a) Accounting Convention:
 
 The Company follows the mercantile system of accounting, recognising
 income and expenditure on accrual basis. However, no interest is
 provided on Non Performing Assets as per Reserve Bank of India norms.
 The Accounts are prepared on historical cost basis and as a going
 concern.
 
 b) Fixed Assets:
 
 Fixed Assets are stated at cost less depreciation.
 
 c) Depreciation:
 
 Depreciation on assets is provided on Straight Line Method as per the
 rates prescribed in Schedule XIV of the Companies Act, 1956 and rules
 framed there under.
 
 d) The accrual system of accounting is followed.
 
 e) Investments:
 
 Investments are valued at Cost and are treated as Long Term
 Investments.