i) Basis of Preparation of Financial Statements:
 
 The financial statements have been prepared to comply in all material
 respects in accordance with the notified Accounting Standards issued
 under Companies (Accounting Standards) Rules, 2006 (as amended) and the
 relevant provisions of the Companies Act, 1956.
 
 The financial statements have been prepared under the historical cost
 convention in accordance with generally accepted Accounting Principles.
 
 The company generally follows mercantile system of accounting and
 recognizes significant items of income and expenditure on accrual
 basis. The Accounting policies have been consistently applied by the
 company and are in consistent with those applied in the previous year.
 
 ii) Use of Estimates:
 
 The preparation of Financial Statements in conformity of 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 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. These difference/s between actual and estimates
 are recognized in the period in which the results are
 known/materialized.
 
 iii) Inventories:
 
 a) Raw Materials and components; Valued at lower of Landed cost (net of
                                  taxation credits, if any) and Net
 
 b) Stores & Spares               Realisable value*, after making 
                                  provision for obsolescence 
                                  wherever 
 (Including Packing Materials);   necessary.
 
 c) Traded Goods (Including 
 Moulds & Dies)                   Cost comprises of cost of Purchase & 
                                  other costs incurred in bringing
                                  them to their respective present 
                                  location and condition and is
                                  determined on First-in-First-Out 
                                  (FIFO) basis.
 
 a) Work-in-Progress;             Valued at lower of cost and Net
                                  Realisable value*, after making 
                                  provision
 b) Finished Goods                for obsolescence wherever necessary.
 
                                  Cost of Work-in-progress & Finished 
                                  Goods includes Direct Material,
                                  Labour and proportion of manufacturing
                                  overheads.
 
 Scrap                            At Net Realisable Value*.
 
 *Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and to make the
 sale.
 
 iv) Cash Flow Statement:
 
 Cash flow statement has been prepared following the indirect method set
 out in the Accounting Standard - 3 on Cash Flow Statement issued by
 the Institute of Chartered Accountants of India.
 
 v) Events Subsequent to the Balance Sheet Date:
 
 Events occurring after the Balance Sheet date, which have a material
 impact on the financials affairs of the Company, are taken into
 cognisance while presenting the Financial Statements of the Company.
 
 vi) Prior Period and Extraordinary Items:
 
 Prior period and extraordinary items and changes in accounting
 policies, having a material impact on the financial affairs of the
 Company are disclosed, wherever required.
 
 vii) Depreciation & Amortisation:
 
 Depreciation on, Tangible Fixed Assets, has been provided on Straight
 Line Method in accordance with and at the rates prescribed in schedule
 XIV to the Companies Act, 1956, read with the relevant circulars issued
 by the department of Company Affairs issued from time to time.
 
 Depreciation on additions to / deletion from Tangible Fixed Assets made
 during the year is provided on a pro-rata basis from / upto the date of
 such additions/deletions, as the case may be.
 
 Intangible Assets are Amortised as follows:
 
 a) Leasehold land       : Over the period of lease
 
 b) Specialised software : Over the Estimated Economic useful life.
 
 c) Technical Knowhow    : Over a period of Technical assistance 
                           agreement i.e. 8 years.
 
 viii) Revenue Recognition:
 
 Revenue is recognized only when it can be reliably measured and it is
 reasonable to expect ultimate collection.
 
 a) Sale of goods -
 
 Sale of Goods consist of sale of Automotive Parts.
 
 Revenue is recognised when significant risks and rewards of ownership
 of the goods are transferred to the buyer. It includes Excise Duty but
 excludes trade discount and Sales Tax.
 
 b) Interest income is recognized on time proportion basis taking into
 account the amount outstanding and rate applicable.
 
 c) Revenue from Logistics activity is recognized on the basis of
 contract entered into by the company on accrual basis.
 
 d) Dividend from investments in shares is recognized when the company,
 in which they are held, declares a dividend and right to receive the
 same is established.
 
 ix) Fixed Assets :
 
 Tangible Assets: Fixed Assets are stated at Cost Net of eligible
 CENVAT, Cess, Deferred Excise Duty and VAT set-off less accumulated
 depreciation. Cost includes purchase cost together with inward freight,
 duties, taxes and incidental cost of acquisition and installation and
 eligible borrowing costs and also includes pre-operative expenses
 incurred during the construction, trial and stabilization period, up to
 the period such assets are put to commercial use.
 
 Intangible Assets: Intangible assets are valued at cost less
 Accumulated Amortisation as per the criteria specified in Accounting
 Standard (AS) 26 Intangible Assets issued by the Institute of
 Chartered Accountants of India.
 
 x) Translation of Foreign Currency items:
 
 a) Transactions in foreign currencies are generally recorded at the
 exchange rates prevailing on the date of the transaction.
 
 b) Gains or Losses arising out of fluctuation in exchange rates on
 settlement are recognized in the Profit and Loss Account.
 
 c) Foreign Currency Monetary Assets and Liabilities are reinstated at
 the exchanged rates prevailing at the year end and overall Net Gain /
 Loss is adjusted in the Profit and Loss Account.
 
 xi) Investments:
 
 a) Investments that are readily realizable and intended to be held for
 less than one year are classified as Current Investment and are carried
 at lower of cost or market value.
 
 b) All other investments are classified as Long Term Investments and
 are carried at cost. However, provision for diminution in value is made
 to recognize a decline, other than temporary, in the value of such
 investment.
 
 xii) Employees'' Benefits:
 
 a) Short Term Benefits: Short term Employee Benefits are recognized as
 an expense at the undiscounted amount in the Profit & Loss Account of
 the year in which the related service is rendered. These benefits
 include Salaries, Bonus, medical care expenses etc.
 
 b) Long Term Benefits:
 
 - Defined Contribution plan: Employees'' benefits in the form of ESIC,
 Provident Fund & Labour Welfare Fund are considered as defined
 contribution plan and the contributions are charged to the Profit &
 Loss Account of the year, on accrual basis, when the contributions to
 the respective funds are due.
 
