1.  Accounting Convention
 
 The accounts have been prepared under the historical cost conventions
 to comply in all material aspects with applicable accounting principles
 in India, and are in accordance with the Accounting Standards issued by
 Institute of Chartered Accountants of India to the extent applicable
 and the relevant provisions of the Companies Act, 1956.
 
 The preparation of the financial statements in accordance with the
 generally accepted accounting principles requires that management makes
 estimates and assumptions that affect the reported amount of assets and
 liabilities and disclosure of contingent liabilities as of the date of
 financial statements and the reported amounts of revenue and expenses
 during the reporting period. Management believes that the estimates
 used in the preparation of financial statements are prudent and
 reasonable. Actual results could differ from these estimates. Any
 revision to accounting estimates is recognized prospectively in current
 and future periods.
 
 2.  Fixed assets
 
 Fixed assets are stated at cost less accumulated depreciation. Cost of
 acquisition inclusive of inward freight, duties, taxes and incidental
 expenses related to acquisition, commissioning and installation
 incurred to bring the assets to its working condition for intended use.
 
 3.  Depreciation
 
 Depreciation is provided on the straight-line method at the rates and
 in manner prescribed in Schedule XIV to the Companies Act, 1956 based
 on the estimated useful life of the asset as determined by the
 management. For additions and disposals, depreciation is provided
 pro-rata for the period of use.
 
 4.  Revenue recognition
 
 Sales are recognized when the vehicles dispatched, reach the
 destination and the Goods Receipt is acknowledged by the party.
 Interest Income is recognized on time proportion basis.
 
 5.  Taxation
 
 Tax on income for the current period is determined on the basis of
 taxable income and tax credits computed in accordance
 
 with the provisions of Income Tax Act, 1961 and based on the expected
 outcome of assessment/ appeals.
 
 Deferred tax is recognized on timing difference between the accounting
 income and the taxable income for the period and
 
 quantified using the tax rates and laws enacted or substantively enacted
 on the Balance Sheet date.
 
 Deferred tax assets which arise mainly on account of unabsorbed losses
 or unabsorbed depreciation are recognized and
 
 carried forward only to the extent that there is virtual certainty
 supported by convincing evidence that sufficient future taxable
 
 income will be available against which such deferred tax assets can be
 realized.
 
 6.  Earnings per share
 
 The basic earnings per share is computed by dividing the net profit
 attributable to the equity shareholders for the year by the weighted
 average no of equity shares outstanding the year. Diluted earnings per
 share is computed in the case of the com- pony will come same as the
 basic earnings per share.
 
 7.  Cash Flow Statement
 
 Cash Flows are reported using the indirect method as specified in
 Accounting Standard (AS-3) Cash Flow Statement.