Mar 31, 2015
A) Basis of preparation of financial statements
The financial statements are prepared in accordance with Generally
Accepted Accounting Principles ("GAAP") in India under the historical
cost convention, on accrual basis. GAAP comprises mandatory Accounting
Standards issued by the Companies (Accounting Standards) Amendment
Rules, 2008 and the relevant provisions of the Companies Act, 1956. The
accounting policies have been consistently applied by the Company and
are consistent with those used in the previous year.
b) Inventories
Items of inventories are measured at lower of cost and net realizable
value after providing for obsolescence. Cost of inventories comprises of
cost of purchase, cost of conversion bringing them to their respective
present location and condition. Inventories are determined on
First-in-First-Out (FIFO) basis.
c) Use of Estimates The preparation of financial statements requires
the management of the Company to make estimates and assumptions that
affect the reported balances of assets and liabilities and disclosures
relating to the contingent liabilities as at the date of the financial
statements and reported amounts of income and expense during the year.
Examples of such estimates include provisions for doubtful receivables,
employee benefits, provision for income taxes, accounting for contract
costs expected to be incurred, the useful lives of depreciable fixed
assets and provisions for impairment. Future results could differ due
to changes in these estimates and the difference between the actual
result and the estimates are recognised in the period in which the
results are known / materialize.
d) Revenue recognition
1. Income from Operation is recognised upon transfer of significant
risks and rewards of ownership to the buyer.
2. Other Income is recognized to the extent that it is probable that
the economic benefits will flow to the Company and the revenue can be
reliably measured.
3. Dividend is recognised when the shareholders' right to receive
payment is established at the balance sheet date.
e) Fixed Assets
Tangible Assets
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets which takes substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to be put to use. Capital work in progress
includes expenditure incurred till the assets are put into intended
use.
Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortization / depletion and impairment loss, if
any. The cost comprises purchase price, borrowing costs, and any cost
ectly attributable to bringing the asset to its working condition for
the intended use and net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the
intangible assets.
f) Depreciation
Depreciation on tangible assets is provided using the Straight Line
Method over the useful lives of the assets estimated by the Management.
Depreciation for the assets purchased / sold during the year is
proportionately charged as prescribed in Schedule II to the Companies
Act, 2013. Intangible assets are amortized over their respective
individual estimated useful lives on a straight line basis, commencing
from the date the asset is available to the Company for its use.
g) Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet dates
and if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset's net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital. If at
the balance sheet date, there is an indication that a previously
assessed impairment loss no longer exists, then such loss is reversed
and the asset is restated to extent of the carrying value of the asset
that would have been determined (net of amortization / depreciation),
had no impairment loss been recognized.
After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.
h) Investments
Investments that are readily realizable and intended to be held for not
more than one year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at lower of cost or fair value determined on
individual investment basis. Long-term investments are carried at cost.
However, provision for diminution in value is made to recognize a
decline other than temporary decline in the value of the investments.
i) Taxation
Tax expense comprises of current income tax and deferred income tax.
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income Tax Act. Deferred
income taxes reflects the impact of current year timing differences
between taxable income and accounting income for the year and reversal
of timing differences of earlier years. Deferred tax is measured based
on the tax rates and the tax laws enacted or substantively enacted at
the balance sheet date. Deferred tax assets are recognised only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realised. In situations where the company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are
recognised only if there is virtual certainty supported by convincing
evidence that they can be realised against future taxable profits. At
each balance sheet date, the Company re- assesses unrecognised deferred
tax assets. It recognizes unrecognized deferred tax assets to the
extent that it has become reasonably certain, as the case may be, that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. Minimum Alternative Tax (MAT)
credit is recognised as an asset and carried forward only if there is a
reasonable certainty of it being set off against regular tax payable
within the stipulated statutory period.
j) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the year is adjusted
for events of bonus issue, bonus element in a rights issue to existing
shareholders, share split and reverse share split (consolidation of
shares).
