(A) Basis of Preparation of financial statement
 
 The Company maintains its accounts on accrual basis following the
 historical cost convention in accordance with generally accepted
 accounting principle in compliance with accounting standards and other
 requirements of the Companies Act, 1956.
 
 (B) Taxation Policy
 
 (i) Provision for Income tax is made on the basis of the estimated
 taxable income for the current accounting period in accordance with the
 Income-tax Act, 1961.
 
 (ii) The deferred tax for timing differences between the book profits
 and tax profits for the year is accounted for using the tax rates and
 laws that have been enacted or substantially enacted as of the Balance
 Sheet date. Deferred tax asset arising from timing differences are
 recognised to the extent there is a virtual certainty that this would
 be realised in future and are reviewed for the appropriateness of their
 respective carrying values at each Balance Sheet date.
 
 (C) Impairment of Assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the management estimates the recoverable amount of the asset.
 If such recoverable amount of the asset or the recoverable amount of
 the cash generating unit to which the assets belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognized in the statement of profit and loss. If at the balance sheet
 date there is an indication that if a previously assessed impairment
 loss no longer exists, the recoverable amount is reassessed, and the
 asset is reflected at the recoverable amount subject to a maximum of
 depreciated historical cost.
 
 (D) Provision & Contingent Liability
 
 The Company creates a provision when there is a present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. Where there is a possible obligation
 or a present obligation in respect of which the likelihood of outflow
 of resources is remote, no provision or disclosure is made.