1. SIGNIFICANT ACOUNTING POLICIES

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

1. The Financial Statements have been prepared under historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 are followed consistently by the Company.

2. Provision of Payment of Gratuity Act, are not applicable to the company for the year under review.

2. FIXED ASSETS
   
   Fixed Assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses upto the date the asset are put to use.

3. DEPRECIATION
   
   Depreciation on Fixed Assets is provided on Written Down Value method at the rates specified in Schedule XIV of the Companies Act, 1956 (as amended) on pro-rata basis.

4. INVESTMENT
   
   Investment are started at cost.

5. MANAGERIAL REMUNERATION
   
   The Company has paid Rs. 39,000/- P.M. to its Managing Director towards Directors' Remuneration during the year.

6. FORFEITURE OF SHARES
   
   The Company has forfieted 56,62,900 Equity Shares due to Non-payment of Call Money due & transfered it to Share Capital Account.

7. BRAND BUILDING EXPENDITURE
   
   Brand Building Expenditure, being the expenditure in the nature of Deferred revenue Expenditure has been apportioned 1/5th during the year.

8. PRELIMINARY EXPENDITURE & PUBLIC ISSUE EXPENSES
   
   Preliminary Expenditure & Public Issue Expenses has been apportioned
   1/5th during the year.
   

2. No Employees of the Company is in receipt of remuneration in excess of the amount specified under section 217(2A) of the Companies Act, 1956.

3. EARNING & EXPENDITURE IN FOREIGN EXCHANGE
   
   Expenditure in foreign currency has been done in connection with foreign travel and such expenditure is within the limit sanctioned by the RBI

4. 4. Previous Year figure has been re-grouped/re-stated wherever necessary to make them Comparable with Current Year figures. However previous year figures represents only a part of the year.

5. Contingent liabilities
   
   Contingent liabilities, if any, has been disclosed by way of Notes to the Accounts.

6. Additional Information pursuant to the provisions of Part II, Schedule VI to the Companies Act, 1956 are not applicable.

Signature to Schedules 1-13