(i) The Financial Statements are prepared on historical cost convention
 on accrual basis of accounting and comply with the Accounting Standards
 as notified under the Companies (Accounting Standards) Rules, 2006 of
 the Companies Act, 1956.
 
 The preparation of the Financial Statements requires the Management to
 make estimates and assumptions considered in the reported amounts of
 assets and liabilities (including the contingent liabilities) and the
 reported income and expenses during the period. The Management believes
 that the estimates used in preparation of the Financial Statements are
 prudent and reasonable. Future results could differ and the differences
 between the actual results and the estimates are recognised in the
 periods in which the results are known / materialise.
 
 (ii) REVENUE RECOGNITION
 
 (a) Sales exclude sales tax, value added tax and works contract tax but
 include excise duty. Commission earned on consignment sales is
 accounted for as part of revenue from operations.
 
 (b) Revenue from sale of goods is recognised when the substantial risks
 and rewards of ownership are transferred to the buyer under the terms
 of contract. Service revenue is recognised on rendering of services.
 
 (c) Revenue from long-term contracts, where the outcome can be
 estimated reliably, is recognised under the percentage of completion
 method by reference to the stage of completion of the contract
 activity. The stage of completion is measured by calculating the
 proportion that costs incurred to date bear to the estimated total
 costs of a contract. When the current estimate of total costs and
 revenue is a loss, provision is made for the entire loss on the
 contract irrespective of the amount of work done. Contract revenue
 earned in excess of billing has been reflected under Other Current
 Assets and billing in excess of contract revenue has been reflected
 under Other Current Liabilities in the balance sheet.
 
 (d) Long-term annual maintenance contracts
 
 The revenue from maintenance contracts is recognised on accrual basis
 and advance received in respect of future period is accounted for as
 Unexpired Service Revenue.
 
 In case of Mining Equipment, the revenue from such contracts is
 recognised in proportion to the cost actually incurred during the year
 in terms of the total estimated cost for such contracts, as repairs and
 maintenance of such machineries depends on its utilisation and wear and
 tear which varies from year to year. The excess of billings over cost
 is deferred and accounted for as Unexpired Service Revenue.
 
 (e) Other income
 
 Interest income is accounted on accrual basis. Dividend income is
 accounted for when the right to receive it is established.
 
 (iii) JOINT VENTURES
 
 The accounts of the Company reflect its share of the Assets,
 Liabilities, Income and Expenditure of the Joint Venture Operations
 which are accounted on the basis of the audited accounts of the Joint
 Ventures on line-by-line basis with similar items in the Company''s
 accounts to the extent of the participating interest of the Company as
 per the Joint Venture Agreements.
 
 (iv) TANGIBLE FIXED ASSETS
 
 Tangible fixed assets are stated at cost less accumulated depreciation
 / impairment.
 
 The cost of an tangible fixed asset comprises its purchase price,
 including any import duties and other taxes (other than those
 subsequently recoverable from the taxing authorities), and any directly
 attributable expenditure on making the asset ready for its intended use
 and net of any trade discounts and rebates.
 
 Own manufactured goods are capitalised at cost excluding interest but
 including excise duty net of CENVAT, octroi duty and receiving /
 installation charges. Interest on borrowed money allocated to and
 utilised for qualifying fixed assets pertaining to the period upto the
 date of capitalisation is added to the cost of the assets.
 
 Interest on borrowed money allocated to and utilised for qualifying
 fixed assets pertaining to the period upto the date of capitalisation
 is added to the cost of the assets.
 
 (v) INTANGIBLE ASSETS
 
 Intangible assets are carried at cost less accumulated amortisation and
 impairment losses, if any. The cost of an intangible asset comprises
 its purchase price, including any import duties and other taxes (other
 than those subsequently recoverable from the taxing authorities), and
 any directly attributable expenditure on making the asset ready for its
 intended use and net of any trade discounts and rebates. Subsequent
 expenditure on an intangible asset after its purchase / completion is
 recognised as an expense when incurred, unless it is probable that such
 expenditure will enable the asset to generate future economic benefits
 in excess of its originally assessed standards of performance and such
 expenditure can be measured and attributed to the asset reliably, in
 which case such expenditure is added to the cost of the asset.
 
 (vi) IMPAIRMENT OF ASSETS
 
 The carrying values of assets / cash generating units at each Balance
 Sheet date are reviewed for impairment of assets. If any indication of
 such impairment exists, the recoverable amount of such assets is
 estimated and impairment is recognised if the carrying amount of these
 assets exceeds their recoverable amount. The recoverable amount is the
 greater of the net selling price and their value in use. Value in use
 is arrived at by discounting the future cash flows to their present
 value based on an appropriate discount factor. When there is indication
 that an impairment loss recognised for an asset in prior accounting
 periods no longer exists or may have decreased, such reversal of
 impairment loss is recognised.
 
