1. Basis of preparation of financial statements
The company follows mercantile system of accounting and recognises
Income and Expenditure,.on accrual basis. The accounts are prepared on
historical cost basis and as a going concern, in accordance with
normally accepted accounting principles and the provisions of the
Companies Act, 1956 as followed consistently by the company.
II. Fixed Assets and Depreciation
a) The fixed assets are stated at original cost. No revaluation has
been made in any fixed asset.
b) Depreciation is charged on Straight Line Method applying rates as
per Schedule XIV of The Companies Act, 1956.
Investments are stated at cost.
Inventory of Securities is stated at cost.
V. Preliminary and Public Issue Expenses
Preliminary and Public Issue Expenses are amortised and charged to
Profit and Loss Account to the extent of 1/10th of 2.5% of Capital