(a) Basis of Preparation :
 
 The Statement of accounts has been prepared under the historical
 convention using the accrual method of accounting.
 
 (b) Tangible Assets:
 
 Tangible Assets are stated at cost of acquision or construction (net of
 Convert Credit / Value Added Tax). All costs relating to the
 acquisition and installation of tangible assets are capitalised and
 include borrowing costs directly attributable to acquisition of
 tangible assets upto the date the asset is put to use.
 
 (c) Depreciation:
 
 The Company has provided depreciation as per income Tax Rules 1962. Had
 it been provided as per Schedule XIV of the Companies Act 1956, the
 Depreciation would have been less by Rs.44,684/- (cumulative
 Rs.85401/-) and correspondingly profit would have been more to the same
 extent for the year.
 
 (d) Provisions:
 
 i.  No provisions for income tax has been made in view of Loss during
 the year.
 
 II.  As per the opinion of the management, no liability arises for
 Professional Tax and accordingly no provision has been made for
 Professional Tax.