(a) Methods of Accounting:
 
 The accounts of the company are prepared under the historical cost
 convention and on an accrual basis and on the accounting principle of
 going concern and in accordance with applicable accounting standard
 except where otherwise are stated.
 
 (b) Fixed Assets:
 
 Fixed Assets are recorded at Cost.
 
 (c) Depreciation:
 
 Depreciation on Fixed Assets is provided on Straight Line Method
 in accordance with Companies Act, 1956 at the rates and in the manner
 prescribed in Schedule XIV of the said Act. The depreciation on assets
 acquired during the year is provided on pro-rata basis.
 
 (d) Investments:
 
 Investment held by the Company is classified as (i) capital assets (ii)
 trading assets.
 
 The Capital assets are shown under the head of Investments and
 are of long-term nature. The said assets are valued at cost. The
 diminution in value, if any, is provided where the diminution is of a
 permanent nature.
 
 The trading assets are shown under the head of current assets and
 are held principally for re-sale. The said assets are valued at cost or
 market price whichever is lower.
 
 (e) Revenue Recognition:
 
 Expenses and Income are accounted for on accrual basis. However, Public
 issue and preliminary expenses has been amortized.
 
 (f) Borrowing Cost:
 
 The Company follows the practice of capitalizing interest on borrowings
 for capital expenditure up to the date the asset is put to use. All
 other borrowing costs are charged to revenue.
 
 (g) Taxes On Income :
 
 According to the requirements of AS-22 being Accounting for taxes on
 income issued by the ICAI, the Company has recognized Deferred
 Tax on timing difference, being the 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 Liability (DTL) is recognized against reasonable
 certainty that sufficient future taxable income will be available
 against which such liability will be set off.
 
 In the current year DTL ofRs. 582/- is debited to Statement of Profit &
 Loss and credited to Deferred Tax Liability Account.
 
 (h) Use of Estimates:
 
 The presentation of financial statements requires certain estimates and
 assumptions. These estimates and assumptions affect the reported
 amounts of assets and liabilities on the date of financial statements
 and the reported amount of revenue and expenses during the reporting
 period. Difference between the actual result and estimates are
 recognized in the period in which results are known / materialized.
 
 (i) Impairment of Fixed Assets:
 
 Fixed assets are reviewed for impairment losses 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 carrying amount of the assets exceeds its recoverable amount, which
 is the higher of an asset''s net selling price and value in use.