(i) Basis of Accounting
 
 The financial statements have been prepared and presented under the
 historical cost (except for free hold land) convention on accrual basis
 of accounting in accordance with the accounting principles generally
 accepted in India and in compliance with provisions of the Companies
 Act, 1956 and comply with the mandatory Accounting Standards (AS)
 specified in the Companies (Accounting Standard) Rules, 2006,
 prescribed by the Central Government.
 
 The accounting policies have been consistently applied by the company.
 
 (ii) Revenue Recognition
 
 a.  Revenue from sale of goods is recognized when significant risk and
 rewards in respect of ownership of product is transferred to the
 customers, which is generally on dispatch of goods.
 
 b.  Domestic sales include excise duty and are net of sales returns,
 trade discounts and sales tax.
 
 c.  Export Sales are accounted on the basis of dates of Bill of Lading.
 
 d.  Revenue from services is recognized as and when services are
 rendered as per terms of contract.
 
 e.  Income from investments / other income is recognized on accrual
 basis.
 
 (iii) Inventories are valued as under
 
 a.  Raw materials, Components, Stores & Spares, Loose Tools. At moving
 weighted average cost or net realizable value which ever is lower.
 
 b.  Finished Goods: At lower of cost or net realizable value inclusive
 of excise duty thereon.
 
 c.  Work-in-Progress: At lower of estimated cost and net realizable
 value.
 
 d.  Goods in Transit and under clearance: At lower of actual cost till
 date (inclusive of customs duty payable thereon) or net realizable
 value.
 
 e.  Stock of Scrap: At estimated net realizable value.
 
 (iv) Investments
 
 Long term investments are valued at cost less provision for diminution
 in value, other than temporary, if any.
 
 (v) Employee Benefits
 
 1.  Short Term Employee Benefits
 
 All employee benefits falling due wholly within twelve months of
 rendering service are classified as short term benefits. The benefits
 like salaries, wages etc. and the expected cost of bonus, ex-gratia,
 are recognized in the period in which the employee renders the related
 service.
 
 2.  Post Employment Benefits
 
 a.  Defined Contribution Plan: Defined contribution plan consists of
 Government Provident Fund Scheme and Employee State Insurance scheme.
 Company''s contribution paid/payable during the year under these
 schemes are charged to Profit and Loss Account. There are no other
 obligations other than the contribution made by the company.
 
 b.  Defined Benefit Plan: The employees'' gratuity schemes and long
 term compensated absences are the defined benefit plans. Company''s
 liabilities towards gratuity and leave encashment are determined using
 the projected unit credit method which considers each period of service
 as giving rise to an additional unit of benefit entitlement and
 measures each unit separately to build up the final obligation.
 
 Actuarial gain and losses are recognized immediately in the statement
 of Profit and Loss account as income or expense. Obligation is measured
 at the present value of estimated future cash flow using a discount
 rate that is determined by the reference to market yields at the
 Balance Sheet date on Government bonds.
 
 (vi) Fixed Assets
 
 a.  Tangibles: Fixed assets (except free hold land) are stated at cost
 of acquisition or construction including installation cost,
 attributable interest and financial cost till such time assets are
 ready for its intended use, and foreign exchange fluctuation on long
 term borrowings related to fixed assets, less accumulated depreciation,
 impairment losses and specific grants received if any. Free hold land
 is stated at revalued amount.
 
 b.  Intangibles: Product Development Expenditure and License /
 Technical know-how fees :
 
 Product Development expenditure of capital nature are added to fixed
 assets.  Expenditure on license and technical know-how fees and other
 related expenditure towards technological improvement of the products
 and/or components for captive use are treated as intangible assets.
 Expenditure of these nature are initially recognized as tangible
 assets under development and eventually transferred to fixed assets
 block as appropriate on the commencement of the commercial production
 after the viability of the product is proven.
 
