1.  Basis of Preparation of Financial Statements:
 
 The financial statements have been prepared to comply in all material
 respects with the notified Accounting Standards by Companies Accounting
 Standards Rules, 2006 and the relevant provisions of the Companies Act,
 1956.The financial statements have been prepared under the historical
 cost convention on an accrual basis in accordance with accounting
 principles generally accepted in India. The accounting policies have
 been consistently applied by the Company and are consistent with those
 used in the previous year and in case of any such variation in the
 accounting policy as compared to the previous year; such variations are
 disclosed separately as a part of notes to accounts.
 
 2.  Use of estimates:
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of the operations during the
 reporting period. Although these estimates are based upon management''s
 best knowledge of current events and actions, actual results could
 differ from these estimates.
 
 3.  Fixed Assets:
 
 - Fixed Assets are stated at cost of acquisition (Net of Cenvat and
 VAT) plus subsequent improvements thereto including taxes, duties,
 freight and other incidental expenses related to acquisition and
 installation including finance charges which are directly attributable
 to the Fixed assets less accumulated depreciation and impairment loss.
 
 - Capital Work in Progress comprises of the cost of fixed assets that
 are not put to use as at the Balance Sheet date and advance paid
 towards acquisition of Fixed Assets and relevant financial charges
 incurred thereon.
 
 - Technical knowhow acquired to be used to upgrade and develop new
 products and used for enhancement of features & functionalities of the
 products are capitalised under Fixed asset as Technical Knowhow.
 
 - Software which are not integral part of the hardware are classified
 as Intangibles and is stated at cost less accumulated amortization.
 Software''s are being amortized over the estimated useful life which is
 estimated as 3Years.
 
 Temporary structures installed at the leased out premises is being
 written off over the tenure of the lease agreement.
 
 4.  Depreciation:
 
 - Depreciation on Fixed Assets is provided using Straight-line method
 at the rates prescribed under Schedule XIV of the companies Act, 1956
 on proportionate basis.
 
 - Cost of Technical knowhow is being written off over a period of 10
 years.
 
 - Cost of assets wherever is less than Rs. 5000 is written off fully in
 the year of purchase.
 
 5.  Impairment of Assets:
 
 The Company assesses at each Balance Sheet date, whether there is any
 indication that an asset may be impaired based on internal/external
 factors. If any such indication exists, the Company estimates the
 recoverable amount of the asset. An impairment loss is recognized
 wherever the carrying amount of an asset exceeds its recoverable
 amount. The recoverable amount is the greater of the asset''s net
 selling price and value in use. In assessing value in use, the
 estimated future cash flows are discounted to their present value at
 the weighted average cost of capital.
 
 6.  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 recognized as an expense
 in the Profit and Loss Account on a straight-line basis over the lease
 term.
 
 7.  Inventory Valuation:
 
 Raw Materials, Stores and spares and Traded Goods are stated at lower
 of cost and net realizable value. Cost is determined based on first in
 first out basis and are net of provisions.
 
 Work in Progress and Finished Goods are valued at lower of cost and net
 realizable value. Cost includes Direct Materials and labour and a
 proportion of manufacturing overheads based on normal operating
 capacity.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and selling
 expenses.
 
 8.  Investments:
 
 Investments that are readily realizable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long term investments. Long term
 investments are carried at cost. However, provision for diminution in
 value is made to recognize a diminution other than temporary in the
 value of investments.
 
 9.  Research and Development:
 
 Expenditure on Research and Development other than capital items is
 charged to revenue. Cost incurred on any generation of
 intangible/tangible asset out of the Research and development activity
 is amortized/written off over the estimated life of the asset.
 
 10. Revenue Recognition:
 
 - Sales are recognized when the significant risks attached to the goods
 are passed on to the buyer and are recorded net of duties, trade
 discounts, and rebates.
 
 - Sales Returns are recognized as and when ascertained and are reduced
 from the sales turnover of the year.
 
 - Interest income is recognized on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 - Export benefits are accounted on accrual basis.
 
 11 .Warranty Expenses:
 
 Estimated amount of warranty expenses evaluated on a technical basis on
 sale of Radio Products wherever it is obligated to cover under
 warranty, is provided in the year of sale and the expired portion of
 the Warranty expenses relating to the period/year are transferred to
 the Profit and Loss account. Unexpired portion of the Warranty expenses
 is carried over as a liability in the books of account and is written
 back over the number of years of the coverage of warranty on the basis
 of estimated warranty expenses for such products.
 
 12. Exchange Fluctuation:
 
 a.  Foreign currency transactions are accounted at exchange rates
 prevailing on the date of the transaction.
 
 b.  Gains and losses resulting from the settlement of foreign currency
 transaction and from the translation of monetary assets and liabilities
 denominated in foreign currencies at the yearend rates are recognized
 in the Profit and Loss account.
 
 c.  In case the monetary assets and liabilities are covered by forward
 contract, the premium or discount arising at the inception of such a
 forward contract is amortized as expense or income over the life of the
 contract.
 
