1.  System of Accounting:
 
 The financial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the
 historical cost convention except where impairment is made on the
 accrual basis. GAAP comprises mandatory accounting standards as
 specified in the Companies (Accounting Standards) Rules, 2006 and
 guidelines issued by the Securities and Exchange Board of India.
 Accounting policies have been consistently applied except where a newly
 issued accounting standard is initially adopted or a revision to an
 existing accounting standard requires a change in the accounting policy
 hitherto in use. Management evaluates all recently issued or revised
 accounting standards on an on-going basis
 
 2 Presentation and disclosure of financial Statement
 
 During the year ended 31st March, 2012, the Revised Schedule VI under
 the Companies Act, 1956, has become applicable to the company, for the
 preparation and presentation of its financial statements. The adoption
 of Revised Schedule VI does not impact recognition and measurement
 principles followed for preparation of financial statements. However,
 it has significant impact on presentation and disclosures made in the
 financial statements. The company has also reclassified the previous
 year figures in accordance with the requirements applicable in the
 current year.
 
 3.  Use of Estimates:
 
 The presentation 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 result and estimates are recognised in the period in
 which the results are known/ materialised.
 
 4.  Revenue Recognition:
 
 Trading revenues and other revenues are recognized on the basis of
 actual sales.
 
 Interest on deployment of funds is recognized on accrual basis.
 
 5.  Cash and Cash Equivalent:
 
 Cash and cash equivalents for the purpose of Cash Flow Statement
 comprise cash at bank, in hand (including cheques in hand) and short
 term investment with an original maturity of three months or less.
 
 6.  Investments:
 
 Investments in Subsidiary Company is long term and are valued at cost.
 The dividends if any declared by such subsidiaries are recognized as
 income. Provision is made to recognise any diminution other then
 temporary in the value of such investments. Current investments are
 carried at lower of cost or fair value.
 
 7.  Borrowing Cost:
 
 Interest accrued on loan for acquiring assets is capitalised till the
 date the assets are put to use.
 
 8.  Provision for Current and Deferred Tax.
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of the Income Tax Act, 1961.
 
 Deferred tax resulting from  timing difference  between book and
 taxable profit is accounted for using the tax rates and laws that have
 been enacted or substantively enacted as on the Balance Sheet date. The
 deferred tax assets is recognised and carried forward only to the
 extent that there is a reasonable certainty that the asset will be
 realised in future.
 
 9.  Earnings per Share
 
 In determining earnings per share, the company considers the net profit
 after tax and includes the post-tax effect of any extra-ordinary items.
 The number of shares used in computing basic earnings per share is the
 weighted average number of shares outstanding during the period. The
 number of shares used in computing diluted earnings per share comprises
 the weighted average shares considered for deriving basic earnings per
 share and also the weighted average number of equity shares that could
 have been issued on the conversion of all dilutive potential equity
 shares.
 
 10.  Impairment of Assets:
 
 At the end of each accounting period, the Company determines whether a
 provision should be made for impairment loss on fixed assets by
 considering the indications that an impairment loss may have occurred
 in accordance with AS -28 on Impairment of Assets issued by the
 ICAI. An impairment, loss is charged to the Profit and Loss account in
 the period in which, as asset an asset is identified as impaired, when
 the carrying value of the asset exceeds its recoverable value. The
 impairment loss recognised in the prior accounting periods is reversed
 if there has been a change in the estimate of recoverable amount.
 
 11.  Contingencies/Provisions:
 
 A provision is recognised when an enterprise has a present obligation
 as a result of past event; it is probable that an outflow of resources
 embodying economic benefit will be required to settle the obligation,
 in respect of which a reliable estimate can be made. Provisions are not
 discounted to its present value and are determined based on best
 estimate required to settle the obligation at the Balance Sheet date.
 These are reviewed at each Balance Sheet date and adjusted to reflect
 the current best estimates. A contingent liability is disclosed, unless
 the possibility of an outflow of resources embodying the economic
 benefit is remote.