a) Use of estimates
 
 The preparation of financial statements in conformity with Indian GAAP
 requires management to make estimates and assumptions that affect the
 reported amount of assets, liabilities, revenues and expenses and
 disclosure of contingent liabilities on the date of the financial
 statements. The estimates and assumptions used in the accompanying
 financial statements are based upon management''s evaluation of the
 relevant facts and circumstances as on the date of financial statements
 which in management''s opinion are prudent and reasonable. Actual
 results may differ from the estimates used in preparing the
 accompanying financial statements. Any revision to accounting estimates
 is recognised prospectively in current and future periods.
 
 b) Fixed Assets/Intangible Assets
 
 Fixed assets are stated at acquisition cost less accumulated
 depreciation. Cost includes freight, duties, taxes and incidental
 expenses related to acquisition and installation incurred upto the date
 of commissioning of assets.
 
 Intangible assets are recognized if it is probable that the future
 economic benefits that are attributable to the assets will flow to the
 Company and cost of the assets can be measured reliably.
 
 Cost incurred on fixed assets which are not ready for their intended
 use as on Balance Sheet date is disclosed under capital
 work-in-progress.
 
 c) Depreciation
 
 Depreciation on fixed assets, except Press Tools, is provided on
 Straight Line Method as per the rates laid down in Schedule XIV to the
 Companies Act, 1956.
 
 For Press Tools, the Company has provided depreciation on the basis of
 estimated life of tools i.e., at 15% on Straight Line Method.
 
 Leasehold Land is amortised overthe residual period of the lease.
 
 Assets costing less than or equal to Rs.5,000 are depreciated at the
 rate of 100 percent in the period of acquisition on prorate basis of
 period of acquisition.
 
 d) Impairment of Assets
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognised wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the asset''s net selling price and value in use. In
 assessing value in use, the Company has measured its ''value in use1 on
 the basis of cash flows of next five years projections, estimation
 based on current prices.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life. A previously
 recognised impairment loss is increased or reversed depending on
 changes in circumstances. However the carrying value after reversal is
 not increased beyond the carrying value that would have prevailed by
 charging usual depreciation if there was no impairment.
 
 e) Inventories
 
 The Company has adopted the policy of valuing the inventories inline
 with the Accounting Standard 2 (''AS- 2'') Valuation of Inventory.
 
 f) Revenue Recognition .
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 * Sale of Goods
 
 The revenue in respect of sale of products is recognised on despatch of
 the material to the customer. Sales are stated net of trade discount,
 duties and sales tax.
 
 * Interest Income
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 g) Foreign Currency Transactions
 
 * Initial recognition
 
 Foreign currency transactions are recorded in the reporting currency
 which is Indian Rupee, by applying to the foreign currency amount the
 exchange rate between the reporting currency and the foreign currency
 at the date of the transaction.
 
 * Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction and non-monetary items which are carried
 at fair value or other similar valuation denominated in a foreign
 currency are reported using the exchange rates that existed when the
 values were determined.
 
 * Exchange Differences
 
 Exchange differences arising on long-term foreign currency monetary
 items related to acquisition of a fixed asset are capitalized and
 depreciated over the remaining useful life of the asset. For this
 purpose, the Company treats a foreign monetary item as a longterm
 foreign currency monetary item, if it has a term of 12 months or more
 at the date of the origination.
 
 Exchange differences arising on other long-term foreign currency
 monetary items are accumulated in the Foreign Currency Monetary Item
 Translation Difference Account and amortized over the remaining life
 of the concerned monetary item.
 
 All other exchange differences are recognised as income or as expenses
 in the period in which they arise.
 
 h) Retirement and Other Employee Benefits
 
 * Short term employee benefit
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short- term employee benefits. These
 benefits include short term compensated absences such as paid annual
 leave. The undiscounted amount of short-term employee benefits expected
 to be paid in exchange for the services rendered by employees is
 recognized as an expense during the period. Benefits such as salaries
 and wages, etc. and the expected cost of the bonus / ex-gratia are
 recognised in the period in which the employee renders the related
 service.
 
 * Post employment employee benefits Defined Contribution schemes
 
 Contributions to the Provident Fund, Family pension fund and Employee''s
 State Insurance Fund are charged to the Statement of Profit and Loss of
 the year when the contributions to the respective funds are due.
 
