i) Basis of Preparation of Financial Statements:
 
 The financial statements are prepared under the historical cost
 convention as a going concern.  The accounts have been prepared by
 adopting the accrual system of accounting and in accordance with
 directions prescribed by the Reserve Bank of India for Non Banking
 Financial Companies. Accounting Policies, not specifically referred to
 otherwise are consistent and in consonance with the generally accepted
 accounting principles.
 
 ii) Foreign Currency Transactions:
 
 Foreign currency transactions are recorded at the rate of exchange
 prevailing on the date of the transactions. Monetary assets and
 liabilities related to foreign currency transactions remaining
 unsettled are translated at year end rate.
 
 The difference in translation of Monetary assets and liabilities and
 realized gains and losses on foreign exchange transaction are
 recognized in profit & loss account.
 
 Foreign currency gain/loss relating to translation of net investment in
 non-integral foreign operation is recognized in the foreign currency
 translation reserve.
 
 iii) Fixed Assets and Depreciation :
 
 a) Fixed Assets
 
 Fixed Assets are stated at their cost of acquisition less accumulated
 depreciation.  Cost comprises of all cost, net of income (if any),
 incurred to bring the assets to their present location and working
 condition and other related overheads till such assets are ready for
 intended use.
 
 b) Depreciation
 
 Depreciation on Fixed Asset is provided on Straight Line Method basis
 at the rates and in manner specified in schedule XIV of the Companies
 Act, 1956.
 
 iv) Investments:
 
 Long term investments are stated at cost. When there is a decline other
 than temporary in their value, the carrying amount is reduced on an
 individual investment basis and decline is charged to the Profit & Loss
 Account. Appropriate adjustment is made in carrying cost of investment
 in case of subsequent rise in value of investments.
 
 v) Retirement Benefits:
 
 Defined Benefit Plans:
 
 Leave Encashment and Gratuity are defined benefit plans. The Company
 has provided for the liability at the year end based on actuarial
 valuation using the Projected Unit Credit Method. Actuarial gains and
 losses are recognized as and when incurred.
 
 vi) Taxation:
 
 Provision is made for income-tax liability estimated to arise on the
 results for the year at the current rate of tax in accordance with
 Income- Tax Act, 1961.
 
 Deferred tax resulting from timing differences between book profits and
 tax profits is accounted for, at the rate on the Balance Sheet date, to
 the extent that the timing differences that originate in one period and
 are capable of reversal in one or more subsequent periods.
 
 Deferred Tax Assets arising from timing differences are recognized to
 the extent there is a reasonable/virtual certainty that the assets can
 be realized in future.