1.  Basis of Preparation of Financial Statements
 
 The accounts have been prepared under the historical cost convention
 and in accordance with the provision of the Companies Act, 1956 and
 accounting standards notified vide Companies (Accounting Standards)
 Rules, 2006. Accounting policies unless specifically stated to be
 otherwise, are consistent and are in consonance with generally accepted
 accounting principles.
 
 2.  Sales:
 
 Sales (net of returns, etc.) comprise sale of goods which are accounted
 for on the basis of dispatches within the Financial year/ period and
 income from installation charges/job works which are recognized on
 acceptance by customers.
 
 3.  Employee benefits:
 
 Employee benefits are accrued in the period in which services are
 rendered by the employees.
 
 Contribution to defined contribution schemes such as Provident Fund
 etc. are recognized as and when incurred.
 
 Long term employee benefits under defined benefit scheme such as
 contribution to gratuity, leave etc. are determined at close of the
 financial year at present value of the amount payable using actuarial
 valuation techniques.
 
 Actuarial gains and losses are recognised in the year when they arise.
 
 4.  Fixed Assets and Depreciation :
 
 a) Fixed Assets are stated at cost less depreciation. Depreciation is
 provided on Straight Line Method as indicated in Schedule 12 to the
 Accounts. Leasehold land is amortized over the period of lease.
 
 b) In case of revaluation of Fixed Assets, the original cost as written
 up by the valuer, is considered in the accounts and the differential
 amount is transferred to Capital Reserve.
 
 c) Depreciation on assets revalued is calculated on their respective
 book values on Straight Line Method based on useful life either
 assessed technically or derived with respect to the rates specified in
 Schedule XIV to the Companies Act, 1956.  The additional charge of
 depreciation on account of revaluation is deducted from the Capital
 Reserve and credited to the Profit & Loss Account.
 
 5.  Expenditure during Construction Period
 
 Expenditure related to and incurred during implementation of capital
 project is included under Capital Work-in-progress and the same is
 allocated to the respective Fixed Assets on completion of its
 construction / erection and commencement of commercial production.
 
 6.  Impairment:
 
 Fixed Assets are reviewed at each balance sheet date for impairment. In
 case events and circumstances indicate any impairment, recoverable
 amount of the fixed assets is determined. An impairment loss is
 recognized whenever the carrying amount of assets either belonging to
 Cash Generating Unit (CGU) or otherwise exceeds recoverable amount. The
 recoverable amount is greater of asset''s net selling price or its value
 in use. An impairment loss is reversed if there has been change in the
 recoverable amount and such loss either no longer exists or has
 decreased.
 
 7.  Inventories:
 
 a) Inventories are valued at the lower of cost or estimated net
 realizable value. Cost is determined on first in first out method of
 valuation.
 
 b) Cost of raw materials and bought out components are determined on
 the basis of first in first out method of valuation.
 
 c) Work-in-progress is valued at direct material cost, direct labour
 cost and allocable direct/indirect production overheads.  Labour cost
 is determined by applying normal labour hour rates on equivalent
 completed production hours as estimated by the Technical Department.
 
 d) Finished Goods are valued after considering appropriate portion of
 allocable overhead considered relatable to production directly or
 indirectly. Allocable overheads have been determined on actual/pro-rata
 basis with reference to the aggregate overheads of the Company.
 
 e) Provision is made for slow-moving and obsolete inventories.
 
 8.  Taxes on income
 
 Provision for tax is made for current and deferred taxes. Current tax
 is provided on the taxable income using the applicable tax rates and
 tax laws. Deferred tax assets and liabilities arising on account of
 timing differences, which are capable of reversal in subsequent years
 are recognised using tax rates and tax laws, which have been enacted or
 substantively enacted. Deferred tax assets are recognized only to the
 extent that there is reasonable certainty that sufficient future
 taxable income will be available against which such deferred tax assets
 will be realized. In case of carry forward unabsorbed depreciation and
 tax losses, deferred tax assets are recognised only if there is
 virtual certainty that such deferred tax assets can be realized
 against future taxable profits.
 
 9.  Investments:
 
 Long term Investments are accounted for at cost less any permanent
 diminution in value.
 
 10.  Foreign Currency:
 
 Transactions in foreign currencies are accounted for at the exchange
 rate prevailing on the date of the transaction. Foreign Currency
 monetary assets and liabilities at the year end are translated using
 the closing exchange rates. The loss or gain thereon and also on the
 exchange differences on the settlement of the foreign currency
 transactions during the year are recognized as income or expenses.
 
 11.  Use of Estimates, Provisions, Contingent Liabilities and
 Contingent Assets:
 
 The preparation of financial statements in conformity with the
 generally accepted accounting principles requires the management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities, and disclosures related to contingent
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period.
 Differences between the actual results and estimates are recognized in
 the period in which results are known / materialized.
 
 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 disclosed by way of notes to accounts.
 Contingent assets are neither recognized nor disclosed in the financial
 statement.
 
 12.  Borrowing Costs:
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of a qualifying asset are capitalized as the
 part of the cost of that asset.
 
 13.  Provision for liquidated damages and warranty costs
 
 a) Provision for liquidated damages in terms of agreement with
 customers is made as estimated based on merit and probability of its
 occurrence.
 
 b) Product warranty costs are accrued in the year of sale as estimated
 based on past experience.
 
 14.  Finance Lease:
 
 Assets acquired on finance leases are capitalised and a corresponding
 liability disclosed as lease obligations under Secured Loans. Such
 assets are capitalised at fair values or present value of minimum lease
 payments, whichever is lower, at the inception of the lease term and
 disclosed as leased assets. Rentals paid by the Company are apportioned
 between the finance charge and as a reduction of the outstanding
 liability. Finance charge reflects a constant periodic rate of interest
 of the remaining balance of liability for each period.