1.  SYSTEM OF ACCOUNTING:
 
 Company follows accrual system of accounting.
 
 2.  FIXED ASSETS: Fixed Assets are stated at cost of acquisition less
 accumulated depreciation.  Depreciation on all assets is provided on
 WDV method as per rates prescribed in schedule XIV of the Companies
 Act, 1956.
 
 3.  TAXATION : Provisions for taxation comprises of current tax and
 deferred tax charge or release and Fringe Benefit Tax. Deferred tax is
 recognised subject to consideration of prudence on timing difference,
 being difference between taxable and accounting income/expenditure that
 originate in one period and are capable of reversal in one or more
 subsequent period(s). Deferred tax assets arising out of carry forward
 losses and unabsorbed depreciation are not recognised unless there is
 virtual certainty that sufficient future taxable income will be
 available against which such deferred tax assets will be realised.
 
 4.  INVESTMENT :Long term investments are stated at cost. Provision for
 diminution in the value of investments is made only if such a decline
 is other then temporary in the opinion of the management.
 
 5.  INVENTORIES: Inventories are valued at cost or net realisable value
 whichever is lower (determined on weighted/ moving average basis)
 
 6.  FOREIGN CURRENCY TRANSACTION: Recorded on the basis of exchange
 rate prevailing on the date of their occurrence. Monetary foreign
 currency assets and liabilities outstanding at the close of the year
 are revalorised at the exchange rates prevailing on the balance sheet
 date Exchange differences arising on account of fluctuation in the rate
 of exchange is recognised in the profit and loss account.
 
 7.  EMPLOYEE BENEFIT:
 
 a) Short-term employee benefit are recognized as an expense at the
 undiscounted amount in the Profit and Loss Account of the year in which
 the related service is rendered.
 
 b) The Company makes contributions towards Provident Fund to a defined
 contribution retirement benefit plan for qualifying employees. The
 provident fund plan is operated by the Regional Provident fund
 Commissioner. Under the scheme the company is required to contribute a
 specified percentage of payroll cost to the retirement benefit schemes
 to fund the benefits.