1.1 (a) BASIS OF PREPARATION
 
 The Financial Statements are prepared under the historical cost
 convention, in accordance with the Indian Generally Accepted Accounting
 Principles (GAAP) and mandatory Accounting Standards issued by
 the Institute of Chartered Accountants of India (ICAI) and the
 provisions of the Companies Act, 1956. All income and expenditure
 having a material bearing on the financial statements are recognized on
 the accrual basis.
 
 (b) USE OF ESTIMATES
 
 The preparation of Financial Statements in conformity with GAAP
 requires management to make estimates and assumptions that effect the
 reported amounts of assets and liabilities, disclosures of contingent
 assets and liabilities at the date of the financial statements and the
 reported amounts of revenues and expenses during the reporting period.
 
 1.2. REVENUE RECOGNITION
 
 a) All Income & Expenditure are accounted for on accrual basis.
 
 b) Commodities and Securities are capitalized at cost inclusive of
 brokerage, Service Tax, Education Cess, Depository Charges, Securities
 Transaction Charges and other miscellaneous transaction charges.
 
 c) Interest on deployment of funds is recognized on accrual basis.
 
 1.3 EXPENDITURE
 
 Expenses are accounted for on accrual basis and provisions are made for
 all known losses and liabilities.
 
 1.4 FIXED ASSETS
 
 Fixed Assets are stated at cost less accumulated depreciation. The cost
 of assets comprises of purchase price and directly attributable cost of
 bringing the assets to working condition.
 
 1.5 DEPRECIATION / AMORTIZATION
 
 Depreciation on Fixed Assets has been provided on straight line method
 (S.L.M.) on pro-rata basis at the rates and in the manner specified in
 Schedule XIV of the Companies Act, 1956. Individual assets acquired for
 less than Rs.5000/- are entirely depreciated in the year of
 acquisition.
 
 Intangible Assets are amortized over their respective individual
 estimated useful lives on straight - line basis. The Management
 estimates the useful live of Software as three Years.
 
 Goodwill generated on Amalgamation has been amortized on straight -line
 basis over a period of five years as recommended in Accounting Standard
 - 14 -  Accounting for Amalgamations 
 
 1.6. INVENTORIES
 
 Inventories are valued at cost or Net Realizable Value, whichever is
 less on FIFO method. Cost includes purchase price, taxes and other
 incidental expenses, wherever applicable.
 
 1.7. FOREIGN CURRENCY TRANSACTIONS
 
 The transactions in foreign currency are accounted at the exchange rate
 prevailing on the date of transaction. Any exchange gains or losses
 arising out of the subsequent fluctuations are accounted for in the
 Profit & Loss account.
 
 1.8. TAX ON INCOME
 
 Current tax are measured at the amounts expected to be paid using the
 applicable tax rates and tax laws. Deferred tax assets and liabilities
 are measured using tax rates and tax laws that have been enacted or
 substantively enacted by the balance sheet date. The effect on deferred
 tax assets and liabilities of a change in tax rates is recognized in
 the profit & loss account in the year of change. Deferred tax assets
 and deferred tax liabilities are recognized for the future tax
 consequences attributable to differences between the financial
 statements carrying amounts of existing assets and liabilities and
 their respective tax bases and operating loss carry forwards.
 
 1.9 INVESTMENTS
 
 Investments are classified into Long term and Current Investment based
 on the intent of the management at the time of the acquisition. Long
 term investments are stated at cost less provision, if any, for
 diminution in value of such investment other than temporary diminution.
 Current investments are stated at lower of cost or fair value.
 
 1.10 EARNING PER SHARE
 
 Basic Earning per share is computed using Weighted Average Number of
 Equity Share Outstanding during the year. Diluted Earning per share is
 computed using weighted Average Number of Equity and Dilutive Equity
 equivalent share outstanding during the year end.
 
 1.11 RETIREMENT BENEFITS
 
 i) Company''s contribution paid/ payable during the year to provident
 fund, are charged to Profit & Loss Account.
 
 ii) Leave Encashment and Gratuity are defined benefit plans. The
 Company has provided for the liability at the year end as per
 provisions of respective Act(s).