1.  BASIS FOR PREPARATION OF ACCOUNTS
 
 The Financial Statements have been prepared under historical cost
 convention on accrual basis in accordance with generally accepted
 accounting principles and applicable Accounting Standards as specified
 in Companies (Accounting Standard) Rules, 2006 under Companies Act,
 1956.
 
 2.  USE OF ESTIMATES
 
 The presentation of financial statements in conformity with the Indian
 GAAP requires the management to make estimates and assumptions to be
 made that may affect the balances of assets and liabilities and
 disclosures relating to contingent liabilities as at the date of the
 financial statements and the reported amounts of incomes and expenses
 during the reporting period. Although these estimates are based upon
 management best knowledge of current events and actions, actual results
 could differ from those estimated.
 
 3.  FIXED ASSETS
 
 Fixed Assets are stated at cost, net of VAT/ CENVAT, less accumulated
 depreciation. All costs comprises purchase price, non- refundable
 duties, levies and borrowing costs till assets are ready for intended
 use are capitalised. Capital expenditure on assets not owned by company
 is reflected in capital work in progress account till the period of
 completion and thereafter in the fixed assets. Machinery spares that
 can be used only in connection with an item of fixed asset and their
 use is expected to be irregular are capitalized. Replacement of such
 spares is charged to revenue. Advance paid towards the acquisition of
 fixed assets, and the cost of assets not ready for intended use, before
 the year end, are disclosed under capital work-in- progress.
 
 4.  INTANGIBLE ASSETS
 
 In accordance with the Accounting Standard (AS) 26 relating to
 intangible assets, all costs incurred on technical know-how / license
 fee relating to production process are charged to revenue in the year
 of incurrence. Costs incurred on technical know-how / license fee
 relating to process design/ plants/ facilities are capitalized, at the
 time of capitalization of the said plant/ facility and amortized on
 pro-rata basis over a period of five years. Computer software is
 capitalized on the date of installation and is amortized on pro-rata
 basis over a period of three years.
 
 5.  IMPAIRMENT OF ASSETS
 
 Carrying amount of cash generating units/ assets is reviewed for
 impairment. Impairment, if any, is recognized where the carrying amount
 exceeds the recoverable amount being the higher of net realizable price
 and value in use.
 
 6.  EXPENDITURE INCURRED DURING CONSTRUCTION PERIOD
 
 Expenditure directly relating to construction activity including trial
 run production expenses (net of income, if any) is capitalized.
 Indirect expenditure incurred during construction period is capitalized
 as part of the indirect construction cost to the extent to which the
 expenditure is indirectly related to construction or is incidental
 thereto. Other indirect expenditure (including borrowing costs)
 incurred during the construction period which is not related to the
 construction activity nor is incidental thereto, is charged to the
 Profit & Loss Account.
 
 7.  INVESTMENTS
 
 Investments are classified into current and long-term investments.
 Current investments are stated at the lower of cost and quoted/ fair
 value. Long term investments are stated at cost less any provision for
 diminution in value other than temporary.
 
 8.  REVENUE RECOGNITION
 
 Sales are inclusive of, excise duty, service tax and net of sales tax
 and discount. Export sales are net of ocean freight and insurance.
 
 Revenue in respect of long-term turnkey works contracts is recognized
 under percentage of completion method, subject to such contracts having
 progressed to a reasonable extent. Revenue in respect of installation
 services is recognized on completion of services for which ascertained
 amount is more likely to be recovered than not.
 
 9.  INVENTORY VALUATION
 
 Inventories are valued at lower of cost or net realizable value except
 scrap which is valued at net realizable value.The cost is determined by
 using first-in-first-out (FIFO) method. Finished goods and work-in
 progress include costs of conversion and other costs incurred in
 bringing the inventories to their present location and condition.
 
 Excise duty on closing stock of finished goods and scrap are accounted
 for on the basis of payments made in respect of goods cleared and also
 provision is made for goods lying in the factory and included in the
 value of such stocks.
 
 10.  DEPRECIATION
 
 Depreciation on fixed assets is provided on straight-line method at the
 rates and in the manner prescribed in Schedule XIV to the Companies
 Act, 1956, except in case of mobile phones on which depreciation has
 been charged on pro-rata basis over four years . Individual assets
 costing Rs.5000 or less are depreciated in full in the year of
 purchase. Leasehold land for lease period below 90 years is amortized
 over the period of lease from the date of commencement of commercial
 operations.
 
 II.  PRODUCT WARRANTY EXPENSES
 
 Liability for Warranties is recognized at the time the claim is
 accepted. The necessary provisions are made with respect to warranties
 claimed and accepted up to the end of one month from the close of the
 year.
 
