a) Basis of Accounting:
 
 The financial statements are prepared under the historical cost
 convention (except for certain fixed assets which are revalued) on
 accrual basis in accordance with generally accepted accounting
 principles in India and complies with Accounting Standards referred to
 in Section 211(3C) of the Companies Act, 1956.
 
 b) Use of Estimates:
 
 Preparation of financial statements in conformity with generally
 accepted accounting principles, requires estimates and assumption to be
 made, that affect reported amounts of assets and liabilities on the
 date of financial statements and reported amount of revenues and
 expenses during the reported year. Actual results could differ from
 these estimates and differences between the actual results and
 estimates are recognized in the year in which results are known /
 materialized.
 
 c) Fixed Assets:
 
 Tangible assets are stated at cost of acquisition, installation or
 construction including other direct expenses incurred to bring the
 assets to its present location and condition. Less accumulated
 depreciation / amortization / impairment losses (if any) adjusted by
 revaluation of certain fixed assets.
 
 Intangible assets are stated at cost of acquisition less accumulated
 amortization and impairment loss, if any.
 
 d) Depreciation/ Amortisation:
 
 Depreciation is provided on written down value method in the manner and
 at the rates prescribed in Schedule XIV to the Companies Act, 1956.
 
 Fixed assets, excluding buildings and computers, individually costing
 upto Rs. 5,000/- are fully written off in the year of purchase.
 
 Premium on the leasehold land is amortised over the period of lease.
 
 Computer Software is amortised equally over a period of five years,
 from the year of Purchase.
 
 e) Impairment of Assets:
 
 The fixed assets are reviewed for impairment at each balance sheet
 date. An asset is treated as impaired when the carrying cost of the
 asset exceeds its recoverable value. An impairment loss is charged to
 profit and loss account in the year in which an asset is identified as
 impaired. The impairment loss recognised in prior accounting periods is
 reversed if there has been a change in the estimate of recoverable
 amount.
 
 f) Revenue Recognition:
 
 Contract Revenue is recognized by reference to the stage of completion
 of the contract activity at the reporting date of the financial
 statements on the basis of percentage of completion method. The stage
 of completion of contracts is measured by reference to the proportion
 that contract costs incurred for work performed up to the reporting
 date bear to the estimated total contract costs for each Contract. An
 expected loss on construction contract is recognized as an expense
 immediately. Price escalation, other claims and variation in the
 contract work are included in contract revenue at the time of
 acceptance / settlement by the customers due to uncertainties attached
 thereto.
 
 Revenue from sale of goods is recognized when all significant risk and
 rewards of ownership of products are transferred to the buyers which
 are usually at the point of dispatch to customers. Sales are net of
 discounts, sales tax and returns.
 
 Revenues from service related activities including hire charges are
 recognized in accordance with the terms of the agreement upon rendering
 of such services.
 
 Commission income is recognized as per contracts/ receipt of credit
 notes.
 
 Revenue is recognised when there is reasonable certainty of its
 realization.
 
 Dividend income is recognized when the right to receive dividend is
 established.
 
 Interest income is recognised on time proportion basis.
 
 g) Investments:
 
 Long term Investments are stated at cost. Provision for diminution in
 the value of long-term investments is made only if such a decline is
 other than temporary. Current investments are valued at lower of cost
 and net realizable value
 
 h) Inventories:
 
 Inventories are stated at lower of cost and net realizable value. Cost
 of inventories comprises of cost of purchase, cost of conversion and
 other cost incurred in bringing them to their respective present
 location and condition. Cost of inventories is ascertained on the FIFO
 basis. Tools are written off based on technical evaluation.
 
 i) Foreign Currency Transaction:
 
 Foreign currency transactions are recorded at the exchange rates
 prevailing on the date of the transaction. The net gain or loss on
 account of exchange differences arising on settlement of foreign
 currency transactions and / or restatements are dealt with in the
 Profit and Loss Accounts as income or expenses of the period in which
 they arise.
 
 Monetary assets and liabilities denominated in foreign currencies at
 the balance sheet date are reported using the rate prevailing as on
 that date. The resultant exchange differences are recognised in the
 profit and loss account.
 
 In respect of the Forward Exchange contracts with underlying
 transaction, the premium or discount arising at the inception of such
 contract as expenses or income over the life of contract.
 
 j) Employee Benefits: Short-term Benefits
 
 These are recognised as an expense at the undiscounted amount in the
 profit and loss account of the period in which the related services are
 rendered. Short term compensated absences are provided for based on
 actuarial valuation in accordance with Company rules.
 
 Post Retirement Benefits
 
 Company''s contribution for the period paid/ payable to defined
 contribution retirement benefit schemes are charged to Profit & Loss
 Account.
 
 Company''s liability towards defined benefit plans viz. gratuity is
 determined using the Projected Unit Credit Method as per the valuation
 carried out at the balance sheet date.
 
 k) Taxes on Income:
 
 Current Tax on income is accounted on the basis of the provision of the
 Income Tax Act, 1961.
 
 Deferred tax resulting from timing differences between the book and tax
 profits for the year is accounted for using the tax rates and laws that
 have been enacted or substantively enacted as of the balance sheet
 date.
 
 l) Cenvat, Service Tax and VAT Credit :
 
 Cenvat, Service Tax and VAT credits receivable/availed are treated as
 an asset with relevant expenses being accounted net of such credits,
 and the same are reduced to the extent of their utilisations.
 
 m) Operating Leases :
 
 Assets taken/given on lease under which all risks and rewards of
 ownership are effectively retained by the lessor are classified as
 operating lease. Lease payments/income under operating leases are
 recognised as expenses/income on accrual basis in accordance with the
 respective lease agreements.
 
 n) Custom Duties:
 
 Custom duty payable on goods lying in custom bonded warehouse/under
 clearance are provided for and included in valuation of inventories.
 
 o) Borrowing Cost:
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of a qualifying asset are capitalised as cost of such
 assets. A qualifying asset is an asset that necessarily requires a
 substantial period of time to get ready for its intended use. All other
 borrowing costs are charged to the revenue.
 
 p) Provisions, Contingent Liabilities and Contingent Assets:
 
 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 the
 notes. Contingent Assets are neither recognized nor disclosed in the
 financial statements.