1.0 Basis of Preparation of Financial Statements.
 
 The Financial Statements have been prepared as a going concern, under
 the historical cost convention, on accrual basis of accounting in
 accordance with the provisions of the Companies Act 1956 and comply
 with the mandatory Accounting Standards issued by the Institute of
 Chartered Accountants of India to the extent applicable.
 
 2.00 Fixed Assets
 
 2.01 Fixed Assets are recorded at cost net of MODVAT relief wherever
 availed.
 
 2.02 Fixed Assets acquired free of cost or gifted to ITI are recorded
 at Market Value at the time of acquisition and the
 amount is credited to Capital Reserve.
 
 2.03 Any Capital Grant-in-Aid given for a specific project by any
 agency is initially credited to Grant-in-Aid (Capital) and this amount
 is adjusted to the Profit and LossAccount over the useful lifeof the
 assets.
 
 2.04 Expenditure on development of leasehold land is capitalised as
 Land Development Expenditure and is written off over a period of 5
 years, commencing from the year in which such expenditure is incurred.
 
 2.05 Capital Expenditure on R & D is treated as Fixed Assets.
 
 2.06 To assess fair value of a tangible fixed asset revaluation of the
 tangible fixed asset is done. Such fair value of tangible fixed asset
 is appraised by professionally qualified valuers. The difference
 between the carrying amount of tangible fixed asset and revalued amount
 pertaining to the tangible asset is credited to a revaluation reserve
 in the Balance sheet.
 
 3.00 Inventories
 
 3.01 Raw materials, components and stores purchased for manufacturing /
 production activities are valued at weighted average rate as at the end
 of the year.  Where the same items are both purchased and manufactured,
 manufacturing costs are generally adopted for valuation.
 
 3.02 Raw materials and production stores withAncillaries and
 Fabricators are valued at cost as at the time of issue to
 theAncillaries and Fabricators.
 
 3.03 Manufactured itemsinStock and Stock-in-Trade are valued at cost
 excluding Interest Charges, Administration Overheads and Sales
 overheads or at the net realisable value whichever is less.
 
 3.04 Work-in-process
 
 (i) Work-in-process (production) is valued on the basis of physically
 verified quantities at cost excluding interest charges, administration
 overheads and sales overheads or at the net realisable value whichever
 is less.
 
 (ii) Work-in-process (Installation) is valued at cost as recordedinthe
 Work Orders.
 
 3.05 Precious metals scrap is valued and brought to booksatthe year
 end.
 
 4.00 Tools and Gauges
 
 4.01 Expenditure on special purpose tools and fixtures is initially
 capitalised for amortisation on production, based on technical 
 assessment.
 
 4.02 Loose tools are charged to revenue at the time of issue.
 
 5.00 Intangible Assets
 
 5.01 Expenditure on training personnel, foreign technicians fee and
 expenses, technical know how, documentation etc. specific to the
 product / projects are recognised as intangible asset.
 
 5.02 Expenditure on development of new products / technologies,
 development of software where enduring benefits are expected is
 recognised as intangible asset .
 
 5.03 Intangible assets are recorded at cost initially.
 
 6.00 Depreciation
 
 6.01 Depreciation is charged on Straight Line Method in accordance with
 the useful life of the asset as assessed by the Management. However the
 rates of depreciation adopted in the books are not less than the rates
 specified in Schedule-XIV of the CompaniesAct,1956.
 
 6.02 Depreciation on additions and deletions to fixed assets during a
 year is provided on pro rata basis as follows:
 
 (a) Depreciation is reckoned in full for the month of addition for the
 assets commissioned on or before 15th day of a month while no
 depreciation is reckoned for the month of addition for the assets
 commissioned after 15th of the month.
 
 (b) In respect of assets sold, discarded, damaged or destroyed on or
 before 15th day of a month no depreciation is reckoned for the month of
 deletion while for the assets sold, discarded, damaged or destroyed
 after 15th of the month depreciation is reckoned in full for the month
 of deletion.
 
 6.03 Depreciation on intangible assets are charged to revenue based on
 the economic benefits drawn by the company over the useful life not
 exceeding ten years basedontechno-commercial assessment.
 
