(a) Accounting convention:
 
 The financial statements are prepared on the basis of historical cost
 convention, and on the accounting principle of a going concern.
 
 The Company follows mercantile system of accounting and recognizes
 income and expenditure on accrual basis except those with significant
 uncertainties.
 
 The financial statements have been prepared in compliance with all
 material aspects of the Accounting Standards prescribed in the
 Companies (Accounting Standards) Rules, 2006 issued by the Central
 Government, and in accordance with the relevant provisions of the
 Companies Act, 1956.
 
 (b) Use of estimates:
 
 The preparation of financial statements in conformity with generally
 accepted accounting principles (GAAP) requires management to make
 estimates and assumptions that affects the reported amounts of assets
 and liabilities and the disclosures of contingent liabilities on the
 date of financial statements and reported amounts of revenue and
 expenses for that year. Although these estimates are based upon
 management''s best knowledge of current events and actions, actual
 results could differ from these estimates.
 
 (c) Investments:
 
 i.  Long term investments are valued at cost less provision, if any for
 diminution in value, which is other than temporary.
 
 ii.  Current investments are carried at the lower of the cost and fair
 value.
 
 (d) Revenue recognition:
 
 i.  Revenue in respect of sale of goods is recognized when significant
 risks and rewards in respect of ownership of the products are
 transferred to the customer.
 
 ii.  Dividend income is accounted for when the right to receive
 dividend is established.
 
 iii. Interest income is accounted for on time basis and when the
 realization of amount is certain.
 
 (e) Accounting for taxes on income:
 
 i.  Provision for income tax is made on the basis of the estimated
 taxable income for the accounting year 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 substantively enacted by the balance
 sheet date. Deferred tax assets arising from timing differences are
 recognized to the extent there is a reasonable / virtual certainty that
 these would be realized in future and are reviewed for the
 appropriateness of their respective carrying values at each balance
 sheet date.
 
 (f) Provisions and contingent liabilities:
 
 The Company recognizes 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. Provisions are not discounted to its present value and are
 determined based on best estimate required to settle the obligation at
 the balance sheet date. 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 but the likelihood of
 outflow of resources is remote, no provision or disclosure is made.
 
 (g) Transaction in foreign currencies:
 
 Foreign currency transactions are recorded at the exchange rates
 prevailing on the date of such transactions. Monetary assets and
 liabilities as at the Balance Sheet date are translated at the rates of
 exchange prevailing at the date of the Balance Sheet. Gains and losses
 arising on account of differences in foreign exchange rates on
 settlement/ translation of monetary assets and liabilities are
 recognized in the statement of profit and loss. Non-monetary foreign
 currency items are carried at cost.
 
 (h) 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 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 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.
 
 (i) Earnings per share:
 
 The basic earnings per share (EPS) is computed by dividing the net
 profit/(loss) after tax for the year attributable to equity
 shareholders by the weighted average number of equity shares
 outstanding during the year. For the purpose of calculating diluted
 earnings per share, net profit/(loss) after tax for the year available
 for equity shareholders and the weighted average number of shares
 outstanding during the year are adjusted for the effects of all
 dilutive potential equity shares.