1.  Basis of Preparation of Financial Statements
 
 The financial statements have been prepared to comply in all material
 respects with the Indian Accounting Standards as 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
 except in case of fixed assets for which revaluation is carried out.
 The accounting policies have been consistently applied by the Company
 and are consistent with those used in the previous year.
 
 2.  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 end. Although these estimates are based upon managements best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 3.  Fixed Assets
 
 Fixed assets are stated at cost (or revalued amounts, as the case may
 be), 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. Borrowing costs
 relating to acquisition of fixed assets which takes substantial period
 of time to get ready for its intended use are also included to the
 extent they relate to the period till such assets are ready to be put
 to use.
 
 4.  Impairment
 
 a.  The carrying amounts of assets are reviewed at each balance sheet
 date if there is 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
 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.
 
 b.  After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 5.  Grant
 
 Grants are recognized when there is reasonable assurance that the grant
 will be received and conditions attached to them are complied with.
 
 Grant received against specific asset is shown as a deduction from its
 gross value. Where the grant received equals the whole, or virtually
 the whole, of the cost of the asset, the asset is shown at a nominal
 value.
 
 6.  Depreciation
 
 Depreciation on fixed assets is provided pro- rata from the date of
 addition using the Straight Line Method at the rates based upon useful
 life of assets estimated by management, which are greater than or equal
 to the corresponding rates prescribed in Schedule XIV of the Companies
 Act, 1956.
 
 Premium on Leasehold Land is amortised over the period of the lease and
 depreciation on leasehold improvement which includes temporary
 structures is provided over the unexpired period of lease or estimated
 useful life, whichever is lower.
 
 Extra Shift Depreciation on the qualifying assets is charged at the
 rates prescribed in Schedule XIV of the Companies Act.
 
 In respect of revalued assets, the difference between the depreciation
 calculated on the revalued amount and original cost is recouped from
 the Revaluation Reserve Account.
 
 7.  Intangible assets
 
 Software
 
 Cost of software is amortized on straight line basis over its useful
 life of 60 months starting from the month of project implementation.
 
 8.  Research and Development Costs
 
 Research costs are expensed as incurred. Development expenditure
 incurred on an individual project is carried forward when its future
 recoverability can reasonably be regarded as assured. Any expenditure
 carried forward is amortised over the period of expected future sales
 from the related project, not exceeding five years.
 
 The carrying value of development costs is reviewed for impairment
 annually when the asset is not yet in use and otherwise when events or
 changes in circumstances indicate that the carrying value may not be
 recoverable.
 
 9.  Leases
 
 Where the Company is the lessee
 
 Finance leases, which effectively transfer to the Company substantially
 all the risks and benefits incidental to ownership of the leased item,
 are capitalized at the lower of the fair value and present value of the
 minimum lease payments at the inception of the lease term and disclosed
 as leased assets. Lease payments are apportioned between the finance
 charges and reduction of the lease liability based on the implicit rate
 of return. Finance charges are charged directly against income. Lease
 management fees, legal charges and other initial direct costs are
 capitalized.
 
 If there is no reasonable certainty that the Company will obtain the
 ownership by the end of the lease term, capitalized leased assets are
 depreciated over the shorter of the estimated useful life of the asset
 or the lease term.
 
 Leases where the lessor effectively retains substantially all the risks
 and benefits of ownership of the leased item, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the Profit and Loss account on a straight-line basis over the lease
 term.
 
 10.  Inventories
 
 Inventories are valued as follows:
 
 Raw Materials, Components,
 
 Stores and Spares : At lower of Cost and Net Realisable Value
 
 Work-in-Progress : At lower of Cost and Net Realisable Value
 
 Finished Goods-Manufactured : At lower of Cost and Net Realisable Value
 
 Finished Goods-Traded : At lower of Cost and Net Realisable Value
 
 Spares for Finished Goods : At lower of Cost and Net Realisable Value
 
 Cost of Raw Materials and Components, Finished Goods-Traded and
 Spares for Finished Goods has been arrived at by using the weighted
 moving average cost formula.
 
 Cost of Finished Goods-Manufactured and Work-in-Progress includes
 direct materials and labour and a proportion of manufacturing overheads
 based on normal operating capacity. Cost of finished goods includes
 excise duty, wherever applicable. Cost is determined on a weighted
 average basis.
 
 Materials and other items held for use in the production of finished
 goods 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.
 
