i have defined
#define key0 0x35
"book to which i had reffered did not carry detail about this." In that case, it does not qualify as a "good" book on 'C' - this is fundamental stuff. "Is it neccessary that header file created by us should be kept in "inc" folder." No. As with any application trying to find a file, there are certain default locations where the compiler will look, and a certain order in which it will try the alternatives - or you can explicitly state the file's location by includinging a full or relative path. You need to read the Compiler Manual for details. For C51, see the INCDIR directive.