I.  Method of accounting
 
 the Company follows mercantile system of accounting. All items of
 income and expenditure are accounted for as and when accrued.
 
 II.  Revenue Recognition
 
 Income is recognised on accrual basis.
 
 III. Depreciation
 
 Depreciation is provided on Straight Line Method at the rates
 prescribed in Schedule XIV of the Companies Act, 1956.
 
 IV.  Fixed Assets
 
 Fixed Assets are stated at their cost less depreciation. Cost includes
 all other expenditure incurred to bring the assets into existence for
 their intended use and cost of borrowings specifically taken for the
 respective assets upto the date of commissioning.
 
 V.  Taxation
 
 Current year tax is determined in accordance with Income Tax Act, 1961
 at the Current Tax rates based on assessable income.
 
 The Company has carried forward losses under Tax Laws. In absence of
 virtual certainty of sufficient future taxable income, deferred tax
 asset has not been recognized in accordance with Accounting Standard
 22ND Accounting for taxes on income issued by The Institute of
 Chartered Accountants of India.
 
 VI.  Impairment of Assets
 
 At each balance sheet date, the carrying amounts of fixed assets are
 reviewed by the management to determine whether there is any indication
 that those assets suffered an impairment loss. If any such indication
 exists, the recoverable amount of the assets is estimated in order to
 determine the extent of impairment loss. Recoverable amount is the
 higher of an asset''s net selling price and value in use.
 
 VII. Provisions, contingent liabilities and contingent assets
 
 A provision is recognized when the Company has a 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 reliable
 estimate can be made. Provisions (excluding retirement benefits) are
 not discounted to its present value and are determined based on best
 estimate required to settle the obligation at the balance sheet date.
 These are reviewed at each balance sheet date and adjusted to reflect
 the current best estimates. Contingent liabilities are not recognized
 in the financial statements. A contingent asset is neither recognized
 nor disclosed in the financial statements.