(i) Accounting convention
 
 The financial statements have been prepared and presented under the
 historical cost convention on the accrual basis of accounting and
 comply with the Accounting Standards (AS) as specified in the Companies
 (Accounting Standards) Rules 2006 and the relevant provisions of the
 Companies Act, 1956, to the extent applicable.
 
 (ii) Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles (GAAP) requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and the disclosure of contingent liabilities at the
 date of the financial statements and the reported amounts of revenues
 and expenses during the year. Actual results could differ from those
 estimates. Any revision to accounting estimates is recognised
 prospectively in current and future periods.
 
 (iii) Fixed assets
 
 Fixed assets are stated at the cost of acquisition or construction less
 accumulated depreciation and accumulated impairment loss, if any.  Cost
 comprises the purchase price and any directly attributable costs of
 bringing the asset to its working condition for the intended use.
 Items of fixed assets retired from active use and held for disposal are
 valued at the lower of their net book value and net realisable value.
 
 (iv) Impairment
 
 The carrying values of assets are reviewed at each reporting date to
 determine if there is indication of any impairment. If any indication
 exists, the assets recoverable amount is estimated. For assets that
 are not yet available for use, the recoverable amount is estimated at
 each reporting date. An impairment loss is recognised whenever the
 carrying amount of an asset or its cash generating unit exceeds its
 recoverable amount. Impairment losses are recognised in the profit and
 loss account. An impairment loss is reversed if there has been a change
 in the estimates used to determine the recoverable amount. An
 impairment loss is reversed only to the extent that the assets
 carrying amount does not exceed the carrying amount that would have
 been determined net of depreciation or amortisation, if no impairment
 loss had been recognised.
 
 (v) Depreciation
 
 a) Depreciation on fixed assets except for leasehold land is provided
 on a pro-rata basis using straight line method.
 
 b) The rates of depreciation prescribed in Schedule XIV to the
 Companies Act, 1956 are considered as the minimum rates. If the
 managements estimate of the useful life of a fixed asset at the time
 of acquisition of the asset or of the remaining useful life on a
 subsequent review is shorter than that envisaged in the aforesaid
 schedule, depreciation is provided at a higher rate based on the
 managements estimate of the useful life / remaining useful life.
 Pursuant to this policy, depreciation on certain assets has been
 provided at the following rates which are higher than the corresponding
 rates prescribed in Schedule XIV:
 
 Dies                         20.00% per annum
 
 Jigs and fixtures            20.00% per annum
 
 Computers                    33.33% per annum
 
 Office Equipment, 
 
 Air Conditioners,            20.00% per annum
 
 Fans and Heaters
 
 Furniture and Fixtures       12.50% per annum
 
 Cars and Jeeps               20.00% per annum
 
 c) Leasehold land is amortised over the period of the lease.
 
 d) Assets costing individually Rs.5,000 or less are depreciated fully
 in the year of purchase.
 
 (vi) Intangible assets and amortization thereof
 
 Intangible assets comprise model fee, technical know how and computer
 software and are stated at cost less accumulated amortization and
 accumulated impairment loss, if any.
 
 Model fee is amortised over a period of five years, which in
 managements view represents the economic useful life of the model fee.
 
 Unamortised model fee in respect of models discontinued during the year
 is fully charged to the profit and loss account.
 
 Technical know how is amortised over a period of six years.
 
 Software is amortized over a period of three years.
 
 Amortization expense is charged on a pro-rata basis for assets
 purchased during the year. The appropriateness of the amortization
 period and the amortization method is reviewed at each financial
 year-end.
 
 (vii) Inventories
 
 Stores, raw materials and components, process stock and finished goods
 are valued at weighted average cost and net realisable value, whichever
 is lower.
 
 In determining cost of process stock and finished goods, fixed
 production overheads are allocated on the basis of normal capacity of
 production facilities. The proportionate amount of additional duty of
 customs paid on finished goods imported for trading and lying unsold as
 at the year end has been included in the value of the finished goods
 stock.
 
 Stores, raw materials and components held for use in production of
 finished goods are not written down below cost except in cases where
 material prices have declined, and it is estimated that the cost of the
 finished goods will exceed their net realisable value.
 
 (viii) Revenue recognition
 
 Revenue from sale of goods is recognised on transfer of all significant
 risks and rewards of ownership to the customer, which generally
 coincides with despatch against orders from customers in accordance
 with the contract terms.
 
 Revenue from services is recognised on rendering of services to
 customers in accordance with the terms of contracts with the customers.
 Interest income is recognised using the time proportion method, based
 on underlying interest rates.
 
 (ix) Export benefits
 
 Export benefit representing customs duty rebate entitlement against
 exports made on advance licences under duty exemption scheme and duty
 credit entitlement for exports made to focus markets under the focus
 market scheme of Government of India is accounted for on an accrual
 basis.
 
 (x) Foreign currency transactions
 
 Transactions in foreign currency are recorded at the exchange rate
 prevailing at the date of the transaction. Exchange differences arising
 on foreign currency transactions settled during the year are recognised
 in the profit and loss account for the year.
 
