(a) The company follows the accrual system of accounting in accordance
 with the requirements of the Companies Act, 1956 and complies with the
 accounting standards referred to in sub-section (3C) of Section 211 of
 the said Act.
 
 (b) The accounts are prepared on historical cost basis and on the basis
 of going concern. Accounting policies not specifically referred to
 otherwise are consistent with generally accepted accounting principles.