a) General
 
 i) The accounts are prepared on historical cost convention, on accrual
 basis and on the principal of going concern.
 
 ii) Accounting policies not specifically referred to otherwise, are
 consistent and in accordance with Indian generally accepted accounting
 practices comprising of the mandatory Accounting Standard, Guidance
 notes and other pronouncements issued by ICAI and the provision of the
 companies Act, 1956.
 
 b) Use of Estimates
 
 The preparation of financial statement require estimates and assumption
 that affect the reported amounts of income and expenses of the period,
 the reported amounts of assets and liabilities and disclosers relating
 to contingent liabilities as on the date of financial statements.
 Difference between the actual result and estimated are recognized in
 the period in which the result are known/materialized.
 
 c) Fixed Assets:
 
 i) Fixed Assets are stated at cost of acquisition less cenvet if any
 and subsequent improvements thereto including taxes, duties, freight
 and other incidental expenses related to acquisition and installation
 except in the case of Leasehold land which has been revalued as on
 31.3.2006.
 
 ii) Fixed Assets are stated at cost less accumulated depreciation.
 Depreciation has been provided on the straight-line method at the rates
 and in the manner specified in Schedule XIV of the Companies Act, 1956
 except software having future economic benefits more than a year, to be
 amortized in two to three years.
 
 iii) Leasehold land is amortized over the years of lease.
 
 d) Sundry Debtors:
 
 Sundry Debtors are stated after making adequate provision for doubtful
 debts, if any.
 
 e) Loans & Advances:
 
 Loans and Advances are stated after making adequate provision for
 doubtful advances, if any.
 
 f) Contingent Liabilities:
 
 Contingent liabilities are not provided for in the accounts and are
 shown separately in Notes on Accounts.
 
 g) Sales
 
 Sales include excise duty, Sales Tax/ VAT and are net of usual trade
 discounts, rebates.  h) Method of valuation of inventories is as under:
 
 i) Raw material           At cost, on FIFO/weighted average basis, 
                           and none moving
 
                           Items are valued at net Realisable value. 
  
 ii) Components, Stores    At cost, on FIFO basis
 & Spare parts 
 
 iii) Finished & Traded    At cost or net realisable value, whichever 
 Goods                     is lower
 
 iv) Goods-in-Process      At estimated cost.
 
 i) Foreign Exchange Transactions
 
 i) Transactions denominated in foreign currencies are normally recorded
 at the exchange rate prevailing at the time of the transaction.
 
 ii) Assets and liabilities relating to foreign currency transactions
 remaining unsettled at the end of the year are translated at contracted
 rates, when covered by foreign exchange contracts and at year endi
 rates in all other cases.
 
 iii) Gains and Losses on foreign exchange transaction/ translation
 other than those relating to fixed assets are recognized in the Profit
 and Loss Account. Gain or loss on translation of long term liabilities
 incurred to acquire fixed assets is treated as an adjustment to the
 carrying cost of such fixed assets.
 
 j) Research & Development
 
 Revenue Expenditure on R&D is charged to revenue under the respective
 heads of accounts. Capital Expenditure on R&D is treated as addition to
 Fixed Assets.
 
 k) Technical know-how is accounted for on payment basis and is
 written-off over a period of six years from the year of payment.
 
 l) Export incentives and insurance claims are accounted for on receipt
 basis.
 
 m) Investments
 
 Investments are stated at Cost and where there is permanent diminution
 in the value of Investments a provision is made wherever applicable.
 Dividend will be accounted for as and when received.
 
 n) Employees Benefits
 
 The Company has taken Group Gratuity Policy with the Life Insurance
 Corporation of India (''LIC'') for future payment of gratuities which is
 a defined benefit. The gratuity liability is determined based on an
 actuarial valuation performed by LIC.
 
 Provision for Leave Encashment, which is a defined benefit, is made on
 an actuarial valuation carried out by an independent actuary.
 
 Contribution to Provident Fund is accrued as per the provisions of the
 Employees'' Provident Fund and Miscellaneous Provisions Act 1952.
 Contribution payable to Provident fund is charged to Profit & Loss
 Account.
 
 o) Provision for Current and Deferred Tax
 
 Provision for current tax is made on the basis of estimated taxable
 income for the current accounting period and in accordance with the
 provisions as per Income Tax Act 1961.
 
 Deferred tax resulting from Timing Differences between book and
 taxable profit for the year is accounted for using the tax rate and
 laws that have been enacted or substantively enacted as on the Balance
 Sheet date.  The deferred tax asset is recognized and carried forward
 only to the extent that there is reasonable certainty that the asset
 will be adjusted in the future
 
 p) SegmentAccounting:
 
 i) Segment Revenue & Expenses:
 
 Joint revenue & expenses of the segments are allocated among them on
 reasonable basis. All other segment revenue and expenses are directly
 attributed to the segments.
 
 ii) Segment Assets & liabilities:
 
 Segment assets include plant & machinery, Inventory, security deposit,
 earnest money and material- in-transit and segment liabilities include
 sundry creditors.
 
 iii) Inter Segment sales:
 
 Inter segment sales between operating segments are accounted for at
 market price. These transactions are eliminated in consolidation.