1.1 BASIS OF ACCOUNTING
 
 The financial statements are prepared under the historical cost
 convention, in accordance with the generally accepted accounting
 principles in India and the provisions of the Companies Act, 1956 as
 adopted consistently by the Company.
 
 1.2 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 results are known/materialized.
 
 1.3 RECOGNITION OF INCOME & EXPENDITURE
 
 The Company follows mercantile system of accounting and recognises
 significant items of income and expenditure on accrual basis.
 
 1.4 FIXED ASSETS
 
 Fixed assets are stated at cost less accumulated depreciation .
 
 1.5 DEPRECIATION:-
 
 Depreciation on Fixed Assets was charged to the Profit & Loss Account
 in the manner prescribed in Schedule XIV read with Section 350 of the
 Companies Act, 1956 on the w.d.v. of fixed assets.
 
 1.6 IMPAIRMENT OF ASSETS
 
 An assets is treated as impaired when the carrying cost of assets
 exceeds its recoverable value. An impairment loss is charged to the
 Profit and Loss Account in the year in which an asset is identified as
 impaired. The impairment loss recognised in prior accounting periods is
 reversed if there has been a change in the estimate of recoverable
 amount.
 
 1.7 VALUATION OF INVESTMENTS
 
 Long term investments are stated at cost. Provision for diminution in
 the value of long-term investments is made only if such a decline is
 other than temporary.
 
 1.8 ACCOUNITNG FOR TAXES ON INCOME:
 
 Provision for currant tax is made on the basis of the amount of tax
 payable on taxable income for the year in accordance with the
 Income-tax Act, 1961. Deferred tax resulting from timing differences
 between book and taxable profit wherever material, is accounted for
 using the tax rates and laws that have been enacted or substantially
 enacted as on balance sheet date. Deferred tax assets, subject to
 consideration of prudence, are recognized and carried forward only to
 the extent that there is reasonable certainty that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realized.
 
 1.9 PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 notes. Contingent Assets are neither recognised nor disclosed in the
 financial statements.