(i) These accounts are prepared on the historical cost basis and on the
accounting principles of going concern.
(ii) Accounting policies not specifically referred to otherwise or
consistent and in consonance with generally accepted accounting
The Company follows the mercantile system of Accounting and recognizes
income and expenditure on accrual basis.
Investments are stated at cost i.e. cost of acquisition,, inclusive of
expenses incidental to acquisition wherever applicable.
Fixed assets are stated at cost. Cost of acquisition of fixed assets is
inclusive of freight, duties, taxes and incidental expenses thereto.
Depreciation and Amortization:
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
Preliminary Expenses are amortized over the period of 5 years.
The current charge for income tax is calculated in accordance wide me
relevant tax regulations applicable to die company. Deferred tax asset
and liabity is recognized for future tax consequences attributable to
the liming difference that result between the profit offered for income
tax and the profit as per die financial statements. Deferred tax asset
and liability are measured as per the tax rates/laws teat have been
enacted or substantively enacted by the Balance Sheet date.
The company has not made any provision for gratuity to its employees/
because no employee has put in qualifying period of service for
enticement of ties benefit
Earnings per Share:
The earning considered in ascertaining the company''s earnings per share
comprises net profit after tax. The number of shares used in computing
bask earning per share is the weighted average number of shares
outstanding during the year as per AS - 20.