(a) Basis of preparation
 
 The financial statements have been prepared on historical cost
 convention and on accrual basis. The financial statements have been
 prepared in accordance with the Accounting Standards notified by
 Companies (Accounting Standards) Rules, 2006 and referred to in Section
 211 (3C) of the Companies Act, 1956.
 
 (b) Fixed Assets
 
 Fixed assets are stated at cost less depreciation. Cost comprises the
 cost of acquisition and any attributable costs of bringing the asset to
 the condition for its intended use.
 
 (c) Depreciation
 
 Depreciation is provided on the written down value method prescribed in
 Schedule XIV of the Companies Act, 1956.
 
 (d) Investments
 
 (i) Investments have been categorised as Long Term or Current by the
 Board of Directors.
 
 (ii) Long Term Investments are stated at cost plus brokerage and other
 relevant charges. A Provision for diminution is made to recognise a
 decline, other than temporary, if any.
 
 (iii) Current Investments are valued at lower of Cost or Market value.
 
 (e) Revenue Recognition
 
 Dividend Income from Investment is recognised when right to receive the
 payment is established.
 
 (f) Retirement Benefits
 
 The Company does not have any Retirement Benefits specifically laid
 down.
 
 (g) Taxes on Income:
 
 (i) Current Tax
 
 Provision for Income Tax is determined in accordance with the
 provisions the Income Tax Act, 1961.
 
 (ii) Deferred Tax
 
 Deferred tax is recognised on timing differences being the differences
 between taxable income and accounting income that originate in one
 period and are capable of reversal in one or more subsequent period(s).
 
 (h) Provisions and Contingent Liabilities:
 
 (i) A provision is recognised when there is present obligation as a
 result of past event and it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. These are reviewed at each Balance Sheet
 date and adjusted to reflect the current best estimate.
 
 (ii) A disclosure for a contingent liability is made when there is a
 possible or present obligation that may, but probably will not require
 an outflow of resources. When there is a possible obligation in respect
 of which the likelihood of out flow of resources is remote, no
 provision or disclosure is made.