1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 The accompanying financial statement have been prepared under the
 historical cost convention, going concern and on the accrual basis of
 accounting in accordance with the provisions of the Companies Act, 1956
 & comply with the accounting standards issued by the Institute of
 Chartered Accountants of India to the extent applicable.
 
 1.2 ACCOUNTING ESTIMATES
 
 The preparation of the financial statements in accordance with
 generally accepted accounting principles often requires that Company
 officials makes estimates & assumption that affect the reported amount
 of Assets & Liabilities and disclosure of contingent Assets and
 liabilities as on the date of financial statement & the reported
 amounts of revenue & expenses. During the reported period Company
 officials believes that the estimates used in the preparation of the
 financial statement are prudent & reasonable, actual results could
 differ from these estimates.
 
 1.3 FIXED ASSETS
 
 Land, Factory Building and Plant & Machinery are stated at revalued
 amount less depreciation on cost of acquisition and other fixed assets
 are stated at cost less accumulated depreciation and impairment
 losses'', if any.
 
 1.4 DEPRECIATION
 
 Depreciation on fixed assets have been provided on straight-line method
 and on prorata basis at the rates and in the manner prescribed under
 Schedule XIV of the Companies Act, 1956.
 
 In Case of revalued assets, depreciation has been charge on the
 original cost of that asset.
 
 1.5 INVENTORIES
 
 Inventories are valued at cost or net realizable value, whichever is
 lower. The cost in respect of the various items of inventory is
 computed as under.
 
 - Raw material cost includes direct expenses and is determined on the
 basis of weighted average method.
 
 - Work in Progress includes cost of conversion and other costs
 incurred in brining the inventories to their present condition.
 
 - In case of finished goods cost includes raw material cost and other
 overheads incurred to bring the goods to their present location and
 condition.
 
 1.6 REVENUE RECOGNITION
 
 Revenue is recognized only when it can be reliably measured and it is
 reasonable to expect ultimate collection. Revenue from operation
 includes sale of goods, service etc. Interest Income is recognized on
 time proportion basis taking into account the amount outstanding and
 rate applicable.
 
 1.7 TAXES ON INCOME
 
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the period.  Deferred tax is recognised, subject to
 the consideration of prudence in respect of deferred tax assets/
 liability, on timing differences, being the differences between taxable
 incomes and accounting income that originate in one period and are
 capable of reversal in one or more subsequent periods.
 
 1.8 RETIREMENT BENEFITS
 
 Company has provided Retirement benefits in form ofProvident Fund &
 Gratuity etc. to its all employees which is a defined contribution
 plan. These contributions are made to the fund administrated and
 managed by Government of India
 
 1.9. Consistency:
 
 These Financial statements have been prepared on basis consistent with
 previous years and accounting policies not specifically referred hereto
 are consistent with generally accepted accounting principles.
 
 1.10.  IMPAIRMENT OF ASSETS:
 
 In accordance with the Accounting Standard (As-28) in  Impairment of
 Assets  issued by The Institute of Chartered accountants of India,
 during the year the company has reassessed its fixed assets and is of
 the view that no further impairment / reversal is considered to be
 necessary in view of its expected realizable ,
 
 1.11.  SEGMENTAL REPORTING:
 
 The company has indentified  Indian made foreign Liquor as the only
 primary business segment and in accordance with the provision of
 AS-17,.Hence Segmental reports are not furnished.
 
 1.12.  INTANGIBLE ASSETS
 
 Intangible assets are recognized on the basis of recognition criteria
 as set out in Accounting Standard (As) -26 ''Intangible Assets''
 issued by the Institute of Chartered Accountants of India