a) Accounting system
 
 The financial statements have been prepared under the historical cost
 convention, on accrual basis of accounting and in compliance with the
 applicable accounting standards prescribed under Section 211 (3C) of
 the Companies Act and other accepted accounting principles.
 
 b) Use of Estimates
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires the management of the company
 to make estimates and assumptions that affect the reported amounts of
 income and expenses of the period and the reported balances of assets
 and liabilities and the disclosures relating to contingent liabilities
 as of the date of the financial statements. Difference, if any, between
 the actual results and estimates is recognized in the period in which
 the results are known.
 
 c) Revenue Recognition
 
 Interest income is recognized on time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 d) The Company provides depreciation under the straight-line method as
 per the rates prescribed in schedule XIV of the Companies Act, 1956 in
 respect of office premises.
 
 e) All investments of long-term nature are valued at cost. Diminution
 in value of such investments, if of permanent nature, is provided for.
 Current investments are valued at lower of cost or net realizable
 value.
 
 f) Current tax is provided at the current tax rates on taxable income.
 The Company provides for deferred tax based on tax effect of timing
 differences resulting from the recognition of items in the financial
 statements and in estimating its current tax provision using the tax
 rates and tax laws that have been enacted or substantively enacted.
 Deferred Tax Assets on timing differences other than unabsorbed losses
 are recognized to the extent there is a reasonable certainty that these
 would be realized in future. Deferred Tax Asset arising on account of
 unabsorbed tax losses and unabsorbed depreciation are accounted for on
 prudence basis when there is a virtual certainty that sufficient future
 taxable income will be available against which such deferred tax asset
 can be realized.
 
 g) Employee Benefits
 
 Short term employee benefits payable wholly within twelve months of
 rendering services such as salaries, wages, etc.  are recognized in the
 period in which the employee renders the related service.
 
 Defined Contribution Plan: The Company''s contribution to the state
 governed employee''s provident fund scheme is a defined contribution
 plan. The contribution paid / payable under the scheme is recognized
 during the period in which the employee renders the related service.
 
 Defined Benefit Plan: The Company''s gratuity fund managed through the
 gratuity trust is company''s defined benefit plan. The present value of
 obligations under such defined benefit plans is determined based on
 actuarial valuation using the projected unit credit method.
 
 Long Term Employee Benefits: The obligation of long term employee
 benefits such as long term compensated absences is recognized in the
 same manner as in the case of defined benefit plans.
 
 h) Impairment of Assets:
 
 At each Balance Sheet date the carrying amount of the assets is tested
 for impairment. If there is any indication of impairment, the company
 estimates the recoverable amount of the asset. If such recoverable
 amount of the asset or the recoverable amount of cash generating unit
 to which the asset 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 Profit and Loss
 Account. If at the Balance Sheet date there is an indication that the
 previously assessed impairment loss no longer exist, the recoverable
 amount is reassessed and the assets is reflected at the recoverable
 amount.