(a) Basis of Accounting
 
 The financial statements are prepared as per historical cost convention
 and in accordance with the generally accepted accounting principles in
 India, the provisions of the Companies Act, 1956, and the applicable
 Accounting Standards notified under the Companies (Accounting
 Standards) Rules, 2006. All income and expenditure having material
 bearing on the financial statements are recognised on accrual basis.
 
 (b) Use of Estimates:
 
 The presentation of the financial statements in conformity with the
 generally accepted accounting principles requires the Management to
 make estimates and assumptions that affect the reported amount of
 assets and liabilities, revenues and expenses and disclosure of
 contingent liabilities. Such estimates and assumptions are based on
 management''s evaluation of relevant facts and circumstances as on the
 date of financial statements. The actual outcome may diverge from these
 estimates.
 
 (c) Fixed assets and depreciation:
 
 - Tangible fixed assets and depreciation
 
 Tangible fixed assets acquired by the Company are reported at
 acquisition value, with deductions for accumulated depreciation and
 impairment losses, if any. The acquisition value includes the purchase
 price (excluding refundable taxes) and expenses directly attributable
 to the asset to bring it to the site and in the working condition for
 its intended use. Examples of directly attributable expenses included
 in the acquisition value are delivery and handling costs, installation,
 legal services and consultancy services.
 
 Where the construction or development of any such asset requiring a
 substantial period of time to set up for its intended use, is funded by
 borrowings, the corresponding borrowing costs are capitalised up to the
 date when the asset is ready for its intended use.
 
 Depreciation is provided on a straight line basis at rates and in the
 manner specified in Schedule XIV to the Companies Act, 1956, unless the
 use of a higher rate or an accelerated charge is justified through
 technical estimates. Accordingly, certain electronic items are
 depreciated at 33.33%. Assets costing less than Rs 5,000 are fully
 depreciated in the year of purchase. Extra shift depreciation is
 applied to applicable items of plant and machinery for days additional
 shifts are worked.
 
 (d) Impairment of fixed assets:
 
 Consideration is given at each Balance Sheet date to determine whether
 there is any indication of impairment of the carrying amount of the
 Company''s fixed assets. If any indication exists, an asset''s
 recoverable amount is estimated. An impairment loss is recognised
 whenever the carrying amount of the assets exceeds its recoverable
 amount. The recoverable amount is greater of the net selling price and
 value in use. Reversal of impairment loss is recognised immediately as
 income in the Statement of Profit and Loss.
 
 (e) Deferred Revenue Expenditure:
 
 Monthly pension costs are amortised over the period of payment.
 
 (f) Taxes on Income:
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the period.
 
 Deferred tax is calculated to correspond to the tax effect arising when
 final tax is determined. Deferred tax corresponds to the net effect of
 tax on all timing differences which occur as a result of items being
 allowed for income tax purposes during a period different from when
 they were recognised in the financial statements.
 
 Deferred tax assets are recognised with regard to all deductible timing
 differences to the extent that it is probable that taxable profit will
 be available against which deductible timing differences can be
 utilised. When the Company carries forward unused tax losses and
 unabsorbed depreciation, deferred tax assets are recognised only to the
 extent there is virtual certainty backed by convincing evidence that
 sufficient future taxable income will be available against which
 deferred tax assets can be realised.  The carrying amount of deferred
 tax assets is reviewed at each balance sheet date and reduced by the
 extent that it is no longer probable that sufficient taxable profit
 will be available to allow all or a part of the aggregate deferred tax
 asset to be utilised.
 
 (g) Investments:
 
 Investments are either classified as current or long-term investments.
 Current investments are carried at lower of cost and market value.
 Long-term investments are carried at cost of acquisitions, net of
 diminution in value, if any, which is other than temporary.
 
 (h) Inventories:
 
 Inventories are valued at the lower of the cost and the net realisable
 value.
 
 In the case of raw materials, packing materials and stores and spare
 parts, cost is determined in accordance with the moving weighted
 average principle. Costs include the purchase price, non-refundable
 taxes and delivery and handling costs.
 
 Cost of finished goods is determined using the absorption costing
 principles. Costs include the cost of materials consumed, labour and a
 systematic allocation of variable and fixed production overheads.
 Excise duties at the applicable rates are also included in the cost of
 finished goods.
 
 Net realisable value is estimated at the expected selling price less
 estimated completion and selling costs.
 
 (i) Revenue Recognition:
 
 Sales include products and services, net off trade discounts and
 exclude sales tax, state value added tax and service tax.  With regard
 to sale of products, income is reported when practically all risks and
 rights connected with ownership have been transferred to the buyer.
 This usually occurs upon dispatch, after the price has been determined
 and collection of the receivable is reasonably certain.
 
