A.  BASIS OF ACCOUNTING:-
 
 Financial statement is prepared under the historical cost conversion.
 The company follows mercantile systems of accounting and recognized
 income & expenditure on accrual basis except in case of significant
 uncertainties relating to income.
 
 B.  REVENUE RECOGNITION :-
 
 Sales are recognized on completion of sale of goods and are recorded
 net of vat.
 
 C.  FIXED ASSETS :-
 
 Fixed assets are stated at cost. Cost of acquisition in inclusive of
 freight, duties, taxes and other directly attributable cost incurred to
 bring the assets to their working condition for intended use. During
 the year Company has disposed off Fixed Assets held by the co.
 
 D.  DEPRECIATION & AMORTIZATION:-
 
 i) DEPRECIATION:-
 
 Depreciation is provided up to the date of sold on Written Down Value
 Method on fixed Assets at the rate specified in Schedule XIV to the
 companies Act, 1956.
 
 ii) AMORTIZATION:-
 
 No Amortization of preliminary or preoperative expenses as there are no
 balance in these Accounts.
 
 E.  INVESTMENT:- Investment are stated at cost.
 
 F.  INVENTORIES :-
 
 Inventories of shares & securities are valued at cost.
 
 G.  RETIREMENT BENEFITS :-
 
 Liabilities in respects of Gratuity & other retirement benefits is not
 provided in the Books of Account.
 
 H.  CONVERSION OF TRANSACTION IN FOREIGN CURRENCY:- No Foreign currency
 transaction done during the year.
 
 I.  BORROWING COST:-
 
 No Term Loan , Secured or unsecured loan taken for expansion and
 addition of Fixed Assets J. DIVIDEND :-
 
 Dividend income is recognized when the right to receive the same is
 established. During the year there is no receipt of Dividend income.
 
 K. INTEREST:-
 
 During the year company has provided interest '' 2,03,69,965.51 i.e.
 difference of excess liabilities raised for amount payable on OTS
 Scheme with Charotar Nagrik Sahkari Bank Ltd. After adjusting FD and FD
 Interest accured there on.
 
 L. TAX PROVISION:-
 
 As company has incurred loss during the year. Hence no tax provision is
 made. Due to loss in current year no MAT provision is required to be
 made by the company. Further in view of loss carry forward of the
 previous year no deferred tax provision is made by the company.