Basis of preparation of financial statements
 
 The accounts have been prepared to comply in all material aspect with
 applicable principles in India, the Accounting Standards notified in
 the
 Companies (Accounting Standards) Rules 2006 and the relevant provisions
 of the Companies Act, 1956.
 
 Use of estimates
 
 The preparation of financial statements, in conformity with the
 generally accepted accounting principles, requires estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities on the date of financial statements and the reported
 amounts of revenues and expenses during the reported year. Differences
 between the actual results and estimates are recognised in the year in
 which the results are known/materialised.
 
 Fixed assets 
 
 i) Tangible assets
 Tangible fixed assets are carried at cost of acquisition or
 construction less accumulated depreciation and impairment loss, if any
 
 ii) Intangible assets
 Intangible assets are stated at cost less accumulated amortisation.
 Computer software is amortised over a period of four years, which is as
 estimated by management (except ERP software which is amortised over a
 period of three years). Goodwill arising on amalgamation is amortised
 over a period of five years.  Assets taken on Lease (Hire Purchase)
 
 Assets taken on finance lease (including on hire purchase) on or after
 April 1, 2001 are accounted for as fixed assets in accordance with
 Accounting Standard 19 on  Leases, (AS 19). Accordingly, the assets
 have been accounted at fair value. Lease payments are apportioned
 between finance charge and reduction of outstanding liability.
 
 Depreciation
 
 i.  Cost of leasehold land/premises and structural improvements are
 amortized over the period of lease.
 
 ii.  Depreciation on Buildings is provided on the straight line basis
 at the rates and in the manner specified in Schedule XIV to the
 Companies Act, 1956.  
 
 iii.  Depreciation on the following assets is provided over
 their useful life which is as estimated by management:
 
 Asset Description       Useful life
 
 
 Motor vehicles          5 years
     
 Computer Software 
 tools                   5 years
 
 Computers & Computer 
 software                4 years
 
 Plant and machinery     8 years
 
 Electrical 
 installations           10 years
 
 Furniture, fittings 
 and office equipment    8 years
 
 Air conditioners        10 years
 
 Moulds                  1 year
 
 Impairment loss
 
 At the end of each accounting period, the Company determines whether a
 provision should be made for impairment loss on fixed assets by
 considering the indications that an impairment loss may have occurred
 in accordance with Accounting Standard 28 on “Impairment of Assets”. An
 impairment loss is charged to the Profit and Loss account in the period
 in which, an asset is identified as impaired, when the carrying value
 of the asset exceeds its recoverable value. The impairment loss
 recognised in the prior accounting periods is reversed if there has
 been a change in the estimate of recoverable amount.
 
 Investments
 
 Current investments are carried at lower of cost and fair value. Long
 term investments are carried at cost. However, when there is a decline,
 other
 than temporary, the carrying amount is reduced to recognize the
 decline.
 
 Inventories
 
 Items of inventory are valued at lower of cost and net realisable
 value, on the following basis:
 
 (i) Raw materials, components, stores and spares - on weighted average
 basis.
 
 (ii) Work-in-progress and finished goods - on the basis of absorption
 costing comprising of direct costs and overheads other than financial
 charges.
 
 Revenue recognition
 
 Revenue (income) is recognized when no significant uncertainty as to
 determination/realization exists.
 
 Employees Benefits
 
 i.  Provident fund liability is determined on the basis of contribution
 as required under the statute/rules.
 
 ii.  Contribution to gratuity fund payable to the Trust formed for this
 purpose is charged to revenue in accordance with the scheme framed by
 the Life
 Insurance Corporation of India. Provision is made for the difference
 between the liability as per the actuarial valuation obtained at the
 end of the
 year and the fund balance with the Life Insurance Corporation of India.
 
 iii.  Provision for Leave encashment is made on actuarial valuation
 done as at the year-end.  
 
 Foreign currency transactions 
 
 Transactions in foreign currencies are recorded at the original rates 
 of exchange in force at the time the transactions are effected.
 
 In case of forward exchange contracts or other financial instruments
 that is in substance a forward exchange contract, other than for
 trading or speculation purposes, the premium or discount arising at the
 inception of the contract is amortised as expense or income over the
 life of contract.
 Gains/losses on settlement of transactions arising on
 cancellation/renewal of forward exchange contracts are recognised as
 income or expense.
 
 At the year-end, monetary items denominated in foreign currency and the
 relevant foreign exchange contracts are reported using the closing rate
 of exchange. Exchange difference arising thereon and on
 realization/payments of foreign exchange are accounted as income or
 expenses in the relevant year.
 
 Borrowing costs
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of qualifying assets are capitalized as part of the cost
 of such assets. 
 A qualifying asset is one that necessarily takes a substantial period 
 of time to get ready for its intended use. All other borrowing costs 
 are charged to revenue.
 
 Government grants
 
 Grants relating to specific fixed assets are disclosed as a deduction
 from the value of the concerned assets. Grants related to revenue are
 credited to the Profit and Loss account. Grants in the nature of 
 promoter''s contribution are treated as Capital reserve.
 
 Taxes on income
 
 Current Income tax is measured at the amount expected to be paid to the
 tax authorities in accordance with Indian Income-tax Act, 1961.
 
 Deferred Income tax reflect the current period timing differences
 between taxable income and accounting income for the period and
 reversal of timing differences of earlier years/period. Deferred tax
 assets are recognised only to the extent that there is reasonable
 certainty that sufficient future income will be available except that
 deferred tax assets in case there are unabsorbed depreciation and
 losses are recognised if there is virtual certainty that sufficient
 future taxable income will be available to realise the same (refer note
 9 below)
 
 Contingent Liability
 
 These, if any, are disclosed in the notes on accounts. Provision is
 made in the accounts if it becomes probable that an out flow of
 resources embodying economic benefits will be required to settle the 
 obligation.