1.  METHOD OF ACCOUNTING
 
 The Company prepares financial statements under the historical cost
 convention and follows the mercantile system of accounting except where
 stated otherwise.
 
 2.  USE OF ESTIMATES
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles requires estimates and assumptions to be
 made that affect the reported amounts of assets and liabilities on the
 date of financial statements and the reported amounts of revenues and
 expenses during the reported period.  Differences between actual
 results and estimates are recognized in the period in which the results
 are materialized.
 
 3.  FIXED ASSETS AND DEPRECIATION
 
 Fixed assets are stated at their historical cost less accumulated
 depreciation.  Cost includes interest on specific borrowings to finance
 construction / acquisition of fixed assets, upto completion /
 commissioning.  Depreciation on Fixed Assets is provided on the Written
 Down Value Method (WDV) at the rates and in the manner laid down in
 Schedule XIV to the Companies Act, 1956.  Depreciation on Leasehold
 Property (Workshop) is provided @10% on the Written Down Value Method.
 
 4.  INVESTMENTS
 
 Investments are considered long term in nature and carried at
 cost.Diminution in value of investments, other than temporary in
 nature, is provided for. Dividends are accounted for when received.
 
 5.  INVENTORIES
 
 Finished Goods are valued at lower of cost or net realisable value
 after providing for cost of obsolescence, if any. The
 First-In-First-Out (FIFO) method is used for the valuation of Finished
 Goods.  (Refer Note 7, Schedule K)
 
 6.  DEBTORS
 
 Sundry Debtors identified as irrecoverable or doubtful are written off
 or provided for respectively.
 
 7.  SALES
 
 Sales comprises sale of Spare Parts, Petrol, Diesel, Oil and Grease.
 
 Sale of Petrol, Diesel, Oil and Grease are as per the prices declared
 by Hindustan Petroleum Corporation Limited / Bharat Petroleum
 Corporation Limited or the Principals, as the case may be.
 
 Sales are stated exclusive net of Value Added Tax and net of discounts,
 rebates and settlements.
 
 8.  RETAIL BUSINESS INCOME
 
 As per the Business Retailing Arrangement with Trent Limited (Trent),
 the Company accrues a minimum guarantee fee of Rs.2,00,00,000 per annum
 receivable half-yearly or an amount calculated as a percentage of sale
 of Trents merchandise (as certified by the auditors of Trent),
 whichever is higher. The Retailing Arrangement has come to end on 28th
 February, 2009. With requests from Trent Limited the same has been
 extended from time to time.
 
 9.  RETIREMENT BENEFITS
 
 The Companys contribution to the Provident Fund and Superannuation
 Fund are charged to revenue every year.
 
 Gratuity liability is charged to revenue as per the rules of the
 Company.
 
 Pension is paid as per agreed terms to employees who have sought
 voluntary retirement and is charged to revenue every year.
 
 Leave Encashment to eligible employees is provided based on the
 Companys own estimates, as the number of employees do not warrant an
 actuarial valuation.
 
 Upto 31st March, 2002, compensation to employees under Voluntary
 Retirement Scheme (VRS) and ex -gratia payments to employees who had
 retired under VRS were charged to revenue in the year of incurrence.
 
 Subseqent thereto, the compensation paid to employees under VRS and ex
 - gratia payments made to employees who have retired under VRS are
 treated as deferred revenue expenditure and amortised over a period of
 five years. (Refer Note14(a) and 14(b), Schedule K)
 
 10.  SEGMENT REPORTING
 
 The accounting policies adopted for segment reporting are in line with
 the accounting polices of the Company.  Segments are identified having
 regard to the dominant source and nature of risks and returns and
 internal organisation and management structure.
 
 Revenue and expenses have been identified to the segments based on
 their relationship to the business activity of the segment.
 
 Segment assets and liabilities include those directly identifiable with
 the respective segments.
 
 11.  TAXATION
 
 Income-tax expense comprises current tax and deferred tax charge or
 credit. Provision for current tax is made on the assessable income at
 the tax rate applicable to the relevant assessment year.
 
 The deferred tax asset and deferred tax liability is calculated by
 applying tax rate and tax laws that have been enacted or substantially
 enacted by the Balance Sheet date. Deferred tax assets arising mainly
 on account of brought forward losses and unabsorbed depreciation under
 tax laws, are recognized, only if there is a virtual certainty of its
 realization, supported by convincing evidence. Deferred tax assets on
 account of other timing differences are recognized only to the extent
 there is a reasonable certainty of its realization. At each Balance
 Sheet date, the carrying amount of deferred tax assets are reviewed to
 reassure realization.
 
 12.  CONTINGENT LIABILITIES
 
 All known liabilities are provided for in the accounts except
 liabilities of a contingent nature, which have been disclosed in the
 notes to the accounts.
 
 Supplementary Information :
 
 1.  Cash and Cash Equivalents represent cash (including cheques on hand
 and cheques in transit) and bank balances only.
 
 2.  Previous years figures have been reclassified/recast to conform
 with the current years presentation.