1.  Basis for preparation of Accounts:
 
 The accounts have been prepared under the historical cost convention in
 accordance with the generally accepted accounting principles in India,
 the Accounting Standards issued by the Institute of Chartered
 Accountants of India (ICAI) and the relevant provisions of the
 Companies Act, 1956.
 
 2.  Use of Estimates:
 
 The preparation of financial statements, in conformity with the
 generally accepted accounting principles, requires estimates and
 assumptions to be made that affect the reported amounts of assets and
 liabilities on the date of financial statements and the reported
 amounts of revenues and expenses during the reported period.
 Differences between the actual results and estimates are recognized in
 the period in which the results are known/materialized.
 
 3.  Revenue Recognition:
 
 In appropriate circumstances, revenue (income) is recognized when no
 significant uncertainty as to determination or realization exists.
 
 4.  Taxation
 
 The Provision for current taxation is based on assessable profits and
 fringe benefits of the Company as determined under the provisions of
 the income tax act 1961. Deferred tax resulting from timing
 differences between taxable and accounting income is accounted for
 using the tax rates and laws that are enacted or substantively enacted
 as on the balance sheet date. The deferred tax asset is recognized and
 carried forward only to the extent that there is a virtual certainty
 that the asset will be realised in future.
 
 5.  Investments
 
 Investments in shares being long term are stated at cost.
 
 6.  Retirement Benefits
 
 No Provisions has been made for payment of gratuity since it is not yet
 applicable. Leave encashment benefits have been charged to profit &
 loss account.
 
 7.  Miscellaneous Expenditure
 
 Miscellaneous expenditure has been written off in five years
 
 8.  Contingent Liabilities
 
 Contingent liabilities, if material are disclosed by way of notes
 
 9.    Event occurring after the balance sheet
 
 Material events occurring after the date of balance sheet have been
 taken cognizance Liabilities which are material and whose future
 outcome can''t be ascertained with reasonable certainty have been
 treated as contingent liability and are disclosed by way of notes to
 accounts.
 
 10.  Other Accounting policies
 
 These are consistent with generally accepted accounting practices.