 Defined benefits plans
 
 The Company''s gratuity benefit scheme is a defined benefit plan. The
 Company''s net obligation in respect of the gratuity benefit scheme is
 calculated by estimating the amount of future benefit that employees
 have earned in return for their service in the current and prior
 periods; that benefit is discounted to determine its present value, and
 the fair value of any plan assets is deducted.  -
 
 The present value of the obligation under such defined benefit plan is
 determined based on actuarial valuation, carried out by an independent
 actuary at each Balance Sheet date, using the Projected Unit Credit
 Method, which recognizes each period of service as giving rise to an
 additional unit of employee benefit entitlement and measures each unit
 separately to build up the final obligation.
 
 The obligation is measured at the present value of the estimated future
 cash flows. The discount rates used for determining the present value
 of the obligation under defined benefit plan are based on the market
 yields on Government Securities as at the Balance Sheet date.
 
 Actuarial gains and losses are recognised immediately in the Statement
 of Profit and Loss.
 
 The Company makes annual contribution to Life Insurance Corporation of
 India for the gratuity plan in respect of employees covered as per
 provisions of Gratuity Act.
 
 Other long term employee benefits
 
 Liabilities towards compensated absences to employees are accrued on
 the basis of valuations, as at the Balance Sheet date, carried out by
 an independent actuary using Projected Unit Credit Method. Actuarial
 gains and losses comprise experience adjustments and the effects of
 changes in actuarial assumptions and are recognised immediately in the
 Statement of Profit and Loss.
 
 Some employees of the Company are entitled to superannuation, a defined
 contribution plan which is administrated through Life Insurance
 Corporation of India (LIC). Superannuation benefits are recognised in
 the Profit & Loss account.
 
 i) Leases
 
 Assets taken under leases, where the lessor effectively retains
 substantially all the risks and benefits of ownership of the leased
 term, are classified as operating leases. Operating lease payments are
 recognized as an expense in the Statement of Profit and Loss on a
 straight-line basis over the lease term.
 
 j) Borrowing Cost
 
 Borrowing costs, including exchange differences arising from foreign
 currency borrowings to the extent that they are regarded as an
 adjustment to interest costs, directly attributable to acquisition or
 construction of those fixed assets which necessarily take a substantial
 period of time to get ready for their intended use are capitalised.
 Other borrowing costs are recognised as an expense.
 
 k) Taxation
 
 Income-tax expense comprises current tax, deferred tax charge or
 credit.
 
 Current tax
 
 Provision for current tax is made for the tax liability payable on
 taxable income after considering tax allowances, deductions and
 exemptions determined in accordance with the prevailing tax laws.
 
 Deferred tax
 
 Deferred tax liability or asset is recognized for timing differences
 between the profits/losses offered for income tax and profits/losses as
 per the financial statements. Deferred tax assets and liabilities are
 measured using the tax rates and tax laws that have been enacted or
 substantively enacted at the Balance Sheet date.
 
 Deferred tax asset is recognized only to the extent there is reasonable
 certainty that the assets can be realized in future; however, where
 there is unabsorbed depreciation or carried forward loss under taxation
 laws, deferred tax asset is recognized only if there is a virtual
 certainty of realization of such asset. Deferred tax asset is reviewed
 as at each Balance Sheet date and written down or written up to reflect
 the amount that is reasonably/virtually certain to be realized.  ''
 
 I) Expenditure on Tools, Dies, Jigs and Fixtures
 
 In respect of tools, dies, etc, which has been fully depreciated in the
 books of accounts, but found by the Company that the same are having
 usage value and accordingly the expenditure incurred in reconditioning
 of such tools & dies are capitalised.
 
 m) Provisions and Contingencies
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event and it is probable that an outflow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made. Provisions are not discounted to
 their present values and are determined based on management estimate
 required to settle the obligation at the Balance Sheet date. These are
 reviewed at each Balance Sheet date and adjusted to reflect the current
 management estimates.
 
 Contingent liabilities are disclosed in respect of possible obligations
 that have arisen from past events and the existence of which will be
 confirmed only by the occurrence or non-occurrence of future events not
 wholly within the control of the Company.
 
 When there is an obligation in respect of which the likelihood of
 outflow of resources is remote, no provision ordisclosure is made.