1.  Nature of Operations
 
 Numeric Power Systems Limited (''the Company'') was incorporated as a
 public limited company on September 12, 1994. The Company is engaged in
 the manufacture, sale and trading of Uninterruptible Power Supply
 (''UPS'') systems and accessories and has its manufacturing facilities at
 Pondicherry, Chennai, Salem and Himachal Pradesh. The Company also
 provides maintenance and other after sale services in respect of UPS
 systems through a network of branches situated across the country.
 
 2.  Statement of Significant Accounting Policies
 
 (a) Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the accounting standards notified 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 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 (GAAP) requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities, the disclosure of contingent liabilities on the date
 of the financial statements and reported amounts of income and expenses
 during the year. Although these estimates are based upon management''s
 best knowledge of current events and actions, actual results could
 differ from these estimates. Any revision to accounting estimates is
 recognized prospectively in current and future years.
 
 (c) Fixed assets and Intangible assets
 
 Fixed assets are stated at cost, less accumulated depreciation and
 impairment loss if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use.
 
 Assets individually costing Rs.5,000 or less are fully depreciated in 
 the year of purchase.
 
 Leasehold improvements are amortized using the straight-line method
 over their estimated useful lives (5 years) or the remainder of primary
 lease period, whichever is lower.
 
 Intangible assets comprising goodwill and software are amortized using
 the straight-line method over a period of five years.
 
 (d) Impairment
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal / external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the 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 risks 
 specific to the asset. After impairment, depreciation is provided 
 on the revised carrying amount of the assets over its remaining useful
 life.
 
 (e) 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 fair value determined on
 an individual investment basis. Long-term investments are carried at 
 cost. However, provision for diminution in value is made to recognise
 a decline other than temporary in the value of long term investments.
 
 (f) Inventories
 
 Inventories are valued as follows:
 
 Raw materials, stores and spares
 
 Lower of cost and net realizable value. However, materials and other
 items held for use in the production of inventories are not written
 down below cost if the finished products in which they will be
 incorporated are expected to be sold at or above cost. Cost is
 determined on a weighted average basis.
 
 Work-in-progress and finished goods
 
 Lower of cost and net realizable value. Cost includes direct materials
 and labour and a proportion of manufacturing overheads based on normal
 operating capacity. Cost of finished goods includes excise duty. Cost 
 is determined on a weighted average basis
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and to make the
 sale.
 
 (g) 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.
 
 Sales
 
 Sales of UPS systems and accessories are recognized when significant
 risks and rewards of ownership are passed to the buyer, which generally
 coincides with dispatch of goods. Revenues under composite contracts
 comprising supply, installation and commissioning are recognized on
 dispatch as such services are generally considered insignificant to the
 contract. Sales are net of excise duty and 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
 arising during the year.
 
 Service income
 
 Service income is recognized pro-rata over the period of the contract
 with customers.
 
 Interest
 
 Revenue is recognized on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 Dividends
 
 Revenue is recognized when the Company''s right as a shareholder / unit
 holder to receive payment is established by the balance sheet date.
 Dividend from subsidiaries is recognised even if same are declared
 after the balance sheet date but pertains to period on or before the
 date of balance sheet as per the requirement of schedule VI of the
 Companies Act, 1956.
 
 (h) Retirement and other employee benefits
 
 i. Retirement benefits in the form of Provident Fund is a defined
 contribution scheme and the contributions are charged to the Profit and
 Loss Account of the year when the contributions to the respective funds
 are due. There are no other obligations other than the contribution
 payable to the regional provident fund.
 
 ii. Gratuity liability 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.
 
 iii. Short term compensated absences are provided for based on
 estimates. Long term compensated absences are provided for based on
 actuarial valuation at the end of each financial year. 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.
 
 (i) Income taxes
 
 Provision for income tax is made for current and deferred taxes.
 Provision for current income tax is measured at the amount expected to
 be paid to the tax authorities in accordance with the Indian Income Tax
 Act. Deferred income taxes reflects 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
 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 is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets, other than those arising from undertakings enjoying tax
 holiday benefits, are recognised and carried forward only to the extent
 that there is a reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realised.
 
 At each balance sheet date the Company re-assesses unrecognised
 deferred tax assets. It recognises unrecognised 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 realised.
 
 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
 realised. 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.
 
 The Company claims tax holiday benefits under Section 80-IB, Section
 80IC and Section 10-B of the Income Tax Act, 1961 with respect to
 certain undertakings. Deferred tax assets or liabilities relating to
 such undertakings are recognised in these financial statements for the
 future tax consequences attributable to differences between taxable
 income and accounting income for the year, to the extent that such
 differences are not expected to reverse within the tax holiday period.
 
 (j) Earnings per share
 
 Basic earnings per share are 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. The
 weighted average number of equity shares outstanding during the period
 are adjusted for events of bonus issue.
 
 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, if
 any.
 
 (k) Leases
 
 Leases where the lesser effectively retains substantially all the risks
 and benefits of ownership of the leased term, are classified as 
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight-line basis over the lease 
 term.
 
 (l) Provision
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event; 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.
 
 Provision is recognized for expected warranty claims on products sold
 during the last two years, based on past experience of level of repairs
 and returns. It is expected that most of this cost will be paid in the
 next two to five years of the balance sheet date. Assumption used to
 calculate the provision for warranties are based on current sales level
 and current information available about returns based on the two year
 warranty period for all products sold.
 
 (m) Cash and Cash equivalents
 
 Cash and cash equivalents for the purpose of cash flow statement
 comprise cash at bank and in hand and short-term investments with an
 original maturity of three months or less.
 
 (n) Borrowing costs
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalized as
 part of the cost of the respective asset. All other borrowing costs are
 expended in the period they occur. Borrowing costs consist of interest
 and other costs that an entity incurs in connection with the borrowing
 of funds.