1. Significant Acounting Policies

1. Basis of Preparation of Financial Statements

1. The Financial Statements have been prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 are followed consistently by the Company.

2. Provision of Payment of Gratuity Act, are not applicable to the company for the year under review.

2. Fixed Assets
   
   Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses upto the date the asset are put to use.

3. All direct and indirect expenses upto 19.12.2000 i.e. the day before the project has started functioning has been capitalised with Cost of Portal & Ecommerce Site. Any Expenditure thereafter, has been charged to respective heads.

4. Depreciation
   
   Depreciation on Fixed Assets is provided on Written Down Value method at the rates specified in Schedule XIV of the Companies Act, 1956 (as amended) on pro- rata basis. Depreciation on Cost of Portal & Ecommerce Site has been provided from 20.12.2000 i.e. the day on which Portal and Ecommerce site has started its commercial function.

5. Investment
   
   Investment are started at cost.

6. Pre-Operative Expenditure
   
   Pre-operative Expenditure up to 19.12.2000 has been capitalised with Cost of Portal & Ecommerce Site.

7. Brand Building Expenditure
   
   Brand Building Expenditure, being the expenditure in the nature of Deferred revenue Expenditure has been apportioned 1/5th during the year.

8. Preliminary Expenditure & Public Issue Expenses
   
   Preliminary Expenditure & Public Issue Expenses has been apportioned 1/5th during the year.

2. No Employees of the Company is in receipt of remuneration in excess of the amount specified under section 217(2A) of the Companies Act, 1956.

3. Earning & Expenditure In Foreign Exchange
   
   Expenditure in foreign currency has been done in connection with foreign travel and such expenditure is within the limit sanctioned by the RBI

4. Previous Year figure has been given, wherever required.

5. Contingent liabilities
   
   Contingent liabilities, if any, has been disclosed by way of Notes to the Accounts.

6. Additional Information pursuant to the provisions of Part II, Schedule VI to the Companies Act, 1956 are not applicable.

Signature to Schedules 1-13