2.1 Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the notified accounting standards by Companies
 (Accounting Standards) Rules, 2006 (as amended) and the relevant
 provisions of the Companies Act, 1956. The accounting policies applied
 by the Company are consistent with those used in the previous year.
 
 2.2 Accounting estimates
 
 The preparation of the financial statements in accordance with
 generally accepted accounting principles (‘GAAP) requires that
 management makes estimates and assumptions that affect the reported
 amount of assets and liabilities and disclosure of contingent
 liabilities as of the date of financial statements and the reported
 amounts of revenue and expenses during the reporting period. Management
 believes that the estimates used in the preparation of the financial
 statements are prudent and reasonable. Actual results could differ from
 these estimates. Any difference between the actual result and estimates
 are recognized in the period in which the results are known or
 materialize.
 
 2.3 Fixed assets and depreciation
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses, if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use. Financing costs relating to acquisition of fixed
 assets which takes substantial period of time to get ready for its
 intended use are also included to the extent they relate to the period
 till such assets are ready to be put to use.
 
 Machine spares which are specific to a particular item of fixed asset
 and their use is expected to be irregular have been capitalized.
 
 Depreciation is provided on the straight line method at the rates and
 in the manner prescribed in Schedule XIV to the Companies Act, 1956 on
 all assets except for the following assets which are depreciated at the
 higher rates based on managements estimate of the useful life:
 
 a.  Moulds and Tools : 3 years b. Computers : 3 to 4 years
 
 c.  Furniture & Fittings : 5 to 8 years d. Office Equipments : 3 to 5
 years
 
 e.  Electrical Fittings : 7 years f. Toolkits : 3 years
 
 g.  Vehicles : 4 to 6 years
 
 For the assets added during the financial year under review,
 depreciation is charged on pro-rata basis from the date of
 commissioning.
 
 Intangible assets are amortised, based on managements estimate of its
 useful economic life using straight line method, on pro- rata basis as
 under:
 
 a.  Technical Know-how fees : 5 years b. Software : 3 years
 
 Depreciation on individual assets costing upto Rs. 5000.00 is provided
 at the rate of 100% in the month of purchase.
 
 Impairment
 
 The carrying amounts of assets are reviewed at each Balance Sheet date
 if there is any indication of impairment based on internal or external
 factors. An impairment loss is recognised wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the assets net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value using a pre-tax discount rate that reflects
 current market assessments of the time value of money and risk specific
 to the asset.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 2.4 Inventories
 
 Inventories are valued as follows:
 
 (i) Raw materials and stores and spare parts 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 utilised are
 expected to be sold at or above cost.
 
 (ii) Work in progress is valued at lower of cost and net realizable
 value. Costs include material cost, direct expenses and a proportion of
 manufacturing overheads.
 
 (iii) Manufactured finished goods are valued at lower of cost and net
 realizable value. Cost includes material cost, excise duty, direct
 expenses and a proportion of manufacturing overheads based on normal
 operating capacity. Traded finished goods are valued at lower of cost
 and estimated net realizable value.
 
 Cost is determined on the basis of weighted average method and includes
 all costs incurred in bringing the inventories to their present
 location and condition. Net realizable value is the estimated selling
 price in the ordinary course of business, less estimated cost necessary
 to make the sale.
 
 (iv) Goods in transit are valued at cost incurred till date.
 
 (v) Custom duty on goods where title has passed to the Company and
 material has reached Indian ports is included in the value of
 inventories.
 
 2.5 Revenue recognition
 
 Revenue is recognized to the extent it is probable that the economic
 benefits will flow to the Company and the revenue can be reliably
 measured.
 
 (i) Sale of Goods
 
 Revenue is recognised when the significant risks and rewards of
 ownership of the goods have passed to the buyer. Sales are inclusive of
 freight, octroi and insurance, installation charges in some cases,
 export incentives, scrap sales and net of sales returns and trade
 discounts. Excise duty deducted from the sales (gross) is the amount
 that is included in the amount of sales (gross) and not the entire
 amount of liability arised during the year.
 
 (ii) Service Income
 
 Revenue from service operations is recognised as and when services are
 rendered in accordance with the terms of the contract. Maintenance
 revenue is recognised over the period of respective contracts.
 
 (iii) Interest
 
 Interest Income is recognised on a time proportion basis taking into
 account the outstanding amount and the applicable rate.
 
 2.6 Employee benefits
 
 (i) Retirement benefits in the form of Provident and superannuation
 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 other obligations other than
 the contribution payable to the respective fund.
 
 (ii) Gratuity liability is defined benefit obligation and is provided
 for on the basis of an actuarial valuation on projected unit credit
 method made at the end of each financial year.
 
 (iii) Short term compensated absences are provided for based on
 estimates. Long term compensated absences are provided for based on
 actuarial valuation. The actuarial valuation is on projected unit
 credit method made at the end of each financial year.
 
 (iv) Actuarial gains/losses are immediately taken to Profit and Loss
 Account and are not deferred.
 
 2.7 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.
 
 (iii) Exchange Differences
 
 Exchange differences arising on account of settlement of monetary items
 or exchange differences arising on monetary items at rates different
 from those at which they were initially recorded during the year, or
 reported in previous financial statements, are recognised as income or
 as expenses in the year in which they arise.
 
 (iv) Forward exchange contracts not intended for trading or speculation
 purpose
 
 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 recognised as income or as expense for the
 year.
 
 2.8 Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event; 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 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 best
 estimates.
 
 2.9 Income Taxes
 
 Tax expense comprises current and 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 tax 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 and deferred tax liabilities are offset.
 
 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. If
 the Company has carry forward of unabsorbed depreciation and tax
 losses, deferred tax assets are recognised only if there is virtual
 certainty backed by convincing evidence that such deferred tax assets
 can be realised against future taxable profits. Unrecognised deferred
 tax assets of earlier years are re- assessed at the balance sheet date
 and recognised to the extent that it has become reasonably certain that
 future taxable income will be available against which such deferred tax
 assets can be realised.
 
 2.10 Minimum Alternate Tax (MAT) Credit
 
 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 MAT credit
 becomes eligible to be recognised 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 and 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.
 
 2.11 Earnings Per Share (EPS)
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period 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.
 
 2.12 Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased term, are classified as
 operating leases. Operating lease payments are recognised as an expense
 in the Profit and Loss Account on a straight-line basis over the lease
 term.
 
 2.13 Cash and Cash equivalents
 
 Cash and cash equivalents in the cash flow statement comprise cash at
 bank and in hand and short-term investments with an original maturity
 of three months or less.
 
 2.14 Segment Reporting
 
 Identification of Segment
 
 The Companys operating businesses are organised and managed separately
 according to the nature of products and services provided, with each
 segment representing a strategic business unit that offers different
 products and serves different markets.  The analysis of geographical
 segments is based on the locations of Customers.
 
 2.15 Capital work in progress
 
 All expenditure, including advances given during the project
 construction period, are accumulated and shown as capital work in
 progress until the assets are ready for commercial use. Assets under
 construction are not depreciated.
 
 2.16 Borrowing Costs
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalized as
 part of the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur. Borrowing costs consist of interest
 and other costs that an entity incurs in connection with the borrowing
 of funds.
 
 2.17 Research and Development Costs
 
 All revenue expenses pertaining to research and development costs are
 charged to profit and loss account in the year in which they are
 incurred and development expenditure of a capital nature is capitalized
 as fixed assets.