The following significant accounting policies are adopted in the brsentation of financial statements.

1.1       Basis of Preparation of Financial Statements

The financial statements are brpared and brsented under the historical cost convention on going concern and accrual basis and comply in all material respects with the mandatory Accounting Standards brscribed by Companies (Accounting Standards) Rules, 2006, statements, Guidance Notes (to the extent applicable) issued by the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of the Companies Act, 1956.  The accounting policies adopted are consistent with those used in the brvious year.

1.2       Use of Estimates

The brparation of financial statements in conformity with GAAP (Generally Accepted Accounting Principles) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year.  Actual results could differ from these estimates.  Any revision to accounting estimates is recognized prospectively in the current and future periods.

1.3       FIXED ASSETS

Fixed Assets are shown at the cost of acquisition. Debrciation is provided in accordance with the rates specified in schedule XIV of the Companies Act, 1956 on Straight -- Line Method on Pro – Rata Basis.

1.4       INVENTORIES:

Inventories are valued as under:

a. Raw Materials are valued at cost, cost computed on FIFO basis.

b. Consumables and Loose tools are valued at Cost or Market Value which ever is lower. cost     computed on FIFO basis.

1.5       RETIREMENT BENEFITS:

No provision is made in the books of accounts, as there is no employees on  the year ending 31st March 2013.

1.6       REVENUE RECOGNITION OF INCOME & EXPENDITURE:

All income and expenditure are accounted on accrual basis except where stated otherwise.

1.7       PROVISIONS AND CONTINGENCIES:

A Provision is made in the books of accounts where there is a brsent obligation as a result of past event that probably required an outflow of resources and a reasonable estimate can be made of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or brsent obligation that arises from past events and the out flow of resources embedding economic benefit is not probable.

A contingent liability or a provision at the Balance Sheet date is not disclosed or recognized unless the possibility of any outflow in settlement is remote.

1.8       IMPAIRMENTS OF ASSETS

An Asset is treated as impaired when the carrying of cost of Assets exceeds its receivable value. An impairment loss is charged for when the asset is identified as impaired. The impairment loss received in prior accounting period is reversed if there has been a change in the estimate of recoverable amount

Note No. 16 – Other Notes to Accounts

15.1     Provision for Gratuity

No provision is required for gratuity liability for the Year ending 31st March 2013, since there are no eligible employees.

15.2     INVESTMENTS

Investments of Rs. 8, 31,584 are in share application money of M/s. Vijay Sea Foods & Exports Ltd., against which the shares have not yet been allotted. How ever the management is expecting return of amount in future.

15.3     BALANCE CONFIRMATIONS

Long –Term Borrowings, Other Current Liabilities, Long Term Loans and Advances are Subject to confirmation from respective parties.

15.4.    Particulars of remuneration payable to the Managing Director:

                                                                Current Year.                  Previous Year               

                                                                       (Rs.)                                 (Rs.)

            Remuneration                                      NIL                                 NIL

15.5.    PROVISION FOR INCOME TAX

No provision for income tax has been made in terms of the provisions of Sec.115JB of Income Tax Act 1961. The company is not liable to Income Tax under regular provision of income tax Act in view of brought forwarded losses.

15.6     DEFERRED TAX

In view of the unabsorbed debrciation and brought forward losses under the tax law, and since there is no virtual certainty that the Company will have future taxable income against which the deferred tax assets can be realised, the deferred tax assets are not recognized and no provision has been made for deferred tax in terms of the Accounting Standard 22.

15.7     DISCLOSURES UNDER MSMED ACT

The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrebrneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2013 has been made in the financial statements based on information received and available with the Company. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the aforesaid Act is not expected to be material. The Company has not received any claim for interest from any supplier under the said Act.

S No	Particulars	For the year ended 31st March 2013	For the year ended 31st March 2012
1	Principal amount and interest due thereon remaining unpaid to any supplier at the end of the accounting period	Nil	Nil
2	The amount of interest paid by the Company along with the amounts of the payment made to the supplier beyond the appointed day during the period	Nil	Nil
3	The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the period) but without adding the interest specified under the Act	Nil	Nil
4	The amount of interest accrued and remaining unpaid at the end of the period	Nil	Nil
5	The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise	Nil	Nil

15.8     SEGEMENT REPORTING

There are no reportable segments for the Company in terms of Accounting Standard 17 “Segment Reporting” issued by the Institute of Chartered Accountants of India, as there are no varying risks and returns for the products of the Company and the geographical areas in which the Company operates.

15.8     EARNINGS PER SHARE:

      The Computation of EPS is set out below:

                                                                                    Current                                      Previous

                                                                                       Year                                Year

Earnings

a)      Net profit/(Loss) for the year                                        19,519                                        14,386

b)      Shares :

 weighted average of equity shares                     60,84,900                  60,84,900                  

            outstanding during the year 

c)      Earnings per share of face value

            of Rs.10/- (a/b)                                                 Rs. 0.003                       Rs.0.002            

15.9     RELATED PARTIES    

The Company has no related parties in terms of the Accounting Standard 18 and no related party transactions as referred to in the Accounting Standard.

15.10.

 Previous year figures have been reclassified / regrouped wherever necessary to conform to current year’s brsentation.  All figures have been rounded to the nearest Rupee.

 As per our Report attached

For A.Ramachandra Rao & Co.,                                                   For and on behalf of the Board

Chartered Accountants

FRN No: 002857S

 P.S.R.V.V.Surya Rao                                                         P.L.Varadarajan                D. Chandra Reddy

 Partner                                                                                Chairman                          Managing Director

 Place: Hyderabad

 Date : 05.09.2013

PARTICULARS OF EMPLOYEES

There are no employees in the company whose particulars are required to be given pursuant to Section 217(2A) of the Companies Act, 1956 read with Company (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988.