A) Accounting Convention:
 
 The financial statements are prepared under the historical cost
 convention on an accrual basis of accounting and in accordance with the
 standards on accounting issued by the Institute of Chartered Accountants
 of India and referred to in section 211(3C) of the Companies Act,1956.
 
 B) Fixed Assets:
 
 Fixed Assets are stated at historical cost.  Historical cost is
 inclusive of pre-operative expenses, installation cost, duties and taxes
 and other incidental expenses incurred towards acquisition and
 installation of Fixed Assets reduced by CENVAT of excise duty
 available.
 
 C) Depreciation:
 
 i) The company follows the written down value method of depreciation.
 
 ii)The rates of depreciation charged on all fixed assets are in
 accordance with the notification dated 16th December,1993 issued under
 Companies Act,1956
 
 iii) On assets sold, discarded etc. during the year depreciation is not
 provided during the year of sale/discarded.
 
 D) Investments: Investments are stated at cost of acquisition
 
 E) Deferred Tax Liability: The Deferred tax charge or credit and the
 corresponding deferred tax liability or asset are recognized using the
 tax rates have been enacted or substantively enacted by the balance
 sheet date. The company recognized the deferred tax liability on date
 of balance sheet as per Accounting Standards 22 issued by the Institute
 of Chartered accountants of India.
 
 F) Contingencies and Events Occurring After the Date Of Balance Sheet:
 
 i) Accounting for contingencies(gains and losses) arising out of
 contractual obligation are made only on the basis of mutual acceptance.
 
 ii) Material events occurring after the date of balance sheet are
 considered up to the date of adoption of the Accounts.
 
 G) Gratuity:
 
 Provision for gratuity is made on accrual basis for one employee
 presently working with the company.
 
 H) Leave Encashment:
  
 There is only one employee. As per terms of appointment there is no
 entitlement of Leave encashment.
  
 I) Other Accounting Policies:
 
 i) These are consistent with generally accepted accounting practices.
 
 ii) The outstanding balance of Debtors, Creditors, Deposits and advance
 are subject to confirmation.
 
 iii) In the opinion of the Board and to the best of their knowledge and
 belief the value on realization on current assets, loans and advances in
 the ordinary course of business is not less than the amount at which
 they are stated in the Balance Sheet.