 Revenue from dividend on securities is recognised when the right to
 receive such dividend is established. Interest on securities is
 recognised evenly over the period of the instrument.
 
 (j) Financial Income and Borrowing Cost:
 
 Financial income and borrowing cost include interest income on bank
 deposits and interest expense on loans.
 
 Interest income is accrued evenly over the period of the instrument.
 
 Borrowing cost are recognised in the period to which they relate,
 regardless of how the funds have been utilised, except where it relates
 to financing of construction or development of assets requiring a
 substantial period of time to prepare for their intended future use.
 Interest is capitalised up to the date when the asset is ready for its
 intended use. The amount of interest capitalised (gross of tax) for the
 period is determined by applying the interest rate applicable to
 appropriate borrowings outstanding during the period to the average
 amount of accumulated expenditure for the assets during the period.
 
 (k) Foreign Currency Transactions:
 
 Transactions in foreign currencies are translated to the reporting
 currency based on the exchange rate on the date of the transaction.
 Exchange differences arising on settlement thereof during the year are
 recognised as income or expenses in the Statement of Profit and Loss.
 
 Cash and bank balances, receivables and liabilities (monetary items) in
 foreign currencies as at the year end are translated at closing-date
 rates, and unrealised translation differences are included in the
 Statement of Profit and Loss.
 
 (l) Employee Benefits:
 
 (a) Short-term Employee Benefits
 
 Short term employee benefits are recognised as an expense at the
 undiscounted amount expected to be paid over the period of services
 rendered by the employees to the Company.
 
 (b) Long-term Employee Benefits
 
 The Company has both defined-contribution and defined-benefit plans, of
 which some have assets in special funds or securities. The plans are
 financed by the Company and in the case of some defined contribution
 plans by the Company along with its employees.
 
 (i) Defined-contribution plans
 
 Annual contribution payable to the Provident Fund and Superannuation
 Fund (based on the percentage of salary) are charged as an expense as
 they fall due, that is, in the same period as the employment gives rise
 to the contribution. Company also contributes to an established
 Provident Fund for certain employees where it is obliged to meet the
 interest shortfall, if any.
 
 (ii) Defined-benefit plans
 
 Expenses for defined-benefit gratuity and pension are calculated as at
 the Balance Sheet date by independent actuaries in a manner that
 distributes expenses over the employee''s working life. These
 commitments are valued at the present value of the expected future
 payments, with consideration for calculated future salary increases,
 using a discount rate corresponding to the interest rate estimated by
 the actuary having regard to the interest rate on government bonds with
 a remaining term that is almost equivalent to the average balance
 working period of employees. Actuarial gains and losses are immediately
 recognised in the Statement of Profit and Loss.
 
 (c) Other Employee Benefits
 
 Compensated absences which accrue to employees and which can be carried
 to future periods but are expected to be encashed or availed in twelve
 months immediately following the year end are reported as expenses
 during the year in which the employees perform the services that the
 benefit covers and the liabilities are reported at the undiscounted
 amount of the benefits after deducting amounts already paid. Where
 there are restrictions on availment of encashment of such accrued
 benefit or where the availment or encashment is otherwise not expected
 to wholly occur in the next twelve months, the liability on account of
 the benefit is actuarially determined using the projected unit credit
 method.
 
 (m) Provisions and Contingencies:
 
 A provision is recognised when the Company has a present legal or
 constructive obligation as a result of past events and it is probable
 that an outflow of resources will be required to settle the obligation,
 in respect of which reliable estimate can be made. Provisions
 (excluding retirement benefits) 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.
 Contingent liabilities are not recognised but are disclosed in the
 notes to the financial statement.
 
 (n) Operating Lease:
 
 Assets acquired on lease where significant portion of the risks and
 rewards incidental to ownership are effectively retained by the lessors
 are classified as operating leases. Lease rentals are charged to the
 Statement of Profit and Loss on a straight line basis over the lease
 period.
 
 The Company has only one class of shares referred to as equity shares
 having a par value of Rs 10. Each holder of equity shares is entitled to
 one vote per share.
 
 The Company declares and pays dividends in Indian rupees.The dividend
 proposed by the Board of Directors is subject to the approval of the
 shareholders in the ensuing Annual General Meeting.
 
 In the event of liquidation of the Company, the holders of equity
 shares will be entitled to receive any of the remaining assets of the
 company, after distribution of all preferential amounts. However, no
 such preferential amounts exist currently. The distribution will be in
 proportion to the number of equity shares held by the shareholders.
 
 In last 5 years, no classes of shares has been issued either by payment
 being received in cash or brought back nor bonus issues made by the
 Company.
 
 Following are the names of the shareholders with numbers of Equity
 Shares holding more than 5 percent of the total Equity Shares: