1.1 System of Accounting
 
 The financial statements are prepared under the historical cost
 convention, on an accrual basis, in accordance with the generally
 accepted accounting principles and applicable accounting standards as
 notified under the Companies (Accounting Standards) Rule, 2006, issued
 by the Central Government, in consultation with National Advisory
 Committee on Accounting Standards (''NACAS'') and relevant provisions of
 the Companies Act, 1956 (''the Act'') to the extent applicable.
 
 1.2 Fixed Assets and Depreciation
 
 a) Fixed Assets are stated at cost less depreciation. Cost comprises of
 cost of acquisition, cost of improvements and any attributable cost of
 bringing the asset to the condition of its intended use.
 
 b) Depreciation for the year has been provided on the straight line
 method on all fixed assets at the rates specified as per Schedule-XIV
 of the Companies Act, 1956 except for Very Small Aperture Terminals
 (VSAT) used as back up, which are depreciated at 25% on straight line
 basis.
 
 c) Leasehold land is amortised over the period of the lease.
 
 1.3 Intangible Assets
 
 a) Intangible assets are initially measured at cost and amortised so as
 to reflect the pattern in which the asset''s economic benefits are
 consumed.
 
 b) Software Expenditure and Technical Know-how incurred are amortised
 over a period of five years from the date of acquisition.
 
 1.4 Inventory Valuation
 
 a) Inventories comprise all costs of purchases, conversion and other
 costs incurred in bringing the inventories to their present location
 and condition.
 
 b) Raw materials are valued at the lower of cost or net realisable
 value. Cost is determined on the basis of the moving weighted average
 method.
 
 c) Finished goods produced and purchased for sale, semi finished
 products and spares are carried at cost or net realisable value,
 whichever is lower.
 
 d) Car Park/ Property under development in pursuance of additional
 right of construction are valued at cost or net realisable value,
 whichever is lower.
 
 1.5 Investments
 
 Investments, being long term, are stated at cost. However, provision
 for diminution in value is made to recognise a decline other than
 temporary in the value of investments.
 
 1.6 Revenue Recognition
 
 1.6.1 Sale of product is recognised when risk and rewards of ownership
 of the product are passed on to the customers on the basis of terms of
 contract.
 
 1.6.2 Sales from services are recognised as the services are performed.
 
 1.6.3 Income on Investment
 
 i) Interest income is accounted on accrual basis.
 
 ii) Dividend income is accounted when right to receive payment is
 established.
 
 1.7 Accounting for Contracts
 
 Contract revenue are accounted on Percentage of Completion basis
 measured by the proportion that the cost incurred upto the reporting
 date bear to the estimated total cost of the contract.
 
 1.8 Foreign Currency Transactions
 
 Transactions in foreign currencies are recorded at the exchange rates
 prevailing on date of transaction. Monetary items are translated at the
 year-end rates. The exchange difference between the rate prevailing on
 the date of transaction and on the date of settlement as also on
 translation of monetary items at the end of the year is recognised as
 income or expense, as case may be.
 
 Any premium or discount arising at the inception of a forward exchange
 contract is recognised as income or expense over the life of contract.
 
 1.9 Warranty Expenses
 
 In respect of warranties given by the company on sale of certain
 products, the estimated costs of these warranties are accrued at the
 time of sale. The estimates for accounting of warranties are reviewed
 and revisions are made as required.
 
 1.10 Retirement Benefits
 
 (i) Defined Contribution Plan
 
 Company''s contributions paid/payable during the year towards
 Superannuation Scheme of the employees in accordance with the scheme of
 Life Insurance Corporation (LIC) are recognised in the Profit and Loss
 Account.
 
 (ii) Defined Benefit Plan
 
 a) Company''s liability towards gratuity and long term compensated
 absences are determined by independent actuaries, using projected unit
 credit method. Past services are recognised on a straight line basis
 over the average period until the benefits become vested. Actuarial
 gains and losses are recognised immediately in the statement of Profit
 and loss Account as income or expense. Obligation is measured at the
 present value of estimated future cash flows using discounted rate that
 is determined by reference to the market yields at the balance sheet
 date on Government Bonds where currency and terms of Government Bonds
 are consistent with the currency and estimated terms of the benefit
 obligation.
 
 b) Company''s Contribution towards Provident Fund is based on a
 percentage of salary which is made to a trust administered by the
 company. The interest rate payable to the members of the trust shall
 not be lower than the statutory rate of interest declared by the
 Central Government under the Employees Provident Funds and
 Miscellaneous Provisions Act, 1952 and shortfall, if any, shall be made
 good by the company.
 
 1.11 Lease Rentals
 
 The company''s significant leasing arrangements are in respect of
 operating leases for premises (office, stores, god owns, etc.), plant,
 machinery and equipments taken on lease. The leasing arrangements,
 which are not non-cancellable, range between eleven months and five
 years generally, and are usually renewable by mutual consent on agreed
 terms. The aggregate lease rentals payable are charged as rent.
 
 1.12 Taxes on Income
 
 Current Tax is determined as the amount of tax payable in respect of
 taxable income for the year. Deferred Tax is recognised, subject to
 consideration of prudence, on timing differences, being the differences
 between taxable income and accounting income that originate in one
 period and are capable of reversal in one or more subsequent period(s).
 Deferred tax assets arising on account of unabsorbed depreciation or
 carry forward of tax losses are recognised only to the extent that
 there is virtual certainty supported by convincing evidence that
 sufficient future tax income will be available against which such
 deferred tax assets can be realised.
 
 2. In the previous year, the Board of Directors had approved the
 transfer of Traction Electronics, SCADA and Industrial Drives
 businesses (sub-divisions of Automation and Control segment) (together
 referred to as Businesses) to Crompton Greaves Limited (CGL). The
 transfer is consistent with the Company''s long-term strategy to focus
 on building its position in Strategic Electronics and Network Systems
 (Tatanet) and to pursue further synergistic opportunities in related
 areas.
 
 On July 28, 2010 (being the Closing date), the Company transferred
 these Businesses as a going concern to CGL on a slump sale basis for
 a total consideration of Rs. 8,100 lakhs.
 
 3. However, at the request of Crompton Greaves Limited, the company
 continued with certain operations of the transferred businesses,
 pending assignment of certain contracts by customers to CGL.
 Consequently Sales, Income from Service rendered, Raw material consumed
 and sub-contracting expenses in respect of these contracts during the
 year have been included under the respective heads in these financial
 statements.
 
 4.  Sundry Debtors includes Rs.414,059 (Rs 000) (Previous Year: Rs.
 383,677 (Rs 000)), which in accordance with the terms of the contracts,
 were not due for payments as at the year end.
 
 5.  The tax year for the company being the year ending 31st March, the
 provision for taxation for the period is the aggregate of the provision
 made for the six months ended 31st March, 2011 and the provision based
 on the figures for the remaining six months up to 30th September, 2011,
 the ultimate tax liability of which will be determined on the basis of
 the figures for the period 1st April, 2011 to 31st March, 2012.