a.  BASIS OF ACCOUNTING
 
 The Financial Statements are prepared under the historical cost
 convention and on accrual basis of accounting subject to Note 2(iii)
 below regarding non provision of interest on unsecured loans of !
 Rs.175 lacs from Premier Finance & Trading Co. Ltd. and in accordance
 with generally accepted i accounting principles in India and comply in
 material aspect with the measurement and recognition principles of
 Accounting Standards referred to in Section 211 (3C) of the Companies
 Act 1956 of !'' India (the Act) read with Companies (Accounting
 Standards) Rules 2006 to the extent applicable.  i: All assets and
 liabilities have been classified as current or non-current as per the
 Company''s normal operating cycle and other criteria set out in the
 Schedule VI to the Companies Act 1956 !  Based on the nature of
 products provided and the time between the acquisition of assets and
 their I realization in cash and cash equivalents'' the Company has
 ascertained its operating cycle as 12 months for the purpose of
 current-non current classification of assets and other liabilities !;
 
 b.  USE OF ESTIMATES I
 
 The presentation of Financial Statements requires estimates and
 assumptions to be made that !  affect the reported amount of assets and
 liabilities on the date of financial statements and the !  reported
 amount of revenue and expenses during the reporting period.  Difference
 between the '' actual results and estimates are recognized in the period
 in which results are known/materialized.
 
 c.  REVENUE RECOGNITION
 
 i.  Income from operations is recognized on Billing to customers
 
 ii.  Interest Income on Advances and Deposits is recognized on accrual
 basis.  
 
 d.  TANGIBLE FIXED ASSETS
 
 Fixed Assets are stated at cost less accumulated depreciation. Cost for
 this purpose includes I purchase price'' non refundable taxes or levies
 and other directly attributable cos''s of brlging the !: asset to its
 working condition for its intended use.  waging me ''
 
 e.INTANGIBLE ASSETS
 
 There are no Intangible Assets held by the Company.
 
 f.  INVENTORIES
 
 None 
 
 g.  FOREIGN CURRENCY TRANSACTIONS
 
 h.  EMPLOYEE BENEFITS
 
 The Company has an obligation towards gratuity.  However due provision
 for the same has been made in the Balance Sheet.  
 
 i.  TAXES ON INCOME
 
 i.  Current tax is determined as per amount of tax payable in respect
 of taxable income for the year.
 
 ii.  Provisions for taxation for the period are ascertained on the
 basis of assessable profits computed in accordance with the provisions 
 of the Income Tax Act'' 1961
 
 j.  Balances of Trade Payables'' Trade Receivables'' Loans & Advances and
 Banks are subject to confirmation & reconciliation.
 
 k.  In the opinion of the directors Current Assets have a value on
 realization in the ordinary course of business at least equal to the
 value at which these have been stated in foreaoina Balance Sheet.  
 
 l.  Labour cases are pending against the company in the courts. The
 total approx liabilitv against the company is to the tune of
 Rs.48''43''000/-.
 
 The company has borrowed a sum of Rs. 175 lacs on interest payable @
 16% on quarterly rests. Due to a dispute no interest has been provided
 on this loan amounting to Rs 1 63 29 858/ for the year ended
 31.03.2012. In addition to this total interest of Rs.7 86 37 967/-''
 oertainina to year 31.03.2001 to 31.03.2011 have not been provided for.
 Hence loss during the yTa?  s understated by Rs. 1''63''29''858/-.  
 
 The company has incurred huge financial losses during the current
 financial year It has neither sold nor acquired any fixed assets during
 the financial year 2011-12.  
 
 m.  CONTINGENT LIABILITIES
 
 Contingent liabilities are not provided for in the accounts and are
 shown separately in notes.