1.  Basis of Accounting
 
 a) The financial statements are prepared under the historical cost
 convention using the accrual system of accounting in accordance with
 the accounting principles generally accepted in India (Indian GAAP) and
 the requirements of the Companies Act, 1956, including the mandatory
 Accounting Standards as prescribed by the Companies (Accounting
 Standards) Rules, 2006.
 
 b) Use of Estimates
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles (GAAP) 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 the financial statements and
 reported amounts of income and expenses during the year. Example of
 such estimates include provisions for doubtful debts, employee
 retirement benefits plans, provision for income tax, provision for
 warranty cost and the useful lives of fixed assets. The difference
 between the actual results and estimates are recognized in the period
 in which the results are known and materialized.
 
 2.  Fixed Assets/Capital Work-in-Progress
 
 a) Fixed Assets are stated at cost, less accumulated depreciation /
 amortization and impairment loss, if any. The cost is inclusive of
 freight, installation cost, duties, taxes, financing cost and other
 incidental expenses related to the acquisition and installation of the
 respective assets but does not include tax/duty credits availed.
 
 b) Capital Work-in-Progress is carried at cost, comprising of direct
 cost, attributable interest and related incidental expenditure. The
 advances given for acquiring of fixed assets are shown under Capital
 Work-in-Progress.
 
 3.  Depreciation
 
 Depreciation on plant and machinery of Hermetic Division is provided on
 Written Down Value (WDV) method at the rates specified in the Schedule
 XIV to the Companies Act, 1956, except for moulds and certain items of
 plant and machinery which are depreciated @ 20% as against 15.62%
 specified for the WDV method in the said Schedule. Depreciation on
 plant and machinery other than those stated above and other fixed
 assets is provided on Straight Line Method at the rates specified in
 Schedule XIV to the Companies Act, 1956.
 
 Intangibles: Intangible Assets are amortized over a period of five
 years.
 
 4.  Impairment of Assets
 
 The Fixed Assets or a group of assets (cash generating units) are
 reviewed for impairment at each Balance Sheet date. In case of any such
 indication, the recoverable amount of these assets is determined and if
 such recoverable amount of the asset or cash generating unit to which
 the asset belongs is less than its carrying amount, the impairment loss
 is recognised by writing down such assets to their recoverable amount.
 An impairment loss is reversed if there is change in the recoverable
 amount and such loss either no longer exists or has decreased.
 
 5.  Investments
 
 Quoted Investment are valued at cost or market value whichever is
 lower. Unquoted Investments are stated at Cost. The decline in the
 value of the Unquoted Investments, other than temporary, is provided
 for. Cost is inclusive of brokerage, fees and duties but excludes
 Securities Transaction Tax, if any.
 
 6.  Inventories
 
 Inventories are valued at cost or net realizable value whichever is
 lower. Cost of inventories comprises all costs of purchase, conversion
 and other costs incurred in bringing the inventories to their present
 location and condition. Cost is determined on weighted average basis.
 
 7.  Borrowing Costs
 
 Borrowing costs that are directly attributable to the acquisition,
 construction or production of qualifying asset are capitalised as part
 of the cost of that asset. Other borrowing costs are recognised as an
 expense in the period in which they are incurred.
 
 8.  Excise and Customs Duty
 
 Excise Duty in respect of finished goods lying in the factory premises
 and Customs Duty on goods lying in customs bonded warehouse are
 provided for and included in the valuation of inventory.
 
 9.  CENVAT/Value Added Tax
 
 CENVAT/Value Added Tax benefit is accounted for by reducing the
 purchase cost of the materials/fixed assets/services.
 
 10.  Revenue Recognition
 
 a) Revenue is recognized on transfer of significant risk and reward in
 respect of ownership.
 
 b) Sales/Turnover for the year includes sales value of goods, excise
 duty, duty drawback and other recoveries such as insurance,
 transportation and packing charges but excludes sales tax, value added
 tax and recovery of finance and discounting charges.
 
 c) Insurance, Duty Drawback and other claims are accounted for as and
 when admitted by the appropriate authorities.
 
 d) Dividend on investments is recognized when the right to receive is
 established.
 
