1.  Recognition of Income & Expenditure: Income and expenditure are
 recognized on accrual basis.
 
 2.  Gratuity: The Company is a participant of group gratuity scheme
 with Life Insurance Corporation of India and the required premium under
 the scheme is paid.
 
 3.  As there is no reasonable certainty that sufficient future taxable
 income will be available against which deferred tax assets can be
 realized, no deferred tax assets have been recognized in the accounts
 in respect of brought forward losses eligible as per Income Tax Act.
 
 4.  Depreciation: Depreciation is provided on straight-line method at
 rates specified in Schedule XIV to the Companies Act, 1956.
 Depreciation on addition/deductions is calculated pro-rata from/to the
 month of addition/ deduction.
 
 5.  Fixed Assets: Fixed assets are stated at cost and/or at
 revaluation.