General :
 
 (1) These accounts are prepared on the historical cost basis and on the
 accounting principles of a going concern.
 
 (2) 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.
 
 Fixed Assets :
 
 (i) Fixed assets are stated at cost less accumulated depreciation. Cost
 of acquisition of fixed assets is nclusive of freight, duties, taxes
 and incidental expenses theretof.
 
 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.
 
 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 companys earning per share
 comprises 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.
 
 Gratutity :
 
 No Provision for has been made as no employee has put in qualifying
 period of service for entitlement of this benefit.