1.1 Basis of Preparation of Financial Statements
 
 Financial Statements have been prepared under the historical cost
 convention and in accordance with the provisions of Companies Act,
 1956. Accounting Policies not referred to otherwise are consistent and
 are in accordance with the generally accepted accounting Principles in
 India.
 
 1.2 Use of Estimates
 
 The preparation of Financial Statements are in Conformity with
 generally accepted accounting principles requires estimates and
 assumptions to be made to that effect the reported amount of Assets and
 Liabilities on the date of financial statements and the reported amount
 of revenue and expenses during the reporting period. Difference between
 the actual results and estimates are recognized in the period in which
 the results are known/materialized.
 
 1.3 Fixed Assets
 
 Fixed Assets are valued at Cost less Depreciation.
 
 1.4 Depreciation
 
 Depreciation on Fixed Assets has been provided on straight line method
 at rates prescribed in schedule XIV of Companies Act, 1956.
 
 1.5 Investments
 
 Investments which are readily realisable and intended to be held for
 less than one year are classified as Current Investments. All other
 Investments are classified as long term investments. Current
 Investments are carried at lower of cost and fair value determined on
 an individual investment basis. Long Term investments are carried at
 cost. Provision for diminution in the value of long tem investments is
 made only if such a decline is other than temporary in nature in the
 opinion of the management.
 
 1.6 Inventories
 
 Stock-in-trade has been valued at cost or market price which ever is
 lower.
 
 1.7 Taxes on Income
 
 Provision for Taxation is made on the basis of estimated taxable income
 for the period at current rates. Tax expenses comprises of both Current
 Tax and Deferred Tax at the applicable enacted or substantively enacted
 rates. Current Tax represents the amount of Income Tax payable /
 recoverable in respect of taxable income / loss for the reporting
 period. Deferred Tax represents the effect of timing difference between
 taxable income and accounting income for the reporting period that
 originates in one year and are capable of reversal in one or more
 subsequent years.
 
 1.8 Provisions, Contingent Liabilities and Contingent Assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognized 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 recognized but are disclosed in the
 Notes. Contingent Assets are neither recognized nor disclosed in the
 financial statements.
 
 1.9 Revenue Recognition
 
 Items of Income and Expenditure are recognized and accounted for on
 Accrual basis.
 
 1.10 Contingent Liability, if any, are disclosed by way of Notes.