1.1 Basis of preparation of financial statements
 
 The financial statements have been prepared and presented under the
 historical cost convention on the accrual basis of accounting in
 accordance with the generally accepted accounting principles (GAAP) in
 India and comply with the Accounting Standards (AS) prescribed in the
 Companies (Accounting Standards) Rules, 2006 and with the relevant
 provisions of the Companies Act, 1956, to the extent applicable.
 
 1.2 Use of estimates
 
 The preparation of financial statements in accordance with GAAP
 requires management to make estimates and assumptions that affect the
 reported amount of assets and liabilities and the disclosure of
 contingent liabilities on the date of the financial statements. Actual
 results may differ from those estimates. Any revisions to accounting
 estimates are recognised prospectively in current and future periods.
 
 1.3 Revenue recognition
 
 a) Contract revenue
 
 Revenue from fixed price contracts is recognised when the outcome of
 the contract can be estimated reliably by reference to the percentage
 of completion of the contract on the Balance sheet date. Percentage of
 completion is determined as a proportion of costs incurred-to-date to
 the total estimated contract costs. In respect of process technology
 and design and engineering contracts percentage of completion is
 measured with reference to the milestones specifi ed in the contract,
 which in the view of the management refl ects the work performed and to
 the extent it is reasonably certain of recovery.
 
 Contract costs include costs that relate directly to the specific
 contract and costs that are attributable to contract activity and
 allocable to the contract. Costs that cannot be attributed to contract
 activity are expensed when incurred.
 
 When the fi nal outcome of a contract cannot be reliably estimated,
 contract revenue is recognised only to the extent of costs incurred
 that are expected to be recoverable.  Provision for expected loss is
 recognised immediately when it is probable that the total estimated
 contract costs will exceed total contract revenue.
 
 Variations, claims and incentives are recognised as a part of contract
 revenue to the extent it is probable that they will result in revenue
 and are capable of being reliably measured.
 
 Determination of revenues under the percentage of completion method
 necessarily involves making estimates by the Company, some of which are
 of a technical nature, concerning, where relevant, the percentage of
 completion, costs to completion, the expected revenues from the project
 / activity and the foreseeable losses to completion.
 
 Execution of contracts necessarily extends beyond accounting periods.
 Revision in costs and revenues estimated during the course of the
 contract are refl ected in the accounting period in which the facts
 requiring the revision become known.
 
 b) Service revenue
 
 Revenue from services is recognised as the related services are
 performed.
 
 c) Product sales
 
 Revenue from sale of goods is recognised on transfer of signifi cant
 risks and rewards of ownership when goods are dispatched and the title
 passes to the customers, net of discounts and rebates granted. Sales
 are recorded exclusive of sales tax.
 
 d) Interest and dividend income
 
 Interest on deployment of surplus funds is recognised using the time
 proportion method based on the underlying interest rates.
 
 Dividend income is recognised when the right to receive payment is
 established.
 
 1.4 Fixed assets and depreciation
 
 Fixed assets are stated at cost of acquisition less accumulated
 depreciation. The cost of acquisition includes inward freight, duties,
 taxes and other directly attributable expenses.
 
 Depreciation on fixed assets is provided on the straight-line method
 pro-rata to the period of use.  The rates of depreciation prescribed in
 Schedule XIV to the Companies Act, 1956 have been adopted by the
 Company, which in the view of the management refl ects the useful life
 of the related fixed asset.
 
 Assets costing individually ` 5,000 or less are depreciated at the rate
 of 100%. Building and other constructions on leasehold land are
 depreciated over the lease term or the useful life, whichever is
 shorter. Items of fixed assets that have been retired from active use
 and are held for disposal are stated at the lower of their net book
 value and estimated net realisable value and are disclosed separately
 in the financial statements.
 
 Capital work-in-progress includes the cost of fixed assets that are
 not ready for intended use at the Balance sheet date and advances paid
 to acquire capital assets before the Balance sheet date.
 
 1.5 Intangible assets and amortisation
 
 Intangible assets are recognised when the asset is identifiable, is
 within the control of the Company, it is probable that the future
 economic benefi ts that are attributable to the asset will fl ow to the
 Company and cost of the asset can be reliably measured.
 
 Acquired intangible assets consisting of technical know how, brand and
 software, are recorded at acquisition cost and amortised on
 straight-line basis based on the following useful lives, which in
 managements estimate represents the period during which economic
 benefi ts will be derived from their use:
 
 1.6 Impairment of assets
 
 The carrying amounts of the Companys assets including intangible
 assets are reviewed at each Balance sheet date to determine whether
 there is any indication of impairment. If any such indications exist,
 the assets recoverable amount is estimated, as the higher of the net
 selling price and the value in use. An impairment loss is recognised
 whenever the carrying amount of an asset or its cash generating unit
 exceeds its recoverable amount. If at the Balance sheet date, there is
 an indication that a previously assessed impairment loss no longer
 exists, the recoverable amount is reassessed and the asset is
 reinstated at the recoverable amount subject to a maximum of
 depreciable historical cost.
 
 1.7 Investments
 
 Investments that are readily realisable and intended to be held for not
 more than one year from the date on which such investment is made are
 classifi ed as current investments. Current investments are carried at
 lower of cost and fair value, which is determined for each individual
 investment. Cost includes related expenses such as commission /
 brokerages etc.
 
 Long-term investments are carried at cost less any other than temporary
 diminution in value, determined separately for each individual
 investment.
 
 Profi t or loss on sale of investments is determined on the basis of
 weighted average carrying amount of investments disposed off.
 
