(i) Accounting Concepts :
 
 a. The Company generally follows Mercantile System of Accounting and recognise Income & Expenditure on
accrual basis.
 
 b. The financial Statement have been prepaid under the historical cost
 convention in accordance with the generally accepted Accounting Principals and the Provision of the
Companies Act 1956.
 
 (ii) Fixed Assets : The Fixed Assets are stated at the Cost less depreciation.
 
 (iii) Depreciation : Depreciation on Fixed Assets has been provided on
 straight line method at the rates prescribed in Schedule XIV of the Companies Act 1956.
 
 (iv) Valuation of Inventories : Inventories valued at Cost.
 
 (v) Gratuity : No provision for gratuity has been made as none of the employees had completed the qualifying
period of service for granting gratuity benefit.
 
 (vi) Investment : Investments are stated at Cost.