1.  Basis of preparation of financial statements:
 
 The financial statements are prepared under the historical cost
 convention in accordance with Indian Generally Accepted Accounting
 Principles (GAAP), and all income and expenditure having a material
 bearing on the financial statements are recognized on accrual basis.
 The financial statements comply with the applicable mandatory
 Accounting Standards prescribed by the Companies (Accounting Standards)
 Rules 2006, relevant provisions of the Companies Act, 1956.
 
 2.  Use of Estimates:
 
 In preparation of financial statements conforming to GAAP requirements,
 certain estimates and assumptions are essentially required to be
 made, with respect to items such as, provision for doubtful debts,
 future obligations under employee retirement benefit plans, income
 taxes, and the useful life period of Fixed Assets. Due care and
 diligence have been exercised by the Management in arriving at such
 estimates and assumptions since, they may directly affect, the
 reported amounts of income and expenses during the period, as well as
 the balances of Assets and Liabilities, including those which are
 contingent in nature, as at the date of reporting of the financial
 statements.
 
 Accounting estimates could change from period to period. Actual results
 could differ from those estimates. Appropriate changes in estimates are
 made as management becomes aware of changes in circumstances
 surrounding the estimates.  Changes in estimates are reflected in the
 financial statements in the period in which changes are made and, if
 material, their effects are disclosed in the notes to the financial
 statements.
 
 3.  Revenue Recognition:
 
 a.  Sales Revenues are recognized when goods are invoiced and
 dispatched to customers, and are recorded inclusive of Excise Duty, but
 are net of Sales Returns, Trade Discounts and Sales Tax.
 
 b.  The revenues from Annual Maintenance Contracts are recognized on
 pro-rata basis over the period in which such services are rendered.
 
 c.  Commission income is recognized on completion of supplies by the
 principals against the relevant orders.
 
 d.  The revenues from Service and Installation Charges are recognized
 on completion of respective works contract/s.
 
 e.  Income from Investments is recognized when right to receive payment
 is established.
 
 f.  Rental & Hire-charges Income are recognized on accrual basis,
 quantified under the relevant arrangements.
 
 g.  Interest is recognized using the Time - Proportion method, based on
 the rates implicit in the transaction.
 
 4.  Employee Stock Option Plan:
 
 The Company has Employee Stock Option Plan for the benefit of its
 employees, terms of which are enunciated in MRO-TEK Employee Stock
 Option Scheme 2005, duly approved by the shareholders of the Company.
 
 All options granted under this scheme are accounted in accordance with
 the Guidance Note on Accounting for Employee Share Based Payment Plans
 issued by the Institute of Chartered Accountants of India (ICAI).
 Fair Market Value is assessed as provided under the Statute, and the
 difference between such Fair Market Value and exercise price, if
 any, is expensed as Employee Compensation over the period of vesting.
 
 5.  Foreign Currency Translation:
 
 Foreign currency transactions are recorded at the rate of exchange
 prevailing on the date of the transaction. Transaction gains or losses
 realized upon settlement of foreign currency transactions are included
 in determining net profit for the period in which the transaction is
 settled.
 
 All monetary items denominated in foreign currency are converted at the
 rates prevailing on the date of the financial statement.
 
 6.  Fixed Assets:
 
 Fixed assets are stated at cost of acquisition (net of CENVAT, wherever
 applicable), less accumulated depreciation. Cost is inclusive of
 freight, duties, levies and any directly attributable cost of bringing
 the assets to their working condition for intended use.  Direct costs
 are capitalized till the assets are ready to be put to use. Interest on
 borrowings, wherever applicable, attributable to new projects is
 capitalized and included in the cost of fixed assets as appropriate.
 
 8.  Inventories:
 
 The cost of inventories comprise all cost of purchase, costs of
 conversion and other costs incurred in bringing the inventories to
 their present location and condition.
 
 a) Raw Materials, Finished (Traded) Goods & Goods in Transit are valued
 at lower of cost and net realizable value, on First-In First-Out basis.
 
 b) Semi-Finished Goods & Finished (manufactured) Goods, are valued at
 lower of cost (Including an appropriate portion of overheads up to the
 respective stage/s of completion) and, net realizable value, on
 First-In First-Out basis.
 
 9.  Employee Benefits:
 
 a.  Short Term Employee Benefits:
 
 Benefits payable to employees within 12 months of rendering services
 such as wages, salaries, bonus, paid annual leave, etc are classified
 as Short Term Employee Benefits and are recognized in the period in
 which the employee renders related services.
 
 b.  Long Term/ Post Employment/ Termination Benefits:
 
 Retirement benefits are provided for on accrual basis in the following
 manner:
 
 i Gratuity:
 
 Gratuity is a defined benefit scheme and is accrued based on Actuarial
 Valuations at the balance sheet date, carried out by an independent
 actuary. The Company has an employee gratuity fund managed by Life
 Insurance Corporation of India
 
 (LIC). Actuarial gains or losses are charged to Profit and Loss
 Account.
 
