1.1 Basis of Accounting:
 
 The financial statements are prepared on an accrual basis of accounting
 in accordance with generally accepted accounting principles in India
 and provisions of Companies Act, 1956 .
 
 1.2 Use of Estimates:
 
 The preparation of financial statement requires estimates and
 assumptions to be made and that affect the reported amount of assets
 and liabilities on the date of the financial statements and the
 reported amount of revenues and expenses during the reporting period.
 Difference between the actual results and estimates are recognised in
 the period in which the results are known/materialised.
 
 1.3 Fixed Assets and Deprecation:
 
 a) Fixed Assets are stated at cost of acquisition or installation and
 includes erection and construction expenses.
 
 b) Depreciation has been provided on the basis of straight line method
 at the rates and in the manner specified in Schedule XIV of the
 Companies Act, 1956.
 
 1.4 Investment:
 
 Investment are stated at cost.
 
 1.5 Provisions, Contingent Liabilities and Contingent Assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 notes.  Contingent Assets are neither recognised nor disclosed in the
 financial statements.
 
 1.6 Reteriment Benefits
 
 Retirement benefits are accounted for on accrual basis as per Revised
 Accounting Standard -15 on the basis of actuarial valuation.
 
 1.7 Foreign Currency Transactions:
 
 Transactions in foreign currency are recorded at the exchange rate
 prevailing on the date of transaction. Exchange Difference arising on
 foreign currency transactions other than fixed assets are recognized as
 income or expense in the Statement of Profit and Loss. Exchange
 Differences on unpaid liability arising on foreign currency
 transactions for fixed assets are adjusted to the Cost of fixed assets.
 
 1.8 Taxes
 
 Income tax expense comprises current tax, deferred tax charge or
 credit. The deferred tax charge or credit and the corresponding
 deferred tax liability and assets are recognized using the tax rates
 that have been enacted or substantially enacted on the Balance Sheet
 date.
 
 Deferred Tax assets arising from unabsorbed depreciation or carry
 forward losses are recognized only if there is virtual certainty of
 realization of such amounts. Other deferred tax assets are recognized
 only to the extent there is reasonable certainty of realization in
 future.  Deferred tax assets are reviewed at each Balance Sheet date to
 reassess their reliability.
 
 1.9 Impairment of Assets
 
 The carrying amount of assets are reviewed at each Balance Sheet date
 to assess whether there is any indication of impairment of the carrying
 amount of such assets of the company. An impairment loss is recognized
 wherever the carrying amount of an asset exceeds its recoverable
 amount.