(a)    Basis of Accounting:
 
 The financial statements are prepared under historical cost convention
 and to comply in all material respect with the notified accounting
 standards by the Companies Accounting standard Rules - 2006 and the
 relevant provision of Companies Act, 1956. Except AS-6 being
 Depreciation Accounting as depreciation has not been provided on all
 the assets except Computer.
 
 (b) Fixed Assets
 
 Fixed Assets are stated at cost, except computer stated at cost less
 accumulated depreciation. The cost of fixed asset comprise of its
 purchase price and any directly attributable cost of bringing the
 assets in an operational condition for its intended use.
 
 (c) Depreciation
 
 Depreciation has not been provided at the rates and in the manner
 prescribed in Schedule XIV of the Companies act, 1956. Depreciation on
 addition or on sale/ disposal of assets is calculated on pro-rata basis
 from the date of such addition or sale/ disposal as the case may be.
 
 However no Depreciation has been provided for the year under review
 except on computers.
 
 (d) Valuation of Inventories
 
 Stock in trade is valued at cost or net realizable value whichever is
 lower. However there is no closing stock at the end of the year.
 
 (e) Investment
 
 Long term investments are stated at cost. Provision of diminution in
 the value of Long term investments is made only if such decline is
 other than temporary in nature in the opinion of the Management.
 
 (f) Revenue Recognition
 
 Sales are recognized when the significant risks and rewards of
 ownership of goods have been passed to the buyer, which coincides with
 dispatch of goods and Execution of contract of distribution rights.
 Purchases are also shown at its purchase/cost of acquisition.
 
 All the income & expenses are accounted on accrual basis except
 liability for leave encashment if any, which is accounted for as and
 when paid.
 
 (g) Retirement/ Post retirement Benefits
 
 The company has not made provision for gratuity and leave encashment as
 prescribed by the Accounting Standard (AS) – 15(Revised) on Employee
 Benefits.  In the opinion of the management, none of the employees are
 eligible for the benefit of gratuity.
 
 (h) Taxation
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the period. Deferred tax is recognized subject to
 the consideration of prudence in respect of deferred tax assets on
 timing differences, being the difference between the taxable incomes
 and accounting income that originate in, one period and are capable of
 reversal in one or more subsequent period.  Deferred tax assets are
 recognized and carried forward only to the extent that there is a
 reasonable certainty that sufficient future taxable income will be
 available against which such deferred tax assets can be realized.
 
 (i) Provisions, Contingent Assets and Contingent Liabilities
 
 A provision involving substantial degree of estimation are recognized
 when there is a present obligation as a result of past event and it is
 probable that there will be on outflow or resources.