Basis of Preparation of Financial Statements
 
 The accounts have been prepared on a going concern basis according to
 the historical cost convention according to the accrual system of
 accounting materially comply with the mandatory accounting statements
 and standards issued by the Institute of Chartered Accountants of India
 and the relevant presentational requirements of the Companies Act,
 1956. The significant accounting policies followed by the company are
 as follows: 
 
 a Use of Estimates
 
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual results and estimates are recognised in the period
 in which the result are known / materialised.  
 
 b Revenue Recognition
 
 Income is being accounted for on accrual basis 
 
 c Fixed Assets and Depreciation
 
 i) Fixed Assets are stated at cost, including freight, installation,
 duties and taxes, finance charges and other incidental expenses
 incurred during construction or installation to bring the assets to
 their state of intended use.
 
 ii) Depreciation is provided on the Straight Line Method at the rates
 prescribed by Schedule XIV of the Companies Act, 1956.
 
 iii) In respect of revalued assets, the Depreciation attributable to
 the amount added on revaluation, is adjusted against the Revaluation
 Reserve.
 
 d Valuation of Investment
 
 Investments are valued at acquisition cost Provision is made for
 diminution in the value of investment which is perceived to be of
 permanent nature. 
 
 e Valuation of Stock
 
 Stocks of quoted shares / debentures and other securities are valued at
 cost or market price whichever is less, by comparing each scrip with
 its market price. Market price of each scrip is determined on the basis
 of the closing price of the scrip prevailing at the principal stock
 exchange where the same is traded.Stock of Unquoted shares & debentures
 are valued at cost.  
 
 f Method of Accounting
 
 Mercantile method of accounting is employed.  
 
 g Taxation
 
 Provision for Income Tax for the current period is made if applicable
 on the basis of estimated tax liability as per the applicable
 provisions of the Income Tax Act, 1961.
 
 h Gratuity is being provided on cash basis.