1.1 Basis of Accounting:
 
 The financial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under historical cost
 convention on an accrual basis and are in accordance with the
 requirements of the Companies Act, 1956 and guidelines issued by the
 securities and Exchange Board of India (SEBI). Accounting policies have
 been consistently applied.
 
 1.2 Investments/Inventories:
 
 Investments are at cost or market price which ever is lower.
 
 1.3 Fixed Assets:
 
 All fixed assets are recorded at cost of acquisition inclusive of all
 direct and allocated expenses incurred for the same or construction.
 The are stated at historical cost.
 
 1.4 Depreciation:
 
 Depreciation of fixed assets is provided on straight line method at
 the rates and in the manner prescribed in schedule XIV of the Companies
 Act, 1956.
 
 1.5 Income Taxes:
 
 The current charge for income tax is calculated in accordance with the
 relevant tax regulations applicable to the company. Deferred tax is
 recognized, subject to consideration of prudence, in respect of
 deferred tax assets or liabilities, on timing differences being the
 difference between taxable incomes and accounting income that originate
 in one period and is reversible in one or more subsequent periods.
 
 1.6 Cash flow statement:
 
 Cash flows are reported using the indirect method, whereby profit
 before tax is adjusted for the effects of transactions of a non-cash
 nature, and deferrals or accruals of past of future operating cash
 receipts or payments and item of income or expenses associated with
 investing or financing cash flows. The cash flows from operating,
 investing and financing activities of the Company are segregated.
 
 1.7 Earnings per share:
 
 Basis earnings per share are computed by dividing the net profit after
 tax by the weighted average number of equity shares outstanding during
 the period.