1. GENERAL
The Financial Statements have generally been prepared on the historical cost convention.
Accounting policies not specifically referred to otherwise are in consonance with generally
accepted accounting principals.
2. BASIS OF ACCOUNTING
The company follows the mercantile system of accounting generally except otherwise stated
herein below, if so.
3. FIXED ASSETS
Fixed assets are stated at cost of less accumulated depreciation. No Depreciation has been
provided during the year under consideration.
4. INVESTMENTS
Investments are stated at cost.
5. INVENTORIES
Inventory is valued at cost or net realizable value whichever is less.
6. REVENUE AND EXPENDITURE RECOGNITION
Revenue is recognized and expenditure is accounted for on their accrual except insurance claim,
claims in respect of material purchased and sold which are accounted for on cash basis.
7. MISCELLANEOUS EXPENDITURE
Miscellaneous Expenditure such as preliminary expenditure are amortized over a period of 5 years.
8. DEFER TAX
The Deferred tax is recognized for all temporary differences subject to the consideration of
prudence and at currently available rates. Deferred Tax assets are recognized only if there is virtual
certainty that they will be realized.
9. FOREIGN CURRENY TRANSACTION
There is no such transaction during the year.
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