1.  The financial accounts are prepared under the accrual method,
 unless otherwise stated, and at historical cost.
 
 2.  Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted 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.  Accounting of Income/Expenditure
 
 All income and expenditure items having a material bearing on the
 financial statements are recognised on accrual basis except in the case
 of dividend income, debenture interest and interest on fixed deposits
 with non-banking companies & interest receivable from / payable to
 government on tax refunds/ late payment of taxes, duties/ levies which
 are accounted for on cash basis.
 
 As per Prudential norms prescribed by Reserve Bank of India, interest
 income has been recognized only on standard advances given by the
 Company.
 
 4.  Investments:
 
 (i) Closing Stock of shares represents current investments. The same
 were valued at lower of cost or market value.  (ii) Investments in
 Shares:
 
 a) Investments are stated at cost.
 
 b) Dividend on shares trade as well as non trade is accounted for on
 receipt basis
 
 5.  Stock in Trade:
 
 Closing stock in case of quoted shares has been valued at cost or
 market value whichever is lower. Wherever quotations are not available
 as on 31 March 2011, inventory has been valued at last traded price or
 at cost whichever is lower. Wherever quotations are not available due
 to scrip has been suspended /delisted for a considerable period of time
 by stock exchanges has been valued at nil rate.
 
 6.  Fixed Assets/Depreciation
 
 Fixed assets are shown at historical cost inclusive of incidental
 expenses less accumulated depreciation.
 
 Depreciation on fixed assets is provided on Straight Line Method at the
 rates prescribed under Schedule XIV of the Companies Act, 1956.
 
 Depreciation on Fixed Assets added or sold during the year, is provided
 on pro-rata basis with reference to the date of addition/deletion.
 
 7.  Taxation:
 
 Provision for income tax has been made in accordance with normal
 provisions of Income Tax Act, 1961. The deferred tax for timing
 differences between the book and tax profits for the year is accounted
 for, using tax rates and laws that have been substantively enacted as
 of the balance sheet date.
 
 The company is availing 100% tax exemption u/s 10B of the Income tax
 Act 1961 from the current year. Following ASI (Accounting Standard
 Interpretation) 5, deferred tax in respect of timing difference which
 originate during the tax holiday period and reverse during the tax
 holiday period is not recognized.
 
 8.  Foreign Exchange Transactions:
 
 Foreign Currency transactions are accounted for at the exchange rates
 prevailing at the time of recognition of income/ expenditure and
 difference if any, resulting in income or expenses dealt with in profit
 & loss account under the head Foreign Exchange Fluctuation Gain.
 
 Foreign currency monitory items are reported using the closing rates.
 Exchange difference arising on reporting them at closing rate i.e. at
 the rate different from those at which they were initially recorded are
 recognized as income or expenses as the case may be.
 
 9.  Retirement Benefits :
 
 No provision has been made for Gratuity and Leave encashment as the
 same is accounted for on Payment basis.
 
 10.  Impairment of assets
 
 The carrying amounts of assets are viewed at each Balance Sheet date if
 there is any indication of impairment based or internal / external
 factors. An asset is impaired when the carrying amount of the asset
 exceeds the recoverable amount. Ar impairment loss is charged to the
 Profit & Loss Account in the year in which an asset is identified as
 impaired. An impairmen loss recognized in prior accounting periods is
 reversed if there has been change in the estimate of the recoverable
 amount
 
 11.  Earning per share
 
 In determining earning per share, the Company considers the net profit
 after tax and includes the post tax effect of an)
 extraordinary/exceptional item. The number of shares used in computing
 basic earning per share is the weighted average number of shares
 outstanding during the year. The number of shares used in computing
 diluted earning per share comprise: the weighted average shares
 considered for deriving basic earning per share, and also the weighted
 average number o shares that could have been issued on the conversion
 of all diluted potential equity shares. The diluted potential equit)
 shares are adjusted for the proceeds receivable, had the shares been
 actually issued at fair value (i.e. the average marke value of the
 shares outstanding). Dilutive potential equity shares are deemed
 converted as of the beginning of the period unless issued at a later
 date. The number of shares and potentially dilutive equity shares
 adjusted for any stock splits anc issues of bonus shares effected prior
 to the approval of the financial statements by the Board of Directors.