 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.
 
 11.  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
 
 Revenue is recognised when the significant risks and rewards of
 ownership of the goods are transferred to the buyer. It includes excise
 duty and discounts but excludes value added tax / sales tax and are net
 of returns. Excise duty shown as deduction from revenue is the amount
 that is included in the amount of revenue and not the entire amount of
 liability that arose during the year.
 
 Income from Ser vices
 
 Revenue from services provided to various parties in terms of
 agreements with them is recognised on accrual basis. Revenues from
 maintenance contracts are recognised pro- rata over the period of the
 contract as and when services are rendered.
 
 Interest Income
 
 Revenue is recognised on a time proportion basis taking into account
 the amount outstanding and the rate applicable.
 
 12.  Deferred Revenue Expenditure
 
 Expenditure on Voluntary Retirement Scheme is treated as deferred
 revenue expenditure and amortised over a period of 60 months. However,
 to comply with the Accounting Standard 15-(Revised) on Employee
 benefits, the amortisation has been accelerated for all existing
 voluntary retirement schemes to ensure that no balance is carried
 forward beyond March 31, 2010.
 
 13.  Foreign Currency Transaction
 
 a.  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.
 
 b.  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.
 
 c.  Exchange Differences
 
 Exchange differences arising on the settlement of monetary items or on
 reporting companys monetary items at rates different from those at
 which they were initially recorded during the year, or reported in
 previous financial statements, are recognised as income or as expenses
 in the year in which they arise.
 
 d.  Forward Exchange Contracts not intended for trading or speculation
 purposes
 
 The premium or discount arising at the inception of a forward exchange
 contract is amortised as expense or income over the life of the
 contract. Exchange differences on such contracts are recognised in the
 statement of profit and loss in the year in which the exchange rates
 change. Any profit or loss arising on cancellation or renewal of
 forward exchange contract is recognised as income or expense for the
 year.
 
 14.  Derivative Instruments
 
 As per the ICAI Announcement, derivative contracts, other than those
 covered under Accounting Standard-11, are accounted on the basis of
 hedging principles to the extent that the same does not conflict with
 the existing mandatory Accounting Standards, other Authoritative
 pronouncements and other regulatory requirements. Accordingly, the
 derivative contracts are marked to market on a portfolio basis and the
 net gain/loss after considering the offsetting effect on the underlying
 hedge item is transferred to Hedge Reserve Account.
 
 15. Retirement and other Employee benefits
 
 a.  Provident Fund
 
 Retirement benefit in the form of Provident Fund is a defined
 contribution scheme and the contributions are charged to the Profit and
 Loss Account of the year when the contributions to the respective funds
 are due. There are no other obligations other than the contribution
 payable to the fund.
 
 b.  Superannuation Fund
 
 Retirement benefit in the form of Superannuation Fund is a defined
 contribution scheme and the contributions are charged to the Profit and
 Loss Account of the year when the contributions to the respective funds
 are due. There are no other obligations other than the contribution
 payable. The Company has arrangements with an Insurance Company to
 administer its superannuation scheme.
 
 c.  Gratuity
 
 Gratuity liability is defined benefit obligation and is provided for on
 the basis of an actuarial valuation on Projected Unit Credit (PUC)
 method made at the end of each financial year.  The Company has created
 an approved Gratuity Fund, which has taken a group gratuity cum
 insurance policy with an Insurance company to cover the gratuity
 liability of the employees and premium paid to such insurance company
 is charged to the Profit & Loss account. At the end of each accounting
 year, difference between obligation as per actuarial valuation and the
 fair value of plan asset is further provided for and any excess amount
 in plan assets over obligation is recognised as loans and advances
 recoverable.
 
 d.  Welfare Schemes
 
 (i) The Company has provided liability in respect of other Retirement
 Benefit Schemes offered to the employees of the Faridabad Refrigeration
 Operations on the basis of year end actuarial valuation on Projected
 Unit Credit (PUC) method. This is unfunded defined benefit scheme.
 
 (ii) The Company has taken life insurance cover from Insurance
 Companies for its blue collar employees at Faridabad and Ranjangaon
 Refrigeration Operations and for all white collar employees of the
 Company. The premium is charged to the Profit & Loss Account on accrual
 basis. This is a defined contribution plan and there is no other
 obligation other than the contributions payable to Insurance Companies.
 
