1. ACCOUNTING POLICIES
 
 (a) Basis of Accounting
 
 The financial statement have been prepared on the historical cost
 convention and in accordance with the normally accepted accounting
 principles.
 
 (b) Fixed Assets
 
 Fixed assets are stated at cost of acquisition.
 
 (c) Depreciation
 
 Depreciation on fixed assets have been provided at the rate as
 prescribed in Schedule XIV of the Companies Act, 1956 on straight line
 method.  Instead of distributing the total depreciation of leased
 assets over the lease period, at the time of termination of lease the
 differential of the same is charged to Profit & Loss Account under
 administrative & other expenses.
 
 Depreciation on additions/deletions to Fixed Assets are provided on
 pro-rata basis from/to the date of additions/deletions.
 
 (d) Investments
 
 Unquoted Investments are shown at cost.
 
 (e) Inventories
 
 Inventories, i.e. Stock of Shares/Debentures are valued at lower of
 cost/market price/breakup value as per practice followed in the last.
 
 (f) Revenue Recognition
 
 All expenses and income to the extent considered payable and receivable
 respectively unless specifically stated to be otherwise are accounted
 for an accrual basis.
 
 Overdue charges are accounted for on receipt/payment basis.