a) Accounting Convention: The accompanying financial statements have
been prepared in accordance with the historical cost convention.
b) Fixed Assets: These are stated at cost less Depreciation. Cost
comprises purchase price, import duties, levies and any directly
attributable cost of bringing the assets to its working condition for
the intended use.
c) Depreciation: The Depreciation on fixed assets is provided on
pro-rata basis, from the date the assets have been installed and put to
use on a Straight Line Method at the rates prescribed in Schedule XIV
of the Companies Act, 1956. However, no depreciation has been claimed
during the year under report.
d) Inventories: The company holds inventories in the shape of shares
and securities and the same have been verified by the management. The
valuation of the same has been considered at cost or market value
whichever is lower.
e) Retirement Benefits: Provision for gratuity and leave encashment has
not been made. The same will be dealt with as and when paid. However,
the amount of gratuity liability as on 31-03-2012 comes to Rs. Nil (P.Y.
Rs. Nil) and leave encashment comes to Rs. Nil (P.Y. Rs. Nil)
f) Investments: Long Term Investments (Quoted & Unquoted) are stated at
cost. Provision for appreciation/diminution in the book value of the
investment have not been made since, in the opinion of the management,
the same is temporary in nature.
g) Foreign Currency Transaction: During the year, neither any outgo nor
any inflow of foreign currency has taken place.
h) Prior Period Adjustments, Extra-Ordinary Items and Changes in
Accounting Policies: Prior period adjustments, Extra-Ordinary Items and
changes in accounting policies having material impact on the financial
affairs of the company are disclosed.
i) Contingent Liabilities: No provision has been made in the accounts
for liabilities, which are contingent in nature, but if material, the
same are disclosed by way of Notes to Accounts.