1.1 PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS
 
 During the year ended September 30,2012, the Revised Schedule VI
 notified under the Companies Act, 1956, has become applicable to the
 company, for preparation and presentation of its financial statements.
 The adoption of Revised Schedule VI does not impact recognition and
 measurement principles followed for preparation of financial
 statements. However, it has significant impact on the presentation and
 disclosures made in the financial statements. The Company has
 reclassified/regrouped, wherever applicable the previous year figures
 in accordance with the requirements applicable in the current year.
 
 1.2 METHOD OF ACCOUNTING
 
 The Company maintains its accounts under the historical cost convention
 on an accrual basis and complies in all material respects with
 generally accepted accounting principles in India.The Company has
 prepared these financial statements to comply in all material respects
 with Accounting Standards notified under the Companies (Accounting
 Standards) Rules, 2006 (as amended) and relevant provisions of the
 Companies Act, 1956.
 
 1.3 USE OF ESTIMATES
 
 The presentation of thefinancial 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, revenues and expenses and disclosure of
 contingent liabilities. Such estimates and assumptions are based on
 management''s evaluation of relevant facts and circumstances as on the
 date of financial statements. The actual outcome may diverge from these
 estimates.
 
 1.4 REVENUE RECOGNITION
 
 Income is recognized on accrual basis, except where mentioned
 otherwise, in particular:
 
 (a) Domestic sales of manufactured items are recognized on dispatch and
 are stated net of returns;
 
 (b) Export sales are recognized on date of bill of lading/airway bill
 and initially recorded at the relevant exchange rates prevailing on the
 date of transaction;
 
 (c) Income on items delivered directly by suppliers/sub-contractors to
 the client is recognized on dispatch and receipt of suppliers''/
 sub-contractors''invoices;
 
 (d) Income from project site activities is recognized on acceptance by
 the client on the basis of the work performed;
 
 (e) Income on account of price variation is recognized on acceptance of
 the claim by the client and on certainty of its realization;
 
 (f) Revenue from long term projects of Special Products Division
 involving dispatch, commissioning and erection is recognized on the
 basis of milestone specified in the contracts after matching costs and
 revenue at each stage; and
 
 (g) Dividend is accrued in the year in which it is declared whereby the
 right to receive is established.
 
 1.5 TANGIBLE FIXED ASSETS
 
 Fixed Assets are stated at cost, net of tax/duty credits availed less
 depreciation/amortization to date and impairment, if any, except in the
 case of certain items of land, buildings, plant and machinery and
 roads, water works, drainage, which are stated on the basis of the
 revalued cost less depreciation/amortization to date and impairment, if
 any.
 
 1.6 INTANGIBLE ASSETS
 
 Intangible assets acquired separately are measured on initial
 recognition at cost. Following initial recognition, Intangible assets
 are carried at cost less accumulated amortization and accumulated
 impairment losses, if any.
 
 1.7 DEPRECIATION/AMORTIZATION
 
 (a) The depreciation is computed on the Straight-Line Method on certain
 Buildings and Plant & Machinery of Heavy Engineering Division and
 Foundry Division and all the fixed assets of Tiwac Division in the
 manner prescribed in Schedule XIV to the Companies Act, 1956.
 
 The depreciation on all other fixed assets is computed on the Written
 Down Value method in the manner prescribed in Schedule XIV to the
 Companies Act, 1956.
 
 In respect of branches, which are an integral part of foreign
 operations, depreciation is provided in the manner prescribed by local
 laws so as to write off the assets over their useful life.
 
 (b) Intangible assets are amortized on a Straight Line basis over the
 estimated useful economic life and in case of: (i) Patents are
 amortized on the basis of life of Patents as specified in the Patent
 Documents;
 
 (ii) Technical Know-how is amortized on Straight Line Basis in six
 equal installments; and
 
 (iii) Computer Software, included in intangible assets, is amortized
 over a period of three years.
 
 (c) Depreciation on additions to/deletions from the fixed assets during
 the year is calculated on pro-rata basis from the date of
 addition/deletion.
 
 1.8 CAPITAL WORK-IN-PROGRESS
 
 Projects under commissioning and other Capital Work-in-Progress are
 carried at cost, comprising direct cost and related incidental
 expenses.
 
