(A) Basis of Preparation of financial statement
 
 The financial statements have been prepared under the historical cost
 convention on an accrual basis and comply in all material respects with
 the mandatory accounting standards and the relevant provisions of the
 Companies Act, 1956.
 
 (B) Investments
 
 Long term investments are stated at cost. Provision for diminution in
 the value of investments is made only if such decline is other than
 temporary in the opinion of the management.
 
 (C) Other Income
 
 Dividend is accounted for as and when received.
 
 (D) Foreign Currency Transaction
 
 Transactions in foreign exchange, other than those covered by forward
 exchange contracts are accounted at the rates prevailing on the date of
 transaction. All monetary assets and liabilities denominated in foreign
 currency are restated at the rate prevailing at the year end. Ail other
 exchange differences are accounted for in the Statement of Profit &
 Loss except in case of transactions covered by forward exchange
 contracts where exchange difference is recognized over the life of the
 contract,
 
 (E)Lease
 
 Lease rentals in respect of assets acquired under operating leases are
 charged off to the Statement of Profit & Loss as incurred.  Lease
 rentals in respect of assets given under operating leases are credited
 to the Statement of Profit & Loss,
 
 (F) Accounting Policy Provision for Current Tax
 
 Provision for Income tax is made on the basis of the estimated taxable
 income for the current accounting period in accordance with the Income-
 tax Act, 1961.
 
 (G) Impairment of Assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the management estimates the recoverable amount of the asset.
 If such recoverable amount of the asset or the recoverable amount of
 the cash generating unit to which the assets belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognized in the statement of profit and loss. If at the balance sheet
 date there is an indication that if a previously assessed impairment
 loss no longer exists, the recoverable amount is reassessed , and the
 asset is reflected at the recoverable amount subject to a maximum of
 depreciated historical cost.
 
 (H) Provision & Contingent Liability
 
 The Company creates a provision when there is a present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. Where there is a possible obligation
 or a present obligation in respect of which the likelihood of outflow
 of resources is remote, no provision or disclosure is made.