A) Basis of preparation of financial statements:
 
 (i) The financial statements are prepared in accordance with Generally
 Accepted Accounting Principles (Indian GAAP) under the historical cost
 convention on accrual basis and oh principles of going concern. The
 accounting policies are consistently applied by the Company
 
 (ii) The financial statements are prepared to comply in all material
 respects with the accounting standards notified by the Companies
 (Accounting Standards) Rules, 2006 and the relevant provisions of the
 Companies Act, 1956.
 
 (iii) The preparation of the financial statements requires estimates
 and assumptions to be made that affect the reported amounts of assets
 and liabilities on the date of the financial statements and the
 reported amounts of revenues and expenses during the reporting period.
 Differences between the actual results and estimates are recognised in
 the period in which the results are known / materialise.
 
 B) Fixed Assets & Depreciation:
 
 (i) Fixed Assets are stated at cost, less accumulated depreciation and
 impairment losses, if any. Cost comprises of their original cost of
 acquisition including preoperative expenses and related expenses of
 acquisition and installation.
 
 (ii) Depreciation is provided on Straight Line Method at the rates
 specified in Schedule XIV to the Companies Act, 1956 and also on
 pro-rata basis, wherever applicable.
 
 (iii) The carrying amounts of assets are reviewed at each balance sheet
 date if there is any indication of impairment based on
 internal/external factors. An impairment loss is recognised wherever
 the carrying amount of an asset exceeds its recoverable amount. The
 recoverable amount is the higher of the assets net selling price and
 value in use, which is determined by the present value of the estimated
 future cash flows.
 
 C) Investments:
 
 Long-term investments are carried at cost and provisions are made to
 recognize any decline, other than temporary, in carrying value of each
 investment. Current investments are carried at lower of cost and fair
 value.
 
 D) Revenue Recognition and Expenses:
 
 (i) Revenue is recognised to the extent that it is probable that the
 economic benefits will flow to the Company and the revenue can be
 reliably measured.
 
 (ii) Interest income is recognised on a time proportion basis taking
 into account the amount outstanding and the rate applicable
 
 (iii) All the expenses are accounted for on accrual basis.
 
 E) Retirement Benefits:
 
 No provision is made for Gratuity & Leave Encashment and the same are
 accounted for as and when paid.
 
 F) Financial Derivatives and Commodity Hedging Transactions
 
 There are no outstanding forward contracts as at the balance sheet date
 and therefore no provision for losses on derivatives is required to be
 made by the Company.
 
 G) Borrowing Costs
 
 (i) Borrowing costs that are directly attributable to the acquisition,
 construction or production of qualifying assets are capitalised for the
 period until the asset is ready for its intended use. A qualifying
 asset is an asset that necessarily takes substantial period of time to
 get ready for its intended use.
 
 (ii) Other Borrowing costs are recognised as expense in the period in
 which they are incurred.
 
 H) Taxes on Income:
 
 Tax expense comprises of current tax, deferred tax and fringe benefit
 tax.
 
 (i) Current tax and fringe benefit tax is measured at the amount
 expected to be paid to the tax authorities, computed in accordance with
 the applicable tax rates and tax laws. In case of tax payable as per
 provisions of MAT under section 115JB of the Income Tax Act, 1961,
 deferred MAT Credit entitlement is separately recognized under the head
 Loans and Advances. Deferred MAT credit entitlement isrecognized and
 carried forward only if there is a reasonable certainty of it being set
 off against regular tax payable within the stipulated statutory period.
 
 (ii) Deferred tax liabilities and assets are recognized at
 substantively enacted rates on timing difference between taxable income
 and accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods. Deferred tax asset is
 recognized only to the extent there is reasonable certainty with
 respect to reversal of the same in future years as a matter of
 prudence.
 
 I) Earnings per Share:
 
 (i) Basic earnings per share is calculated by dividing the net profit
 or loss for the period attributable to equity shareholders by the
 weighted average number of equity shares outstanding during the period.
 
 (ii) For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 J) Provision, Contingent Liabilities and Contingent Assets
 
 (i) Provision involving substantial degree of estimation in
 measurements is 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.
 
 (ii) Contingent Liabilities are shown by way of notes to the Accounts
 in respect of obligations where, based on the evidence available, their
 existence at the Balance Sheet date is considered not probable.
 
 (iii) A Contingent Asset is not recognized in the Accounts.