Basic of Accounting
 
 The financial statements have been prepared on the historical cost
 convention based on the accrual concept and in accordance and in
 accordance with applicable accounting standards referred to in
 subsection 3c of section 211 of the companies Act, 1956 and normally
 accepted accounting principles. The accounting is on the basis of the
 going concern concept.
 
 Fixed Assets
 
 Fixed assets are stated at cost of acquisition or construction. They
 are stated at historical cost less accumulated depreciation.
 
 Depreciation
 
 Depreciation on fixed assets is provided on Straight line basis in
 accordance with provisions of the companies Act, 1956 at the rates and
 in the manner specified in schedule XIV of this Act.
 
 Investments
 
 Current investments are carried at lower of cost or fair value. Long
 term investments are carried at cost.  However when there is a decline
 other than temporary, the carrying amount is reduced to recognize the
 decline.
 
 Inventories
 
 Items of inventory are valued at lower of cost and net realizable
 value.
 
 Revenue recognition
 
 Income from traded goods is recognized on accrual basis.
 
 Amortization
 
 Miscellaneous Expenditure is being amortized proportionately over a
 period of the ten years.
 
 Borrowing costs
 
 Borrowing costs that are attributable to the acquisition, construction
 or production of qualifying assets are capitalized as part of the cost
 of such assets. A qualifying assets is one that necessarily takes a
 substantial period of time to get ready for its intended use. All other
 borrowing costs are changed to revenue.
 
 Related Party Transaction
 
 Company has not entered into any such transactions.
 
 Taxes on income
 
 Tax expense comprises both current and deferred tax at the applicable
 enacted / substantially enacted rates.  Current tax represents the
 amount of income tax payable / recoverable in respect of the taxable
 income / loss for reporting period. Deferred taxes represents the
 effect of timing difference between taxable income and accounting
 income for the reporting period and are capable of reversal in one or
 more subsequent periods.
 
 Earning per share
 
 The Implementation of Accounting Standard (as-20) Earning Per
 Share Issued by the Institute of Chartered Accountants of India.
 
 Contingent liabilities
 
 Contingent liabilities, if any are disclosed in the notes accounts.
 Provision is made in the accounts for the contingencies which are
 likely to materialize into liabilities after the year end, till the
 approval of accounts of the Board of Directors and which have a
 material effect on the position stated in the Balance Sheet.