a.  Basis of preparation of financial statements
 
 The financial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on an accrual basis and are in conformity with
 mandatory accounting standards, as prescribed by the Companies
 (Accounting Standards) Rules, 2006, the provisions of the Companies
 Act, 1956 and guidelines issued by the Securities and Exchange Board of
 India (SEBI).
 
 b.  Use of Estimates
 
 The preparation of the financial statements in conformity with GAAP
 requires Management to make estimates and assumptions that affect the
 reported balances of assets and liabilities and disclosure relating to
 contingent liabilities as at the date of the financial statements and
 reported amounts of income and expenses during the period. Examples of
 such estimates include provision for doubtful debts, future obligations
 under employee retirement benefit plans, income taxes and the useful
 lives of fixed assets and intangible assets.  Management believes that
 the estimates used in the preparation of financial statements are
 prudent and reasonable. Future results could differ from these
 estimates.
 
 c.  Fixed Assets and Intangible Assets
 
 Fixed assets and intangible assets are stated at cost of acquisition
 less accumulated depreciation and impairment Cost includes taxes,
 duties, freight and other incidental expense related to acquisition and
 installation.  Expenditure for additional improvements is capitalized.
 When assets are sold or discarded, their cost and accumulated
 depreciation are included in the profit & loss account
 
 d.  Depreciation and Amortization
 
 Depreciation on fixed asset has been provided on the straight-line
 method as per the rates prescribed under schedule XIV of the Companies
 Act, 1956. However assets costing less than Rs. 5,000 each are fully
 depreciated in the year of purchase. For Assets acquired on 31.03.2011,
 depreciation will be provided from next financial year 2011-12.
 
 e.  Foreign exchange transactions
 
 Transactions in foreign currencies are recorded at the prevailing
 exchange rates on the transaction dates.
 
 Realized gains and losses on settlement of foreign currency
 transactions are recognized in the profit and loss account.
 
 Foreign currency monetary assets and liabilities at the year end are
 translated at the year end exchange rates and resultant exchange
 differences are recognised in the profit and loss account.
 
 f.  Inventories
 
 Inventories are valued at cost or net realizable value whichever is
 lower.
 
 g.  Gratuity
 
 The liability for Gratuity has not been provided, since there were no
 eligible employees for Gratuity as at the end of financial year.
 
 h.  Leave Encashment
 
 Payment on account of leave encashment is not accruable at the end of
 the financial year as leave get lapsed on the last day of the fiscal
 year as per company''s circular issued to its employees.
 
 i.  Miscellaneous Expenditure (To the extent written off)
 
 Goodwill on arising on amalgamation being written off over a period
 often years.
 
 Preliminary expenses and capital issue expenses are being written off
 over a period of five and ten years respectively.
 
 J.  Investments
 
 Long-term investments are valued at cost Provision for diminution, If
 any, in the value of investments is made to recognise a decline, other
 than temporary.
 
 k.  Revenue Recognition
 
 Revenue from the sale of goods is recognized upon passage of title to
 the customer, which generally coincides with their delivery. Sales are
 recorded net of trade discounts, rebates, and sales taxes but includes
 excise duty, where applicable.
 
 I.  Income Tax
 
 Deferred tax on timing differences between taxable income and
 accounting income is accounted for, using the tax rates and the tax
 laws enacted or substantially enacted as on the balance sheet date.
 Deferred tax assets on unabsorbed tax losses and unabsorbed tax
 depreciation are recognised only when there is a virtual certainty of
 their realisation. Other deferred tax assets are recognised only when
 there is a reasonable certainty of their realisation.
 
 m. Impairment
 
 The Company reviews the carrying value of tangible and intangible
 assets for any possible impairment at each balance sheet date. An
 impairment loss is recognized when the carrying amount of an asset
 exceeds its recoverable amount In assessing the recoverable amount the
 estimated future cash flows are discounted to their present value at
 appropriate discount rates.
 
 n.  Contingent liabilities
 
 Contingent liabilities are disclosed in respect of possible obligations
 that arise from past events but their existence will be confirmed by
 the occurrence or non -occurrence of one or more uncertain future
 events not whotty within control of the Company. A provision is made
 based on a reliable estimate when it is probable that an outflow of
 resources embodying economic benefits will be required to settle an
 obligation at the year end date. Contingent assets are not recognized
 or disclosed in the financial statements.
 
 0.  Segment Reporting
 
 Segments have been identified having regard to the dominant source and
 nature of risks and returns and the internal organisation and
 management structure. Inter-segment revenue is accounted on the basis
 of market price. Unallocated corporate expenses include revenue and
 expenses which relate to the enterprise as a whole and are not
 attributable to segments.