a) Basis of preparation
 
 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 on
 an accrual basis except in case of assets for which revaluation is
 carried out. The accounting policies have been consistently applied by
 the Company and are consistent with those applied in the previous year.
 
 b) 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 operations during the reporting
 period end. Although these estimates are based upon managements best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 c) Fixed Assets
 
 i) Fixed assets are stated at cost (or revalued amounts, as the case
 may be) less accumulated depreciation and impairment losses, if any.
 Cost comprises the purchase price and any attributable cost of bringing
 the asset to its working condition for its intended use. Borrowing
 costs relating to acquisition of fixed assets which take substantial
 period of time to get ready for its intended use are included to the
 extent they relate to the period till such assets are ready to be put
 to use.
 
 ii) Insurance spares / stand by equipments are capitalized as part of
 respective mother assets.
 
 iii) In respect of accounting periods commencing on or after 7th
 December, 2006, exchange differences arising on reporting of the
 long-term foreign currency monetary items at rates different from those
 at which they were initially recorded during the period, or reported in
 the previous financial statements are added to or deducted from the
 cost of the asset and are depreciated over the balance life of the
 asset, if these monetary items pertain to the acquisition of a
 depreciable fixed asset.
 
 d) Depreciation
 
 i) Depreciation is provided using the Straight Line Method as per the
 useful lives of assets estimated by the management, or at the rates
 prescribed under schedule XIV of the Companies Act, 1956, whichever is
 higher. The rates prescribed under schedule XIV of the Companies Act,
 1956 are considered fair representation for the life estimated by the
 management.
 
 ii) Cost of Leasehold land is amortized over the period of lease and
 leased plant and machinery is amortized over the period of lease or
 their useful lives whichever is lower.
 
 iii) Individual assets costing up-to Rs.5000/- are depreciated fully in
 the month of purchase.
 
 iv) Insurance spares / standby equipments are depreciated prospectively
 over the remaining useful lives of the respective mother assets.
 
 v) In respect of the revalued assets, the difference between the
 depreciation calculated on the revalued amount and that calculated on
 the original cost is recouped from the Revaluation Reserve Account.
 
 e) Intangibles
 
 Intangibles assets are amortized using straight-line method over their
 estimated useful lives as follows:
 
 S. 
 No.  Intangible Assets  Estimated Useful Life (Years)
 
 1 Computer Software     Over the estimated economic useful lives ranging
                         from 3.5 to 4 years
 
 2 Technical Know-how    Over the period of Technical Assistance 
                         Agreement i.e. 8 years
 
 Research & development costs
 
 Research cost are expensed as incurred. Development expenditure
 incurred on an individual project is recognized as an intangible asset.
 
 f) Impairment
 
 i) The carrying amounts of assets are reviewed at each balance sheet
 date if there is any indication of impairment based on internal /
 external factors. An impairment loss is recognized wherever the
 carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the greater of the assets 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.
 
 ii) After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 g) Leases
 
 Where the Company is the lessee
 
 Finance leases, which effectively transfer to the Company substantially
 all the risks and benefits incidental to ownership of the leased item,
 are capitalized at the lower of the fair value and present value of the
 minimum lease payments at the inception of the lease term and disclosed
 as leased assets. Lease payments are apportioned between the finance
 charges and reduction of the lease liability based on the implicit rate
 of return. Finance charges are charged directly against income. Lease
 management fees, legal charges and other initial direct costs are
 capitalised.
 
 Leases, where the lessor effectively retains substantially all the
 risks and benefits of ownership of the leased item, 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.
 
 Where the Company is the lessor
 
 Assets given under a finance lease are recognised as a receivable at an
 amount equal to the net investment in the lease. Lease rentals are
 apportioned between principal and interest on the IRR method. The
 principal amount received reduces the net investment in the lease and
 interest is recognised as revenue. Initial direct costs such as legal
 costs, brokerage costs, etc. are recognised immediately in the Profit
 and Loss Account.
 