 - Defined Benefit Plan: Gratuity: Benefits in the form of Gratuity are
 considered as defined benefit obligations and are provided for on the
 basis of an actuarial valuation, using the Projected Unit Credit Method
 as at the date of Balance Sheet.
 
 - Leave Encashment: Benefits in the form of Leave Encashment on account
 of un-availed leave at the year end are also considered as defined
 benefit obligations and is provided as per the actuarial valuation
 according to Projected Unit Cost Method.
 
 - Actuarial Gains /Losses, if any, are immediately recognized in the
 Profit & Loss Account.
 
 xiii) Borrowing Costs:
 
 Borrowing Costs that are attributable to the acquisition or
 construction of qualifying fixed assets are capitalized as part of the
 cost of such assets. A qualifying asset is one that necessarily takes a
 substantial period of time to get ready for its intended use or sale.
 All other borrowing costs are recognized as expense in the year in
 which they are incurred.
 
 xiv) Segment Reporting
 
 The Company Operates in two primary Business segments viz
 
 a) Manufacturing of Automotive Parts;
 
 b) Trading of Automotive Parts
 
 xv) Leases:
 
 Assets taken on lease under which all risks and rewards of ownership
 are effectively retained by the lessor are classified as operating
 lease. Lease payments under Operating Leases are recognized as expenses
 on straight Line Basis as per the terms of lease.
 
 xvi) Earnings Per Share:
 
 In considering the Earnings Per Share, the Company considers the Net
 Profit or Loss for the year attributable to the Equity Shareholders''.
 
 The number of shares used in computing Basic Earnings per share is the
 Weighted Average number of Equity Shares outstanding during the year.
 
 The number of shares used in computing Diluted Earnings per share is
 the Weighted Average number of Equity Shares outstanding during the
 year after adjusting for the effects of all dilutive potential Equity
 Shares.
 
 xvii) Taxes on Income:
 
 Income Tax expenses for the year comprise of Current Tax and Deferred
 Tax.
 
 a) Provision for Current Tax is made taking into account the admissible
 deductions/allowances under the provisions of Income Tax Act 1961, as
 applicable for respective Financial Year.
 
 b) Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date.  Deferred
 Tax is recognized, on the timing differences, being the difference
 between accounting income and taxable income, which originates in one
 period and are capable of reversal in one or more subsequent accounting
 period/s in accordance with provisions of Accounting Standard 22 on
 Accounting for Taxes on Income, issued by the Institute of Chartered
 Accountants of India. Deferred Tax Asset in respect of brought forward
 losses is recognized only if there is virtual certainty that there will
 be sufficient future taxable income against which such asset can be
 realized. The carrying amount of Deferred Tax is reviewed at each
 Balance Sheet date.
 
 xviii) Accounting for Interests in Joint Ventures:
 
 Interest in Joint Venture is accounted as follows:
 
 Type of Joint Venture        Accounting treatment
 
 Jointly Controlled Entities  a) Income on investments in incorporated
                                 Jointly Controlled Entities
                                 is recognised when the right to receive
                                 the same is established.
 
                              b) Investment in such Joint Ventures is 
                                 carried at cost after providing
                                 for any permanent diminution in value.
 
 xix) Impairment of Assets:
 
 An asset is treated as impaired when the carrying cost of asset exceeds
 its recoverable value. An Impairment Loss is charged to the Profit &
 Loss Account in the year in which the asset is identified as impaired.
 The impairment loss recognized in the prior accounting period is
 reversed if there has been a change in the estimate of recoverable
 amount.
 
 xx) Provisions and Contingent Liabilities, Contingent Assets:
 
 Provisions: Provisions, involving substantial degree of estimation in
 measurement, are recognised if :
 
 a) the Company has a present obligation as a result of a past event and
 
 b) it is probable that there will be an outflow of resources and
 
 c) the amount of the obligation can be reliably estimated.
 
 Provisions are not discounted to its present value and are determined
 based on best Management estimate required to settle the obligation at
 the Balance Sheet date. These are reviewed at each Balance Sheet date
 and adjusted to reflect the current best estimates.
 
 Warranty expenses are provided for in the year of Sales based on
 technical estimates.
 
 Contingent liabilities: Contingent liabilities are disclosed in case
 of:
 
 a) a present obligation arising from past events, when it is not
 probable that an outflow of resources will be required to settle the
 obligation,
 
 b) a present obligation when no reliable estimate is possible; and
 
 c) a possible obligation arising from past events where the probability
 of outflow of resources is not remote.
 
 Contingent Liabilities are reviewed at each Balance Sheet date.
 
 Contingent Assets: Contingent Assets are neither recognized nor
 disclosed.