a.  Basis of preparation
 
 The financial statements are prepared under the historical cost
 convention and the requirement of the Companies Act, 1956.
 
 b.  Use of estimates
 
 The preparation of financial statements requires the management of the
 company to make estimates and assumptions that affect the reported
 balances of assets and liabilities and disclosures relating to the
 contingent liabilities as at the date of financial statements and
 reported amounts of income and expenses during the year. Example of
 such estimates include provision for doubtful debts, employee benefits,
 provision for income taxes, useful lives of depreciable fixed assets
 and provisions for im- pairment. .
 
 c.  Fixed Assets
 
 Fixed assets are stated at cost, less accumulated depreciation. Costs
 include all expenses incurred to bring the assets to its present
 location and condition.
 
 d.  Depreciation
 
 Depreciation other than freehold land and capital work-in-progress is
 charged so as to write off the cost of assets, on the following basis:
 
 Individual assets costing Rs. 5,000/- or less are fully depreciated in
 the year of purchase,
 
 e.  Impairment
 
 At each batance sheet date, the management reviews the carrying amounts
 of its assets to determine whether there is any indication that those
 assets were impaired. If any such indication exists, the recoverable
 amount of the asset is estimated in order to determine the extent of
 impairment loss.  Recoverable amount is the higher of an asset''s net
 selling price and value in use. In assessing value in use, the
 estimated future cash flows are discounted to their present value at
 the weighted average cost of capital.
 
 f.  Intangible assets
 
 An intangible is recognised, where it is probable that future economic
 benefits attributable to the asset will accrue to the enterprise and
 the cost can be measured reliably. Intangible assets are stated at cost
 less accumulated amortisation.
 
 g.  Research and Development Costs
 
 Research costs are expensed as incurred. Development expenditure
 incurred on an individual project is carried forward when its future
 recoverability can reasonably be regarded as assured. Any expenditure
 carried forward is amortised over the period of expected future sales
 from the related project.
 
 h.  Leases
 
 Assets leased by the company in its capacity as lessee, where the
 company has substantially all the risks and rewards of ownership are
 classified as finance lease. Such lease are capitalised at the
 inception of the lease at the lower of the fair value or the present
 value of minimum lease payments and a liability is created for an
 equivalent amount. Each lease rental paid is allocated between the
 liability and the interest cost so as to obtain a constant periodic
 rate of interest on the outstanding liability for each year.
 
 Lease arrangements where the risks and rewards incidental to ownership
 of an asset substantially vest with the lessor, are recognised as
 operating teases. Lease rentals under operating leases are recognised
 in the profit & loss account on a straight line basis.
 
 i.  Investments
 
 Investments are stated at cost, less provision for other than temporary
 diminution in value, j. Inventories
 
 Raw materials, sub-assemblies and components are carried at the lower
 of cost and net realisable value. Cost is determined on first in first
 out basis. Work-in-progress and finished goods are carried at lower of
 cost and net realisable value. Cost includes direct material and labour
 and a proportion of manufacturing overheads.
 
 k. Revenue recognition
 
 Revenues from contracts priced on a time and material basis are
 recognised when services are rendered and related costs are incurred.
 
 Revenues from turn key contracts, which are generally time bound fixed
 priced contracts, are recognised over the life of the contract using
 the proportionate completion method, with contract costs determining
 the degree of completion.
 
 Revenues from the sale of equipment are recognised upon delivery to the
 customer.
 
 L. Foreign currency transactions
 
 Income and expenses in foreign currencies during a month are converted
 at projected exchange rates for the month. The projected exchange rates
 for the month are based on the closing exchange rates of the previous
 month. The assets and liabilities as at the end of a month are restated
 using the current month''s closing exchange rate and the exchange gain
 or loss arising on the restatement is recognised as income or expense
 in that month. The projected exchange rate is reviewed for any major
 fluctuation during the month.
 
 m. Retirement and other employee benefits (Refer Note:27)
 
 Retirement benefits in the form of Provident Fund are 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 Provident Fund authorities.
 
 Gratuity liability is defined benefit obligations and is provided for
 on the basis of an actuarial valuation on projected unit credit method
 made at the end of each financial year.
 
 Long term compensated absences are provided for based on actuarial
 valuation. The actuarial valuation is done as per projected unit credit
 method.
 
 Actuarial gains/losses are immediately taken to profit and loss account
 and are not deferred, n. Income Taxes
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Income Tax Act, 1961.
 
 Deferred Tax expense or benefit is recognised on timing differences
 being the difference between the taxable income and accounting income
 that originate in one period and are capable of reversal in one or more
 subsequent periods. Deferred tax assets and liabilities are measured
 using the tax rates and tax laws that have been enacted or subsequently
 enacted by the balance sheet date.
 
 Minimum alternative tax (MAT) paid in accordance to the tax laws, which
 gives rise to future economic benefits in the form of adjustment of
 income tax liability, is considered as an asset if there is convincing
 evidence that the company will pay normal income tax after the tax
 holiday period.  Accordingly, MAT is recognised as an asset in the
 balance sheet when it is probable that the future economic benefit
 associated with it will flow to the company and the asset can be
 measured reliably.
 
 o.  Provisions, Contingent Liabilities and Contingent Assets
 
 A provision is recognised when the company has a present obligation as
 a result of past event and it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which reliable
 estimate can be made. Provisions (excluding retirement benefits) 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. Contingent liabilities are not recognised
 in the financial statements. Contingent asset is neither recognised nor
 disclosed in the financial statements.
 
 p. Cash and cash equivalents
 
 The company considers all highly liquid financial instruments, which
 are readily convertible into cash and have original maturities of three
 months or less from the date of purchase, to be cash equivalents.