1.  System Of Accounting:
 
 The accounts have been prepared on the basis of historical cost
 convention and on the basis of a going concern, with revenues
 recognized and expenses accounted on accrual basis.
 
 2.  Revenue Recognition and Expenses:
 
 All expenses and income to the extent payable or receivable
 respectively are accounted for on accrual basis.
 
 3.  Fixed Assets:
 
 Fixed Assets are stated at cost, inclusive of incidental expenses, less
 accumulated depreciation and Lease Terminal Adjustment.
 
 4.  Depreciation:
 
 Depreciation on fixed assets is provided on the Straight Line Method at
 the rates and in the manner prescribed in Schedule XIV to the Companies
 Act, 1956.
 
 5.  Valuation of Investments and Stock-in-trade:
 
 a) Valuation of Investments:
 
 i) Long Term Investments are valued at cost. However, provision for
 diminution is made to recognize a decline, other than temporary, in the
 value of investments, such reduction being determined and made for each
 investment individually.
 
 ii) Current investments are valued at lower of the cost or market/fair
 value.
 
 b) Valuation of Stock-in-Trade:
 
 i) Foreign currency is valued at the conversion rate as on 31st March
 every year.
 
 ii) Stock of shares and securities is valued at lower of the cost or
 market/fair value.
 
 6.  Retirement Benefits:
 
 Defined Benefit Plans: The present value of the obligation under such
 plan, is determined based on an actuarial valuation using the Projected
 unit Credit Method. Acturial gains and losses arising on such valuation
 are recognized immediately in the Profit & Loss Account. In Case of
 funded defined benefit plans, the fair value of the plan assets is
 reduced from the gross obligation under the defined benefit plans, to
 recognize the obligation on net basis.
 
 7.  Taxation:
 
 Income-tax expense comprises current tax, fringe benefit tax (FBT) and
 deferred tax charge or credit. Provision for Current tax is made on the
 basis of assessable income at the tax rate applicable to the relevant
 assessment year. Provision for FBT is made on the fringe benefits
 provided/ deemed to have been provided during the year at the rates and
 values applicable to the relevant assessment year. The deferred tax
 asset and deferred tax liability is calculated by applying tax rate and
 tax law 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
 recognised, only if there is a virtual certainly of its realisation,
 supported by Convincing evidence. Deferred tax assets on account of
 other timing differences are recognised only to the extent there is a
 reasonable certainty of its realisation. At each Balance sheet date,
 the carrying amount of deferred tax assets is reviewed to reassure
 realisation.
 
 8.  Impairment of Assets:
 
 The carrying amounts of assets are reviewed at each balance sheet date
 if there is any indication of impairment based on internal/ external
 factors. An asset is impaired when the carrying amount of the asset
 exceeds the recoverable amount. An impairment loss is charged to the
 profit and loss account in the year in which an asset is identified as
 impaired. An impairment loss recognized in prior accounting periods is
 reversed if there has been change in the estimate of the recoverable
 amount.
 
 9.  Borrowing Cost:
 
 Borrowing Costs attributable to acquisition and construction of
 respective assets are capitalized as a part of the cost of such assets
 upto date when such asset is ready for its intended use. Other
 borrowing costs are charged to Profit & Loss Account.
 
 10.  Translations of Foreign currency items:
 
 Translations in foreign currency are recorded at the rate of exchange
 in force at the date of transactions. Foreign currency assets and
 liabilities are stated at the rate of exchange prevailing at the year
 end and resultant gains/losses are recognised in the profit and loss
 account.
 
 11.  Miscellaneous expenditure:
 
 a) Preliminary expenses, public issue expenses and expenses for
 increasing the Authorised Capital are written off over a period of five
 years.
 
 b) Deferred Revenue Expenditure is being written off over a period of
 five years.