 1.9 IMPAIRMENT OF ASSETS
 
 Impairment is ascertained at each balance sheet date in respect of Cash
 Generating Units. An impairment loss is recognized whenever the
 carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the greater of the net selling price and value in
 use. In assessing value in use, the estimated future cash flows are
 discounted to their present value based on an appropriate discount
 factor.
 
 1.10 INVESTMENTS
 
 Investments of long term nature are stated at cost less provision for
 diminution in value, if such decline is other than temporary.  Current
 investments are stated at lower of cost or fair value.
 
 1.11 EMPLOYEE BENEFITS
 
 (a) Short term employee benefits are those which are payable within
 twelve months of rendering service and are recognized as expense in the
 period in which the employee renders the related service.
 
 (b) Contributions to the Provident Fund and Superannuation Fund, ESIC
 and Labour Welfare Fund which are defined contribution schemes are
 recognized as an expense in the Statement of Profit and Loss in the
 period in which the contribution is due.
 
 (c) Gratuity liability is a defined benefit obligation and is provided
 for on the basis of actuarial valuation using the projected unit credit
 method at the end of each financial year. Actuarial gains and losses
 are recognized immediately in the Statement of Profit and Loss.
 
 (d) Long term compensated absences including leave encashment are
 provided for on the basis of actuarial valuation. Accumulated leave,
 which is expected to be utilized within next twelve months, is treated
 as short term employee benefit. The Company measures the expected cost
 of such absences as the additional amount that it expects to pay as a
 result of the unused entitlement that has accumulated at the reporting
 date.
 
 1.12 TAXES ON INCOME
 
 Tax expenses comprise current and deferred tax.
 
 Tax on income for the current period is determined on the basis of
 taxable income and tax credits computed in accordance with the
 provisions of the Income Tax Act, 1961 .The tax rates and tax laws used
 to compute amount are those that are enacted or substantively enacted.
 
 Deferred tax is recognized on timing differences between the accounting
 income and taxable income that originate in one period and are capable
 of reversal in one or more subsequent periods and is quantified using
 the tax rates and tax laws enacted or substantively enacted as on the
 balance sheet date.
 
 Deferred tax assets (representing unabsorbed depreciation and carried
 forward losses) are recognized to the extent that there is a virtual
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realized.
 
 1.13 BORROWING COSTS
 
 Borrowing costs attributable to acquisition, construction or production
 of qualifying assets are capitalized as part of such asset till the
 time the asset is ready for its intended use or sale. All other
 borrowing costs are recognized as an expense in the Statement of Profit
 and Loss in the period in which they are incurred.
 
 1.14 INVENTORIES
 
 Inventories are valued after providing for obsolescence, if any, as
 under: -
 
 (a) Raw materials, Components, Stores and Spares at lower of cost or
 net realizable value. The cost includes freight inward, direct
 expenses, duties and taxes other than those subsequently recoverable.
 In case of Heavy Engineering Division, it is arrived at on FIFO
 Methodand other divisions on Weighted Average Method.
 
 (b) Dies,Jigs,Tools, Mould Boxes and Patterns at lower of cost or net
 realizable value, arrived at after providing for suitable diminution/
 amortization.
 
 (c) Goods in transit at cost incurred till balance sheet date.
 
 (d) Work in Progress at lower of cost or net realizable value. The cost
 includes direct material, direct labour, and appropriate overheads
 booked on normal level of activity. The expenditure on uncompleted
 contracts is amortized over the period of contract on the basis of
 sales booked.
 
 (e) Finished Goods at lower of cost or net realizable value. Cost
 includes related overheads and wherever applicable excise duty.
 
 1.15 FOREIGN CURRENCYTRANSLATION
 
 (a) Initial recognition
 
 Foreign currency transactions are reported in the reporting currency by
 applying to the foreign currency amount the exchange rate between
 reporting currency and the foreign currency at the date of transaction.
 
 (b) Conversion
 
 Foreign currency monetary items are re-instated using the exchange rate
 prevailing at the reporting date. Non monetary items which are measured
 in terms of historical costs denominated in a foreign currency are
 reported using the exchange rate at the date of transaction. Non
 monetary items which are measured at fair value or other similar
 valuation denominated in a foreign currency, are translated using the
 exchange rate at the date when such value was determined.
 
