a.  Basis of Accounting
 
 The Company prepares its accounts under the Historical Cost Convention
 modified by revaluation of fixed assets. The financial statements have
 been prepared to comply in all material respects with the Accounting
 Standards notified by the Companies Accounting Standards Rules, 2006
 (as amended) and the relevant provisions of the Companies Act, 1956.
 For recognition of Income and expenses, Mercantile System of Accounting
 is followed. The accounting policies applied by the Company, are
 consistent with those used in the previous year.  a.  Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon managements best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 c.  Revenue Recognition Sale of Goods
 
 Revenue from sale of goods including manufactured products is
 recognised upon passage of title to the customers, which generally
 coincides with delivery.
 
 Customs Duty benefits in the form of advance license entitlements are
 recognised on export of goods, and are set off from material costs.
 
 Interest
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 Dividends
 
 Revenue is recognised when the shareholders right to receive payment
 is established by the balance sheet date.  However, Dividend from
 subsidiaries is recognised even if the same are declared after the
 balance sheet date but pertains to period on or before the date of
 balance sheet, as per the requirement of schedule VI of the Companies
 Act, 1956.
 
 d.  Fixed Assets
 
 Fixed Assets are stated at cost (or revalued amounts, as the case may
 be) less accumulated depreciation and impairment losses, if any. Cost
 comprises of Purchase price inclusive of duties (net of Cenvat), taxes,
 incidental expenses, erection/commissioning expenses etc upto the date
 the asset is ready for its intended use. In case of revaluation of
 fixed assets, the original cost as written up by the valuer, is
 considered in the accounts and the differential amount is transferred
 to revaluation reserve.
 
 The carrying amounts of assets are reviewed at each balance sheet date
 to determine if there is any indication of impairment based on
 external/internal factors. An impairment loss is recognised wherever
 the carrying amount of an asset exceeds its recoverable amount which
 represents the greater of the net selling price of assets and their
 ‘Value in use.  The estimated future cash flows are discounted to
 their present value at the weighted average cost of capital.
 
 e.  Investments
 
 Investments that are readily realizable and intended to be held for not
 more than a year are classified as current investments.  All other
 investments are classified as Long-Term investments. Current Quoted
 Investments are stated at lower of cost or market rate on individual
 investment basis. Long Term Investments are considered at cost, unless
 there is other than temporary decline in value thereof, in which case
 adequate provision is made for diminution in the value of investments.
 Investments in foreign companies are carried at exchange rates
 prevailing on the date of their acquisition.
 
 f.  Depreciation
 
 i) The classification of plant & machinery into continuous and
 non-continuous process is done as per technical certification and
 depreciation thereon is provided accordingly.
 
 ii) a) Depreciation is provided on straight-line method at the rates
 and in the manner specified in Schedule XIV of the Companies Act, 1956,
 except for the assets shown in (b) below. Further, in respect of
 certain assets whose residual economic life, as determined by the
 approved valuer, is less than the residual life as per the books,
 depreciation is provided at the adjusted higher rates so that the value
 thereof is written off over the economic life determined by the valuer.
 
 c) The Company has estimated the residual value of Plant & Machinery,
 moulds and computers to be 2% of the cost as against 5% specified in
 Section 205 (2)(c) of the Companies Act, 1956. Accordingly, 98% of the
 value of fixed assets is being depreciated in the accounts.
 
 d) Acquired Goodwill and Softwares are amortised over a period of five
 years.
 
 iii.  Depreciation includes amount written off in respect of leasehold
 properties over the respective lease period.  iv.  Depreciation on
 fixed assets added/disposed off during the year is provided on pro-rata
 basis with reference to the
 
 month of addition/disposal.  v.  In case of impairment, if any,
 depreciation is provided on the revised carrying amount of the assets
 over its remaining useful life.  g.  Intangible Assets
 
 Research and Development Costs
 
 Research costs are expensed as incurred. Development expenditure
 incurred on an individual project is carried forward when its future
 recoverability can reasonably be regarded as assured. Any expenditure
 carried forward is amortised over the period of expected future sales
 from the related project, not exceeding ten years.
 
 The carrying value of development costs is reviewed for impairment
 annually when the asset is not yet in use, and otherwise when events or
 changes in circumstances indicate that the carrying value may not be
 recoverable.  Acquired computer software and licenses are capitalised
 on the basis of costs incurred to bring the specific intangibles to its
 intented use. These cost are amortized on a straight-line basis over
 their estimated useful life of five years.
 
 h.  Leases:
 
 i) Finance lease:
 
 In order to comply with Accounting Standard - 19 Notified by the
 Companies Accounting Standard Rules, 2006 a ) Assets given under a
 finance lease are recognized as receivable at an amount equal to the
 net investment in the lease. Lease rentals are apportioned between
 principal and interest as per the IRR method. The principal amount
 received reduces the net investment in the lease and interest is
 recognized as revenue. Initial direct costs such as legal charges,
 brokerage etc are recognized immediately in the Profit & Loss Account.
 b) Assets acquired under finance leases, which effectively transfer to
 the Company substantially all the risks and benefits incidental to
 ownership of the leased items, are capitalized at the lower of the fair
 value and present value of the minimum lease payments at the inception
 of the lease term and disclosed as leased assets. Lease payments are
 apportioned between the finance charges and reduction of the lease
 liability so as to achieve a constant rate of interest on the remaining
 balance of the liability. Finance charges are charged directly against
 income.  Leased assets capitalised are depreciated over the shorter of
 the estimated useful life of the asset or the lease term.  ii)
 Operating leases:
 
 a) Assets acquired under Operating Leases represent assets where the
 lessor effectively retains substantially all the risks and benefits of
 their ownership. Operating lease payments are recognised as an expense
 in the Profit and Loss Account on a straight-line basis over the lease
 term.
 