 The company recognizes the net obligation of the gratuity plan in the
 Balance Sheet as an asset or liability, respectively in accordance with
 Accounting Standard AS(15), Employee Benefits.
 
 ii Liability in respect of Leave Encashment is provided for, on
 actuarial Valuations.
 
 iii Provident Fund:
 
 On the basis of payments/contributions made to the concerned Provident
 Fund authorities.
 
 10.  Research & Development:
 
 Revenue expenditure on Research & Development is recognized as an
 expense in the year in which it is incurred. Capital expenditure
 incurred on Research and Development is depreciated adopting Straight
 Line Method, at rates as detailed in para (7) above.  Revenue and
 Capital expenses on Research & Development are identified and accounted
 separately in the books.
 
 11.  Investments:
 
 Investments are classified as current investments and long-term
 investments. Long-term investments are stated at cost (except where
 there is a diminution in value other than temporary, in which case, the
 carrying value is reduced to recognize the decline).  Current
 investments are stated at lower of cost or fair market value.
 
 12.  Taxation:
 
 Deferred tax is recognized, subject to the consideration of prudence,
 in respect of deferred tax assets or liabilities, on timing
 differences, being the difference between taxable income and accounting
 income that originate in one period, and is reversible in one or more
 subsequent periods.
 
 Deferred tax assets are recognized only to the extent there is
 reasonable certainty that the asset can be realized in the future;
 however where there is unabsorbed depreciation or carry forward of
 losses, deferred tax assets are recognized only if there is a virtual
 certainty of realization of such assets and are reviewed for the
 appropriateness of their respective carrying values at each reporting
 date.
 
 Income Taxes are accrued in the same period the related revenue and
 expenses arise. A provision is made for income tax annually, based on
 the tax liability computed, after considering tax allowances and
 exemptions. Provisions are recorded when it is estimated that a
 liability due to disallowances or other
 
 matters is probable.Minimum Alternate Tax(MAT) paid in accordance with
 the tax laws, which gives rise to future economic benefits in the form
 of tax credit against future income tax liability, is recognized as an
 asset in the Balance Sheet if there is convincing evidence that the
 company will pay normal tax in future and the resultant asset can be
 measured reliably.
 
 13.  Segment Accounting Policies:
 
 (a) Segment Assets and Liabilities:
 
 All assets and liabilities are directly attributable to the respective
 segments. Segment assets include all operating assets used by the
 respective segments and consist, principally, of fixed assets,
 inventories, sundry debtors, loans and advances and operating cash and
 bank balances. Segment assets and liabilities do not include
 investments, inter-corporate deposits, share capital, reserves and
 surplus, borrowings, provision for contingencies and income tax (both
 current and deferred).
 
 (b) Segment Revenue and expenses:
 
 Revenue and expense, excepting interest income on deposits, profit on
 sale of investments, interest expense, provision for contingencies and
 income-tax, are directly attributable to the respective segments.
 
 14.  Impairment of assets:
 
 At the end of each year, the Company determines whether a provision
 should be made for impairment loss on fixed assets by considering the
 indications that an impairment loss may have occurred in accordance
 with Accounting Standard-28 Impairment of Assets prescribed by the
 Companies (Accounting Standards) Rules 2006, where the recoverable
 amount of any fixed asset is lower than its carrying amount, a
 provision for impairment loss on fixed assets is made for the
 difference.
 
 15.  Leases:
 
 Leases where the Lessor effectively retains substantially all the risk
 and benefits of ownership of the leased term are classified as
 operating lease.  Operating lease payments are recognized as an expense
 in the Profit and loss account on a straight line basis over the lease
 term.
 
 16.  Borrowing Costs:
 
 Borrowing costs attributable to the acquisition, Construction or
 production of qualifying assets are capitalized as a part of the cost
 of such Assets up-to the date when such assets are ready for intended
 use. Other borrowing costs are charged as an expense in the year in
 which they are incurred.
 
 17.  Provisions, Contingent Liabilities and Contingent Assets:
 
 A provision is recognized when the Company has a present obligation as
 a result of past events; 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.
 
 Contingent liability is disclosed in case of a present obligation
 arising from past events when it is not probable that an outflow of
 resources will be required to settle the obligation, or a present
 obligation when no reliable estimate is possible, or a possible
 obligation arising from past events where the probability of outflow of
 resources is remote.
 
 Contingent Assets are neither recognized nor disclosed.
 
 18.  Events occurring after the date of Balance Sheet:
 
 Material events occurring after date of Balance Sheet are taken into
 cognizance.
 
 19.  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 and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating; financing and
 investing activities of the company are segregated.
 
 20.  Earnings Per Share:
 
 The Company reports basic and diluted earnings per share in accordance
 with the Accounting Standards - 20 - Earnings per Share prescribed by
 the Companies (Accounting Standards) Rules 2006. Basic earning per
 share is computed by dividing the net Profit or Loss for the year by
 the weighted average number of Equity Shares outstanding during the
 year.  Diluted earning per share is computed by dividing the net profit
 or loss for the year by the weighted average number of Equity Shares
 outstanding during the year as adjusted for the effects of all dilutive
 potential Equity Shares.