1.  Basis of Accounting
 
 The Financial Statements have been prepared on accrual basis in
 accordance with the generally accepted accounting norms, except
 insurance claims, which are accounted when accepted by the insurance
 company.
 
 2.  Revenue Recognition
 
 Sales are recognised at the point of despatch of goods to the customers
 and include excise duty but exclude Sales Tax and other levies.
 
 3.  Fixed Assets
 
 (a) Fixed Assets including Assets for Research and Development other
 than Land are accounted at Cost Less Depreciation and impairment loss,
 if any.
 
 (b) Assets acquired under Hire Purchase Agreements / Financial Lease
 Agreements are capitalised to the extent of their Principal Value,
 while Hire charges / Finance charges on Lease are charged to revenue in
 the years in which they are payable.
 
 (c) Depreciation is provided on Straight Line Method in accordance with
 the rates as per Schedule XIV of the Companies Act, 1956 as amended
 from time to time.
 
 (d) Application Software, Die and Core and New Product Development are
 amortised over a period of 3 years. Technical know-how fee is amortised
 over a period of 5 years.
 
 (e) Borrowing Costs, if any are capitalised as part of qualifying fixed
 assets when it is probable that they will result in future economic
 benefits. Other borrowing costs are expensed.
 
 4.  Investments
 
 Investments are categorised into Long Term and Current Investments.
 Long Term Investments are normally valued at cost, unless there is a
 permanent fall in value. Current Investments are valued at cost or
 Market Value whichever is lower. Dividend on Investments is accounted
 as and when the right to receive the payment is established.
 
 5.  Trade Receivable
 
 Trade Receivable amount is exclusive of the value of Bills Discounted,
 the liability for which is disclosed under Contingent
 Liabilities.
 
 6.  Excise Duty
 
 Excise Duty on goods manufactured is accounted only at the time of
 removal of goods from the factory except in respect of year end
 inventory of finished goods, excise duty is included as part of
 inventory.
 
 7.  Foreign Currency Transactions
 
 (a) Foreign Currency Transactions are recognised in the books at the
 exchange rates prevailing on the date of transaction.
 
 (b) In the case of Current Assets/Liabilities the difference (Gain or
 Loss) between the actual payment and the amount recognised in the books
 is accounted as Exchange Gain or Loss. Where the transaction is not
 settled within the year, profit/loss arising on the restatement at the
 year-end rates is recognised as exchange gain or loss in the profit and
 loss account
 
 (c) In case of Depreciable Capital assets having long term foreign
 currency monetary arrangement the Company opts to add or deduct the
 exchange differences to the cost of the depreciable capital assets and
 depreciate it over the balance life of the asset. In case of other long
 term foreign currency monetary items the company opts to accumulate the
 exchange differences in a foreign currency monetary translation
 difference account which are amortised over the balance period of
 such long term asset or liability not beyond 31st March 2011, by
 recognition as income or expense in each of such periods.
 
 8.  Employee Benefits
 
 1.  Defined Contribution Plan
 
 The Company''s Provident Fund Scheme, Superannuation Scheme and ESI
 plans are Defined Contribution Plans and the Company''s contribution
 paid/payable is recognised as expense in the Profit and Loss Account
 during the period in which the employees render the related service.
 
 2.  Defined Benefit Plan / Other long term employee benefits
 
 (a) The Company''s Gratuity and Long-Term compensated absences are
 Defined Benefit Plans / other long term employee benefits respectively.
 The Company''s liability towards Gratuity are determined using the
 Projected Unit Credit Method which recognises each period of service as
 giving rise to additional unit of Employee Benefit Entitlement. The
 Gratuity scheme is operated through Group Gratuity Scheme of LIC.
 
 (b) The Gratuity liabilities are provided based on Actuarial Valuation
 certified by LIC. Actuarial gains and losses are charged to Profit and
 Loss account.
 
 (c) Long term compensated absences are provided for based on
 independent Actuarial valuation.  Actuarial gains and losses are
 charged to Profit and Loss account.
 
 3.  Short term employee benefits are recognised as an expense at the
 undiscounted amount in the year in which the employee render the
 services/vesting period of the benefit.
 
 9.  Impairment of Assets
 
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 profit and loss account in the year in which an asset is identified as
 impaired. The impairment loss recognized in prior accounting period is
 reversed if there has been a change in the estimate of recoverable
 amount.
 
 10.  Provision, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognised 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 recognised but are disclosed in the
 notes. Contingent Assets are neither recognised nor disclosed in the
 financial statements.
 
 11.  Product Warranty Expenses
 
 Product Warranty expenses are accounted based on the claims received
 and accepted during the year and estimates in accordance with the
 warranty policy of the company.