(a) ACCOUNTING CONVENTION: The Financial statements have been prepared
 in accordance with the historical cost convention and generally
 accepted accounting principles. A summary of the important accounting
 policies, which have been followed consistently, is set out below.
 
 (b) FIXED ASSETS: Fixed Assets are stated at cost of acquisition
 inclusive of freight & incidental expenses less depreciation thereof.
 
 (c) DEPRECIATION: Depreciation on owned Assets has been charged on
 straight line method as per rates and in the manner prescribed in
 Schedule-XIV of the Companies Act 1956. No Depreciation has been
 charged on additions of Rs. 22.12 lacs, on account of revaluation of
 the office premises during the year 1993-94.
 
 (d) INVESTMENTS: Investments are valued at cost.
 
 (e) REVENUE RECOGNITION:
 
 (i) Income from consultancy and advisory services is accounted for on
 accrual basis.  (ii) In respect of other heads of income except
 dividends, the company follows the practice of accounting such income
 on accrual basis.
 
 (iii) Sales and Purchase of the company consists of the sale and
 purchase of shares in the secondary market and has been accounted for
 on accrual basis.  (iv) All the expenses have been accounted for on
 mercantile basis.
 
 (f) AMORTISATION OF MISCELLANEOUS EXPENSES: The Company amortizes
 preliminary expenses including public issue expenses over a period
 often years and other deferred revenue expenditure over a period of
 five years.
 
 (g) PROVISION FOR TAXATION: Provision for taxation is computed as per
 total income returnable under the Income Tax Act, 1961.
 
 (h) DEFERRED TAX: Deferred Tax Liability is provided pursuant to
 Accounting Standard [AS-22].  Deferred Tax Asset and Deferred Tax
 Liability are calculated by applying tax rates and tax laws that have
 been enacted or substantively enacted by the Balance Sheet date.
 Deferred Tax Assets arising mainly on account of brought forward losses
 and unabsorbed depreciation under tax laws, are recognized, only if
 there is virtual certainty of its realization, supported by convincing
 evidence. Deferred fax Assets on account of other timing differences
 are recognized only to the extent there is reasonable certainty of its
 realization.
 
 (i) OTHER ACCOUNTING POLICIES: These are consistent with the generally
 accepted accounting policies.