1 .  Accounting Convention and Concepts:
 
 The Company follows the Historical Cost Convention and the Mercantile
 System of Accounting where the income and expenditure are recognised on
 accrual basis.
 
 2 .  Fixed Assets:
 
 Fixed assets are valued at cost less depreciation. Cost includes all
 expenses incurred for acquisition of assets.
 
 3 .  Depreciation:
 
 The Company provides depreciation on straight-line method on a pro-rata
 basis on completed month basis at the rate specified in Schedule XIV to
 the Companies Act, 1956.
 
 4 .  Investments:
 
 All investments are stated at cost of acquisition. The investments sold
 during the year are accounted on first-in-first-out basis and
 investments purchased and sold during the year are shown on net basis.
 Provision is made for diminution in the value of investments, wherever
 required.
 
 5 .  Valuation of Stocks:
 
 Stock of shares and securities is valued at cost or fair value
 whichever is less.
 
 6 .  Retirement Benefits:
 
 The provision for retirement benefits such as provident fund, gratuity
 and superannuation is made for employees from the date of their
 respective appointment.
 
 (i) Company''s contribution to the Provident Fund, Pension Fund,
 Superannuation Fund and other fund is charged to the Profit and Loss
 Account.
 
 (ii) The amount of Gratuity liability as ascertained on the basis of
 actuarial valuation by Life Insurance Corporation of India is paid /
 provided and charged to the Profit and Loss Account.
 
 (iii) Provision is made towards liability for leave encashment.
 
 7 .  Impairment of Assets:
 
 The Company assesses at each Balance Sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset is less than its carrying amount,
 the carrying amount is reduced to its recoverable amount. The reduction
 is treated as an impairment loss and is recognised in the Profit and
 Loss Account. If at the Balance Sheet date there is an indication that
 previously assessed impairment loss no longer exists, the recoverable
 amount is reassessed and the asset is reflected at the recoverable
 amount subject to a maximum of depreciated historical cost.