1.1 Basis of Accounting :
 
 The Financial Statements have been prepared under the historical cost
 convention, on accrual basis to comply in all material respects with
 all applicable accounting principles in India, the applicable
 Accounting Standards notified under Section 211(3C) of the Companies
 Act, 1956 and the relevant provisions of the Companies Act, 1956.
 
 All assets and liabilities have been classified as current or
 non-current as per the Company''s normal operating cycle and other
 criteria set out in the Revised Schedule VI to the Companies Act, 1956.
 Based on the nature of products and the time between the acquisition of
 assets for processing and their realisation in cash and cash
 equivalents, the Company has ascertained its operating cycle as 12
 months for the purpose of current - non current classification of
 assets and liabilities
 
 1.2 Use of Estimates:
 
 The preparation of the financial statements are in conformity with the
 generally accepted accounting principles that requires the management
 to make estimates and assumptions that affect the reported amount of
 assets, liabilities, revenues and expenses and disclosure of contingent
 assets and liabilities. The estimates and assumptions used in the
 accompanying financial statements are based upon management''s
 evaluation of the relevant facts and circumstances as of the date of
 the financial statements. Actual results may differ from the estimates
 and assumptions used in preparing the accompanying financial
 statements. Any differences of actual results to such estimates are
 recognized in the period in which the results are known / materialized.
 
 1.3 Fixed Assets :
 
 The fixed assets are stated at acquisition cost less accumulated
 depreciation.
 
 1.4 Depreciation :
 
 Depreciation on Fixed Assets has been provided in accordance with the
 rates specified under Income Tax Rules, 1962 or under Schedule XIV of
 the Companies Act, 1956 on straight line method.
 
 In respect of Leased Assets, depreciation has been provided on straight
 line basis over primary lease period.
 
 1.5 Investments :
 
 a) Investments, which are readily realizable and intended to the held
 for not more than one year from the date on which such investments are
 made, are classified as current investments. All other investments are
 classified as long term investments.
 
 b) Investments are classified as Quoted & Unquoted Investments.
 
 c) Long term Investments are stated at cost less provision for
 permanent diminution in value of such investments.
 
 d) Current Investments are stated at lower of cost and fair market
 value, determined by category of Investments.
 
 1.6 Revenue Recognition :
 
 a) All incomes and expenditure are accounted for on accrual basis
 unless otherwise stated.
 
 b) Dividend on shares and securities is recognized when the right to
 receive the dividend is established.
 
 c) The Company follows the Prudential norms for income recognition and
 provides for / writes off Non-performing Assets as per the prudential
 norms prescribed by the Reserve Bank of India or earlier as ascertained
 by the management.
 
 1.7 Earnings per Share (EPS) :
 
 The earnings considered in ascertaining the Company''s EPS comprises
 the net profit after tax (after providing the post tax effect of any
 extra ordinary items). The number of shares used in computing Basic EPS
 is the weighted average number of equity shares outstanding during the
 year.
 
 1.8 Taxation :
 
 a) Current Tax: A provision for current income tax is made on the
 taxable income using the applicable tax rates and tax laws.
 
 b) Deferred Tax: Deferred tax arising on account of timing differences
 and which are capable of reversal in one or more subsequent periods is
 recognised using the tax rates and tax laws that have been enacted or
 substantively enacted. Deferred tax assets are not recognised unless
 there is a virtual certainty with respect to the reversal of the same
 in future.
 
 1.9 Impairment of Assets :
 
 Assets are reviewed for impairment whenever events or changes in
 circumstances indicate that the carrying amount may not be recoverable.
 An impairment loss is recognized for the amount by which the asset''s
 carrying amount exceeds its recoverable amount. The recoverable amount
 is higher of the asset''s fair value less costs to sell vis-a-vis
 value in use. For the purpose of impairment, assets are grouped at the
 lowest levels for which there are separately identifiable cash flows.
 
 1.10 Provisions and Contingencies :
 
 The company creates a provision when there is present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that probably will not require an
 outflow of resources or where a reliable estimate of the obligation can
 not be made.