1. Since the company is trading on land and there is no income from
 financial transactions or public deposits, the audit report applicable
 to Manufacturing and trading companies is adopted.
 
 2. The financial statement have been prepared under the historical cost
 convention and on the basis of going concern and the system of
 accounting followed is Mercantile system in accordance with the
 generally accepted accounting principles and the provisions of the
 Companies Act, 1956 as adopted consistently by the company. Accounting
 policies not specifically referred to are consistent with generally
 accepted principles followed by the company.
 
 B. Investments
 
 Long Term Investments are stated at cost without providing any
 diminution in values as required by AS -13 Accounting Standard issued
 by ICAI. In our opinion, investment in shares to the extent of Rs.
 30,05,000 requires provision.
 
 C. Income
 
 Income is recognized at the point of sales of land.
 
 D. Expenditure
 
 All expenses are accounted on accrual basis.
 
 E. Sundry Debtors, Creditors, Loans and Advances are subject to
 confirmation.
 
 F. Sundry debtors to the extent of Rs.22,63,044/- outstanding for more
 than 3 years considered bad and doubtful for recovery is written off as
 bad debts by the management.
 
 G. Sundry Crditors does not contain any SSI outstanding for more than
 30 days.