a) Preparation of financial statements
 
 The financial statements have been prepared under the historical cost
 convention, in accordance with Generally Accepted Accounting Principles
 in India and the provisions of Companies Act, 1956.
 
 b) Method of Accounting
 
 The Company follows mercantile system of accounting and recognizes
 income and expenditure on accrual basis.
 
 c) Fixed Assets
 
 Fixed Assets are stated at their original cost of acquisition, net of
 accumulated depreciation and CENVAT credit, and include taxes, freight
 and other incidental expenses related to their acquisition /
 construction / installation. Pre-operative expenses relatable to a
 specific project are capitalised till all the activities necessary to
 prepare the qualifying asset for its intended use are completed.
 Expenses capitalized also include applicable borrowing costs.
 
 d) Investments
 
 Investments are classified into current and long-term investments.
 Current Investments are carried at lower of cost or fair market value.
 Any diminution in their value is recognized in the profit and loss
 account.  Long-term investments, including investment in subsidiaries,
 are carried at cost.  Diminution of temporary nature in the value of
 such long-term investments is not provided for except when such
 diminution is determined to be of a permanent nature.
 
 e) Inventories
 
 Inventories are valued at cost or net realizable value, whichever is
 less. Cost comprises of expenditure incurred in the normal course of
 business in brining such inventories to its their location. Finished
 goods at the factory are valued at cost in all applicable cases.
 Obsolete, non-moving and defective inventories are identified at the
 time of physical verification of inventories and adequate provision,
 wherever necessary, is made for such inventories.
 
 f) Intangible Assets
 
 Intangible Assets are recognized in the Balance Sheet at cost, net of
 any accumulated amortization / impairment.  Preliminary expenses are
 amortized over a period of 5 years. De-merger expenses are amortized
 over a period of ten years.
 
 g) Research and Development
 
 Capital expenditure on Research and Development is included in the
 Schedule of Fixed Assets. Revenue expenditure relating to the Research
 phase is charged to the Profit and Loss account. Revenue Expenditure
 relating to the Development phase is amortized over the period in which
 the future economic benefits are expected to accrue to the Company, but
 not exceeding a period of five years, & the amortization commences from
 the year in which the company realizes these benefits for the first
 time.
 
 h) Revenue Recognition
 
 Income is recognized when the goods are dispatched in accordance with
 terms of sale.  Sale is inclusive of excise duty.
 
 In respect of income from services, income is recognized as and when
 the rendering of services is complete. Revenue from time period
 services is recognized on the basis of time incurred in providing such
 services.
 
 i) Retirement Benefits
 
 Company makes monthly contribution to the Employees Provident Fund and
 Pension Fund under the provisions of Employees Provident Fund and
 Miscellaneous Provisions Act, 1952. Company provides for accrued
 liability in respect of gratuity and leave encashment on actuarial
 valuation.
 
 j) Borrowing Costs
 
 Borrowing costs that are directly attributable to the acquisition or
 construction of a qualifying asset are capitalized as part of cost of
 such asset. Other borrowing costs are treated as a period cost and are
 expensed in the year of occurrence.
 
 k) Depreciation
 
 Depreciation is provided on straight-line method at the rates specified
 in Schedule XIV to the Companies Act, 1956.  Depreciation on assets
 added, sold or discarded is provided for on pro-rata basis.
 
 l) Foreign Currency Transaction
 
 Foreign currency transactions, being in the nature of integral
 operations, are accounted for at the rates of exchange prevailing as on
 the date of transaction. Gains and losses resulting from settlement of
 such transactions and from translation of monetary assets and
 liabilities denominated in foreign currencies are recognized in the
 profit and loss account. Exchange differences relating to fixed assets
 are adjusted to the cost of the asset.
 
 m) Government Grants / Incentives
 
 Amounts receivable from Government by way of Grants / Incentives are
 accounted for on receipt basis and same is to adjust against the cost
 of the assets . Incentives by way of Sales tax deferment are recognized
 as loan to the extent of their utilization.
 
 n) Impairment of assets
 
 An asset is treated as impaired when the carrying cost of the asset
 exceeds its recoverable value. An impairment loss is charged to the
 Profit and Loss account in the year in which an asset is identified as
 impaired.
 
 o) Income and Deferred Tax
 
 The provision made for income tax in the accounts comprises both the
 current and deferred tax. Current tax is provided for on the taxable
 income for the year. The deferred tax assets and liabilities for the
 year arising on account of timing differences (net) are recognized in
 the Profit and Loss account and the cumulative effect thereof is
 reflected in the Balance Sheet.
 
 p) Contingent Liabilities and Contingent Assets
 
 Liabilities, which are contingent in nature, are not recognized in the
 books of account but are disclosed separately in the Notes.  Contingent
 Assets are neither recognized nor disclosed in the books of account.
 
 q) Claims
 
 Claims made by the Company are recognized to the extent the Company
 deems them recoverable. Claims against the Company, including
 liquidated damages, are recognized only on acceptance basis.