A. SYSTEM OF ACCOUNTING:
 
 The company follows the mercantile system of accounting and recognises
 income and expenditure on the accrual basis.
 
 B. SALES & PURCHANSES:
 
 Sales & Purchases are recognised at net of returns.
 
 C. FIXED ASSETS:
 
 Fixed assets are carried at original cost including other incidental
 expenses. 
 
 D. DEPRECIATION:
 
 Depreciation on Fixed Assets has been calculated on written down value
 method at the rates and in the manner prescribed in schedule XIV to the
 companies Act.
 
 E. INVESTMENTS;
 
 i) Long Term investments of the company are stated at their cost of
 acquisition, However long term investments acquired upto 31st March,
 1996 were revalued at the estimated realisable value as on 31st March,
 1996 and are stated at the same value on the Balance Sheet date. The
 difference on account of such revaluation had been taken to capital
 Reserve account. Necessary adjustments are made in the capital Reserve
 account whenever any of the revalued investments are sold.
 
 ii) Provision for diminution in the value of long term investments is
 made in case such a decline is other than temporary in the opinion of
 the management.
 
 F. TAXATION:
 
 i) Current tax has been determined and provided as the amount of tax
 payable in respect of taxable income for the year.
 
 ii) Deferred tax has been recognised, subject to the consideration of
 prudence, on timing differences, being the difference between taxable
 income and accounting income that originate in one period and are
 capable of reversal in one or more subsequent periods.