For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
k) Provisions. Contingent Liabilities and Contingent Assets
A provision is recognized when an enterprise has a present obligation
as a result of past event it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Possible future obligations or present obligations that may but will
probably not require outflow of resources or where the same cannot be
reliably estimated, is disclosed as contingent liabilities in the notes
to accounts of financial statements.
Contingent Assets are neither recognized nor disclosed in the financial
statements.
l) Cash Flow Statement
Cash flow statement has been prepared under the 'Inect Method'. Cash
and cash equivalents, in the cash flow statement comprise unencumbered
cash and bank balances.
20. EMPLOYEE BENEFITS:
Provision for retirement benefits to employees was not provided on
accrual basis, which is not in conformity with Accounting Standard-15
issued by ICAI and the amount has not been quantified because actuarial
valuation report is not available. However, in the opinion of the
management the amount involved is negligible and has no material impact
on the Profit & Loss Account.
Mar 31, 2014
A) Basis of preparation of financial statements
The financial statements are prepared in accordance with Generally
Accepted Accounting Principles ("GAAP") in India under the historical
cost convention, on accrual basis. GAAP comprises mandatory Accounting
Standards issued by the Companies (Accounting Standards) Amendment
Rules, 2008 and the relevant provisions of the Companies Act, 1956. The
accounting policies have been consistently applied by the Company and
are consistent with those used in the previous year.
b) Use of Estimates
The Preparation of financial statements in conformity with 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 at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates. Any revision to the accounting estimates is
recognized prospectively.
c) Revenue recognition
1. Income from Operation is recognized upon transfer of significant
risks and rewards of ownership to the buyer.
2. Other Income is recognized to the extent that it is probable that
the economic benefits will flow to the Company and the revenue can be
reliably measured.
3. Dividend is recognized when the shareholders'' right to receive
payment is established at the balance sheet date.
d) Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets which takes substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to be put to use. Capital work in progress
includes expenditure incurred till the assets are put into intended
use.
e) Depreciation
Depreciation is provided using the Straight Line Method at the rates
and in the manner as prescribed under schedule XIV of the Companies
Act, 1956. In case of Software, the same is amortized over a period of
five years.
f) Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet dates
and if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset''s net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital. If at
the balance sheet date, there is an indication that a previously
assessed impairment loss no longer exists, then such loss is reversed
and the asset is restated to extent of the carrying value of the asset
that would have been determined (net of amortization / depreciation),
had no impairment loss been recognized.
After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.
g) Investments
Investments that are readily realizable and intended to be held for not
more than one year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at lower of cost or fair value determined on
individual investment basis. Long-term investments are carried at cost.
However, provision for diminution in value is made to recognize a
decline other than temporary decline in the value of the investments.
h) Taxation
Tax expense comprises of current income tax and deferred income tax.
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income Tax Act. Deferred
income taxes reflects the impact of current year timing differences
between taxable income and accounting income for the year and reversal
of timing differences of earlier years. Deferred tax is measured based
on the tax rates and the tax laws enacted or substantively enacted at
the balance sheet date. Deferred tax assets are recognised only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized. In situations where the company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty supported by convincing
evidence that they can be realized against future taxable profits. At
each balance sheet date, the Company re-assesses unrecognised deferred
tax assets. It recognizes unrecognized deferred tax assets to the
extent that it has become reasonably certain, as the case may be, that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. Minimum Alternative Tax (MAT)
credit is recognized as an asset and carried forward only if there is a
reasonable certainty of it being set off against regular tax payable
within the stipulated statutory period.
i) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the year is adjusted
for events of bonus issue, bonus element in a rights issue to existing
shareholders, share split and reverse share split (consolidation of
shares).
For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
j) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when an enterprise has a present obligation
as a result of past event it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Possible future obligations or present obligations that may but will
probably not require outflow of resources or where the same cannot be
reliably estimated, is disclosed as contingent liabilities in the notes
to accounts of financial statements.
Contingent Assets are neither recognized nor disclosed in the financial
statements.
k) Cash Flow Statement
Cash flow statement has been prepared under the ''Indirect Method''. Cash
and cash equivalents, in the cash flow statement comprise unencumbered
cash and bank balances.
