1. Accounting Conventions
a) The financial statements are prepared on the historical cost basis
and on the accounting principles of a going concern.
b) Accounting policies not specifically referred to otherwise are consistent and in consonance with
generally accepted accounting principles.
c) All Expenditure and income to the extent considered payable and
receivable respectively are accounted for on accrual basis.
d) Fixed Assets
Fixed Assets are stated at cost of acquisition plus freight and other
incidental expenses incurred in relation to acquisition and installation of the same.
Since no any fixed assets are put to use till this period, hence, no
Depreciation has been provided so far.
f) Income & Expenditure
There is no business activity in the company, hence there is no income of the company for the year, under
review, expenses incurred for the year has been transferred to pre-operating expenses which are subject to
allocation to Fixed Assets.