ACCOUNTING CONCEPTS:
 
 The Company follows mercantile system of accounting, and recognises
 income and expenses on accrual basis.
 
 FTXEDASSETS:
 
 Fixed Assets are recorded at cost of acquisition including the
 expenditure incurred in connection with the acquisition and
 installation of the assets.
 
 DEPRECIATION:
 
 Depreciation is provided on straight line method in accordance with the
 rates and in the manner provided in the Schedule XIV to the Companies
 Act, 1956.
 
 INVESTMENTS:
 
 All the investments are long term investments and are stated at cost
 
 BORROWING COSTS:
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets, the assets that take substantial
 period of time to get ready for intended use, are capitalised as part
 of the cost of such assets.
 
 INTANGIBLE ASSET:
 
 Intangible Assets are stated at cost of acquisition less accumulated
 amortization.
 
 REVENUE RECONGNITION:
 
 Service Receipts are recognized on completion of provision of services
 and are recorded inclusive of all the relevant taxes and duties. The
 same is recognized as income on completion of transaction and at the
 time of performance it is not unreasonable to expect ultimate
 collection. Other revenue items are recognized as income on their
 accrual basis.
 
 RETIREMENT BENEFITS:
 
 The Company does not have defined employee retirement policy as the
 employee strength does not exceed the statutory minimum.
 
 IMPAIRMENT OF ASSETS
 
 An asset is treated as impaired when the carrying cost of the Asset
 exceeds its recoverable value. An impairment loss is charged to the
 Profit & Loss account in the year in which an asset is identified as
 impaired. The Impairment loss recognized in prior accounting periods is
 increased / reversed where there has been change in the estimate of
 recoverable amount The recoverable value is the higher of the net
 selling price and value in use.
 
 USE OF ESTIMATES
 
 The preparation of financial statements requires management to make
 estimates and assumption that affect the reported amounts of assets and
 liabilities .on the date of financial statements, the reported amount
 of revenues and expenses and the disclosures relating to contingent
 liabilities as on the date of financial statements. Actual results
 could differ from those of estimates. Any revision in accounting
 estimates is recognized in accordance with the respective accounting
 standard.
 
 EARNINGS PER SHARE
 
 The Company reports basic and diluted earnings per share in accordance
 with AS-20 Earnings Per Share. Basic earnings per share are computed
 by dividing the net profit or loss for the period by the weighted
 average number of Equity Shares outstanding during the period. Diluted
 earnings per share is computed by dividing the net profit or loss for
 the period by the weighted average number of Equity Shares outstanding
 during the period as adjusted for the effects of all dilutive potential
 equity shares.
 
 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 The Company creates a provision when there exists a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 amount of obligation disclsure for. the contingent liability is made
 when there is a possible obligation or a present obligation that may
 be, but probably with not require outflow of resources. When there is a
 possible obligation or a present obligation in respect of which
 likelihood of resources is remote,no provision or disclosure is needed.
 
 TAXES ON INCOME:
 
 Current tax is determined as the tax payable in respect of taxable
 income for the year.
 
 Deferred tax for the year is recognized on timing difference, being
 difference between taxable income and accounting income that originate
 in one period and are capable of reversal in one or more subsequent
 periods.
 
 Deferred tax assets and liabilities are measured assuming the tax rates
 and tax laws that have been enacted or substantially enacted by the
 Balance Sheet date. Deferred tax assets are recognized and carried
 forward only if there is a reasonable / virtual certainty of
 realization.