 Assets subject to operating leases are included in fixed assets. Lease
 income is recognised in the Profit and Loss Account on a straight-line
 basis over the lease term. Costs, including depreciation are recognised
 as an expense in the Profit and Loss Account.  Initial direct costs
 such as legal costs, brokerage costs, etc. are recognised immediately
 in the Profit and Loss Account.
 
 h) 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. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long - term investments are carried at
 cost. However, provision for diminution in value is made to recognize a
 decline other than temporary in the value of such investments.
 
 i) Inventories
 
 Inventories are valued as follows:
 
 Raw materials and components, Stores and spares (including packing
 materials)
 
 At Cost and Net Realizable Value, whichever is lower. However,
 materials and other items held for use in the production of inventories
 are not written down below cost if the finished products in which they
 will be incorporated are expected to be sold at or above cost.
 
 Cost is determined on moving weighted average basis. Cost of raw
 materials and components lying in bonded warehouse includes custom duty
 accounted for on accrual basis.
 
 Finished goods & Traded goods, Work-in-progress and Moulds, tools and
 dies in process At Cost and Net Realizable Value, whichever is lower.
 Cost of Finished goods and Work-in-progress (including moulds, tools
 and dies in process) includes direct materials, labour and a proportion
 of manufacturing overheads based on normal operating capacity. Cost of
 traded goods is determined on moving weighted average basis.  Cost of
 finished goods includes excise duty.
 
 Waste At Net Realizable 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.
 
 j) Revenue Recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Sale of goods
 
 Revenue is recognised when the significant risks and rewards of
 ownership of the goods have passed to the buyer, which coincides with
 their delivery to the customer. Excise Duty, Sales Tax and VAT deducted
 from turnover (gross) are the amount that is included in the amount of
 turnover (gross) and not the entire amount of liability arised during
 the year.
 
 Interest
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 Dividend
 
 Revenue is recognised when the shareholders right to receive payment
 is established by the balance sheet date.
 
 k) Foreign Currency Translation
 
 Foreign currency transactions
 
 i) Initial Recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 ii) Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction.
 
 iii) Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 reinstatement of monetary items at rates different from those at which
 they were initially recorded during the year, or reported in previous
 financial statements, are recognised as income or as expenses .
 
 Exchange differences, in respect of accounting periods commencing on or
 after 7th December, 2006, arising on reporting of long-term foreign
 currency monetary items at rates different from those at which they
 were initially recorded during the period, or reported in previous
 financial statements, in so far as they relate to the acquisition of a
 depreciable capital asset, are added to or deducted from the cost of
 the asset and are depreciated over the balance life of the asset, and
 in other cases, are accumulated in a Foreign Currency Monetary Item
 Translation Difference Account in the enterprises financial
 statements and amortized over the balance period of such long-term
 asset/liability but not beyond accounting period ending on or before
 31st March, 2011.
 
 Exchange differences arising on the settlement of monetary items not
 covered above, or on reporting such monetary items of company at rates
 different from those at which they were initially recorded during the
 year, or reported in previous financial statements, are recognized as
 income or as expenses in the year in which they arise.
 
 iv) Forward exchange contracts not intended for trading or speculation
 purposes
 
 The premium or discount arising at the inception of forward exchange
 contracts is amortised as expense or income over the life of the
 contract. Exchange differences on such contracts are recognized in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognized as income or as expense for the
 year.
 
 l) Retirement and other Employee Benefits
 
 i) Short term compensated absences are provided for based on estimates.
 Long term compensated absences are provided for based on actuarial
 valuation at the end of each year. The actuarial valuation is done as
 per projected unit credit method.
 
 ii) Gratuity liability is a defined benefit obligation and is provided
 for on the basis of an actuarial valuation on projected unit cost
 method made at the end of each financial year. The liability as at the
 year end represents the differences between the actuarial valuation of
 the future gratuity liability of continuing employees and the fair
 value of the plan assets with the Life insurance Corporation of India
 (LIC) as at the end of the year.
 
 iii) Actuarial gains/losses are immediately taken to profit and loss
 account.
 