 1.8 Inventories
 
 Inventories are stated at lower of cost and net realisable value. Net
 realisable value is the estimated selling price in the ordinary course
 of business, less the estimated costs of completion and selling
 expenses. The cost is determined on the basis of the weighted average
 method and includes expenditure in acquiring the inventories and
 bringing them to their present location and condition. In the case of
 manufactured inventories and work in progress, cost includes an
 appropriate share of labour and overheads.
 
 1.9 Foreign currency transactions
 
 Transactions denominated in foreign currency are recorded at rates that
 approximate the exchange rate prevailing on the date of the respective
 transaction.
 
 Exchange differences arising on foreign exchange transactions settled
 during the year are recognized in the Profi t and loss account of the
 year. Monetary assets and liabilities in foreign currency, which are
 outstanding as at the year-end, are translated at the year end closing
 exchange rate and the resultant exchange differences are recognized in
 the Profi t and loss account.
 
 The premium or discount arising at the inception of the forward
 exchange contracts related to underlying receivables and payables are
 amortised as an expense or income recognised over the period of the
 contracts. Gains or losses on renewal or cancellation of foreign
 exchange forward contracts are recognised as income or expense for the
 period.
 
 1.10 Leases
 
 Lease payment under an operating lease is recognised as an expense in
 the Profi t and loss account on a straight-line basis over the lease
 term.
 
 1.11 Employee benefi ts
 
 a) Short-term employee benefi ts
 
 Employee benefi ts payable wholly within twelve months of rendering the
 service are classifi ed as short-term employee benefi ts and are
 recognised in the period in which the employee renders the related
 service.
 
 b) Post employment benefi ts (Defi ned Benefi t Plans)
 
 The employees gratuity scheme is a defi ned benefi t plan. The present
 value of the obligation under such defi ned benefi t plan is determined
 at each Balance sheet date based on an actuarial valuation using the
 projected unit credit method. Actuarial gains and losses are recognised
 immediately in the Profi t and loss account.
 
 c) Post employment benefi ts (Defi ned Contribution Plans)
 
 Contributions to the provident fund and superannuation fund, which are
 defi ned contribution schemes, are recognised as an expense in the
 Profi t and loss account in the period in which the contribution is
 due.
 
 d) Long-term employee benefi ts
 
 Long-term employee benefi ts comprise of compensated absences and other
 employee incentives. These are measured based on an actuarial valuation
 carried out by an independent actuary at each Balance sheet date unless
 they are insignifi cant. Actuarial gains and losses and past service
 costs are recognised immediately in the Profi t and loss account.
 
 1.12 Provisions and Contingencies
 
 Provision is recognised in the Balance sheet when, the Company has a
 present obligation as a result of a past event; it is probable that an
 outfl ow of economic benefi ts will be required to settle the
 obligation; and a reliable estimate of the amount of the obligation can
 be made. A disclosure by way of a contingent liability is made when
 there is a possible obligation or a present obligation that may, but
 probably will not, require an outfl ow of resources. Where there is a
 possible obligation or a present obligation that the likelihood of
 outfl ow of resources is remote, no provision or disclosure is made.
 
 1.13 Income taxes
 
 Income-tax comprises of current tax and fringe benefi t tax (i.e.
 amount of tax for the period determined in accordance with the
 income-tax law) and deferred tax (refl ecting the tax effects of timing
 differences between accounting income and taxable income for the year).
 The deferred tax charge or credit and the corresponding deferred tax
 liabilities or assets are recognised using the tax rates that have been
 enacted or substantially enacted by the Balance sheet date. Deferred
 tax assets are recognised only to the extent there is reasonable
 certainty that they will be realised in future; however, where there is
 unabsorbed depreciation and carry forward loss under taxation laws,
 deferred tax assets are recognised only if there is a virtual certainty
 of realisation of such assets. Deferred tax assets are reviewed at each
 Balance sheet date and written down or written up to refl ect the
 amount that is reasonably / virtually certain (as the case may be) to
 be realised.
 
 Timing differences, which reverse within the tax holiday period, do not
 result in tax consequence and therefore no deferred taxes are
 recognised in respect of the same. For this purpose, the timing
 differences, which originate fi rst, are considered to reverse fi rst.
 
 Minimum Alternate Tax (MAT) credit is recognised as an asset only when
 and to the extent there is convincing evidence that the company will
 pay income tax higher than that computed under MAT, during the period
 that MAT is permitted to be set-off under the Income Tax Act, 1961
 (specifi ed period). In the year in which the MAT credit becomes
 eligible to be recognised as an asset in accordance with the Guidance
 Note issued by ICAI, the said asset is created by way of credit to the
 Profi t and Loss account and known as MAT entitlement. The Company
 reviews the same at each Balance Sheet date and writes down the
 carrying amount of MAT credit entitlement to the extent there is no
 longer convincing evidence to the effect that the Company will pay
 income tax higher than MAT during the specifi ed period.
 
 1.14 Earnings per share
 
 In determining earnings per share, the Company considers the net profi
 t after tax and includes the post tax effect of any extra-ordinary /
 exceptional item. The number of shares used in computing basic earnings
 per share is the weighted average number of shares outstanding during
 the year.  The number of shares used in computing diluted earnings per
 share comprises the weighted average shares considered for deriving
 basic earnings per share, and also the weighted average number of
 equity shares that could have been issued on the conversion of all
 dilutive potential equity shares. The diluted potential equity shares
 are adjusted for the proceeds receivable, had the shares been actually
 issued at fair value (i.e. the average market value of the outstanding
 shares). Dilutive potential equity shares are deemed converted as of
 the beginning of the period, unless issued at a later date. The number
 of shares and potentially dilutive equity shares are adjusted for any
 stock splits and issues of bonus shares effected prior to the approval
 of the financial statements by the Board of Directors.