1.  Basis for preparation of Financial Statements
 
 The financial statements have been prepared in accordance with the
 Generally Accepted Accounting Principles under the historical cost
 convention, on the accrual basis except in the case of certain
 financial transactions which are measured on the basis of fair values.
 Accounting policies have been consistently applied except where a new
 Accounting Standard is newly adopted or a revision is made an existing
 Standard.
 
 2.  Revenue Recognition
 
 The Company follows the mercantile system of accounting and recognises
 income & expenditure on accrual basis.
 
 3.  Use of estimates
 
 The preparation of financial statements in conformity with Generally
 Accepted Accounting Principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and the disclosure of contingent assets and liabilities on
 the date of the financial statements and the results of operations
 during the reporting periods. Although these estimates are based upon
 management''s knowledge of current events and actions, actual results
 could differ from those estimates and, revisions, if any, are
 recognised in the current and future periods.
 
 4.  Fixed Assets
 
 Fixed Assets are stated at cost less accumulated depreciation and
 impairment if any. Cost includes all identifiable expenditure incurred
 to bringing the Assets to its present condition.
 
 5.  Depreciation
 
 Depreciation is provided using the Written Down Value Method, at the
 rates and in the manner specified in Schedule XIV to the Companies Act,
 1956.
 
 6.  Provisions and Contingent Liabilities
 
 The Company creates a provision when there exists a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation. A disclosure for a contingent liability is made when there
 is a possible obligation or a present obligation that may, but probably
 will not, require an outflow of resources. When there is a possible
 obligation or a present obligation in respect of which the likelihood
 of outflow of resources is remote no provision or disclosure is made.
 Contingent assets are not recognized in financial statements.
 
 7.  Investments
 
 All the investments are classified as either current or long-term based
 on management''s intention at the time of purchase. Current
 investments are carried at the lower of cost or fair value. Long term
 investments are carried at cost less provisions made to recognize any
 decline other than temporary, in the carrying value of each investment.
 
 8.  Impairment of assets
 
 Impairment of assets is recognised when there is an indication of
 impairment. On such indication the recoverable amount of the assets is
 estimated and if such estimation is less than its carrying amount, the
 carrying cost is reduced to recoverable cost.
 
 9.  Employee Benefits
 
 The provisions regarding Provident Fund, Employees State Insurance,
 Gratuity etc mentioned in Accounting Standard 15 (Employee benefits)
 are not applicable to the company at present.
 
 10.  Income tax
 
 A provision is made for Income tax annually, based on tax liability
 computed after considering tax allowances and exemptions.
 
 11 Earnings per share
 
 Basic Earnings Per Share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders, by the
 weighted average number of equity shares outstanding during the period.
 For the purpose of calculating Diluted Earnings Per Share, the net
 profit or loss for the period attributable to equity shareholders and
 the weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.