a) Convention
 
 The Accounts are prepared on the accrual basis under the historical
 cost convention in accordance with the provisions of the companies
 Act.1956 and with the Accounting Standard issued by the Institute of
 Chartered Accountants of India.
 
 b) Sales
 
 The company has not made any sales during the year under review.
 
 c) Basic of Accounting
 
 All the income and expenditure items are accounted for on accrual basis
 except stated otherwise.
 
 d) Fixed Assets
 
 Fixed Assets are stated at Cost of acquisition inclusive of inward
 freight, duties & taxes and incidental expenses related to acquisition
 less excise duty and accumulated depreciation (other than ''land'' where
 no depreciation is charged).
 
 e) Depreciation
 
 Depreciation on fixed assets has been provided at the SLM method at
 rates prescribed in Schedule XIV of the Companies Act.1956.
 
 Since the company is not in operations during the year under review, no
 depreciation has been claimed by the company in the books of account.
 
 f) Investments
 
 Investments are classified as Long term Investments sub classified as
 quoted and unquoted investments and valued at cost.
 
 g) Inventories
 
 Inventories are valued as under: i) Raw Material—At cost.  ii) Work in
 Process- At estimated basis
 
 iii) Finished Goods—At realizable value exclusive of excise
 duty(wherever applicable).  iv) Store & Spares, Rags etc. - (At
 estimated basis).
 
 However closing stock of manufactured goods has been valued at
 realizable value excluding excise duty. The opening stock does not
 include the excise duty on manufactured goods since excise duty is not
 paid on such goods during the beginning of the year.