1.  General:
 
 a) Financial Statements are prepared on historical cost basis and in
 consonance with the generally accepted accounting principles.
 
 b) All revenues and expenses are accounted on accrual basis except to
 the extent stated otherwise.
 
 2.  Miscellaneous Expenditure:
 
 Miscellaneous Expenditure comprising of share issue expenses are
 written off in five equal installments.
 
 3.  Fixed Assets and Depreciation:
 
 a) Fixed Assets
 
 Fixed Assets are stated at cost of acquisition and other direct cost
 incurred up to the date the assets is put to use.
 
 b) Depreciation
 
 Depreciation on fixed assets is provided on straight line method at the
 rates specified in Schedule ‘XIV of the Companies Act, 1956.
 
 Depreciation on additions\deletions to the fixed assets during the year
 is provided on pro-rata basis from\to the date of such
 additions\deletions as the case may be.
 
 4.  Investments:
 
 Long Term Investments are valued at cost. Diminution in value if any,
 which is of a temporary nature, is not provided.
 
 5.  Sundry Debtors and Receivables :
 
 Sundry Debtors and Loans and Advances are stated at the value if
 realized in the ordinary course of business. Irrecoverable amounts, if
 any are accounted and / or provided for as per managements judgment or
 only upon final settlement of accounts with the parties.
 
 6.  Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognized but are disclosed in the
 notes. Contingent Assets are neither recognized nor disclosed in the
 financial statements.
 
 7.  Leases:
 
 Leases where the company effectively remains substantially all the risk
 and benefits of ownership of the leased term, are classified as
 operating leases. Lease rental under operating lease are recognized in
 the Profit & Loss account on straight line basis.