(a) Basis of preparation
 
 The financial statements have been prepared to comply in all material
 respects with the Accounting Standards notified by Companies
 (Accounting Standards) Rules, 2006, (as amended) and the relevant
 provisions of the Companies Act, 1956. The financial statements have
 been prepared under the historical cost convention on an accrual basis.
 The accounting policies have been consistently applied by the Company
 and are consistent with those used in the previous year.
 
 (b) Use of estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon managements best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 (c) Inventories
 
 Raw materials, components, stores and spares are valued at lower of
 cost and net realizable value. However, materials and other items held
 for use in the production of inventories are not written down below
 cost if the finished products in which they will be incorporated are
 expected to be sold at or above cost. Cost is determined on a moving
 weighted average basis.
 
 Work-in-process and finished goods are valued at lower of cost and net
 realizable value. Cost includes direct materials and labour and a
 proportion of manufacturing overheads based on normal operating
 capacity. Cost of finished goods includes excise duty. Cost is
 determined on a moving weighted average basis.
 
 Net realizable value is the estimated selling price in the ordinary
 course of business, less estimated costs of completion and estimated
 costs necessary to make the sale.
 
 (d) Cash and Cash equivalents
 
 Cash and cash equivalents for the purpose of cash flow statement
 comprise cash at bank and in hand and short-term investments with an
 original maturity of three months or less.
 
 (e) Fixed assets
 
 Fixed assets are stated at cost, less accumulated depreciation and
 impairment losses if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use.
 
 (f) Depreciation
 
 Depreciation is provided using the Straight Line Method as per the
 useful lives of the assets estimated by the management, or at the rates
 prescribed under schedule XIV of the Companies Act, 1956 whichever is
 higher.
 
 (g) Impairment
 
 i. The carrying amounts of assets are reviewed at each balance sheet
 date for any indication of impairment based on internal / external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the assets net selling price and its value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value using a pre-tax discount rate that reflects
 current market assessments of the time value of money and risks
 specific to the asset.
 
 ii.  After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 iii. A previously recognized impairment loss is increased or reversed
 depending on changes in circumstances. However, the carrying value
 after reversal is not increased beyond the carrying value that would
 have prevailed by charging usual depreciation if there was no
 impairment.
 
 iv.  During the year there was no provision for impairment.
 
 (h) Intangible assets
 
 i. Costs incurred towards purchase of computer software are depreciated
 using the straight-line method over a period based on managements
 estimate of useful lives of such software, or over the license period
 of the software, whichever is shorter.  Other fixed assets
 (Intangibles) are amortised over a period of two years.
 
 ii.  Research costs are expensed as incurred.
 
 (i) Revenue recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 Sale of Goods
 
 Sale of goods is recognised when the significant risks and rewards of
 ownership of the goods have passed to the buyer. In accordance with the
 terms of arrangements with the customers, in the current year, the
 company has not recognised sales of Rs 1774.00 lakhs and the related
 costs and margin on the materials despatched to the customer locations
 as such materials have not been received by the customers as at the
 balance sheet date. Excise Duty deducted from turnover (gross) is the
 amount that is included in the amount of turnover (gross) and not the
 entire amount of liability that arose during the year.
 
 Income from Services
 
 Income from services is recognised in accordance with the specific
 terms of the contract with the customer.
 
 Interest
 
 Interest income is recognised on a time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 Dividends
 
 Dividend income is recognised when the right to receive payment is
 established by the balance sheet date.
 
 Profit on sale of investments
 
 Profit on sale of investment is recognised only at the time when the
 investments are realised.
 
 (j) Foreign currency translation
 
 i.  Initial recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 ii.  Conversion
 
 Foreign currency monetary items are reported using the closing rate.
 Non-monetary items which are carried in terms of historical cost
 denominated in a foreign currency are reported using the exchange rate
 at the date of the transaction; and non-monetary items which are
 carried at fair value or other similar valuation denominated in a
 foreign currency are reported using the exchange rates that existed
 when the values were determined.
 
 iii.  Exchange differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting such monetary items of company at rates different from those
 at which they were initially recorded during the year, or reported in
 previous financial statements, are recognized as income or as expenses
 in the year in which they arise.
 
 (k) Investments
 
 Investments that are readily realisable and intended to be held for not
 more than a year are classified as current investments. All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long-term investments are carried at
 cost. However, provision for diminution in value, if any, is made to
 recognise a decline other than temporary in the value of the
 investments.
 
 (l) Retirement and other employee benefits
 
 i. Retirement benefits in the form of provident fund and employee state
 insurance are defined contribution schemes and the contributions are
 charged to the Profit and Loss Account of the year when the
 contributions to the funds are due. There are no other obligations
 other than the contribution payable to the funds.
 
 ii. Gratuity and pension liabilities are defined benefit obligations
 and are provided for on the basis of an actuarial valuation on
 projected unit credit method made at the end of each financial year.
 
 iii. Short term compensated absences are provided for based on
 estimates. Long term compensated absences are provided for based on
 actuarial valuation at the year end. The actuarial valuation is done as
 per projected unit credit method
 
 iv.  Actuarial gains/losses are taken to profit and loss account and
 are not deferred.
 
 v. Payments made under the Voluntary Retirement Scheme are charged to
 the Profit and Loss Account when such payments are made.
 
 (m) Segment reporting
 
 The Company is engaged in the business of manufacture of automotive
 components and related services and accordingly this is the only
 primary segment. The Company has considered geographical segment as the
 secondary segment, based on the location of the customers.
 
 (n) Leases
 
 Where the lessor effectively retains substantially all the risks and
 benefits of ownership of the leased item the leases are classified as
 operating leases. Operating lease payments are recognised as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term.
 
 (o) Earnings Per Share
 
 Basic earnings per share are calculated by dividing the net profit for
 the period attributable to equity shareholders by the weighted average
 number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit for the period attributable to equity shareholders and the
 weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares if
 any.
 
 (p) Income taxes
 
 Tax expense comprises of current and deferred tax. Current income tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Income-tax Act, 1961. Deferred income taxes
 reflects the net impact of current year timing differences between
 taxable income and accounting income for the year and reversal of
 timing differences of earlier years.
 
 Deferred tax is measured based on the tax rates and the tax laws
 enacted or substantively enacted at the balance sheet date. Deferred
 tax assets and deferred tax liabilities are offset, if a legally
 enforceable right exists to set off current tax assets against current
 tax liabilities and the deferred tax assets and deferred tax
 liabilities relate to the taxes on income levied by same governing
 taxation laws.  Deferred tax assets are recognised only to the extent
 that there is reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realised. In situations where the company has unabsorbed depreciation
 or carry forward tax losses, all deferred tax assets are recognised
 only if there is virtual certainty supported by convincing evidence
 that they can be realised against future taxable profits.
 
 At each balance sheet date the company re-assesses unrecognised
 deferred tax asset. The company recognises all unrecognised deferred
 tax assets to the extent that it has become reasonably certain or
 virtually certain, as the case may be that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realised.
 
 (q) Provisions
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event; 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 are not discounted to its
 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 or on actuarial valuation where applicable. Provision for
 warranty is estimated based on trend of past claims.