a) Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the Notified accounting standard by 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. The accounting
 policies have been consistently applied by the Company and are
 consistent with those used 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) Tangible assets and depreciation
 
 - Fixed assets are stated at cost 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 cost relating to acquisition of fixed
 assets, which take substantial period of time to get ready for its
 intended use, are also included to the extent they relate to the period
 till such assets are ready to be put to use. Machinery spares which can
 be used only in connection with an item of fixed assets and whose use
 as per technical assessment is expected to be irregular are
 capitalized.
 
 - 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 year, 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.
 
 - Depreciation is provided using the straight line method as per the
 estimated useful lives of the fixed assets estimated by the management,
 which results in depreciation rates being equal to the corresponding
 rates prescribed in Schedule XIV of the Companies Act, 1956 except for
 certain non factory buildings like boundary wall, tubewell and road
 which are depreciated at 3.34%, the rate of which is higher than the
 rate prescribed in Schedule XIV of the Companies Act, 1956.
 
 - Depreciation on the amount of adjustment to fixed assets on account
 of capitalisation of insurance spares is provided over the remaining
 useful life of related assets.
 
 - All assets costing upto Rs 5,000 are fully depreciated in the year of
 purchase.
 
 d) Intangible assets and amortisation
 
 Designs and Drawings
 
 Amounts paid towards acquisition of designs and drawings for
 specifically identified products, being development expenditure
 incurred towards product design is carried forward based on assessment
 of benefits arising from such expenditure. Such expenditure is
 amortised over the period of expected future sales from the related
 product, which the management has determined to be 24 months based on
 past trends, commencing from the month of commencement of commercial
 production.
 
 Computer Software
 
 Costs relating to Software, which are acquired, are capitalized and
 amortised on a straight line basis over the useful lives of four years.
 
 The period of amortisation is reassessed annually to ascertain
 reasonableness and appropriateness.
 
 e) Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 to determine if there is any indication of impairment based on
 external/internal factors. An impairment loss is recognized wherever
 the carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is 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 using a pre-tax discount
 rate that reflects current market assessments of the time value of
 money and risk specific to the asset.
 
 f) Leases
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased term are classified as
 operating charges. Operating lease payments are recognized as an
 expense in the profit and loss account on a straight-line basis over
 the lease term.
 
 g) Investments
 
 Investments that are readily realisable 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 market 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 the investments.
 
 i) 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 recognized when the significant risks and rewards of
 ownership of the goods have been passed to the buyer.  Sale of goods is
 inclusive of excise duty but exclusive of sales tax. Excise Duty
 deducted from turnover (gross) is the amount that is included in the
 amount of turnover (gross) and not the entire amount of liability that
 arose during the year.
 
 Interest
 
 Revenue is recognized on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 Dividends
 
 Dividend income on investments is accounted for when the right to
 receive the payment is established.
 
 j) Miscellaneous expenditure
 
 Costs incurred in raising funds are amortized equally over the period
 for which the funds are acquired. During an earlier year, the Company
 incurred such expenditure amounting to Rs. 18,118,261 on ECB loan which
 is being amortized over a period of 5 years. During the year, an amount
 of Rs.3,623,652 (Previous year: Rs. 3,623,652) has been charged to
 Profit & Loss Account.
 
 k) Warranty costs
 
 Warranty costs are provided on accrual basis determined based on past
 experience of claims. Exceptional warranty claims are not taken into
 account to determine such provisions.
 
 l) 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; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 (iii) Exchange differences
 
 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 year, 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 the 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. However, exchange difference in respect of accounting period
 commencing on or after 7th December, 2006 arising on the forward
 exchange contract undertaken to hedge the long term foreign currency
 monetary item, in so far as they relate to the acquisition of
 depreciable capital asset, are added to or deducted from the cost of
 asset and in other cases, are accumulated in Foreign Currency Monetary
 Item Translation Difference Account” and amortised over the balance
 period of such long term asset / liability but not beyond 31st March,
 2011.
 
 (v) Forward Exchange Contracts for trading or speculation purposes
 
 A gain or loss on such forward exchange contracts is computed by
 multiplying the foreign currency amount of the forward exchange
 contract by the difference between the forward rate available at the
 reporting date for the remaining maturity of the contract and the
 contracted forward rate (or the forward rate last used to measure a
 gain or loss on that contract for an earlier year). The gain or loss so
 computed is recognized in the statement of profit and loss for the
 period. The premium or discount on the forward exchange contract is not
 recognized separately.
 
 m) Retirement and other employee benefits
 
 (i) Retirement benefits in the form of Provident Fund contributions and
 superannuation fund (maintained per the scheme of Life Insurance
 Corporation) which are defined contribution schemes are charged to the
 profit and loss account of the year when the contributions to the
 respective funds are due. The Company does not have any other
 obligation other than contribution payable to the fund.
 
 (ii) Gratuity liability under the Payment of Gratuity Act is a defined
 benefit obligation and is provided for on the basis of an actuarial
 valuation on projected unit credit method made at the end of each
 financial year. The gratuity plan has been funded by policy taken from
 Life Insurance Corporation of India.
 
 (iii) Short term compensated absences are provided for on based on
 estimates. Long term compensated absences are provided for based on
 actuarial valuation. The actuarial valuation is done as per projected
 unit credit method.
 
 (iv) Actuarial gains/losses are immediately taken to profit and loss
 account and are not deferred.
 
 n) Income taxes
 
 Tax expense comprises of current and deferred 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, 1961,
 enacted in India. Deferred income taxes reflect 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 and deferred tax liabilities are offset, if a legally
 enforceable right exists to set off current tax assets against current
 tax liabilities and the deferred tax assets and deferred tax
 liabilities relate to the taxes on income levied by same governing
 taxation laws. 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. In situations where the company has unabsorbed depreciation
 or carry forward tax losses, all deferred tax assets are recognized
 only if there is virtual certainty supported by convincing evidence
 that they can be realized against future taxable profits.
 
 At each balance sheet date, the Company re-assesses unrecognized
 deferred tax assets. It recognizes unrecognized deferred tax assets to
 the extent that it has become 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 realized.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The company 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
 realized. Any such write-down is 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.
 
 o) Provisions
 
 A provision is recognized 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 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.
 
 p) Segment Reporting Policies
 
 The Company prepares its segment information in conformity with the
 accounting policies adopted for preparing and presenting the financial
 statements of the Company as a whole.
 
 q) Earnings per share
 
 Basic earning per share is 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.
 
 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.
 
 r) Cash and cash equivalent
 
 Cash and cash equivalents in the balance sheet 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.