A) Accounting Convention:
 
 Accounts have been prepared under Historical Cost Convention and as per
 the requirements of the Companies Act, 1956.
 
 B) Fixed Assets and Depreciation:
 
 (a) Fixed Assets are recorded at historical cost.
 
 (b) Depreciation has been provided on written down value method as per
 Schedule XIV to the Companies Act, 1956
 
 C) Investments:
 
 (a) Long Term Investments are stated at cost. Provisions for diminution
 in value of long-term investments is made, if the dimunition is other
 than temporary.-
 
 (b) Current Investments are stated at lower of cost and fair value as
 on the Balance sheet date.
 
 D) Revenue Recognition:
 
 Income and Expenditure are generally accounted for on their accrual.
 
 E) Foreign Currency Transactions:
 
 (a) Transactions in Foreign currency are accounted at the prevailing
 exchange rate as on the date of transaction.
 
 (b) Foreign currency assets and liabilities as on the balance sheet
 date are restated at the year end at prevailing exchange rates and any
 difference is recognized in the Profit & Loss account:
 
 F) Borrowing Costs:
 
 1) In respect of the asset that takes necessarily a substantial period
 to get ready for its intended use, borrowing cost directly attributable
 are capitalized as part of the cost of the asset and in respect of the
 funds generally borrowed and used for the purpose of such assets
 borrowing costs are capitalized on capitalization rate determined
 during the relevant period, by considering the borrowing cost and total
 borrowings outstanding.
 
 2) Other borrowing costs are charged to revenue.
 
 G) Accounting for Taxes:
 
 Current Tax on income is determined on the basis of taxable income and
 tax-credits computed in accordance with the provisions of the Income
 tax act 1961, and based on the expected outcome of assessments/appeals.
 
 Deferred tax is recognised on timing differences between the accounting
 income and the taxable income for the year, and quantified using the
 tax rates and laws enacted or substantively enacted as on the Balance
 Sheet date.
 
 Deferred tax assets are recognised and carried forward to the extent
 that there is a reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realized.
 
 H) Impairment of Assets:
 
 As at each Balance sheet date, the carrying amount of assets is
 tested.for impairment so as to determine
 
 1) the provision for impairment loss, if any, required or
 
 2) the reversal, if any, required of impairment loss recognized in
 previous periods.  Impairment Loss is recognized when the carrying
 amount of an asset-exceeds its recoverable amount.  
 
 I) Accounting Standards:
 
 Accounting standards prescribed by the Institute of Chartered
 Accountants of India have been followed wherever applicable.