a) Basis of Accounting :
 
 The financial statements have been prepared under historical cost
 convention in conformity in all material aspects with the generally
 accepted accounting principles in India and the requirements of the
 Companies Act, 1956.
 
 b) Revenue Recognition :
 
 The Accounts are prepared on accrual basis.
 
 c) Fixed Assets :
 
 Fixed assets are stated at cost of acquisition or construction, less
 accumulated depreciation.
 
 d) Depreciation / Amortisation :
 
 I.  Tangible Assets :
 
 Depreciation has been provided on written down value basis at the rates
 prescribed in Schedule XTV to the Companies Act, 1956.
 
 II.  Intangible Assets :
 
 Intangible Assets are amortised over their economic useful lives as
 estimated by the management as given hereunder pro-rata from the month
 when the asset is available for use.
 
 Computer Software - Three (3) years.
 
 e) Investments :
 
 Investments are capitalized at cost and are classified as Non-current.
 Adjustment to the carrying amount of quoted investments is made in the
 accounts (only if, in the opinion of the management such decline is
 other than temporary) in the line with the Mandatory Accounting
 Standard for Accounting of Investments (AS-13) issued by the Institute
 of Chartered Accountants of India and is recognised through the
 Adjustment to the carrying amount of Investment Account.
 
 f) Employee Benefits :
 
 1) Short Term Employee Benefits :
 
 All employee benefits payable wholly within twelve months of rendering
 the services are classified as short term employee benefits. Benefits
 such as salaries, performance incentives, etc. are recognized at actual
 amounts due in the period in which the employee renders the related
 service.
 
 2) Post-employment Plans :
 
 The numbers of employees are less than fifty, hence for the purpose of
 AS-15 the Company is classified as Group B Company accordingly:
 
 a) Defined Contribution Plan :
 
 Payments made to Defined Contribution Plans and other similar Schemes
 are charged to expense as and when paid.
 
 b) Defined Benefit Plans :
 
 In terms of arrangement and understanding between the management and
 the employees, no benefits accrue to the employee for any past service
 rendered by them. The Company does not incur any obligation towards
 such past service rendered on year to year basis. However if any sum is
 determined to be payable to any employee the same shall be calculated
 on rational basis and recorded in the year of payment.
 
 3) Leave Encashment :
 
 In terms of arrangement and understanding between the management and
 the employees not entitled to accumulated leave and claim encashment
 thereof on Superannuation or Resignation. However if any sum is
 determined to be payable to any employee the same shall be calculated
 on rational basis and recorded in the year of payment.
 
 g) Inventories :
 
 Stock-in-trade of unquoted equity shares is valued at cost or break up
 value whichever is lower.
 
 h) Sundry Debtors :
 
 Specific debts identified as irrecoverable are written off.
 
 i) Taxation :
 
 1) Provision for tax is made on the basis of the estimated taxable
 income as per the provisions of the Income Tax Act, 1961 and the
 relevant Finance Act, after taking into consideration judicial
 pronouncements and opinions of the Company''s tax advisors.
 
 2) Deferred tax is recognised, subject to the consideration of
 prudence, on timing differences, being the difference between taxable
 incomes and accounting income that originate in one period and are
 capable of reversal in one or more subsequent periods.
 
 j) Impairment of Assets :
 
 Where carrying amount of fixed assets exceeds the recoverable amount on
 the reporting date, the carrying amount is reduced to the recoverable
 amount. The recoverable amount is measured as the higher of the net
 selling price and the value in use determined by the present value of
 estimated future cash flow.
 
 k) Provisions and Contingencies :
 
 A provision is recognized when there is a present obligation as a
 result of a past event and it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which a
 reliable estimate can be made. These are reviewed at each balance sheet
 date and adjusted to reflect the current best estimates.
 
 A disclosure for a contingent liability is made when there is a
 possible or present obligation that may, but probably will not, require
 an outflow of resources. When there is a possible obligation in respect
 of which the likelihood of outflow of resources is remote, no provision
 or disclosure is made.
 
 Contingent Assets are neither recognized nor disclosed in the financial
 statements.