 b) Assets given under operating leases are included in fixed assets.
 Lease income is recognized in the Profit and Loss Account on a
 straight-line basis over the lease term. Costs, including depreciation
 are recognized as an expense in the Profit and Loss Account.
 
 i.  Foreign Currency Transactions 
 
 i) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 ii) 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.  
 
 iii) Exchange Differences
 
 Exchange differences arising on the settlement / conversion of monetary
 items, are recognised as income or expenses in the year in which they
 arise.
 
 iv) Forward Exchange Contracts
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortised as expense or income over the life of the
 contract. Exchange differences on such contracts are recognised in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognized as income or as expense for the
 year.
 
 j.Inventories
 
 i) Raw materials, components, stores and spares are valued at Lower of
 cost and net realizable value. However, materials and other items held
 for use in the production of inventories are not written down below
 cost if the finished products in which they will be incorporated are
 expected to be sold at or above cost. Cost is determined on a weighted
 average basis.
 
 ii) Work-in-progress and finished goods are valued at Lower of cost and
 net realizable value. Cost includes direct materials and labour and a
 proportion of manufacturing overheads based on normal operating
 capacity.  Cost of finished goods includes excise duty. Cost is
 determined on a weighted average basis.  Net realizable value is the
 estimated selling price in the ordinary course of business, less
 estimated costs of completion and to make the sale.
 
 k.  Borrowing Costs
 
 Borrowing costs attributable to the acquisition and/or construction of
 qualifying assets are capitalized as a part of the cost of such assets,
 upto the date when such assets are ready for their intended use. Other
 borrowing costs are charged to Profit and Loss Account.
 
 l.  Expenditure on new projects and substantial expansion
 
 Expenditure directly relating to construction activity are capitalised.
 Indirect expenditure incurred during construction period are
 capitalised as part of the indirect construction cost to the extent to
 which the expenditure are indirectly related to construction or are
 incidental thereto. Other indirect expenditure (including borrowing
 costs) incurred during the construction period which are not related to
 the construction activity nor are incidental thereto, are charged to
 the Profit and Loss Account. Income earned during construction period,
 if any, is deducted from the total of the indirect expenditure.
 
 All direct capital expenditure on expansion are capitalised. As regards
 indirect expenditure on expansion, only that portion is capitalised
 which represents the marginal increase in such expenditure involved as
 a result of capital expansion. Both direct and indirect expenditure are
 capitalised only if they increase the value of the asset beyond its
 original standard of performance.  m. Excise Duty
 
 Excise Duty is accounted for at the point of manufacture of goods and
 accordingly, is considered for valuation of finished goods stock lying
 in the factories as on the balance sheet date.  n.  Retirement and
 other employee benefits
 
 i) Retirement Benefit in the form of Provident Fund is a defined
 contribution scheme and the contributions are charged to the Profit and
 Loss Account of the year when the contributions to the respective funds
 are due. There are no obligations other than the contribution payable
 to the respective trusts.
 
 ii) Gratuity liability and Post employment Medical Benefit liability
 are defined benefit obligations and are provided for on the basis of an
 actuarial valuation made at the end of each financial year.
 
 iii) Long term compensated absences are provided for based on an
 actuarial valuation made at the end of each financial year.
 
 iv) Payments made under the Voluntary Retirement Scheme are charged to
 the Profit and Loss account.
 
 v) Pension liability is split into a defined benefit portion and a
 defined contribution portion as indicated in note no. ‘r.  The
 contributions towards defined contribution are charged to the Profit
 and Loss account of the year when the contribution becomes due. The
 Defined benefit portion is provided for on the basis of an actuarial
 valuation made at the end of each financial year.  vi) Actuarial
 gains/losses are immediately taken to profit and loss account and are
 not deferred.  o.  Product Related Warranty/Guarantee Claims
 
 Provision for product related warranty/guarantee costs is based on the
 claims received upto the year end as well as the management estimates
 of further liability to be incurred in this regard during the warranty
 period, computed on the basis of past trend of such claims.  p.
 Taxation
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Indian Income Tax Act. Deferred income taxes
 reflects the impact of current year timing differences between taxable
 income and accounting income for the year and reversal of timing
 differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date.  Deferred
 tax assets are recognised only to the extent that there is reasonable
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realised. In situations
 where the company has unabsorbed depreciation or carry forward tax
 losses, all deferred tax assets are recognised only if there is virtual
 certainty supported by convincing evidence that they can be realised
 against future taxable profits.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The company writes down the carrying amount of the deferred
 tax assets to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realized. Any such write-down is reversed to the extent that it becomes
 reasonable certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 q.  Earning per share
 
 Earnings per share is calculated by dividing the net profit or loss for
 the year attributable to equity shareholders by the weighted average
 number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 r.  Provision
 
 A provision is recognized 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 made in terms of
 Accounting Standard-29, are not discounted to its present value and are
 determined based on the 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.
 
 s.  Segment reporting
 
 Based on the synergies risks and returns associated with business
 operations and in terms of Accounting Standard - 17, the Company is
 predominantly engaged in a single reportable segment of Lead Acid
 Storage Batteries during the year.  The analysis of geographical
 segments is based on the areas in which customers of the Company are
 located.
 
 t.  Contingent Liabilities
 
 No provision is made for liabilities, which are contingent in nature,
 but if material, these are disclosed by way of notes.
 
 VI. Figures in brackets relate to previous year and the same have been
 regrouped/rearranged where necessary.