A) Basis of preparation of Financial statements.
 
 a. The Financial Statements have been prepared under the historical
 cost convention in accordance with the generally accepted accounting
 principles and the provision of the Companies Act, 1956 as followed
 consistently by the Company.
 
 b. Accounting policies not specifically referred to otherwise are
 consistent and in consonance with generally accepted accounting
 principles followed consistently by the Company.
 
 B) Recognition of Income and Expenditure
 
 The Company follows accrual method of accounting.
 
 C) Fixed Assets are recorded at historical cost and depredation has
 been provided on W.D.V. Basis for Furniture and Fixtures, Office
 Equipments and Vehicles as being provided in earlier years. But
 depredation on other assets has been provided on Straight line method.
 
 D) Contingent Liabilities are not provided for in the Accounts and if
 any disclosed separately in the Notes on Accounts.
 
 The rates of Depredation for all Assets ana as provided under Schedule
 XIV of the Companies Act. 1958. The Depredation has been provided
 Pro-rata for the period of use as provided under the said Schedule.
 
 2. Inventories are valued at the lower of cost or estimated net
 realisable value.
 
 3. Interest has been provided on Debentures after considering revision
 in interest rate as per resolution passed in meeting of Debenture
 holders on 31st March 2001, & after considering excess interest
 provided In earfer years due to such.