 6.04 In the case of depreciable assets which have been revalued
 depreciation is calculated on straight line method on the revalued
 amount. The difference between depreciation on the asset based on
 revaluation and that on original cost is transferred from revaluation
 reserve to the Profit and Loss account
 
 7.00 Prior period items
 
 Adjustments arising due to errors or omissions in the financial
 statements of earlier years are accounted under Prior Period
 Adjustments if the amount involved is Rs. Five Lakhs or more in each
 transaction.
 
 8.00 Rate of Foreign Exchange
 
 Current Assets / Liabilities / Long term Liabilities towards imported
 fixed assets, equipments and components are initially accounted at the
 rate of exchange ruling on the date of transaction and outstanding
 liabilities on the Balance Sheet date are updated at the rate of
 exchange ruling on the date of Balance Sheet. The conversion difference
 is charged off in the Profit and Loss Account.
 
 9.00 Recognition of Revenue
 
 a) Sales include Excise Duty and exclude Sales Tax.
 
 b) Revenue from sale of goods is recognized based on valid sales
 contract.
 
 c) Revenue from customer accepted sale of goods/other sale of goods is
 recognized on the date of dispatch of goods from the company''s premises
 to the customer. In the case of FOR destination contracts, if there is
 a reasonable expectation of the goods reaching destination within the
 accounting period, revenue is recognised. Goods ready for dispatch but
 held in the company''s premises at the customers specific request is
 also recognised as sale of goods.
 
 d) Where prices are not established, sales are set up provisionally at
 prices likely to be realized.
 
 e) Export sales are treated as sales on issue of Bill of Lading.
 
 f) Provision is made separately for likely disallowance by customers
 including Liquidated Damages for contracts executed during the year.
 
 10.00 Warranty Liability
 
 Warranty liability for contractual obligation in respect of equipments
 sold to customers is accounted on the basis of anannual technical
 assessment.
 
 11.00 Government Grants
 
 (i) Government grants relating to Revenue are initially credited to
 Grant-in-Aid (Revenue).
 
 (ii) Where the grants are intended to compensate cost incurred in an
 accounting year an amount of grant to the extent of related cost are
 recognized as income in the Profit and Loss Account.
 
 (iii) Where the grants are for purpose of giving immediate financial
 support/compensation for expenses incurred in a previous accounting
 period, with no further related cost, these are recognized as income in
 the Profit & Loss Account in the year of receipt.
 
 12.00 Recognition of Revenue on Construction / Turnkey Contracts
 
 Revenue is recognised on percentage completion method. The accounting
 of contract revenue and contract cost associated with the contract are
 recognised as revenue and expenses respectively by reference to the
 stage of completion of the contract activity at the reporting date.
 Expected loss on the contract is fully accounted.
 
 13.00 Employee Benefits
 
 i) Short-term employee benefits are recognised as an expense at the
 undiscounted amount in the profit and loss account of the year in which
 the related service is rendered.
 
 ii) Post employment benefit viz. gratuity and other long-term employee
 benefits viz. Privilege Leave, Sick Leave and LLTC are recognised as an
 expense in the profit and loss account of the year in which the
 employee has rendered services. The expense is recognised 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 profit and
 loss account.
 
 iii) VRS
 
 (a) Where grant is received for VRS, expenditure related to VRS is
 fully charged to the Profit & Loss account in the year of incidence.
 Equivalent amount of grant is credited to Profit & Loss account.
 
 (b) Where no grant is received for VRS, the expenditure related to VRS
 incurred up to 31st March 2010 will be deferred, which will be written
 off in equal installments by 31st March 2011, including the year of
 incidence. Such expenditure incurred after 31st March 2010 will be
 written off in the year of incidence.
 
 14.00 Borrowing Cost
 
 Borrowing cost, that is directly attributable to the acquisition /
 production or construction of fixed assets or inventories which require
 a substantial period to get ready for its intended use or to bring them
 to saleable condition is capitalised as part of the cost of the fixed
 assets or inventory valuation respectively.
 
 15.00 Impairment of Assets
 
 At the end of each Balance sheet date the carrying amount of assets are
 assessed as to whether there is any indication of impairment. If the
 estimated recoverable amount is found lesser than the carrying amount,
 then the impairment loss is recognized and assets are written down to 
 the recoverable amount.
 
 16.00 Deferred Tax
 
 Deferred tax is recognized for all timing differences, subject to the
 consideration of prudence in respect of deferred tax assets.