 The financial statements of foreign branches of the Company which are
 integral to the operations are translated as if the transactions of the
 foreign operations have been those of the Company itself.
 
 (c) Exchange differences
 
 (i) Change in accounting policy relating to long term foreign currency
 monetary items
 
 The Company has opted to avail the choice provided under Paragraph 46A
 of AS-11; The Effects of Changes in Foreign Exchange Rates, inserted
 vide Notification dated December 29,2011. Consequently, the following
 exchange differences on long term foreign currency monetary items,
 which were until now being recognized in the Statement of Profit and
 Loss are now being dealt with in the following manner:
 
 - Foreign exchange difference on account of a depreciable asset is
 adjusted in the cost of the depreciable asset, which would be
 depreciated over the balance life of the asset;
 
 - In other cases, the foreign exchange difference is accumulated in a
 Foreign Currency Monetary Item Translation Difference Account and
 amortized over the balance period of such long term asset/liability.
 
 (ii) All other exchange differences are recognized as income or as
 expense in the period to which they relate.
 
 (d) Premium or discount on forward exchange contracts is recognized in
 the Statement of Profit and Loss over the period of contract.
 
 1.16 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 Provisions are recognized for liabilities that can be measured only by
 using a substantial degree of estimation, if: (a) the Company has a
 present obligation as a result of past event- lb) a probable outflow of
 resources is expected to settle the obligation; and (c) the amount of
 the obligation can be reliably estimated
 
 Contingent Assets are neither recognized nor disclosed.
 
 Contingent Liabilities are not recognized, but are disclosed in Notes
 to Accounts.
 
 Provisions, Contingent Liabilities and Contingent Assets are reviewed
 at each balance sheet date.
 
 1.17 LEASES
 
 Assets acquired under leases where the significant portion of the risks
 and rewards of ownership are retained by the lessor are classified as
 operating leases and lease rentals are charged to the Statement of
 Profit and Loss on accrual basis.
 
 Assets leased out under operating lease are capitalized. Rental Income
 is recognized on accrual basis over the lease term.
 
 1.18 SEGMENT REPORTING (REFER NOTE 34)
 
 The accounting policies adopted for segment reporting are in line with
 the accounting policies of the Company. Segment revenue, segment
 expenses, segment assets and segment liabilities have been identified
 to segments on the basis of their relationship to the operating
 activities of the segment. Revenue expenses, assets and liabilities
 which relate to the company as a whole and are not allocable to
 segments on reasonable basis have been included under unallocated
 revenue/expenses/assets/liabilities.
 
 Information given is in accordance with the requirements of Accounting
 Standard 17 on Segment Reporting issued by the Institute of Chartered
 Accountants of India.
 
 The Company has identified business segments as the primary and
 geographic segment as secondary segment. Segment have been identified
 after taking into account the nature of the products, differential risk
 and returns, the organizational structure and internal reporting
 system.
 
 The Company''s Primary business segments are organized on product lines
 as follows:
 
 (i) Heavy Engineering (also known as Industrial Machinery Division) -
 engaged in engineering, fabrication and manufacturing of Machinery for
 Sugar Plants, Cement Plants, Boilers & Power Plants, Industrial &
 Marine Gears, Mineral Processing & EPC, Petro Chemicals and Space,
 Defense and Nuclear Power Business;
 
 (ii) Foundry & Machine Shop - Manufacturing of Grey & Ductile Iron
 Castings required by various industries and machining of components;
 and
 
 (iii) Others - Non Reportable Segment, includes units manufacturing
 Precision Instruments such as pressure and temperature gauges and
 Infotech Services.
 
 1.19 EARNINGS PER SHARE
 
 The Company reports basic and diluted earnings per share in accordance
 with Accounting Standard 20, Earning Per Share issued by the
 Institute of Chartered Accountants of India. Basic earnings per share
 are computed by dividing the net profit after tax by the weighted
 average number of equity shares outstanding during the year.
 
 Diluted earnings per share reflect the potential dilution that could
 occur if securities or other contracts to issue equity shares were
 exercised or converted during the year. Diluted earnings per share are
 computed using the weighted average number of equity shares and
 potential dilutive equity shares outstanding at the year end.