The financial statements are prepared to comply in all material aspects
 with the applicable accounting principles in India, the Accounting
 Standards issued by the Institute of Chartered Accountants of India and
 the relevant provisions of the Companies Act, 1956. The significant
 accounting policies are as follows:
 
 1.  Basis of Accounting:
 
 The Financial Statements are prepared in accordance with the historical
 cost convention.
 
 2.  Use of Estimates:
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles (GAAP) in India requires management to
 make estimates and assumptions that affect the reported amounts of
 assets and liabilities and the disclosure of contingent liabilities as
 at the date of the financial statements and reported amounts of
 revenues and expenses during the reporting period. Actual results could
 differ from these estimates. Any revision to accounting estimates is
 recognised prospectively in current and future periods.
 
 3.  Fixed Assets, including Intangible Assets / Capital
 Work-in-Progress:
 
 Fixed assets including intangible assets are stated at cost less
 accumulated depreciation. Cost of acquisition or construction is
 inclusive of freight, duties, taxes, incidental expenses and financing
 cost of borrowed funds relating to acquisition of fixed assets up to
 the date of commissioning / commercial exploitation of assets.
 
 Capital Work-in-Progress is carried at cost, comprising direct cost
 related incidental expenses and interest on borrowings there against.
 
 4.  Depreciation / Amortisation:
 
 Tangibles:
 
 Depreciation on fixed assets is provided on straight-line method in
 accordance with the rates specified in Schedule XIV of the Companies
 Act, 1956.
 
 Leasehold improvements incurred on rented premises are written off over
 a period of three years.
 
 Intangibles:
 
 Cost of software is amortised over a period of five years. Goodwill
 purchased is amortised on a pro-rata basis from the month of
 acquisition over a period of ten years.
 
 5.  Investments:
 
 Investments are stated at ''cost''. A provision for diminution is made to
 recognise a decline, other than temporary, in the value of long term
 investments. Current investments are valued at lower of cost or net
 fair value.
 
 An investment in the shares of subsidiary Companies outside India is
 stated at cost by converting at the rate of exchange at the time of
 their acquisition.
 
 6.  Valuation of Inventories:
 
 Materials, Stores and Spares are valued at cost on First In First Out
 Basis.
 
 Work-in-Progress, finished goods and trading goods are valued at cost
 or realisable value whichever is lower.
 
 Goods-in-transit are valued at cost. In respect of goods undergoing
 customs clearance, no provision has been made for the customs duty
 liability. However, this practice does not have any impact on the
 profit for the period.
 
 7.  Foreign Exchange Fluctuations :
 
 Transactions in Foreign Currency are recorded at the exchange rate
 prevailing on the date of transaction. Monetary assets and liabilities
 relating to foreign currency transactions remaining unsettled at the
 end of the year are translated at the year-end rates. The differences
 in translation of monetary assets and liabilities and realised gains
 and losses on foreign exchange transactions are recognised in the
 Profit and Loss account.
 
 8.  Revenue Recognition:
 
 Sales are recognised when goods are supplied in accordance with the
 terms of sale and are recorded net of trade discounts, rebates and
 sales tax. Income from services is accrued as per terms of relevant
 agreement.
 
 Income and Expenditure are accounted on an accrual basis. Dividend
 income is recognised when the right to receive dividend is established.
 
 Amount received from the customers for admitting them as member of
 Company''s various schemes are credited to revenue account in the year
 in which membership is allotted.
 
 9.  Retirement Benefits:
 
 i.  Contribution to defined contribution schemes such as Provident Fund
 and Employer''s Pension Scheme is charged to the Profit and Loss
 account.
 
 ii.  Payments to the employees'' Gratuity Trust Fund, after taking into
 account the funds available with the trustees of the Gratuity Fund, is
 based on actuarial valuation carried out at the end of the year.
 Actuarial gains or losses arising from such valuation are charged to
 revenue in the year in which they arise.
 
 iii.  Provision for leave encashment has been accrued and provided for
 at the end of the financial year, on the basis of actuarial valuation.
 Actuarial gains or loss arising from such valuation are charged to
 revenue in the year in which they arise.
 
 10.  Taxation:
 
 i.  Provision for Income Tax is made under the liability method after
 availing exemptions and deductions at the rates applicable under the
 Income Tax Act, 1961.
 
 ii.  Deferred tax is recognized, subject to the consideration of
 prudence, on timing differences, being the difference between taxable
 income and accounting income that originate in one period and are
 capable of reversal in one or more subsequent periods is accounted for
 using the tax rates and laws that has been enacted as of the Balance
 Sheet date.
 
 iii.  Deferred Tax Assets are recognized on unabsorbed depreciation and
 carried forward of losses based on virtual certainty that sufficient
 future taxable income will be available against which such Deferred Tax
 Assets can be realized.
 
 11.  Impairment of Assets:
 
 The carrying amount of assets is reviewed periodically 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 value in use. In assessing value in
 use, the estimated future cash flows are discounted to their present
 value at the weighted average cost of capital. Post impairment,
 depreciation is provided on the revised carrying value of the asset
 over its remaining useful life.
 
 12.  Borrowing Costs:
 
 Interest and other costs in connection with the borrowing of the funds
 to the extent related / attributed to the acquisition / construction of
 qualifying fixed assets are capitalised upto the date when such assets
 are ready for its intended use and other borrowing costs are charged to
 the Profit & Loss Account.
 
 13.  Provisions for Contingencies: A provision is recognised when:
 
 i.  The company has a present obligation as a result of a past event;
 
 ii.  It is probable that an outflow of resources embodying economic
 benefits which will be required to settle the obligation; and
 
 iii.  A reliable estimate can be made of the amount of the obligation.
 
 A disclosure for a contingent liability is made when there is a
 possible obligation or a present obligation that may, but probably will
 not, require an outflow of resources. Where there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 The Company provides for warranty cost based on a technical estimate of
 the costs required to be incurred for repairs, replacement, material
 cost, servicing and past experience in respect of warranty costs. It is
 expected that this expenditure will be incurred over the contractual
 warranty period.
 
 14.  Accounting of Lease:
 
 i.  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 recognised as an expense
 in the profit and loss account on a straight-line basis over the lease
 term unless there is another systematic basis which is more
 representative of the time pattern of the Lease.
 
 ii.  Assets given under operating leases are included in Fixed Assets.
 Lease income is recognised in the Profit and Loss account on Straight
 Line basis over the lease term, unless there is another systematic
 basis which is more representative of the time pattern of the Lease.
 
 15.  Accounting of Employee Stock Option Scheme:
 
 In respect of options granted during any accounting period, intrinsic
 value (excess of market price of share over the exercise price or the
 option) is treated as employee compensation in the financial statements
 of the company which is amortised on a straight-line basis over the
 vesting period.