(1) Accounting Convention :
 
 The accounts are prepared on accrual basis under the historical cost
 convention in accordance with the applicable accounting standards and
 relevant provisions of the Companies Act, 1956.
 
 (2) Fixed Assets :
 
 All fixed assets are stated at cost less depreciation.
 
 (3) Depreciation :
 
 During the year no depreciation is provided as there is no
 manufacturing activity.
 
 (4) Sales :
 
 During the year there is Trading Sales and no Manufacturing Sales.
 
 (5) Expenses and Income :
 
 All expenses and incomes are accounted for on mercantile basis.
 
 (6) Investments :
 
 Investments are valued at cost.
 
 (7) Inventories :
 
 Inventories are valued at cost.
 
 Finished Goods are valued at lower cost or realizable value.