Mar 31, 2011
I) SYSTEM OF ACCOUNTING
The company follows accrual system of accounting for ail items of costs
and revenue.
ii) INFLATION
Assets and Liabilities are shown at historical costs and no adjustments
are made for changes in purchasing power of money.
iii) FIXED ASSETS
Fixed Assets are recorded at cost of acquisition or construction plus
appropriate share of pre-operative expenses.
iv) DEPRECIATION
Depreciation on fixed assets has been charged on written down value
method at the rates specified in Schedule XIV to the Companies Act,
1956.
v) REVENUE RECOGNITION
Revenue in respect of insurance / other claims, interest, commission
etc. is recognised only when it is reasonably certain that the ultimate
confection will be made.
vi) GRATUITY
No provision has been made in accounts for gratuity, as the same will
be accounted on cash basis.
vii) TAXES ON INCOME
No provision for deferred tax asset is made on account of the business
loss and unabsorbed depreciation carried forward under the Income Tax
Act. The deferred tax assets has not been recognised as there is no
reasonable certainty of sufficient taxable income being available
against which such deferred tax assets can be realized.
Mar 31, 2010
I) SYSTEM OF ACCOUNTING
The compnay follows accrual system of accounting for ail items of costs
and revenue.
ii) INFLATION
Assets and Liabilities are shown at historical costs and no adjustments
are made for changes in purchasing power of money.
iii) FIXED ASSETS
Fixed Assets are recorded at cost of acquisition or construction plus
appropriate share of pre-operative expenses.
iv) DEPRECIATION
Depreciation on fixed assets has been charged on written down value
method at the rates specified in Schedule XIV to the Companies Act,
1956.
v) REVENUE RECOGNITION
Revenue in respect of insurance / other claims, interest, commission
etc. is recognised only when it is reasonably certain that the ultimate
coftection will be made.
vi) GRATUITY
No provision has been made in accounts for gratuity, as the same will
be accounted on cash basis.
vii) TAXES ON INCOME
No provision for deferred tax asset is made on account of the business
loss and unabsorbed depreciation carried forward under the Income Tax
Act. The deferred tax assets has not been recognised as there is no
reasonable certainty of sufficient taxable income being available
against which such deferred tax assets can be realized.
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