 iv) The Company has superannuation obligation towards Lumax Industries
 Limited Employees superannuation Scheme administered by the trustees.
 There are no other obligations other than the contribution payable to
 the respective trusts.
 
 v) Retirement benefits in the form of Provident Fund is a defined
 benefit contribution scheme and the contributions are charged to Profit
 and Loss Account of the year when the contributions to the respective
 funds are due. There are no other obligations other than the
 contribution payable to the respective funds.
 
 m) Income Taxes
 
 Tax expense comprises of current, deferred and fringe benefit tax.
 Current income tax and fringe benefit 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 reflects 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 recognised 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 realised. In situation
 where the company has unabsorbed depreciation or carry forward tax
 losses, all deferred tax assets are recognised only if there is virtual
 certainty supported by convincing evidence that such deferred tax
 assets can be realised against future taxable profits.
 
 At each balance sheet date, the Company re-assesses unrecognised
 deferred tax assets. It recognises unrecognised deferred tax assets to
 the extent that it becomes 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 realised.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company recognises / writes-down the carrying amount of
 a deferred tax asset to the extent that it is no longer reasonably
 certain or virtually certain, as the case may be, that sufficient
 future taxable income will be available against which deferred tax
 asset can be realised. Any such write-down is subsequently reversed to
 the extent that it becomes reasonably certain or virtually certain, as
 the case may be, that sufficient future taxable income will be
 available against which deferred tax asset can be realized.
 
 MAT credit is recognised as an asset only when and to the extent there
 is convincing evidence that the company will pay normal income tax
 during the specified period. In the year in which the Minimum
 Alternative tax (MAT) credit becomes eligible to be recognized as an
 asset in accordance with the recommendations contained in guidance Note
 issued by the Institute of Chartered Accountants of India, the said
 asset is created by way of a credit to the profit and loss account and
 shown as MAT Credit Entitlement.  The Company reviews the same at each
 balance sheet date and writes down the carrying amount of MAT Credit
 Entitlement to the extent there is no longer convincing evidence to the
 effect that Company will pay normal Income Tax during the specified
 period.
 
 n) Earnings per share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of shares outstanding during the year.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 o) Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event and it is probable that an outflow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made. 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 management estimates.
 
 Accordingly, warranty costs are provided on an accrual basis, taking
 into account the past trend of warranty claims received by the Company,
 to settle the obligation at the balance sheet date.
 
 p) Expenditure on new projects and substantial expansion
 
 Expenditure directly relating to construction activity is capitalised.
 Indirect expenditure incurred during construction period is capitalised
 as part of the construction cost to the extent to which the expenditure
 is indirectly related to construction or is incidental thereto.  Other
 indirect expenditure (including borrowing costs) incurred during the
 construction period which is not related to the construction activity
 nor is incidental thereto is charged to the Profit and Loss Account.
 Income earned, if any, during construction period is deducted from the
 total of the indirect expenditure.
 
 All direct capital expenditure on expansion are capitalised. As regards
 indirect expenditure on expansion, only that portion is capitalised
 which represents the marginal increase in such expenditure involved as
 a result of capital expansion. Both direct and indirect expenditure are
 capitalised only if they increase the value of the asset beyond its
 original standard of performance.
 
 q) Segment Reporting Policies
 
 The Companys operating businesses are organised and managed separately
 according to the nature of products and services provided, with each
 segment representing a strategic business unit that offers different
 products and serves different markets. The analysis of geographical
 segments is based on the geographical location of the customers.
 
 r) Cash and Cash equivalents
 
 Cash and cash equivalents in the cash flow statement comprise cash at
 bank and in hand and short- term investments with an original maturity
 of three months or less.
 
 s) Derivative instruments
 
 As per the ICAI Announcement, accounting for derivative contracts,
 other than those covered under AS-11, are marked to market on a
 portfolio basis, and the net loss after considering the offsetting
 effect on the underlying hedge item is charged to the income statement.
 Net gains are ignored.