1.  System of Accounting: The Company mainly follows the cash system of
 accounting and generally recognizes income /revenue and
 expenditure/cost on cash basis. Financial statements are based on
 historical cost. These costs are not adjusted to reflect the impact of
 the changing value in the purchasing power of the money.
 
 2.  Fixed Assets and Depreciation: Fixed assets are stated at cost less
 depreciation/amortization. Depreciation has been provided on written
 down value basis in accordance with Section 205 (2) (a) of the
 Companies Act, 1956 at the rates specified in Schedule XIV to the
 Companies Act, 1956 on prorata basis with reference to the date of
 additions/deletions of the Assets.
 
 3.  Investments: Investments are stated at cost of acquisition.
 
 4.  Contingent Liabilities: All known liabilities wherever material are
 duly provided for.