(1) Revenue recognition :
 
 (a) All incomes and expenditures are accounted for on accrual basis.
 
 (b) Dividends on Shares are accounted for in the year of receipt.
 
 (2) Fixed Assets & Depreciation
 
 All fixed assets are stated at historical cost less depreciation.
 Depreciation is provided on written down value method at rates and
 manner specified in schedule XIV to the Companies Act, I956.
 
 (3) Inventories
 
 Inventories are valued at lower of cost or market value.
 
 (4) Investments
 
 Investments are classified as long term or short term depending upon
 the intention to hold the same. Generally investments which are
 readily realisable and are intended to be held for not more than one
 year from the date of investment are treated as short term investments.
 In terms of prudential norms of Reserve Bank of India long term
 investments are valued at cost. However when there is a decline, other
 than temporary, in value of long term investment, the carrying amount
 is reduced to recognise the decline. Short term investments are valued
 at lower of cost or market value.
 
 (5) Miscellaneous Expenditure
 
 Preliminary Expenses and Share issue Expenses are amortised over a
 period of ten years.
 
 6. Disclosure of Transactions with Related Parties (Figures in Rupees)
 Related Parties Transactions have been disclosed in accordance with
 Accounting Standard 18 issued by the Institute of Chartered Accountants
 of India.