 (vii) DEPRECIATION / AMORTISATION
 
 Depreciation on tangible assets has been provided on the Straight Line
 Basis at the rates prescribed in Schedule XIV to the Companies Act,
 1956, except Depreciation on furniture and fittings, which has been
 provided on the Written Down Value Basis at the rates prescribed in
 Schedule XIV to the Companies Act, 1956 and on assets acquired
 specifically for a Project which are charged off over the period of the
 Project.
 
 Intangible assets are amortised on the Straight Line Basis over their
 useful life. Manufacturing Rights and Technical Know- how have been
 amortised over 72 months and Software is amortised over 60 months.
 
 Premium paid on Leasehold Land is amortised over the period of the
 lease, commencing from the date the land is put to use for commercial
 operations.
 
 (viii) PROVISION FOR TRADE GUARANTEES / WARRANTIES
 
 The estimated liability for product warranties is recorded when
 products are sold / project is completed. These estimates are
 established using historical information on the nature, frequency and
 average cost of warranty claims and management estimates regarding
 possible future incidence based on corrective actions on product
 failures. The timing of outflows will vary as and when warranty claims
 arise - being typically upto five years.
 
 As per the terms of the contracts, the Company provides post-contract
 services / warranty support to some of its customers.  The Company
 accounts for the post-contract support / provision for warranty on the
 basis of the information available with the Management duly taking into
 account the current and past technical estimates.
 
 (ix) PROVISIONS AND CONTINGENCIES
 
 A provision is recognised when the Company has a present legal or
 constructive obligation as a result of past events and it is probable
 that an outflow of resources will be required to settle the obligation
 in respect of which a reliable estimate can be made. Provisions
 (excluding retirement benefits) are not discounted to their present
 value and are determined based on best estimate required to settle the
 obligation at the Balance Sheet date. These are reviewed at each
 Balance Sheet date and adjusted to reflect the current best estimates.
 Contingent liabilities are disclosed in Notes to Accounts.
 
 (x) INVESTMENTS
 
 Long-term investments (excluding investment properties), are carried
 individually at cost less provision for diminution, other than
 temporary, in the value of such investments. Current investments are
 carried individually, at the lower of cost and fair value.
 
 Cost of investments includes acquisition charges such as brokerage,
 fees and duties.
 
 Investment properties are carried individually at cost less accumulated
 depreciation and impairment, if any. Investment properties are
 capitalised and depreciated (where applicable) in accordance with the
 policy stated for Tangible Fixed Assets. Impairment of investment
 property is determined in accordance with the policy stated for
 Impairment of Assets.
 
 (xi) INVENTORIES
 
 Inventories including Work-in-Progress (other than Construction
 Contracts) are valued at cost or net realisable value, whichever is
 lower, cost being worked out on weighted average basis. Cost includes
 all charges for bringing the goods to their present location and
 condition, including octroi and other levies, transit insurance and
 receiving charges.
 
 (xii) TAXES ON INCOME
 
 Current Tax is the tax payable on the taxable income for the year as
 determined in accordance with the provisions of the I ncome Tax Act,
 1961.
 
 Deferred Tax is recognised on timing differences, being the differences
 between the taxable income and the accounting income that originate in
 one period and are capable of reversal in one or more subsequent
 periods.
 
 Deferred Tax Assets in respect of unabsorbed depreciation and carry
 forward of losses are recognised if there is virtual certainty that
 there will be sufficient future taxable income available to realise
 such losses. Other Deferred Tax Assets are recognised if there is
 reasonable certainty that there will be sufficient future taxable
 income to realise such assets.  Deferred tax assets are reviewed at
 each Balance Sheet date for their realisability.
 
 (xiii) FOREIGN EXCHANGE TRANSACTIONS / TRANSLATIONS
 
 (a) The foreign branches of the Company have been classified as
 integral foreign operations. Revenue transactions (other than
 depreciation) of the foreign branches are incorporated in the Company''s
 Financial Statements at the average exchange rate during the year,
 fixed assets are incorporated at the spot rate of the date of
 acquisition and monetary assets and liabilities are translated at the
 rates of exchange prevailing on the date of the Balance Sheet.
 Depreciation is translated at the average rate.
 
 (b) Monetary assets and liabilities relating to foreign currency
 transactions remaining unsettled at the end of the year are translated
 at the year-end rate and the difference in translation and realised
 gains and losses on foreign exchange transactions are recognised in the
 Statement of Profit and Loss. In respect of transactions covered by
 foreign exchange contracts, the difference between the contract rate
 and the spot rate on the date of the transaction is charged to the
 Statement of Profit and Loss over the period of the contract.
 
 (c) Foreign operations are classified as either ''integral'' or
 ''non-integral'' operations. Exchange differences arising on a monetary
 item that, in substance, forms part of an enterprise''s net investment
 in a non-integral foreign operation are accumulated in the Foreign
 Currency Translation Reserve until the disposal of the net investment,
 at which time they are recognised as income or as expenses.
 
