1.  Method of accounting :
 
 The financial statements have been prepared under historical cost
 convention on accrual basis and comply with notified accounting
 standards as referred to in Section 211 (3C) and other relevant
 provisions of the Companies Act, 1956; unless otherwise specified.
 
 2.  Use of Estimates :
 
 The preparation of financial statements in conformity with the
 generally accepted accounting principles requires estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities on the date of financial statements and reported amounts of
 revenues and expenses during the reported period. Difference between
 the actual results and estimates are recognized in the period in which
 the results are known/ materialized.
 
 3.  Fixed Assets:
 
 Fixed assets are stated at cost, less accumulated depreciation or
 amortization.  Cost is inclusive of freight, duties, taxes (to the
 extent of credit not availed) and incidental expenses related to
 acquisition, installation, erection and commissioning.  Financing cost
 relating to acquisition of qualifying fixed assets are also included to
 the extent they relate to the period till such assets are ready to be
 put to use.  Goodwill is stated at a nominal value of Re.1/-
 
 4.  Depreciation and Amortization:
 
 a) Depreciation on Fixed Assets has been charged on Written Down Value
 Method in the manner and at the rates specified in Schedule XIV to the
 Companies Act, 1956, except as stated in Para (b) & (c) below.
 
 b) Cost of Leasehold Land is amortized over remaining period of lease
 agreement.
 
 c) Computer Softwares are being amortized over their estimated useful
 life of 6 years.
 
 5.  Investments:
 
 Long term investments are stated at cost. Provision is made to
 recognize the decline, other than temporary in nature, in carrying
 amount of such investments. Current investments are stated at the lower
 of cost or fair value.
 
 6.  Inventories:
 
 a) Inventories are valued at lower of cost or estimated net realizable
 value.
 
 b) Cost of raw materials, components, consumables, tools, stores and
 spares is arrived at on weighted average cost basis.
 
 c) Cost of finished goods and Work in progress is arrived at on the
 basis of weighted average cost of raw material and other cost of
 conversion thereof for bringing the inventories up to their present
 location and condition.
 
 7.  Foreign Currency Transactions:
 
 a) Initial Recognition: Foreign Currency Transactions are translated
 into Indian Rupee at the exchange rates prevailing on the date of
 transactions.
 
 b) Conversion: At the end of accounting year, the monetary items
 denominated in foreign currencies are restated at the exchange rates
 prevailing on the last day of the accounting year.
 
 c) Exchange Differences: The exchange differences arising on
 settlement/ conversion of foreign currency transactions are recognized
 in Profit and Loss Account.
 
 d) The financial statements of non-integral foreign operations are
 translated as per provisions of AS-11.
 
 8.  Research and Development Expenses
 
 a) Research and Development Expenses, other than Capital Expenses are
 charged to Profit and Loss Account as and when incurred.
 
 b) Capital expenditure incurred for research and development activities
 are included in respective Fixed Assets and Depreciation is provided as
 per rates specified, in Schedule XIV of the Companies Act, 1956.
 
 9.  Revenue Recognition:
 
 a) Sales are accounted for net of Central Sales Tax and Value Added
 Tax.
 
 b) Revenue from sale is recognized when the significant risks and
 rewards of ownership of goods have been passed to customers, which
 generally coincides with their removal from factory.
 
 c) Revenue from erection and commissioning services is recognized on
 percentage completion method.
 
 d) Interest income is recognized on accrual basis at applicable
 interest rate.
 
 e) Dividend income is recognized when the Company''s right to receive
 dividend is established.
 
 10.  Warranty Costs:
 
 Warranty obligations are accounted for as and when claims are admitted.
 
 11.  Employee Benefits:
 
 a) Short Term Employee Benefits :
 
 All employee benefits falling due wholly within twelve months of
 rendering the service are classified as short term employee benefits.
 Benefits such as salaries, wages, bonus and other allowances and short
 term compensated absences etc. are recognized in the period in which
 the employee renders the related service.
 
 b) Post-Employment Benefits:
 
 i.  Defined Contribution Plans:
 
 The State governed Employee Pension Scheme, Employees State Insurance
 Scheme, the Company''s Provident Fund administered by an independent
 Trust and the Company''s Superannuation Scheme are the defined
 contribution plans.  The liability on account of company''s contribution
 paid or payable under these schemes is recognized during the period in
 which the employee renders the related service and is charged to the
 Profit and Loss account. The Company has no further obligation beyond
 these contributions.
 
 ii.  Defined Benefit Plans:
 
 The employees'' gratuity fund scheme is the Company''s defined benefit
 plan. The present value of the obligation under the said defined
 benefit plan is determined on the basis of actuarial valuation from an
 independent actuary except that is mentioned in the note no.09 in B
 i.e. notes forming part of the accounts. Actuarial and/or actual gains
 and losses are recognized immediately in the Profit and Loss Account.
 
 c) Long Term Employee Benefits:
 
 The accruing liability on account of encashment of leave entitlement of
 employees as per the rules of the Company is determined and provided
 for on the basis of the actuarial valuation from an independent actuary
 except that is mentioned in the note no.09 in B i.e. notes forming part
 of the accounts. Actuarial and/or actual gains and losses are
 recognized immediately in the Profit and Loss Account.
 
 12.  Provision for Current and Deferred Tax:
 
 i.  Provision for Current Tax is made on the basis of estimated taxable
 income for the current accounting period and in accordance with the
 provisions of Income Tax Act, 1961.
 
 ii.  Provision for Deferred Tax resulting from Timing Difference''
 between books and taxable profits for the year is accounted for using
 the tax rates and laws that have been enacted or substantially enacted
 as on balance Sheet date.
 
 The deferred tax asset is recognized only to the extent that there is a
 reasonable certainty that the assets will be adjusted in future.
 
 13.  Borrowing Cost:
 
 Borrowing costs are charged to Profit and Loss Account, except in cases
 where borrowings are directly attributable to acquisition, construction
 or production of a qualifying asset. A qualifying asset is one which
 necessarily takes substantial period of time to get ready for intended
 use.
 
 14.  Impairment of Assets:
 
 Provision for impairment loss, if any, is recognised to the extent by
 which the carrying amount of an asset exceeds its recoverable amount.
 Recoverable amount is the higher of an asset''s net selling price and
 its value in use. Value in use is determined on the basis of the
 present value of estimated future cash flows expected to arise from the
 continuing use of an asset and from its disposal at the end of its
 useful life.
 
 15.  Provisions, Contingent Liabilities and Contingent Assets:
 
 i.  Provisions are recognized for liabilities that can be measured only
 by using a substantial degree of estimation, if :
 
 a.  The company has a present obligation as a result of past event,
 
 b.  The probable outflow of resources is expected to settle the
 obligation, and
 
 c.  The amount of obligation can be reliably estimated.  
 
 ii.  Contingent liabilities are disclosed in the case of:
 
 a.  A present obligation arising from a past event, when it is not
 probable that an outflow of resources will be required to settle the
 obligation.
 
 b.  A possible obligation unless the probability of outflow of
 resources is remote.  
 
 iii.  Contingent Assets are neither recognized nor disclosed.
 
 Provisions & Contingent Liabilities are disclosed after an evaluation
 of the facts and legal aspects and the amounts are reviewed at each
 balance sheet date
 
 16.  Change in accounting policy related to Warranty:
 
 In current year no provision for warranty expenses is made in the books
 according to change in policy last year.  The Company has incurred
 Rs.33.20 Lacs as warranty expenses in the current year. ( Previous year
 Rs.9.70 lacs).