 Monetary assets and liabilities denominated in foreign currencies as at
 the balance sheet date are translated at the closing exchange rates on
 that date; the resultant exchange differences are recognised in the
 profit and loss account.
 
 (xi) Leases
 
 Lease arrangements, where the risks and rewards incidental to ownership
 of an asset substantially vest with the lessor, are recognised as
 operating lease.
 
 Lease payments under operating lease are recognised as an expense in
 the profit and loss account on straight line basis over the lease
 period.
 
 (xii) Employee benefits
 
 1.  Short - term employee benefits
 
 All employee benefits payable / available within twelve months of
 rendering the service are classified as short-term employee benefits.
 Benefits such as salaries, wages and bonus etc., are recognised in the
 profit and loss account in the period in which the employee renders the
 related service.
 
 2.  Retirement benefits
 
 a) Defined Benefit
 
 a.  Gratuity
 
 The Company has an obligation towards gratuity, a defined benefit
 retirement plan covering eligible employees. The plan provides for a
 lump sum payment to vested employees at retirement, death while in
 employment or on termination of employment of an amount based on the
 respective employees salary and the tenure of employment. Vesting
 occurs upon completion of five years of service.  The Company makes
 annual contributions to gratuity fund established as trust which has
 taken up a group policy with Life Insurance Corporation of India. The
 Company accounts for the liability for gratuity benefits payable in
 future based on an independent actuarial valuation report using the
 projected unit credit method as at the year end.
 
 b.  Provident Fund
 
 The eligible employees of the Company are entitled to receive benefits
 under the provident fund set up as an irrevocable trust. Both the
 employees and the Company make monthly contributions at a specified
 percentage of the covered employees salary. The aggregate
 contributions along with interest thereon are paid at retirement,
 death, incapacitation or termination of employment. The interest rate
 payable by the trust to the beneficiaries every year is notified by the
 appropriate authorities. The Company has an obligation to make good the
 shortfall, if any, between the return from the investments of the trust
 and the notified interest rate.
 
 The annual contributions paid by the Company to the provident fund are
 charged off to the profit and loss account.  In addition the Company
 provides for the interest shortfall, if any.
 
 Actuarial gains and losses arising on the defined benefits plan are
 recognised immediately in the profit and loss account.
 
 b) Defined Contribution
 
 (i) Superannuation fund
 
 Under the superannuation scheme, a defined contribution plan, the
 Company pays fixed contributions into a separate trust and has no
 obligation to pay further amounts. The trust has taken up a policy with
 the Life Insurance Corporation of India. Benefits are paid by Life
 Insurance Corporation of India to the vesting employees on retirement,
 death, incapacitation or termination of employment.  Contributions paid
 by the Company to the superannuation trust are charged to the profit
 and loss account.
 
 3.  Other long term employee benefits
 
 a.  Compensated absences
 
 As per the Companys policy eligible leaves can be accumulated by the
 employees and carried forward to future periods to either be utilised
 during the service, or encashed. Encashment can be made during the
 service, on early retirement, on withdrawal of scheme, at resignation
 by employee and upon death of employee. The scale of benefits is
 determined based on the seniority and the respective employees salary.
 The Company accounts for the liability for compensated absences payable
 in future based on an independent actuarial valuation using the
 projected unit credit method as at the year end.
 
 (xiii) Earning per share
 
 Basic earnings per share are calculated by dividing the net profit for
 the year attributable to equity shareholders by the weighted average
 number of equity shares outstanding during the year. The company has
 not issued any potential equity shares and accordingly the basic
 earnings per share and diluted earnings per share is the same.
 
 (xiv) Provisions, contingent liabilities and contingent assets
 
 A provision is created when there is a present obligation as a result
 of a past event that probably requires an outflow of resources and a
 reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. When there is a possible obligation or
 a present obligation in respect of which the likelihood of outflow of
 resources is remote, no provision or disclosure is made. The Company
 does not recognise assets which are of contingent nature until there is
 virtual certainty of realisability of such assets. However, if it has
 become virtually certain that an inflow of economic benefits will
 arise, asset and related income is recognised in the financial
 statements of the period in which the change occurs.
 
 (xv) Warranty and Service Coupon Costs
 
 Warranty and Service Coupons costs are estimated by the management
 based on the past experience of claims and provided on an accrual basis
 on the sales made during the year.
 
 (xvi) Taxation
 
 Income-tax expense comprises current tax (i.e. amount of tax for the
 year determined in accordance with the income-tax law) and deferred tax
 charge or credit (reflecting the tax effects of timing difference
 between accounting income and taxable income for the period). The
 deferred tax charge or credit and the corresponding deferred tax
 liabilities and assets are recognised using the tax rates that have
 been enacted or substantively enacted by the balance sheet date.
 Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realised in future;
 however, where there is unabsorbed depreciation or carried forward
 losses under taxation laws, deferred tax assets are recognised only if
 there is a virtual certainty of realisation of such assets. Deferred
 tax assets are reviewed as at each balance sheet date and written down
 or written-up to reflect the amount that is reasonably / virtually
 certain (as the case may be) to be realized.