A) BASIC OF ACCOUNTING
 
 The Company follows the Mercantile System of accounting,
 
 B) INVESTMENTS
 
 Investment are valued at cost.
 
 C) CONTINGENT LIABILITIES
 
 Contingent liability for Income ¦ Tax for assessment year 1983-84 for
 which the Company ha preferred the .Appeal to CIT (A), has not provided
 in book of account and it will be accounted for as when crystallized,