Leasehold Land, which is amortised
 over the lease period.
 
 iii. The depreciation on assets acquired/ sold/ discarded/ demolished
 during the year is provided from/upto the month the asset is
 commissioned/sold or discarded.
 
 iv.  Assets costing upto Rs. 5,000 are depreciated fully in the year of
 purchase.
 
 v.  Leasehold Improvements are written off over a period of six years
 or lease period whichever is less.
 
 g) Inventory Valuation
 
 i.  Raw Material and Components, Stores and Machinery Spares are stated
 at lower of cost and net realisable value.
 
 ii.  Loose Tools are stated at cost or under.
 
 iii. Work-in-Progress, Finished and Trading Goods/Spare Parts are
 stated at lower of cost and net realisable value.
 
 iv.  In determining the cost of Raw Materials and Components, Tools,
 Jigs and Dies, Stores and Machinery Spares Weighted Average Cost Method
 is used while in the case of Trading goods FIFO Method is used.
 
 v.  Work-in-Progress and Finished Goods include cost of conversion and
 other costs incurred in bringing the Inventories to their present
 location and condition.
 
 h) Revenue Recognition
 
 Dividend is accounted for an accrual basis when the right to receive
 the dividend is established.
 
 Income recognition/provisions on non-performing assets is in accordance
 with the non-banking financial prudential norms (Reserve Bank)
 Directions, 2007.
 
 i) Research and Development
 
 Revenue expenditure incurred for research and development is charged to
 the Statement of Profit and Loss. Fixed assets purchased for research
 and development activities are capitalised in the year the same are put
 to use.
 
 j) Employee Benefits
 
 i) Defined Contribution Plan:
 
 Employees benefits in the form of provident fund, employee state
 insurance and labour welfare fund are considered as defined
 contribution plans and the contributions are charged to the Statement
 of Profit and Loss of the year when the contribution to respective
 funds are due.
 
 ii) Defined Benefit Plan:
 
 Retirement benefits in the form of Gratuity is considered as defined
 benefit obligations and are provided for on the basis of an actuarial
 valuation, using the projected unit credit method, as at the date of
 the balance sheet. Actuarial gain/losses are immediately recognised in
 the Statement Profit and Loss.
 
 iii) Other Long-Term Benefits:
 
 Long-term compensated absence is provided for on the basis of an
 actuarial valuation, using the projected unit credit method, as at the
 date of the balance sheet. Actuarial gain/losses are immediately
 recognised in the Statement of Profit and Loss.
 
 k) Investment
 
 Investments intended to be held for less than one year are classified
 as current investments and are carried at lower of cost or market
 value. All other investments are classified as long-term investments
 and are carried at cost. Investments in foreign companies are stated at
 the exchange rates prevailing on the date of investment. A provision
 for diminution is made to recognise a decline other than temporary in
 the value of long-term investments.
 
 l) Foreign Currency Transactions
 
 Transactions in foreign currency are recorded at the exchange rates
 prevailing at the dates of the transactions. Gains/losses arising out
 of fluctuation in exchange rates on settlement are recognised in the
 Statement of Profit and Loss.
 
 Foreign currency monetary assets and liabilities are restated at the
 Exchange Rate prevailing at the year-end and the overall net gain/loss
 is adjusted to the Statement of Profit and Loss.
 
 In case of Forward Exchange Contracts, the difference between the
 forward rate and the exchange rate at the date of transaction is
 recognised in the Statement of Profit and Loss over the life of the
 contract.
 
 m) Income Taxes
 
 Tax expense comprises current and deferred tax. Current income-tax is
 measured at the amount expected to be paid to the tax authorities in
 accordance with the Income-tax Act, 1961 enacted in India and tax laws
 prevailing in the respective tax jurisdictions where the company
 operates. The tax rates and tax laws used to compute the amount are
 those that are enacted or substantively enacted, at the reporting date.
 
