(i) These accounts are prepared oh the historical cost basis and on the
 accounting principles of a going concern.
 
 (ii) Accounting policies not specifically referred to otherwise are
 consistent and in consonance with generally accepted accounting
 principles.
 
 Revenue Recognition :
 
 (i) The Company follows the Mercantile system of Accounting and
 recognises income and expenditure on accrual basis.
 
 (ii) Revenue is not recognised on the grounds of prudence, until
 realised in respect of liquidated damages, delayed payments as recovery
 of the amounts are not certain.
 
 Investments :
 
 Investments are stated at cost i.e. cost of acquisition, inclusive of
 expenses incidental to acquisition wherever applicable.
 
 Fixed Assets :
 
 (i) Fixed assets are stated at cost less accumulated depreciation. Cost
 of acquisition of fixed assets is inclusive of freight, duties, taxes
 and incidental expenses thereto.
 
 Depreciation and Amortisation :
 
 (i) Depreciation is provided on straight line method on pro-rata basis
 and at the rates and manner specified in the Schedule XIV of the
 Companies Act, 1956.
 
 (ii) Preliminary Expenses are amortised over the period of 10 years.
 
 Inventories:
 
 Inventories are valued at cost or market price whichever is lower.
 
 Taxation :
 
 The current charge for income tax is calculated in accordance with the
 relevant tax regulations applicable to the Company. Deferred tax asset
 and liability is recognised for future tax consequences attributable to
 the timing differences that result between the profit offerred for
 income tax and the profit as per the financial statements. Deferred tax
 asset & liability are measured as per the tax rates/laws that have been
 enacted or substantively enacted by the Balance Sheet date.
 
 Earning Per Share:
 
 The earning considered in ascertaining the companies earning per share
 comprise net profit after tax. The number of shares used in computing
 basic earning per share is the weighted average number of shares
 outstanding during the year.
 
 Gratuity :
 
 The company has not made any provision for gratuity to its employees.
 Gratuity payable will be accounted as and when payments are made and as
 such the liability has not beenascertained.