 11.  Foreign Currency Transactions
 
 Transactions in foreign currencies are recorded at the exchange rate
 prevailing on the date of transactions. Foreign Currency Monetary
 Assets and Liabilities are translated at the yearend rate. The
 difference between the rate prevailing on the date of transaction and
 on the date of settlement as also on translation of Monetary Items at
 the end of the year is recognized, as the case may be, as income or
 expense for the year/period.
 
 12.  Employees Benefits
 
 a) Short Term Employees Benefits
 
 Short Term Employees Benefits are recognized as an expense at the
 undiscounted amount in the Profit and Loss Account of the year in which
 the related services is rendered.
 
 b) Post Employment Benefits
 
 i) Provident Fund - Defined Contribution Plan
 
 The Company contributes monthly at a determined rate. These
 contributions are remitted to the Employees'' Provident Fund
 Organisation, India for this purpose and is charged to Profit and Loss
 Account on accrual basis.
 
 ii) Gratuity - Defined Benefit Plan
 
 The Company provides for gratuity to all the eligible employees. The
 benefit is in the form of lump sum payments to vested employees on
 retirement, on death while in employment, or termination of employment
 for an amount equivalent to 15 days salary payable for each completed
 year of service. Vesting occurs on completion of five years of service.
 Liability in respect of gratuity is determined using the projected unit
 credit method with actuarial valuations as on the Balance Sheet date
 and gains/losses are recognised immediately in the Profit and Loss
 Account.
 
 iii) Leave Encashment
 
 Liability in respect of leave encashment is determined using the
 projected unit credit method with actuarial valuations as on the
 Balance Sheet date and gains/losses are recognized immediately in the
 Profit and Loss Account.
 
 13.  Taxation
 
 Income tax comprises of current tax and deferred tax. Provision for
 current income tax is made on the assessable income/benefits at the
 rate applicable to the relevant assessment year. Deferred tax assets
 and liabilities are recognized for the future tax consequences of
 timing differences, subject to the consideration of prudence. Deferred
 tax assets and liabilities are measured using the tax rates enacted or
 substantively enacted by the Balance Sheet date. The carrying amount of
 deferred tax asset/liability are reviewed at each Balance Sheet date
 and recognized and carried forward only to the extent that there is a
 reasonable certainty that the asset will be realized in future.
 
 Minimum Alternate Tax (MAT) paid on the book profits, which give rise
 to future economic benefits in the form of tax credit against future
 income tax liability, is recognized as an asset in the Balance Sheet if
 there is convincing evidence that the Company will pay normal tax
 within the period specified for utilization of such credit.
 
 14.  Research and Development
 
 Revenue Expenditure pertaining to Research and Development is charged
 to revenue under the respective heads of account in the period in which
 it is incurred.  Capital expenditure, if any, on Research and
 Development is shown as an addition to Fixed Assets under the
 respective heads.
 
 15.  Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions 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 in respect of which reliable estimates can be made.
 
 Contingent Liabilities are disclosed by way of Notes to Accounts.
 Disputed demands in respect of Central Excise, Customs duty, Income tax
 and Sales tax are disclosed as contingent liabilities. Payment in
 respect of such demands, if any, is shown as an advance, till the final
 outcome of the matter.
 
 Contingent assets are not recognized in the financial statements.
 
 16.  Warranty
 
 Provision for the estimated liability in respect of warranty on sale of
 consumer electronics products is made in the year in which the revenues
 are recognized, based on technical evaluation and past experience.
 
 17.  Prior period items
 
 Prior period items are included in the respective heads of accounts and
 material items are disclosed by way of Notes to Accounts.
 
 18.  Other Accounting Policies
 
 These are consistent with the generally accepted accounting principles.