(1) a) System of Accounting:
 
 All income and expenses are accounted for on accrual basis.
 
 b) Fixed Assets:
 
 Fixed Assets are stated at cost of acquisition inclusive of expenses
 incidental to their acquisition as reduced by accumulated depreciation
 thereon.
 
 c) Depreciation:
 
 Depreciation on Fixed Assets has been provided on the written down
 value method at the rates specified in Schedule XIV of the Companies
 Act, 1956.
 
 d) Investments:
 
 Investments are valued at cost. Expenses relating to transfer are
 charged to revenue. Provision for diminution in value is not considered
 unless such diminution is permanent in nature. Gains / Losses on
 disposal of the investments are recognized as Income / Expenditure.
 
 e) Inventories are valued at cost or market value whichever is lower.
 
 f) Accounting for Taxes on Income:
 
 Deferred tax is recognised on timing differences; being the difference
 between taxable incomes and accounting income that originate in one
 period and are capable of reversal in one or more subsequent periods.
 Deferred tax assets are recognised only if there is virtual certainty
 that sufficient future taxable income will be available against which
 such deferred tax assets will be realized. Such assets are reviewed as
 at each Balance Sheet date to reassess reliability thereof.