 (iii) The Company has provided for liability in respect of its scheme
 for Long Term Service Award for its employees at the Faridabad
 Refrigeration Operations and Pondicherry Washers Operations on the
 basis of year end actuarial valuation on Projected Unit Credit (PUC)
 method. This is unfunded defined benefit scheme.
 
 e.  Compensated absences
 
 Short term compensated absences are provided for based on actuarial
 valuation. However these are valued at cost to Company basis without
 considering any discounting and salary increase. Long term compensated
 absences are provided for based on actuarial valuation which is done as
 per Projected Unit Credit method at year end.
 
 f.  Actuarial gains/losses are immediately taken to the Profit and Loss
 Account and are not deferred.
 
 16.  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 Indian Income-tax Act. Deferred income taxes
 reflect the 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 are recognized 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 realized. In situations
 where the Company has unabsorbed depreciation or carry forward tax
 losses, all deferred tax assets are recognized only if there is virtual
 certainty that such deferred tax assets can be realized against future
 taxable profits.
 
 At each balance sheet date, the Company re-assesses unrecognised
 deferred tax assets.  It recognises 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 realized.
 
 The carrying amount of deferred tax assets are reviewed at each balance
 sheet date. The Company writes-down the carrying amount of a deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realised. Any such write-down is reversed to the extent that it becomes
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available.
 
 MAT credit is recognised as an asset only when and to the extent there
 is convincing evidence that the Company will pay normal income-tax
 during the specified period. In the year in which the Minimum
 Alternative Tax (MAT) credit becomes eligible to be recognized as an
 asset in accordance with the recommendations contained in Guidance Note
 issued by the Institute of Chartered Accountants of India, the said
 asset is created by way of a credit to the profit and loss account and
 shown as MAT Credit Entitlement. The Company reviews the same at each
 balance sheet date and writes down the carrying amount of MAT Credit
 Entitlement to the extent there is no longer convincing evidence to the
 effect that Company will pay normal Income-tax during the specified
 period.
 
 17.  Provision
 
 A provision is recognized when an enterprise has a present obligation
 as a result of past event 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 are not discounted to
 its present value and are determined based on management 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
 management estimates.
 
 18.  Service under Warranty
 
 a.  Service under Optional Service Contract
 
 Liability under optional service contract in respect of the contracted
 period is provided on the basis of valuation carried out by an
 independent actuary as at the year end.
 
 b.  Service under Warranty/ Extended Warranty
 
 Liabilities in respect of warranties including extended warranties are
 accrued and provided on the basis of valuation carried out by an
 independent actuary as at year end.
 
 19.  Customs and Excise Duty
 
 Excise Duty on finished goods stock lying at the factory is accounted
 at the point of manufacture. Custom Duty on imported material lying in
 bonded warehouse is accounted for at the time of bonding of materials.
 
 20.  Earnings Per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the year attributable to equity shareholders (after deducting
 preference dividends and attributable taxes) by the weighted average
 number of equity shares outstanding during the year.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss 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.
 
 21.  Cash Flow Statement
 
 Cash flows are reported using indirect method, whereby profit before
 tax is adjusted for the effects of transactions of a non-cash nature
 and any deferrals or accruals of past or future cash receipts or
 payments. The cash flows from regular revenue generating, financing and
 investing activities of the Company are segregated.
 
 Cash and cash equivalents in the cash flow statement comprise cash at
 bank, cash/cheques in hand and short-term investments with an original
 maturity of three months or less.
 
 22.  Segment Reporting
 
 a) Identification of Segments
 
 i) Primary Segment - Business Segment
 
 The Companys Operations predominantly comprise of only one segment
 i.e. Home Appliances. In view of the same, separate segmental
 information is not required to be given as per the requirements of
 Accounting Standard 17.
 
 ii) Secondary Segment - Geographical Segment
 
 The analysis of geographical segment is based on the geographical
 location of the customers. The Company operates primarily in India and
 have presence in international markets as well. Its business is
 accordingly aligned geographically, catering to two markets. The
 Company has considered domestic and exports markets as geographical
 segments and accordingly disclosed these as separate segments. The
 geographical segments considered for disclosure are as follows:
 
 - Sales within India represents sales made to customers located within
 India.
 
 - Sales outside India represents sales made to customers located
 outside India.
 
 Refer note no.C(4) below for details of information pertaining to the
 Secondary Segment.