i. Accounting Convention:
 
 The accounts have been prepared under historical cost convention and on
 going concern basis and comply with the accounting standards referred
 to in section 211(3C) of the Companies Act. 1956.
 
 ii) Revenue Recognition:
 
 All the expenses and income to the extent payable or receivable
 respectively are accounted on accrual basis.
 
 iii) Fixed Assets:
 
 Fixed Assets are stated at cost, inclusive of incidental expenses, less
 accumulated depreciation.
 
 iv)Depreciation:
 
 Depreciation on fixed assets is provided on the Straight Line Method at
 the rates and in the manner prescribed in Schedule XIV to the Companies
 Act, 1956. During the year depreciation of fixed Assets has not been
 provided because of no manufacturing activity was carried out by the
 Company.
 
 v) Stock of Raw material and Finished Goods are valued at lower of cost
 or market value.
 
 vi) Miscellaneous expenditure: 1/10 of Preliminary expenses,
 Preoperative expenses and Public Issue expenses are written off during
 the year.
 
 vii) Provision has not been made for Gratuity as no employee has put in
 the qualifying period of service for entitlement of this benefit. 
 
 vii) S. S. I Creditors
 
 Pursuant to the amendment to Schedule VI of the Companies Act, 1956, in
 March 1999 regarding Disclosure of amounts due to the creditors which
 are Small Scale Industries S. S. I.) the Company has initiated the
 process of collecting the information from creditors regarding their S.
 S. I. status which is still in progress. Therefore, the compilation of
 break-up of Sundry creditors between the S. S. I. and other could not
 be made.