1.  SYSTEM OF ACCOUNTING : Company follows accrual system of
 accounting.
 
 2.  FIXED ASSETS: Fixed Assets are stated at cost of acquisition less
 accumulated depreciation. Depreciation on all assets is provided on WDV
 method as per rates prescribed in schedule XIV of the Companies
 Act,1956.
 
 3.  TAXATION:Provisions for taxation comprisesofcurrent tax and
 deferred tax charge or release. Deferred tax is recognised subject to
 consideration of prudence on timing difference, being difference
 between taxable and accounting income/expenditure that originate in one
 period and are capable of reversal in one or more subsequent period(s).
 Deferred tax assets arising out of carry forward losses and unabsorbed
 depreciation are not recognised unless there is virtual certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets will be realised.
 
 4.  INVESTMENT: Long term investments are stated at cost. Provision for
 diminution in the value of investments is made only if such a decline
 is other then temporary in the opinion of the management. Cost of
 borrowing i.e. interest for specific investment which is of long term
 nature has been apportioned on cost of investment in conformity with
 the Accounting Standard – 16 Borrowing Cost.
 
 5.  FOREIGN CURRENCY TRANSACTION: Recorded on the basis of exchange
 rate prevailing on the date of their occurrence. Monetary foreign
 currency assets and liabilities outstanding at the close of the year
 are re-valued at the exchange rates prevailing on the balance sheet
 date. Exchange differences arising on account of fluctuation in the
 rate of exchange is recognised in the profit and loss account.
 
 6. EMPLOYEE BENEFIT : Company does not have any benefits plans to its
 employee so far.
 
 7.  PROVISIONS, CONTINGENT ASSETS & LIABILITIES
 
 Provisions are recognised only when there is a present obligation as a
 result of past events and when a reliable estimate of the amount of
 obligation can be made.  Contingent liability is disclosed for:
 
 a) Possible obligation which will be confirmed only by future events
 wholly within the control of the company or
 
 b) Present obligations arising from past events where it is not
 probable that an outflowof resources will be requiredtosettle the
 obligationor a reliable estimate of the amount of the obligation cannot
 be made. Contingent assets are not recognised in the financial
 statements since this may result in the recognition of income that may
 be never be realised.