1.  Basis for preparation of Financial Statement
 
 The Financial Statements have been prepared under the historical cost
 convention, in accordance with the generally accepted accounting
 principles, applicable accounting standards and the provisions of the
 Companies Act, 1956 as adopted consistently by the Company.
 
 2.  Recognition of Income/Expenditure
 
 a.) The Company generally follows mercantile system of accounting and
 recognize significant items of Income and expenditure on accrual basis.
 
 b.) Income from Lease Rental, Hire Purchase and interest on loans is
 accounted for on accrual basis. However, no income is accounted for in
 cases where the same is considered doubtful of recovery by the
 management. The delayed payment charges, wherever applicable, are
 accounted for, on settlement with the parties, on cash basis.
 
 3.  Fixed Assets
 
 Fixed Assets are valued at cost less accumulated depreciation.
 
 4.  Inventory
 
 Share to be held for less than 1 year is valued at lower of cost or
 market price. Cost is arrived on FIFO basis. Cost of bonus shares
 acquired is taken as Nil.
 
 5.  Hire Purchase Debtors
 
 Hire Purchase installments which become due but remain unpaid are shown
 under sundry debtors as overdue installments.
 
 6.  Depreciation
 
 Depreciation is provided on SLM basis at the rate prescribed under
 Schedule XIV of the Companies Act.
 
 7.  Dividend
 
 Dividend is accounted for on receipt basis.
 
 8.  Investments
 
 Investments are classified into current and long-term investments.
 Current investments are carried at the lower of cost and quoted/fair
 value, computed category wise. Long Term investments are stated at
 cost. Provision for diminution in the value of long-term investment is
 made only if, such a decline is other than temporary in the opinion of
 the management.
 
 9.  Taxation
 
 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 the consideration of prudence,
 on timing differences being the difference between taxable incomes and
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods.
 
 Deferred tax assets are not recognized on unabsorbed depreciation &
 carry forward of losses unless there is virtual certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realized and are reviewed at each balance
 sheet date to reassure the realization.
 
 Deferred tax assets & Liabilities are measured using the tax rate and
 tax laws that have been enacted or substantively enacted at the balance
 sheet date.
 
 10.  Intangible Assets
 
 Computer software is capitalized on the date of installation and is
 amortized over a period of 3 years.