 Minimum alternate tax (MAT) paid in a year is charged to the Statement
 of Profit and Loss as current tax. The company recognizes MAT credit
 available as an asset only to the extent that there is convincing
 evidence that the Company will pay normal income tax during the
 specified period, i.e.  the period for which MAT credit is allowed to
 be carried forward. In the year in which the Company recognizes MAT
 credit as an asset in accordance with the Guidance Note on Accounting
 for Credit Available in respect of Minimum Alternative Tax under the
 Income-tax Act, 1961, the said asset is created by way of credit to the
 Statement of Profit and Loss and shown as Minimum Alternative Tax
 Entitlement The Company reviews the Minimum Alternative Tax
 Entitlement asset at each reporting date and writes down the asset to
 the extent the Company does not have convincing evidence that it will
 pay normal tax during the specified period.
 
 Deferred Tax is recognised, subject to consideration of prudence, on
 timing differences, representing the difference between the taxable
 income/(loss) and accounting income/(loss) that originated in one
 period and are capable of reversal in one or more subsequent periods.
 Deferred Tax assets and liabilities are measured using tax rates and
 the tax laws that have been enacted or substantively enacted by the
 Balance Sheet date. Deferred Tax assets viz. unabsorbed depreciation
 and carry forward losses are recognised if there is virtual certainty
 that sufficient future taxable income will be available against which
 such deferred tax assets can be realised.
 
 n) Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition, construction
 of qualifying assets are capitalised as part of cost of such assets
 upto the date the assets are ready for its intended use.  All other
 borrowing costs are recognised as an expense in the year in which they
 are incurred.
 
 o) Deferred Revenue Expenditure
 
 i.  Development expenditure represents project related development
 expenditure/business process re-engineering consultancy and market
 research. Such expenditure is written off over a period of six years.
 
 ii.  Upfront and structuring fees are written off during the period of
 term of the respective loan.
 
 p) Employee Stock option Scheme
 
 In respect of stock options granted pursuant to Employees Stock Option
 Scheme, the intrinsic value of the options (Excess of market price of
 the share over the exercise price of the options) is accounted as
 employee compensation cost over the vesting period.
 
 q) Leases
 
 i.  Asset acquired under leases where the Company has substantially all
 the risks and rewards of ownership are classified as finance leases.
 Such assets are capitalised at the inception of the lease at the lower
 of the fair value or the present value of minimum lease payments and a
 liability is created for an equivalent amount. Each lease rental paid
 is allocated between the liability and the interest cost, so as to
 obtain a constant periodic rate of interest on the outstanding
 liability for each period.
 
 ii.  Assets acquired on leases where a significant portion of the risks
 and rewards of ownership are retained by the lessor are classified as
 operating leases. Lease rentals are charged to the Statement of Profit
 and Loss on accrual basis.
 
 r) Government Grants
 
 Government Grants are recognised when there is a reasonable assurance
 that the same will be received. Cash subsidies and capital grants
 relating to specific assets are reduced from the gross value of the
 respective assets, other capital grants and cash subsidies are credited
 to capital reserve.
 
 s) Provisions and Contingent Liabilities and Contingent Assets
 
 Provisions are recognised for liabilities that can be measured only by
 using a substantial degree of estimation, if
 
 i.  the Company has a present obligation as a result of a past event,
 
 ii.  a probable outflow of resources is expected to settle the
 obligation,
 
 iii. the amount of obligation can be reliably estimated.
 
 Reimbursements expected in respect of expenditure required to settle a
 provision is recognised only when it is virtually certain that the
 reimbursement will be received.
 
 Contingent liability is disclosed in case of
 
 i.  A present obligation arising from the past event, when it is not
 probable that an outflow of resources will be required to settle the
 obligation.
 
 ii.  A possible obligation, of which the probability of outflow of
 resources is remote.
 
 Contingent assets are neither recognised nor disclosed.
 
 Provisions, contingent liabilities and contingent assets are reviewed
 at each balance sheet date.