1.1 BASIS OF PREPRATION OF FINANCIAL STATEMENTS: -
 
 The Financial Statements are prepared under the Historical Cost
 Convention method in accordance with the generally accepted Accounting
 Principles and the Accounting Standards referred to in Section 211(3C)
 of the Companies Act, 1956.
 
 1.2 USE OF ESTIMATES
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles (GAAP) requires management to make
 estimates and assumptions that affect the reported amounts of assets
 and liabilities and the disclosures of contingent liabilities on the
 date of financial statements and reported amounts of revenue and
 expenses for that year. Actual results could differ from these
 estimates. Any revision to accounting estimates is recognized
 prospectively in current and future periods.
 
 1.3 REVENUE RECOGNITION
 
 1.3.1 All Income & Expenditure are accounted for on accrual basis
 except in case of uncertainties where accrual is postponed upto
 resolution of uncernainty.
 
 1.3.2 Investments are capitalised at cost inclusive of brokerage,
 Service Tax, Education Cess,transfer stamps and Security Transaction
 Tax.Depository Charges and other miscellaneous transaction charges
 which due to practical difficulty cannot be identified/allocated to a
 particular transaction are charged directly to the Statement of Profit
 and Loss.
 
 1.4 FIXED ASSETS
 
 Fixed Assets are stated at cost less depreciation.
 
 1.5 DEPRECIATION
 
 Depreciation is provided on Fixed Assets on Straight Line method at the
 rates and in the manner specified in Schedule XIV to the Companies Act,
 1956.
 
 1.6 INVESTMENTS
 
 1.6.1 Non current/Long Term Investments are valued at cost.Provision
 for diminution in the value of Long term/Non current Investments is
 made only if such a decline is other than temporary.
 
 1.7 EMPLOYEE BENEFITS
 
 1.7.1 Employee Benefits are recognized/accounted for on the basis of
 revised AS-15 detailed as under :-
 
 1.7.2 Short Term Employee benefits are recognized as expense at the
 undiscounted amount in the Profit & Loss account of the year in which
 they are incurred.
 
 1.7.3 Employee benefits under defined contribution plans comprise of
 contribution to Provident Fund and Superannuation. Contributions to
 Provident Fund are deposited with appropriate authorities and charged
 to Profit & Loss account. Contribution to Superannuation are funded
 with Life Insurance Corporation of India.
 
 1.7.4 Employee Benefits under defined benefit plans comprise of
 gratuity and leave encashment which are accounted for as at the year
 end based on actuarial valuation by following the Projected Unit Credit
 (PUC) method.  Liability for gratuity is funded with Life Insurance
 Corporation of India.
 
 1.7.5 Termination benefits are recognized as an Expense as and when
 incurred.
 
 1.7.6 The actuarial gains and losses arising during the year are
 recognized in the Profit & Loss account of the year without resorting
 to any amortization.
 
 1.8 TAXATION
 
 Tax expenses for the year comprises of Current tax and deferred tax
 charge or credit. The deferred Tax Asset and deferred Tax Liability is
 calculated by applying tax rates and tax laws that have been enacted or
 substantially enacted by the Balance Sheet date. Deferred Tax assets
 arising mainly on account of brought forward losses and unabsorbed
 depreciation under tax law are recognised only if there is virtual
 certainty of its realisation. Other deferred tax assets are recognised
 only to the extent there is a reasonable certainty of realisation in
 future. Deferred Tax Assets/ Liabilities are reviewed at each balance
 sheet date based on development during the year, further future
 expectations and available case laws to reassess realisation/
 liabilities.
 
 1.9 IMPAIRMENT OF FIXED ASSETS
 
 Consideration is given at each balance sheet date to determine whether
 there is any indication of impairment of the carrying amount of the
 Company''s Fixed Assets.  If any indication exists, an asset''s
 recoverable amount is estimated. An impairment loss is recognized
 whenever the carrying amount of an asset exceeds its recoverable
 amount. The recoverable amount is the greater of the net selling price
 and value in use. In assessing value in use, the estimated future cash
 flows are discounted to their present value based on an appropriate
 discount factor.
 
 Reversal of impairment losses recognized in prior years is recorded
 when there is an indication that the impairment losses recognized for
 the asset no longer exist or have decreased. However, the increase in
 carrying amount of an asset due to reversal of an impairment loss is
 recognized to the extent it does not exceed the carrying amount that
 would have been determined (net of depreciation) had no impairment loss
 been recognized for the assets in prior years.
 
 1.10 CONTINGENCIES:
 
 The company creates a provision when there is present obligation as
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 requires an outflow of resources. When there is a possible obligation
 or a present obligation in respect of which the likelihood of outflow
 of resources is remote, no provision or disclosure is made.