 13. Employee Benefits:
 
 - Provident Fund: Eligible employees receive benefits from a Provident
 Fund, which is a defined contribution plan. Aggregate contributions
 along with interest thereon, are paid at retirement, death,
 incapacitation or termination of employment. Both the employee and the
 Company make monthly contributions to the Government administered
 Provident Fund. The Company has no obligation beyond its contribution.
 
 - Gratuity: A defined benefit retirement plan (''the Gratuity Plan) is
 provided to all employees. In accordance with the Payment of Gratuity
 Act, 1972, the Gratuity Plan provides a lump sum amount to vested
 employees at retirement, death, incapacitation ortermination of
 employment, of an amount based on the respective employee''s salary and
 the tenure of employment. Liabilities with regard to the Gratuity plan
 are determined by actuarial valuation using the projected unit credit
 method, as of the balance sheet date.
 
 - Expenses on ex-gratia payment to employees, a defined contribution
 plan, are accounted as and when accepted by the management.
 
 - Provision in respect of Leave encashment is made, based on actuarial
 valuation.
 
 14. Borrowing Cost:
 
 Borrowing costs relating to acquisition of qualifying assets are
 capitalized until the time all substantial activities necessary to
 prepare the qualifying assets for their intended use are complete.A
 qualifying asset is one that necessarily takes substantial period of
 time to get ready for its intended use.AII other borrowing costs not
 eligible for capitalization are charged to revenue.
 
 15. Taxes:
 
 - Tax expense comprises of current and deferred tax. Current IncomeTax
 is measured based on the tax liability computed after considering tax
 allowances and exemptions.
 
 - Deferred tax is recognized, subject to the consideration of prudence
 in respect of deferred tax assets, on timing differences, being the
 difference between taxable income and accounting income that originate
 in one period and are capable of reversal in one or more subsequent
 periods.
 
 - 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.
 
 16.Cash Flow Statement:
 
 Cash flows are reported using the indirect method, whereby profit
 before tax is adjusted for the effects of transactions of a non cash
 nature, any deferrals or accruals of past or future operating cash
 receipts or payments and items income or expense associated with
 investing or financing cash flows. Cash and Cash Equivalents include
 Cash on hand and balance with banks in current and deposit accounts,
 with necessary disclosure of cash and cash equivalent balances that are
 not available for use by the company.
 
 17.Stock Option Plan (2008):
 
 The Company instituted the Kaweri ESOS 2008 Plan for all eligible
 employees in pursuance of the special resolution approved by the
 shareholders by Postal ballot on 23rd April 2008The Kaweri ESOS 2008
 Plan covers all employees of the company and its subsidiaries and
 Directors (excluding Promoter Directors) of the Company and its
 subsidiaries (collectively, eligible employees). Under the Scheme,
 the Compensation Committee of the Board (''the Committee'') shall
 administer the Scheme and grant stock options to eligible directors and
 employees of the Company and its Subsidiaries. The Committee shall
 determine the employees eligible for receiving the options, the number
 of options to be granted, the exercise price, the vesting period and
 exercise period. Vesting of employee stock options granted occurs in
 tranches as under:
 
 Period
 
 Vesting proportion
 
 At the end of one year from the date of grant 20%
 
 At the end of two years from the date of grant 30%
 
 At the end of three years from the date of grant 50%
 
 The exercise price for the purpose of exercise of options will be at
 Rs. 10/- per share i.e.at par.
 
 The employee stock options granted shall be capable of being exercised
 within a period of 5 years from the date of vesting options or such
 lesser period as may be decided by the Compensation Committee from time
 to time.
 
 Under the Scheme 139,125 (80,400) stock options out of the total of
 5,00,000 stock options reserved for grant of options having an exercise
 price equal to the par value of the underlying equity shares on the
 date of grant (i.e. Rs.  10 per option) are outstanding as at the
 balance sheet date.
 
 As the number of shares that an individual employee is entitled to
 receive and the price of the options are known at the grant date, the
 scheme is considered as a fixed grant.
 
 In the case of termination of employment, all non-vested options would
 stand cancelled. Options that have been vested but have not been
 exercised can be exercised within the time prescribed under each option
 agreement by the Committee or if no time limit is prescribed, within 30
 days of the date of employment termination, failing which they would
 stand cancelled.
 
 The Company follows intrinsic method of accounting based on which the
 compensation cost is recognised in the Profit and Loss account.
 
 During the current year, the company under the Kaweri 2008 Plan has
 granted Nil (80,400) options to eligible employees and 14,200 options
 lapsed till 31st March 2011.
 
 l8.Earningspershare:
 
 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. The
 weighted average number of shares outstanding during the year is
 adjusted for events of bonus issue.
 
 For the purpose of calculating diluted earnings per share.the net
 profit or loss for the year attributable to equity shareholders and the
 weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares.
 
 19.Contingent Liability:
 
 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.