 12.  FOREIGN CURRENCY TRANSACTIONS
 
 Transactions denominated in foreign currencies are normally recorded at
 the exchange rate prevailing at the date of the transaction. Monetary
 items denominated in foreign currencies outstanding at the year-end are
 translated at exchange rate applicable as on that date. Non monetary
 items are valued at the exchange rate prevailing on the date of
 transaction. Any income or expense on account of exchange difference
 either on settlement or on translation is recognized in the profit and
 loss account.
 
 13.  BORROWING COST
 
 Borrowing costs that are attributable to the acquisition or the
 construction of qualifying assets are capitalized as part of cost of
 such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use.  All other
 borrowing costs are charged to revenue.
 
 14.  INCOME ON INVESTMENTS
 
 Dividend on shares is accounted for, as and when the right to receive
 the same is established.
 
 15.  CLAIMS
 
 Claims receivables are accounted for depending on the certainty of
 receipt and claims payables are accounted at the time of acceptance.
 
 16.  EMPLOYEE''S BENEFITS
 
 i. Short term employee benefit are recognized as an expenses at the
 undiscounted amount in the profit and loss account of the year in which
 related service is rendered.
 
 ii.  The company has defined contribution plans for post-retirement
 benefit, namely Employee Provident Fund Scheme administered through
 Provident Fund Commissioner and company contribution is charged to
 revenue every year.
 
 iii.  Company contribution to state plans namely Employees State
 Insurance Fund & Employee Welfare Fund are charged to revenue every
 year.
 
 iv.  The company has defined benefit plan namely Leave Encashment /
 Compensated absence and Gratuity, the liability for which is determined
 on the basis of an actuarial valuation at the end of the year. Gratuity
 Trust is administrated through Life Insurance Corporation of India
 (LIC).
 
 v Termination benefits are recognized as expense immediately.
 
 vi.  Gain or Loss arising out of actuarial valuation is recognized in
 the profit & loss account as income or expense.
 
 17.  Derivatives
 
 In case of forward contracts, the difference between the forward rate
 and the exchange rate, being the premium or discount, at the inception
 of a forward exchange contract is recognized as income/expense over the
 life of the contract. Exchange differences on such contracts are
 recognized in the profit and loss account in the reporting period in
 which the rates change.  Any profit or loss arising on cancellation or
 renewal of forward exchange contract is recognized as income or as
 expense for the period.
 
 18.  TAXATION
 
 Provision for current income tax is made after taking credit for
 allowances and exemptions. In case of matters under appeal, due to
 disallowance or otherwise, provision is made when the said liabilities
 are accepted by the company.
 
 In accordance with the Accounting Standard 22-Accounting for Taxes on
 income, the deferred tax for timing differences between the book & tax
 profit for the period is accounted for using the tax rates and the tax
 laws that have been enacted or substantively enacted as of the balance
 sheet date.
 
 Deferred tax assets arising from temporary timing difference are
 recognized to the extent there is virtual certainty that the asset will
 be realized in future.
 
 Minimum alternative tax (MAT) credit is recognized 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 (specified period). In the year, in which the MAT credit becomes
 eligible to be recognized as an asset in accordance with the
 recommendations contained in the guidance note issued by the Institute
 of Chartered Accountants of India (ICAl), the said asset is created by
 way of a credit to the profit and loss account and shown as MAT credit
 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 specified period.
 
 19.  GOVERNMENT GRANTS
 
 Government grant in the nature of promoter''s contribution is treated as
 capital receipt and credited to investment subsidy account.
 
 Grant in the nature of revenue subsidy is treated as revenue receipt
 and credited to profit and loss account.
 
 20.  PROVISION AND CONTINGENT LIABILITIES
 
 Show cause notices issued by various government authorities are not
 considered as obligation. When the demand notice are raised against
 such show cause notice and are disputed by the company then these are
 classified as possible obligations.  Provisions involving substantial
 degree of estimation in measurement are recognized when there is a
 present obligation as a result of past events and it is probable that
 there will be an outflow of resources. Contingent liabilities are not
 recognized but are disclosed in notes.
 
 21.  LEASES
 
 Leases of assets under which all the risks and rewards of ownership are
 effectively retained by the lessor are classified as operating leases.
 Annual lease payments are recognized as an expense on straight-line
 basis and in accordance with the respective lease agreements.
 
 Assets acquired under leases where company has substantially all the
 risks and rewards of ownership are classified as finance lease. Assets
 acquired under the finance lease are capitalized and corresponding
 lease liability is recorded at an amount equal to the fair value of the
 leased asset at the inception of the lease or present value of minimum
 lease payment, whichever is lower.
 
 22.  PROPOSED DIVIDEND
 
 Dividend as proposed by Board of Directors is provided for in the books
 of account, pending approval at the Annual General Meeting.
 
 23.  CENVAT/VAT
 
 CENVAT /VAT claimed on capital assets are credited to assets/ capital
 work in progress account. CENVAT /VAT on purchase of raw materials and
 other materials are deducted from the cost of such material.