a) BASIS OF PREPARATION
 
 The financial statements have been prepared to comply in all material
 respects with the mandatory Accounting Standards issued by the
 Institute of Chartered Accountants of India and the relevant provisions
 of the Companies Act, 1956. The financial statements have been prepared
 under the historical cost convention, except where otherwise stated,
 and on an accrual basis. The accounting policies have been consistently
 applied by the Company and are consistent with those used in the
 previous year.
 
 b) USE OF ESTIMATES
 
 The preparation of financial statements are in conformity with
 generally accepted accounting principles & it requires management to
 make estimates and assumptions that effect 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 end. Although these estimates are based upon
 managements best knowledge of current events and actions, actual
 results could differ from these estimates.
 
 c) FIXED ASSETS
 
 Fixed Assets are stated at cost less accumulated depreciation and
 impairment losses, if any. Cost comprises the purchase price and any
 directly attributable cost of bringing the asset to its working
 condition for its intended use.  Financing cost relating to acquisition
 of fixed assets are also included to the extent they relate to the
 period till such assets are ready to be put to use. Expenditure for
 addition, improvement and renewal are capitalized and expenditure for
 repairs and maintenance are charged to Profit & Loss Account. Expenses
 specifically attributable to completion of project are considered as
 part of project cost.
 
 d) BORROWING COST
 
 Borrowing cost related to acquisition or construction of the qualifying
 fixed assets for the period up to the completion of their acquisition
 or construction are included in the book value of the respective assets
 and other borrowing costs are charged to profit & loss account.
 
 e) DEPRECIATION
 
 i) Depreciation is provided on straight line method as prescribed in
 Schedule XIV of the Companies Act, 1956.
 
 ii) Lease hold land is amortized over the period of lease.
 
 iii) Depreciation on the amount of addition made to fixed assets due to
 up gradation /improvement is provided at the rate applied to the
 existing assets.
 
 iv) Intangible assets are accounted for at their cost of acquisition &
 amortized over their estimated economic life not exceeding 5years.
 
 v) Research & Development are accounted for at their cost of
 acquisition /generation .
 
 f) EMPLOYEE BENEFITS
 
 (a) Short-term Employee benefits :
 
 All employee benefits payable wholly within twelve months of rendering
 the service are classified as short-term employee benefits. These
 benefits include 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 during
 the period.
 
 (b) Post-employment benefits:
 
 (i) Retirement benefits in the form of the Companys contribution to
 Provident Fund are charged to the Profit & Loss Account of the year
 when the contributions to the respective funds are due.
 
 (ii) The Companys gratuity benefit scheme is a defined benefit plan.
 The Companys 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
 determine based on actuarial valuation using the projected unit Credit
 method, which recognizes each period of service as giving rise to
 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 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.
 
 When the calculation results in a benefit to the company, the
 recognized asset is limited to the net total of any unrecognized
 actuarial losses and past service costs and the present value of any
 future refunds from the plan or reductions in future contributions to
 the plan.
 
 Actuarial gains and losses are recognized immediately in the profit &
 loss account.
 
 (c) Other Long-term employment benefits:
 
 Compensated absences which are not expected to occur within twelve
 months after the end of the period in which the employee renders the
 related services, are provided for on the basis of actuarial valuation
 made at the end of each financial year.
 
 g) FOREIGN EXCHANGE TRANSACTION
 
 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 transactions.
 
 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 Difference:
 
 Exchange differences arising on the settlement of monetary items or on
 restatement of reporting Companys monetary items at rates different
 from those at which they were initially recorded during the year, or
 reported in previous financial statements, are recognized as income or
 as expenses in the year in which they arise.
 
 Forward Exchange Contracts :( Derivative Instruments) not intended for
 trading or speculation purposes:-
 
 The company uses derivative financial instruments including forward
 exchange contracts to hedge its risk associated with foreign currency
 fluctuations. 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 & 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.
 
 h) INVENTORY VALUATION
 
 Inventories are valued as follows:
 
 Raw Materials & Others:
 
 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 transaction moving weighted average.
 
 Work in Progress and Finished Goods
 
 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 where
 ever applicable.
 
 By Products and Waste – Net realizable value.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and to make the
 sale.
 
 i) Leases:
 
 Where the company is lessee:- Finance leases, which effectively
 transfer to the company substantially all the risks and benefits
 incidental to ownership of the leased item, 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 are disclosed as leased assets.
 Lease payments are apportioned between the finance charges and
 reduction of the lease liability based on the implicit rate of return.
 Finance charges are charged directly against income. Lease management
 fees, legal charges and other initial direct costs are capitalized.
 
