1.  BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 The financial statements have been prepared to comply in all material
 respects in respects with the Notified accounting standard by Companies
 Accounting Standards Rules, 2006 and the relevant provisions of the
 Companies Act, 1956. The financial statements have been prepared under
 the historical cost convention on an accrual basis except in case of
 assets for which provision for impairment is made and revaluation is
 carried out. The accounting policies have been consistently applied by
 the Company and are consistent with those used in the previous year.
 
 2.  USE OF ESTIMATES
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period end. Although these estimates are based upon managements best
 knowledge of current events and actions, actual results could differ
 from these estimates.
 
 3.  FIXED ASSETS AND DEPRECIATION
 
 a) Fixed Assets are stated at cost of acquisition and subsequent
 improvements thereto, including taxes, duties, freight and other
 incidental expenses related to acquisition and installation.
 
 b) Depreciation is provided on straight-line method at the rates and in
 the manner prescribed by Schedule XIV to the Companies Act, 1956.
 
 4.  REVENUE RECOGNITION
 
 Income on account of interest and other activities is recognized on
 accrual basis.
 
 5.  RETIREMENT BENEFITS
 
 Contribution to provident fund is made at predetermined rates and is
 charged to Profit and Loss Account. The Company has provided for the
 liability at year end on account of unavailed earned leave as per the
 actuarial valuation as per the Projected Unit Credit Method. The
 Company provides the gratuity liability in its books. Liability at the
 year-end is determined on the basis of actuarial valuation, based on
 the Projected Unit Credit Method.
 
 6.  INVESTMENTS
 
 Long-term investments are valued at cost. Provision is made for
 diminution in value to recognize a decline, if any, other than of
 temporary nature. Current investments are valued at lower of cost and
 market value.
 
 7.  LOSS PER SHARE
 
 Basic loss per share is calculated by dividing the net loss for the
 year attributable to equity shareholders by the weighted average number
 of equity shares outstanding during the year. The number of shares used
 in computing diluted loss per share comprises the weighted average
 shares considered for deriving basic loss per share, and also the
 weighted average number of shares, if any, which would have been Issued
 on the conversion of ail dilutive potential equity shares.
 
 8.  TAXATION
 
 Current Income tax and fringe benefit tax is measured at the amount
 expected to be paid to the tax authorities in accordance with Indian
 Income Tax Act, 1961Deferred tax is measured based on the tax rates and
 the tax taws enacted or substantively enacted at the balance sheet
 date. Deferred tax assets are recognised only to the extent that there
 is reasonable certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realised. In
 situations where the company has unabsorbed depreciation or carry
 forward tax losses, all deferred tax assets are recognised only if
 there is virtual certainty supported by convincing evidence that they
 can be realised against future taxable profits. Unrecognised deferred
 tax assets of earlier period are re-assessed and recognised to the
 extent that it has become reasonably certain that future taxable income
 will be available against which such deferred tax assets can be
 realized.
 
 9.  PROVISIONS
 
 Provisions are recognised when the Company has a present obligation as
 a result of past event; it is more likely than not that an outflow of
 resources will be required to settle the obligation, in respect of
 which a reliable estimate can be made. These are reviewed at each
 balance sheet date and adjusted to reflect the current best estimates.
 
 10.  CASH AND CASH EQUIVALENTS
 
 Cash and cash equivalents in the balance sheet comprise cash at bank
 and in hand and short-term investments with an original maturity of
 three months or less.