BASIS OF ACCOUNTING
 
 The financial statements have been prepared on accrual basis and under
 the historical cost convention in accordance with accounting principles
 generally accepted in India and the provisions of the Companies Act,
 1956.
 
 USE OF ESTIMATES
 
 The preparation of the financial statements, in conformity with the
 generally accepted accounting principles, requires estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities on the date of the financial statements and the reported
 amounts of revenues and expenses during the reporting period.
 Differences between actual results and estimates are recognised in the
 period in which the results are known / materialise.
 
 CASH & CASH EQUIVALENTS
 
 Cash & cash equivalent for the purpose of Cash Flow Statement comprise
 cash at bank and current Accounts.
 
 REVENUE RECOGNITION
 
 Management Services fees are recognised on accrual basis. Income from
 Dividend is recognised when the right to receive payment is
 established. Income from sale of long term investments is recognised on
 transfer of shares. Interest is recognised on a time proportion basis
 taking into account the amount outstanding and the rate applicable.
 
 FIXED ASSETS
 
 Fixed Assets are stated at cost net of impairment loss, if any.
 Interest and Finance costs, if any in respect of loan for fnancing
 Fixed Assets, are capitalised till the date the assets are ready for
 use. However assets having individual value below Rs.5,000/- are
 depreciated @ 100% except mobile phones which are charged to revenue
 considering their useful life to be less than one year.
 
 DEPRECIATION AND AMORTISATION
 
 Depreciation on Plant and Machinery which include Computer and Air
 Conditioner is provided on Straight Line Method, at the rates and in
 the manner prescribed under Schedule XIV of the Companies Act, 1956.
 
 Depreciation on other Fixed Assets, office Equipments and Transport
 Equipments has been provided on Written Down Value Method at the rates
 and in the manner prescribed as per Schedule XIV of the Companies Act,
 1956.
 
 Expenditure on major computer sofitware is amortised over the period of
 expected benefit not exceeding fve years.
 
 IMPAIRMENT OF ASSETS
 
 At the end of each accounting period, the Company determines whether a
 provision should be made for impairment loss on fixed assets by
 considering the indications that an impairment loss may have occurred
 in accordance with Accounting Standard 28 on Impairment of Assets
 issued under Accounting Standard Rules 2006. An impairment loss is
 charged to the Profit and Loss account in the period in which, an asset
 is identifed as impaired, when the carrying value of the asset exceeds
 its recoverable value. The impairment loss recognised in the prior
 accounting periods is reversed if there has been a change in the
 estimate of recoverable amount.
 
 INVESTMENTS
 
 Long-term investments are stated at cost less provision for diminution
 in value, which is other than temporary.
 
 FOREIGN CURRENCY TRANSACTIONS
 
 Transactions in foreign currencies are accounted at the exchange rate
 prevailing on the date of each transaction. Gains and losses resulting
 from the settlement of such transactions and from the translation of
 monetary assets and liabilities denominated in foreign currencies, are
 recognized in the profit and loss account. In case of forward contracts,
 the exchange differences are dealt with in the profit and loss account
 over the period of contracts.
 
 EMPLOYEE BENEFIT
 
 i) Short Term Employee Benefits – All employee benefits payable within
 twelve months of rendering the service are recognized in the period in
 which the employee renders the related service.
 
 ii ) Post Employment/Retirement Benefits – Defned Contribution Plans
 such as Provident Fund etc. are charged to the Profit and Loss Account
 as incurred.
 
 Defned Benefit Obligation Plans – The present value of the obligation
 under such plans, is determined based on an actuarial valuation, using
 the Projected Unit Credit Method. Actuarial gains and losses arising on
 such valuation are recognized immediately in the Profit and Loss
 Account. In case of gratuity, which is funded with the Life Insurance
 Corporation of India, the fair value of the plan assets is reduced from
 the gross obligation under the defned benefit plans, to recognize the
 obligation on net basis.
 
 Employee Benefit in form of contribution to Provident Fund managed by a
 Trust set up by the Company is charged to Profit & Loss Account as and
 when the contribution is due. The defcit, if any, in the accumulated
 corpus of the Trust at the period end for which the Company is liable,
 is recognised as a provision in the Profit & Loss Account.
 
 iii) Other Long Term Employee Benefits are recognized in the same manner
 as Defned Benefit Plans. (Refer Note 15)
 
 BORROWING COSTS
 
 Borrowing costs which are directly attributable to acquisition,
 construction or production of a qualifying asset are capitalized as a
 part of the cost of that asset. Other borrowing costs are recognised as
 expenses in the period in which they are incurred.
 
 INCOME TAX
 
 Income tax is accounted in accordance with AS-22 ‘Accounting for taxes
 on income, issued under Accounting Standards Rules 2006, which
 includes current tax and deferred tax. Deferred income tax refect the
 impact of the current year timing differences between taxable income
 and accounting income for the year and reversal of timing differences
 of earlier years. Deferred tax assets are recognised only to the extent
 that there is reasonable certainty that suffcient future taxable income
 will be available except that deferred tax assets arising due to
 unabsorbed depreciation and losses are recognised if there is virtual
 certainty that suffcient future taxable income will be available to
 realise the same.
 
 CONTINGENT LIABILITY
 
 These, if any, are disclosed in the notes on accounts. Provision is
 made in the accounts if it becomes probable that an out flow of
 resources embodying economic benefits will be required to settle the
 obligation.