The accounts have been prepared primarily on the historical cost
 convention and in accordance with the relevant provisions of the
 Companies Act, 1956 and the accounting standards notified by the
 Companies (Accounting Standards) Rules, 2006.  The significant
 accounting policies followed by the company are stated below:
 
 I.  USE OF ESTIMATES
 
 The preparation of financial statements in conformity with the
 generally accepted accounting principles requires the management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities and disclosure relating to contingent
 liabilities as at the date of the financial statements and the reported
 amounts of revenue and expenses during the reported year.
 
 Accounting estimates could change from period to period. Appropriate
 changes in estimates are made as the management becomes aware of
 changes in circumstances surrounding the estimates. The effects of
 changes in accounting estimates are reflected in the financial
 statements in the period in which changes are made and, if material,
 their effects are disclosed in the notes to the financial statements.
 
 II.  FIXED ASSETS
 
 Fixed assets are shown at cost / revalued amount less depreciation.
 Cost comprises the purchase price and other attributable expenses.
 
 III.  DEPRECIATION ON FIXED ASSETS
 
 (i) The Company follows the straight-line method of charging
 depreciation on all its fixed assets. The Depreciation has been
 provided in the manner and at the rates prescribed in Schedule XIV to
 the Companies Act, 1956 on all the assets except certain equipments
 which are depreciated over their estimated useful life.
 
 (ii) Leasehold land is being amortized in equal installments over the
 lease period.
 
 (iii) Technical Know-how is amortised over a period of five to seven
 years.
 
 IV.  IMPAIRMENT OF ASSETS
 
 To provide for impairment loss, if any, to the extent, the carrying
 amount of assets exceeds their recoverable amount.  Recoverable amount
 is higher of an assets net selling price and its value in use. Value in
 use is 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
 
 V.  INVESTMENTS
 
 Current Investments are valued at lower of cost and fair value. Long
 Term Investments are valued at cost. Where applicable, provision is
 made if there is a permanent decline, in valuation of long term
 Investments.
 
 VI.  INVENTORIES
 
 Inventories are valued at lower of cost and net realizable value. The
 method of arriving at cost of various categories of inventories is as
 below:
 
 (a) Stores and Spares, Raw and Packing material Weighted Average method
 
 (b) Finished goods and Work-in-process Weighted average cost of
 production, which comprises direct material costs, and appropriate
 overheads.
 
 (c) Contracts-in-progress Represents expenses incurred on execution of
 contracts till balance sheet date
 
 VII. FOREIGN CURRENCY TRANSACTIONS
 
 Transactions made during the year in foreign currency are recorded at
 the exchange rate prevailing at the time of transaction. Assets and
 Liabilities related to foreign currency transactions remaining
 unsettled at the year end are translated at the contract rates when
 covered by forward cover contracts and at year-end rates in other
 cases.  Realised gains and losses on foreign exchange transactions
 other than those relating to fixed assets are recognised in the profit
 and loss account except gain/loss on transaction of long term
 liabilities incurred to acquire fixed assets is treated as an
 adjustment to the carrying cost of fixed assets.
 
 VIII.  REVENUE RECOGNITION
 
 a) Sale of goods is recognized at the point of dispatch of finished
 goods to customers. Sales include amount recovered towards excise duty
 but exclude sales tax. Export incentive under the Duty Entitlement Pass
 Book scheme has been recognized on the basis of credits afforded in the
 passbook.
 
 b) Income from services is recognized at the time of rendering the
 services.
 
 c) Income from Property Development is recognized as soon as contract
 is entered with the Party and the consideration is received.
 
 d) Contract revenue is recognised on percentage completion method as
 required under revised Accounting Standard -7 - Construction Contracts.
 The stage of completion is determined as a proportion that contract
 costs bear to the estimated total costs. When it is probable that at
 any stage of the contract, that the total cost will exceed the total
 contract revenue, the expected loss is recognised immediately.
 
 IX.  RESEARCH AND DEVELOPMENT EXPENSES
 
 Research and Development expenditure of revenue nature is written off
 in the year in which it is incurred and expenditure of a capital nature
 is added to fixed assets.
 
 X.  EMPLOYEE RETIREMENT BENEFITS
 
 Retirement benefits to employees are provided for by means of gratuity,
 superannuation and provident fund.
 
 The gratuity liability is determined based on the actuarial valuation
 as at the year end.
 
 Payments in respect of superannuation are made to the fund administered
 by LIC.
 
 Provision in respect of compensated absences is made based on actuarial
 valuation as at year end.
 
 Contribution to Provident fund is based on defined contribution and
 expensed as incurred.
 
 XI.  PROVISIONS AND CONTINGENCIES
 
 The company creates a provision if there is a present obligation as a
 result of past events, the settlement of which results in an outflow
 economic benefits and a reliable estimate can be made of the amount of
 obligation. Provisions are determined by the best estimate of the
 outflow of economic benefits required to settle the obligation at the
 reporting date. A disclosure for a contingent liability is made when
 there is a possible obligation or a present obligation that probably
 will not require an outflow of resources or where a reliable estimate
 of the obligations cannot be made.
 
 XII.  TAXES ON INCOME
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the year.
 
 Deferred tax is recognized subject to the consideration of prudence in
 respect of deferred tax assets on timing differences, being the
 difference between taxable income and accounting income that originate
 in one period and are capable of reversal in one or subsequent periods.
 
 XIII.  SEGMENT REPORTING
 
 The accounting policy adopted for Segment Reporting is in line with the
 accounting policy of the Company with the following additional policy
 for Segment Reporting:- Revenue and expenses have been identified to
 segments on the basis of their relationship to the operating activities
 of the segment. Revenue and expenses, which relate to the enterprise as
 a whole and are not allocable to the segments on a reasonable basis,
 have been included under Unallocated Expenses. Inter Segment
 transfers are at cost.