BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 The financial statements have been prepared in accordance with the
 Accounting Standards specified by the Institute of Chartered
 Accountants of India.
 
 ACCOUNTING CONVENTION REVENUE RECOGNITION
 
 The financial statements have been prepared in accordance with
 historical cost convention. Both for income and expenditure having
 material bearing on the financial Statements are recognized on accrual
 basis.
 
 FIXED ASSETS
 
 Fixed Assets are stated at cost or acquisition inclusive of taxes,
 duties, freight and other incidental expenses related to
 acquisition/installation.
 
 DEPRECIATION
 
 Depreciation on fixed assets is provided on Written Down Value Method
 at the rates, which are in conformity with the requirements of Schedule
 XIV of the Companies Act, 1956.
 
 INVESTMENTS
 
 Long-term Investments are stated at cost unless there is any permanent
 diminution in value.
 
 RETIREMENT BENEFIT
 
 (i) Provision for Gratuity is accounted for on accrual basis based on
 management estimation and not on actuarial valuation.
 
 (ii) The monetary value of unutilized leave for employees in each year
 is recognized as liability and accordingly credited to their accounts.
 
 (iii) Contribution to Provident Fund is accounted for on accrual basis
 and payments there against are made to concerned authority.
 
 TAXES ON INCOME
 
 Current tax is determined on the amount of tax payable in respect of
 taxable income for the year.
 
 The deferred tax charge or credit is recognized using current tax
 rates.  Where there are unabsorbed depreciation or carry forward
 losses, deferred tax assets are recognized only if there is virtual
 certainty of realization of such assets. Other deferred tax assets are
 recognized only to the extent there is reasonable certainty of
 realization in future.  Deferred tax assets/liabilities are reviewed as
 at each balance sheet date based on developments during the year and
 available case laws, to reassess realization/liabilities.  FOREIGN
 CURRENCY TRANSACTION
 
 Sales made in foreign currency are converted at the prevailing
 applicable exchange rate. Gain/Loss arising out of fluctuation in
 exchange rate is accounted for on cash basis.  Payments made in foreign
 currency are converted at the applicable rate prevailing on the date of
 remittance. Liability/ Receivables on account of foreign currency are
 converted at the exchange rate prevailing at the end of the year.
 
 PRIOR PERIOD ADJUSTMENTS, EXTRA ORDINARY ITEMS AND CHANGES INACCOUTING
 POLICIES.
 
 Prior period adjustments, extra ordinary items and changes in
 accounting policies having material impact on the financial affairs of
 the Company are disclosed.
 
 CONTINGENT LIABILITY
 
 Full disclosure is made in the accounts in connection with any
 contingent liability but the provision for the same is made when such
 liability crystallizes.