(1) BASIC OF ACCOUNTING:
 
 The Company prepares its Financial Statement under the historical cost
 vonvention in accordance with the generally accepted Accounting
 Principles and the requirements of the Companies Act, 1956
 consistently.
 
 2) INCOME & EXPENDITURE:-
 
 The Company follows mercantile system of Accounting and recognizes
 items of Income and Expenditure on accrual basis.
 
 (3) FIXED ASSETS AND DEPRECIATION
 
 Depreciation on fixed Assets is provided for on WDV method at the rate
 prescribed in schedule XIV to the Companies Act, 1956.
 
 (4) EMPOLYEES RETIREMENT BENEFITS
 
 Provision for gratuity is not required as the Company has not employed
 any new employee during the year.
 
 (5) MISCELLANEOUS EXPENDITURE:-
 
 Preliminary expenses are written off over a period of Ten Year.
 
 (6) INVENTORIES
 
 The inventory has been valued at cost price or market value whichever
 is less.