(1) The Accounts are prepared on an accrual basis except otherwise
 stated and under the historical cost conventions, and are in line 
 with the relevant laws as well as the guidelines prescribed by the 
 Department of Company affairs and the  Institute of Chartered 
 Accountants of India.
 
 (a) SYSTEM OF ACCOUNTING: The Company has adopted the accrual basis of
 accounting in the Preparation of the books of accounts.
 
 (b) REVENUE RECOGNITION: All income is accounted for on accrual basis.
 
 (c) EXPENSES: It is Company''s policy to account of expenses on accrual
 basis.
 
 (d) TAXATION: Provision for current tax is made in the accounts on the
 basis of estimated tax liability as per the applicable provisions of
 the Income Tax Act, 1961. There is no timing difference. Hence,
 Deferred tax liability/assets have not arisen during the year
 
 (e) INVESTMENTS: Long Term Investments are stated at Cost. Provision
 for diminution in the value of long term investments is made only if
 such decline is other than temporary in the opinion of the management.
 
 (f) RETIREMENT BENEFITS: Provision of Gratuity is not applicable to the
 company.