a) Basis of Preparation of Financial Statement
 
 The financial statements have been prepared under the historical cost
 convention in accordance with generally accepted Accounting principles.
 GAAP comprises mandatory accounting standards as prescribed by the
 companies (Accounting Standards) Rules, 2006. The company follows
 mercantile system of accounting as required under section 209(3)(b) of
 the Companies Act, 1956.
 
 The company adopts the accrual basis in the preparation of accounts
 except insurance claims and sales tax refunds.
 
 b) Use of estimates
 
 The preparation of financial statements in accordance with the
 generally accepted accounting principles requires the Management to
 make estimates and assumptions that affect the reported amount of
 assets and liabilities as of the date of financial statements and the
 reported amount of expenses of the year. Actual results could differ
 from these estimates.  Any revision to such accounting estimates is
 recognized in the accounting period in which such revision takes place.
 
 b) Fixed Assets
 
 Fixed assets are stated at cost of acquisition or construction, less
 accumulated depreciation/ amortization and impairment loss, if any cost
 includes inward freight, duties, taxes and all incidental expenses
 incurred to bring the assets to their present location and condition.
 
 c) Depreciation
 
 Depreciation has been provided as per SLM as per the rates prescribed
 by Schedule XIV to the companies Act, 1956 on all the fixed assets.
 Depreciations on additions made to fixed assets during the year are
 provided on pro-rata basis from the date of such additions.
 
 
 d) Investments
 
 Long Term Investments are carried at cost less provision recorded to
 recognize any decline, other than of a temporary nature, in the
 carrying value of each investment. Current investments are valued at
 cost or fair value whichever is lower and the resultant decline, if
 any, are charged to statement of Profit & Loss
 
 e) Borrowing Cost
 
 Borrowing cost that are attributable to the acquisition or construction
 of qualifying assets are capitalised as part of the cost of such
 assets. A qualifying asset is one that necessarily takes a substantial
 period of time to get ready for its intended use or sale. All other
 borrowing cost are charged to revenue.
 
 f) Revenue Recognition
 
 Revenue/Income and Cost/ Expenditure are generally accounted on accrual
 as they are earned or incurred except in case of significant
 uncertainties.
 
 - Dividend is accounted when the right to receive payment is
 established.
 
 - Interest and other Income are accounted on accrual basis.
 
 - Revenue figures excluded tax component.
 
 - Provision of gratuity, if any, is accounted as and when- the same -~:
 arises and become payable.
 
 g) Inventory
 
 Items of inventory are measured at net realizable value at the time of
 finalisation of accounts and not as on the date of the balance sheet.
 
 Cost of inventory comprises of all cost of purchases and direct cost
 incurred in bringing them to tEeir respective present -location and
 condition.
 
 h) Income Taxes 
 
 In view of the losses incurred during the year, the company has not
 made any provision for Income Tax for current year.  
 
 
 Differed Tax
 
 Deferred Tax is recognised on timing difference between the accounting
 income & the taxable income for the year and quantified using the tax
 rates and loss enacted or substantively enacted as on the balance sheet
 date. However, there is no Deferred Tax Liability during the year. The
 provision of deferred tax assets has not been made in view of
 uncertainty.
 
 i) Contingent liabilities
 
 Contingent Liability nor provided for are disclosed in notes to the
 account.