| 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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