 It there is no reasonable certainty that the company will obtain the
 ownership by the end of the lease term, capitalized leased assets are
 depreciated over the shorter of the estimated useful life of the asset
 or the lease term.
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit & Loss Account on a straight line basis over the lease
 term.
 
 j) 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
 measured. Sale of Goods Revenue is recognized when the significant
 risks and rewards of ownership of the goods have been passed to the
 buyer. Sales are net of return, volume discount and sales/vat tax but
 including excise duty.
 
 i) Warranty claims settled including replacements are adjusted against
 sales.
 
 ii) Interest: Interest is recognized on a time proportion basis taking
 into account the amount outstanding at the applicable date.  
 
 iii) Dividend:
 
 Dividend is recognized when the shareholders right to receive payment
 is established by the balance sheet date.
 
 k) INVESTMENT
 
 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
 investments and investments held for sale are carried at lower of cost
 and fair value determined on an individual investment basis. Long term
 investments are carried at cost. However, provision for diminution in
 value is made to recognize a decline other than temporary in the value
 of such investments.
 
 l) INCOME TAX
 
 Tax expense comprises of current, deferred tax. Current income tax is
 measured at the amount expected to be paid to the tax authorities in
 accordance with the Income Tax Act, 1961.  Deferred income taxes
 reflects the impact of current year timing differences between taxable
 income and accounting income for the year and reversal of timing
 difference of earlier year.
 
 Deferred taxes are measured based on the tax rates and the tax law
 enacted or substantively enacted at the balance sheet date. Deferred
 assets are recognized only to the extend that there is reasonable
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realized. If the company
 has carry forward of unabsorbed depreciation and tax losses, deferred
 tax assets are recognized only if there is virtual certainty that such
 deferred tax assets can be realized against future taxable profits.
 Unrecognized deferred tax assets of earlier year are reassessed and
 recognized to the extent that it has become reasonable certain that
 future taxable income will be available against which such deferred tax
 assets be realised.
 
 Minimum Alternative Tax (MAT) Credit is recognised as an asset only
 when and to the extent there is convincing evidence that the company
 will pay normal Income Tax during the specified period. In the year in
 which the Minimum Alternative Tax (MAT) Credit becomes eligible to be
 recognized as an asset in accordance with the recommendations contained
 in guidance note issued by the Institute of Chartered Accountants of
 India, the said asset is created by way of a Credit to the Profit &
 Loss account and shown as MAT Credit Entitlement. The Company reviews
 the same at each Balance Sheet date and writes down the carrying amount
 of MAT Credit Entitlement to the extent there is no longer convincing
 evidence to the effect that company will pay normal Income Tax during
 the specified period.
 
 m) PROVISIONS:
 
 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 are not discounted
 to its present value and are determined based on best 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.
 
 n) IMPAIRMENT OF FIXED ASSETS
 
 Consideration is given at each balance sheet date to determine whether
 there is any indication of impairment of the carrying amount of the
 Companys fixed assets. If any indication exists, an assets
 recoverable amount is estimated.  An impairment loss is recognized
 whenever the carrying amount of an asset exceeds its recoverable
 amount. The recoverable amount is greater of the net selling price and
 the value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value based on an appropriate
 discount factor.
 
 Reversal of impairment losses recognized in prior years is recorded
 when there is an indication that the impairment losses recognized for
 the asset no longer exist or have decreased. However, the increase in
 carrying amount of an asset due to reversal of an impairment loss is
 recognized to the extent it does not exceed the carrying amount that
 would have been determined (net of depreciation) had no impairment loss
 been recognized for the asset in prior years.
 
 o) Intangible Assets
 
 Research and Development Costs
 
 Research & development costs which relate to the design and testing of
 new or improved materials, products or processes which are recognized
 as an intangible asset to the extent that it is expected that such
 assets will generate future economic benefits. Research and development
 expenditure of a capital nature is added to fixed assets.  Development
 costs carried forward is amortised over the period of expected future
 sales from the related project, not exceeding five 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.
 
 Other Research and development costs, incurred for development of
 products are expensed as incurred,
 
 p) EARNINGS PER SHARE:
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the year attributable to equity shareholders (after deducting
 preference dividends and attributable taxes) by the weighted average
 number of equity shares outstanding during the year. For the purpose of
 calculating Diluted Earning per Share, the net profit or loss for the
 year attributable to equity shareholders and the weighted average
 number of shares outstanding during the year are adjusted for the
 effects of all dilutive potential Equity Shares.
 
 q) Segment Reporting Policies
 
 Identification of segments:
 
 Primary Segment
 
 Business Segment
 
 During the year the company has bifurcated its business in two separate
 segments. Accordingly operating businesses are organized and managed
 separately according to the nature of products, with each segment
 representing a strategic business unit that offers different products
 and serves different markets. The identified segments are Manufacturing
 & Sale of Auto Lamps and General Lighting Lamps.
 
 a) Revenue and expenses have been identified to a segment on the basis
 of relationship to operating activities of the segment. Revenue and
 expenses which relate to enterprise as a whole and are not allocable to
 a segment on reasonable basis have been disclosed as Unallocable.
 
 b) Segment assets and segment liabilities represent assets and
 liabilities in respective segments. Investments, tax related assets and
 other assets and liabilities that cannot be allocated to a segment on
 reasonable basis have been disclosed as  Unallocable.
 
 Secondary Segment
 
 Geographical Segment
 
 The analysis of geographical segments is based on the geographical
 location of the customers.
 
 The geographical segments considered for disclosure are as follows:
 
 - Sales within India include sales to customers located within India.
 
 - Sales outside India include sales to customers located outside India.