1 Disclosure of Accounting Policies:
 
 Financial statements have been prepared under the historical costs
 convention and in accordance with applicable accounting standards and
 provisions of the Companies Act, 1956. All income and expenditure
 having a material bearing in the financial statements are prepared on
 accrual basis.
 
 2 Valuation of Inventories:
 
 a)Raw Materials and Work in Progress are valued at cost.
 
 b)Finished goods are valued at cost or net realisable value whichever
 is less.  c)CENVAT & VAT on purchase of raw material/components are
 deducted from cost of such materials.
 
 3 Cash Flow Statements:
 
 Cash flows are reported using the indirect method, whereby
 profit/(loss) before tax is adjusted for the effects of transactions of
 non cash nature and any deferrals or accruals of past or future cash
 receipts or payments. The cash flows from operating, investing and
 financing activities of the companies are segregated based on the
 available information.
 
 4 Accounting for Fixed Assets
 
 Fixed assets are capitalized at acquisition cost and other directly
 attributable cost of bringing the assets to its working condition.
 Cenvat & VAT claimed on capital goods are credited to plant & machinery
 account. Development / preoperative expenditure incurred, if any, in
 connection with new line of production will be capitalized to the
 respective project Assets.
 
 5 Depreciation Accounting:
 
 Fixed assets are valued at cost less depreciation provided on Straight
 Line Method at the rates and in the manner specified in Schedule XIV to
 the Companies Act, 1956. In respect of additions made during the year,
 depreciation is provided on pro rata basis.
 
 6 Research & Development (R & D):
 
 Revenue expenditure (including depreciation) on R&D is charged to
 revenue in the year in which it is incurred. Capital expenditure, if
 any, on R&D is added to fixed assets.
 
 7 Revenue Recognition
 
 Sales & Services are inclusive of taxes and duties collected.
 
 Revenue from fixed price contracts are recognized as per the terms of
 the contract.  Revenue from other income is based on accrual basis
 
 8 Accounting for effects in foreign exchange rates
 
 a) All monetary items denominated in foreign currency are reflected at
 the rates prevailing on the Balance sheet date.
 
 b) Income and Expenditure items involving foreign exchange are
 translated at the exchange rate prevailing on the dates of transaction.
 
 c) Exchange differences, if any, arising on account of fluctuations in
 foreign exchange have been duly reflected in the Profit & Loss Account
 except in respect of acquisition of fixed assets.
 
 9 Accounting for Investments
 
 All investments are Long-term investments and are carried at cost.
 
 10 Accounting for Retirement Benefits:
 
 a) The Company has a provident fund scheme for their employees.
 Contributions to the scheme are charged to the profit and loss account.
 
 b) Provision for gratuity has been made for all the employees in the
 rolls of the company at the closing of accounting year. The company is
 making actual gratuity payments as and when crystallized by debiting to
 the gratuity fund account.
 
 c) The Company extends benefit of Encashment of Leave to its employees
 while in service as well as on retirement. Leave encashment liability
 in respect of leave accumulated is accounted for on the basis of last
 drawn salary.
 
 11 Borrowing Cost :
 
 Borrowing Costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized till the date of the
 assets put to use. All other borrowing costs are charged to revenue.
 
 12 Segment Reporting :
 
 The company has recognized revenue on segmental basis.
 
 13 Related party Disclosure :
 
 The company has entered into transactions with related parties and the
 said information is shown separately.
 
 14 Operating Leases :
 
 Assets acquired on leases where a significant portion of the risks and
 rewards of ownership are retained by the less or are classified as
 operating leases. Lease rentals are charged to the profit & loss
 account on accrual basis.
 
 15 Earnings Per Share :
 
 The company follows the relevant AS and the disclosures made
 accordingly.
 
 16 Consolidated Financial Statements :
 
 The company had made consolidated financial statements.
 
 17 Deferred Taxation:
 
 Current Tax is determined as per the amount of tax payable in respect
 of taxable income for the period. Deferred tax is recognised, subject
 to the consideration of prudence in respect of deferred tax
 assets/liabilities, on timing differences, being difference between
 taxable income and accounting income that originate in one period and
 are capable of reversal in one or more subsequent periods.
 
 18 Accounting for investments in associates Investments in associates
 is valued at cost of investment.
 
 19 Contingencies and events occurring after the balance sheet date.
 
 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.