SIGNIFICANT ACCOUNTING POLICIES:
 
 (i) Revenue Recognition
 
 All expenses and revenues are accounted for on accrual basis except
 dividend income which is accounted for on receipt basis.
 
 (ii) Inventories
 
 Inventories are `NIL'.
 
 (iii) Depreciation
 
 (a) The Company follows the straight line method of depreciation (SLM)
 on all its fixed assets.
 
 (b) Depreciation is provided at the rates prescribed in Schedule XIV to
 the Companies Act, 1956.
 
 (c) Depreciation is charged from the date when the asset is first put
 to use.
 
 (d) In respect of revalued assets, depreciation relating to the
 revalued portion is transferred from the Revaluation Reserve to the
 profit and loss account. If a revalued asset is sold the balance in the
 reserve account is transferred to the account of the asset sold.
 
 (iv) Fixed Assets
 
 Fixed assets are stated at original cost including taxes and other
 incidental expenses related to acquisition, installation and
 construction.
 
 (v) Investments
 
 Investments held for a long term are stated at cost.
 
 (vi) Provision For Taxation
 
 Provision for Income Tax is made/retained on the basis of the company's
 own assessment and is based on contentions raised before various tax
 authorities.