Unless otherwise specified, all amounts are in Rupees lacs
 
 a.  Basis of accounting and preparation of financial statements
 
 The financial statements have been prepared to comply in all material
 respect with the applicable accounting principles in India, mandatory
 accounting standards notified by the Companies (Accounting Standards)
 Rules, 2006 and the relevant provisions of the Companies Act 1956. The
 Company follows the accrual method of accounting under historical cost
 convention modified by revaluation of certain fixed assets as and when
 undertaken. The accounting policies have been consistently applied by
 the Company.
 
 The preparation of financial statements requires the Management to make
 estimates and assumptions that affects the reported amounts of assets
 and liabilities including Contingent Liabilities as of the date of the
 financial statements and the reported income and expenses for the
 reporting period. Although these estimates are based upon historical
 event and management''s best knowledge of current events and actions,
 actual results could differ from those estimates. Material estimates
 used in these financial statements that are susceptible to change as
 more information becomes available include useful economic lives of
 property, plant and equipment, impairment, retirement benefits,
 guarantees, warranties and income taxes.
 
 b.  Revenue recognition
 
 Revenue from sales of products is recognized upon the transfer of
 significant risks and rewards of the ownership of the goods to the
 customers, which generally coincides with their delivery to customers.
 Sales are net of Value Added Tax/ Sales Tax and returns.
 
 Revenue from Services is recognized on prorated basis over the period
 of contract.
 
 Interest on deposits is recognized on a time proportion basis taking
 into account the amount outstanding and the rate applicable.
 
 Dividends from investment are recognized when the Company''s right to
 receive payment is established.
 
 c.  Tangible Fixed assets
 
 Tangible Fixed assets are stated at cost of acquisition/construction or
 at revalued amount less depreciation and impairment losses. The cost of
 asset comprises its purchase price and any other attributable cost
 incurred for bringing the asset to its working condition for its
 intended use. Where a tangible fixed asset has been revalued upwards,
 the revalued amount is credited to owner''s interest under the head
 Revaluation Reserves.
 
 Capital work in progress includes items under installation and items in
 transit. In case of own manufactured items like tools, jigs,
 proportionate burden of overhead as applicable is also treated as part
 of cost.
 
 Expenditure incurred on replacement/ modification to fixed asset is
 capitalized only when such expenditure results in increase in the
 economic life of such asset.
 
 d.  Intangible assets
 
 Software expected to provide future enduring economic benefits is
 stated at cost less amortization.
 
 All up gradation/enhancements are charged off as revenue expenditure
 unless they bring significant additional benefits.
 
 e.  Depreciation / Amortization
 
 Depreciation is provided at the rates specified in Schedule XIV of the
 Companies Act, 1956 on straight line method on plant and machinery and
 other tangible fixed assets excepting building where written down value
 method is followed.
 
 Assets whose actual cost does not exceed five thousand rupees are fully
 depreciated in the year of acquisition.
 
 Intangible assets are amortized over the best estimate of its useful
 life ranging between a periods of 3 to 5 years.
 
 f.  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
 Company''s fixed assets. If any indication exists, an asset''s
 recoverable amount is estimated. An impairment loss is recognized
 whenever the carrying amount of assets exceeds its recoverable amount.
 The recoverable amount is the greater of the net selling price and
 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.
 
 g.  Foreign currency transactions
 
 Transactions denominated in foreign currency are recorded at the
 exchange rates prevailing on the date of the transaction.  Any income
 or expense on account of exchange differences either on settlement or
 on remeasurement of transactions is recognized in the Statement of
 Profit and Loss account.
 
 Monetary assets and liabilities denominated in foreign currency are
 premeasured at the rate of exchange prevailing on the date of the
 balance sheet and resultant gain or loss is recognized in the Statement
 of Profit and Loss account. Non-monetary items denominated in foreign
 currency are carried at cost.
 
 h.  Investments
 
 Long Term investments are stated at cost less diminution in value, if
 any other than temporary.
 
 Current investments comprising investments in mutual funds are stated
 at lower of cost and fair value.
 
 i.  Inventories
 
 Raw materials, components, work in progress and stores and spares are
 valued at lower of cost or net realizable value.
 
 Finished goods and Stock in trade are valued at lower of cost or net
 realizable value. Cost includes all expenses incurred in bringing the
 goods to their present location and condition.
 
 Cost is ascertained on weighted average method.  
 
 j. Employee Benefits
 
 i) Short term employee benefits are recognized as an expense at the
 undiscounted amount in the Statement of Profit and Loss account of the
 year in which the related service is rendered.
 
 ii) Post employment benefits (Gratuity) and other long term employee
 benefits (Leave encashment and accumulated sick leave) are recognized
 as an expense in the Statement of Profit and Loss account for the year
 in which the employee has rendered services. The expense is recognized
 at the present value of the amounts payable determined using actuarial
 valuation techniques. Actuarial gains and losses in respect of
 post-employment and other long term benefits are charged to the
 Statement of Profit and Loss account.
 
 k. Taxes on Income
 
 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 Indian Income Tax Act. Deferred income taxes
 reflect 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 are recognized 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 realized. In situations
 where the Company has unabsorbed depreciation or carry forward tax
 losses, all deferred tax assets are recognized only if there is virtual
 certainty supported by convincing evidence that they can be realized
 against future taxable profits.
 
 At each balance sheet date the Company re-assesses unrecognized
 deferred tax assets. It recognizes unrecognized deferred tax assets to
 the extent that it has become reasonably certain or virtually certain,
 as the case may be that sufficient future taxable income will be
 available against which such deferred tax assets can be realized.
 
 l. Provision, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes. Contingent Assets are neither recognized nor disclosed in the
 financial statements.
 
 m. Government Grants
 
 Grants received from the Government authorities with reference to
 investments under investment subsidy schemes and no repayment are
 ordinarily expected in respect thereof are treated as capital reserve.
 
 n. Segment
 
 The Company discloses Business segment as the Primary segment. Segments
 have been identified taking into account the nature of products, the
 different risks and returns, the organization structure and internal
 reporting system. The Company''s operation predominantly relates to
 manufacture of home appliances and fine blanking business. The Company
 primarily caters to the domestic market and export sales are not
 significant and accordingly there is no reportable secondary segment
 
 o. Cash and cash equivalent
 
 Cash and cash equivalents in the cash flow statement comprise cash on
 hand, current account bank balances, bank deposit account balances
 (with maturity of three months or less as at the balance sheet date)
 and short term investments with maturity of three months or less as at
 the balance sheet date.
 
 p. Earnings Per Share
 
 Basic Earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the year. For the
 purpose of calculating diluted earnings per share, the net profit or
 loss for the year attributable to equity shareholders and weighted
 average number of equity shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares
 
 q. Disclosure requirement for Derivatives Instruments
 
 The premium or discount arising at the inception of forward exchange
 contracts entered into to hedge an existing asset/liability, is
 amortized as expense or income over the life of the contract. Exchange
 differences on such a contract are recognized in the Statement of
 Profit and Loss in the reporting period in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of such a
 forward exchange contract is recognized as income or as expense for the
 period.