 (d) Forward contracts
 
 Premium / discount on forward exchange contracts, which are not
 intended for trading or speculation purposes, are amortised over the
 period of the contracts if such contracts relate to monetary items as
 at the Balance Sheet date.
 
 (xiv) ACCOUNTING FOR VOLUNTARY RETIREMENT SCHEME
 
 (a) The cost of Voluntary Retirement Scheme/Retrenchment Compensation,
 including ex-gratia and additional gratuity liability arising there
 from, is charged to the Statement of Profit and Loss in the month of
 separation of employees.
 
 (b) The Present Value of future payments to employees opting for Early
 Separation Scheme (ESS) and the additional gratuity liability arising
 there from are charged to the Statement of Profit and Loss in the month
 of separation of employees.
 
 (xv) LEASES
 
 (a) Finance Leases
 
 Fixed assets acquired under finance leases are recognised at the lower
 of the fair value of the leased assets at inception and the present
 value of minimum lease payments. Lease payments are apportioned between
 the finance charge and the reduction of the outstanding liability. The
 finance charge is allocated to periods during the leased term at a
 constant periodic rate of interest on the remaining balance of the
 liability.
 
 (b) Operating Leases
 
 Lease arrangements where the risks and rewards incidental to ownership
 of an asset substantially vest with the lessor are recognised as
 operating leases. Operating lease expenses / income are recognised in
 the Statement of Profit and Loss on Straight Line Basis, representative
 of the time pattern of the user''s benefit.
 
 (xvi) EMPLOYEE BENEFITS
 
 (a) Defined Contribution Plans
 
 Contribution to Superannuation Fund, a defined contribution scheme, is
 made at pre-determined rates to the Superannuation Fund Trust and is
 charged to the Statement of Profit and Loss. There are no other
 obligations other than the contribution payable to the Superannuation
 Fund Trust.
 
 The eligible employees of the Company are entitled to receive benefits
 under provident fund schemes which are in substance, defined
 contribution plans, in which both employees and the Company make
 monthly contributions at a specified percentage of the covered
 employees'' salary (currently 12% of employees'' salary). The
 contributions are paid to the provident funds and pension fund set up
 as irrevocable trusts by the Company or to respective Regional
 Provident Fund Commissioner and the Central Provident Fund under the
 State Pension scheme. The Company is generally liable for annual
 contributions and any shortfall in the fund assets based on the
 government specified minimum rates of return or pension and recognises
 such contributions and shortfall, if any, as an expense in the year
 incurred.
 
 (b) Defined Benefit Plans
 
 The Company''s liabilities towards gratuity and post retirement medical
 benefit schemes are determined using the projected unit credit method
 which considers each period of service as giving rise to an additional
 unit of benefit entitlement and measures each unit separately to build
 up the final obligation. Actuarial gains and losses based on valuation
 done by the independent actuary carried out annually are recognised
 immediately in the Statement of Profit and Loss as income or expense.
 Obligation is measured at the present value of the estimated future
 cash flows using a discounted rate that is determined by reference to
 market yields at the Balance Sheet date on Government bonds where the
 currency and terms of the Government bonds are consistent with the
 currency and estimated terms of the defined benefit obligation.
 
 (c) Compensated Absences
 
 Compensated absences which accrue to employees and which are expected
 to be availed within twelve months immediately following the year end
 are reported as expenses during the year in which the employees
 performs the services that the benefit covers and the liabilities are
 reported at the undiscounted amount of the benefit, and where the
 availment or encashment is otherwise not expected to wholly occur
 within the next twelve months, the liability on account of the benefit
 is actuarially determined using the projected unit credit method.
 
 (xvii) SEGMENT REPORTING
 
 The accounting policies used in the preparation of the financial
 statements of the Company are also applied for Segment Reporting.
 Revenue and expenses have been identified to segments on the basis of
 their relationship to the operating activities of the segment. Revenue
 and expenses, which relate to the enterprise as a whole and are not
 allocable to segments on a reasonable basis, have been included under
 Unallocated income/expenses
 
 (xviii) CASH AND CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)
 
 Cash comprises cash on hand and demand deposits with banks. Cash
 equivalents are short-term balances (with an original maturity of three
 months or less from the date of acquisition), highly liquid investments
 that are readily convertible into known amounts of cash and which are
 subject to insignificant risk of changes in value.
 
 (xix) CASH FLOW STATEMENT
 
 Cash flows are reported using the indirect method, whereby
 profit/(loss) before extraordinary items and tax is adjusted for the
 effects of transactions of non-cash nature and any deferrals or
 accruals of past or future cash receipts or payments.  The cash flows
 from operating, investing and financing activities of the Company are
 segregated based on the available information.