1.1 The Company maintains its accounts on accrual basis following the
 historical cost convention in accordance with generally accepted
 accounting principles (GAAP), and in compliance with the Accounting
 Standards referred to in section 211 (3C) and other requirements of the
 Companies Act, 1956
 
 The preparation of financial statements in conformity with GAAP
 requires that the management of the Company makes estimates and
 assumptions that affect the reported amounts of income and expenses of
 the period, the reported balances of assets and liabilities and the
 disclosures relating to contingent liabilities as of the date of the
 financial statements. Examples of such estimates include the useful
 lives of fixed assets etc. Actual results could differ from these
 estimates.
 
 1.2 FIXED ASSETS
 
 Fixed Assets are stated at cost of acquisition less depreciation. The
 cost comprises of the purchase price and other attributable costs.
 
 1.3 DEPRECIATION
 
 The Company follows the straight line method of providing depreciation
 at the rates prescribed in Schedule XIV to the Companies (Amendment)
 Act 1988 read with Section 205(2) (b) of the said Act on pro-rata basis
 uniformly in respect of all assets.
 
 1.4 INVESTMENTS
 
 Long Term Investments are carried at cost less provision for diminution
 other than Temporary, if any, in value of such investments.
 
 1.5 INVENTORIES
 
 Inventories are valued at cost or Net realizable value, whichever is
 lower.
 
 1.6 EMPLOYEE BENEFIT:
 
 a) Provident fund has been paid regularly in time by the company
 
 b) Gratuity & Leave Encashment is accounted for in cash basis as and
 when paid.
 
 1.7 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying asset is one that necessarily takes as a
 substantial period of time to get ready for its intended use or sale.
 All other borrowing costs are charged.
 
 1.8 AS-22 Accounting for taxes on Income:
 
 Tax on income for the current period is determined on the basis of
 taxable income and tax credits computed in accordance with the
 provision of the Income Tax Act, 1961, and based on expected outcome of
 assessment / appeals.
 
 Deferred tax is recognised on timing differences between the accounting
 income and the taxable income for the year, and quantified using the
 tax rates and laws enacted or substantively enacted as on the Balance
 Sheet date.
 
 Deferred tax assets are recognised and carried forward to the extent
 that there is a reasonable certainty that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realised.