 (vii) Depreciation and amortization
 
 a.  Depreciation on fixed assets except free hold land is calculated on
 straight line basis at the rates specified in accordance with the
 Schedule XIV of the Companies Act, 1956.
 
 b.  Depreciation on fixed assets sold or scrapped during the year is
 provided up to the month in which such fixed assets are sold or
 scrapped. Depreciation on additions to fixed assets is calculated on
 pro-rata basis from the month of addition.
 
 c.  Product Development expenditure and License/Technical know-how fees
 are amortized over a period of 10 years from the accounting year in
 which the commercial production of such improved product commences.
 
 (viii) Impairment of Assets
 
 In accordance with Accounting Standard 28 (AS 28) on Impairment of
 Assets, where there is an indication of impairment of the Company''s
 assets, the carrying amounts of the Company''s assets are reviewed at
 each balance sheet date to determine whether there is any impairment
 based on internal/external factors. An impairment loss, if any, is
 recognized in the Profit & Loss account, wherever the carrying amount
 of an asset exceeds its estimated recoverable amount. The recoverable
 amount of the assets is estimated at the higher of its net selling
 price and its value in use. In assessing the value in use, the
 estimated future cash flows are discounted to the present value at the
 weighted average cost of capital. After impairment, depreciation is
 provided on the revised carrying amount of the assets over its
 remaining useful life. Previously recognized impairment loss is further
 provided or reversed depending on changes in circumstances.
 
 (ix) Foreign Currency Transactions
 
 a.  Foreign Currency transactions are recorded on the basis of exchange
 rates prevailing on the date of their occurrence.
 
 b.  Foreign currency monetary assets and liabilities as on the Balance
 Sheet date are revalued in the accounts on the basis of exchange rates
 prevailing at the close of the year and exchange difference arising
 there-from is charged / credited to the Profit & Loss Account except
 for the exchange difference arising on long term borrowings related to
 fixed assets, which are capitalized.
 
 (x) Leases
 
 Leases are classified as finance or operating leases depending upon the
 terms of the lease agreements. Assets held under finance leases are
 recognized as assets of the Company on the date of acquisition and
 depreciated over their estimated useful lives.
 
 Initial direct costs under the finance lease are included as part of
 the amount recognized as asset under the finance lease.
 
 Rentals payable under operating leases are treated as expenses as and
 when they are incurred.
 
 (xi) Customs Duty
 
 Customs duty is accounted for as and when paid/provided.
 
 (xii) Borrowing Cost
 
 As per Accounting Standard 16 on Borrowing Costs borrowing costs
 that are :
 
 (a) directly attributable to the acquisition, construction, production
 of a qualifying asset are capitalized as a part of cost of such asset
 till the time the asset is ready for its intended use and (b) not
 directly attributable to qualifying assets are determined by applying a
 weighted average rate and are capitalized as a part of the cost of such
 qualifying asset till the time the asset is ready for its intended use.
 Remaining borrowing costs are recognized as an expense in the period in
 which they are incurred.
 
 (xiii) Contingencies and Provisions
 
 A provision is recognized when the Company has a present obligation as
 a result of past event. It is probable that an outflow of resources
 embodying economic benefit 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 the best
 estimate of the expenditure 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 estimate.
 
 A contingent liability is disclosed, unless the possibility of an
 outflow of resources embodying the economic benefit is remote.
 
 (xiv) Taxation
 
 Tax expense comprises of current tax and deferred tax charge or credit.
 Current tax is measured at the amount expected to be paid to the tax
 authorities in accordance with the Indian Income Tax Act. The deferred
 tax charge or credit is recognized using prevailing enacted or
 substantively enacted tax rate. Where there is unabsorbed depreciation
 or carry forward losses, deferred tax assets are recognized only if
 there is virtual certainty of realization of such assets.  Other
 deferred tax assets are recognized only to the extent there is
 reasonable certainty of realization in future. Deferred tax
 assets/liabilities are reviewed as at each balance sheet date based on
 developments during the period and available case law to re-assess
 realization/ liabilities.
 
 (xv) Measurement of EBITDA
 
 The Company has opted to present earning before interest, tax,
 depreciation and amortization (EBITDA) as a separate line item on the
 face of the statement of Profit & Loss.