18. RELATED PARTY TRANSACTION: List of Related Parties:- a) Key
Management person :-
i) Giriraj Kishor Agrawal ii) Tanu Agrawal
b) Related parties over which Key Management personnel have significant
influence :-
i) Axon Infotech Ltd.
ii) Shree Nath Commercial & Finance Ltd
iii) Rockon Fintech Limited
iv) Tilak Finance Limited (Formerly Out of City Travel Solutions Ltd)
v) Five X Finance & Investment Ltd
vi) Kayaguru Health Solutions Limited
vii) Handful Investrade Pvt Ltd
viii) Girraj Kishore Agarwal HUF
ix) Saloni Agarwal
x) Kayaguru Capital Market Pvt Ltd
xi) Rockon Capital Market Pvt Ltd
19. PRUDENTIAL NORMS OF NBFC:
i. The loan granted and rate of interest are subject to confirmation
of counterparties.
Mar 31, 2013
A) Basis of preparation of financial statements
The financial statements are prepared in accordance with Generally
Accepted Accounting Principles ("GAAP") in India under the historical
cost convention, on accrual basis. GAAP comprises mandatory Accounting
Standards issued by the Companies (Accounting Standards) Amendment
Rules, 2008 and the relevant provisions of the Companies Act, 1956. The
accounting policies have been consistently applied by the Company and
are consistent with those used in the previous year.
b) Use of Estimates
The Preparation of financial statements in conformity with 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 at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates.iAny revision to the accounting estimates is
recognized prospectively.
c) Revenue recognition -(_
1. Income from Operation is recognised upon transfer of significant
risks and rewards of ownership to the buyer.
2. Other Income is recognized to the extent-thatrit is probable that
the economic benefits will flow to the Company and the revenue can be
reliably measured.
3. Dividend is recognised when the shareholders'' right to receive
payment is established at the balance sheet date.
d) Fixed Assets ''
Fixed assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets which takes substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to be put to use. Capital work in progress
includes expenditure incurred till the assets are put into intended
use.
e) Depreciation
Depreciation is provided using the Written Down Value Method at the
rates and in the manner as prescribed under schedule XIV of the
Companies Act, 1956. In case of Software, the same is amortized over a
period of five years.
f) Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet dates
and if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset''s net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital. If at
the balance sheet date, there is an indication that a previously
assessed impairment loss no longer exists, then such loss is reversed
and the asset is restated to extent of the carrying value of the asset
that would have been determined (net of amortization / depreciation),
had no impairment loss been recognized.
After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life.
g) Investments
Investments that are readily realizable and intended to be held for not
more than one year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at lower of cost or fair value determined on
individual investment basis. Long-term investments are carried at cost.
However, provision for diminution in value is made to recognize a
decline other than temporary decline in the value of the investments.
h) Taxation
Tax expense comprises of current income tax and deferred income tax.
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income Tax Act. Deferred
income taxes reflects the impact of current year timing differences
between taxable income and accounting income for the year and reversal
of timing differences of earlier years. Deferred tax is measured based
on the tax rates and the tax laws enacted or substantively enacted at
the balance sheet date. Deferred tax assets are recognised only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax
assets^can be realised. In situations where the company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are
recognised only if there is virtual certainty supported by convincing
evidence that they can be realised against future taxable profits. At
each balance sheet date, the Company re-assesses:: unrecognised
deferred tax assets. It recognizes unrecognized deferred tax assets to
the extent that it has become reasonably certain, as the case may be,
that sufficient future taxable income will be available against which
such deferred tax assets can be realized. Minimum Alternative Tax
(MAT) credit is relx gnised as an asset and carried forward only if
there is a reasonable certainty of it being set off against regular ta
o payable within the stipulated statutory period.
i) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the year is adjusted
for events of bonus issue, bonus element in a rights issue to existing
shareholders, share split and reverse share split (consolidation of
shares).
For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
j) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when an enterprise has a present obligation
as a result of past event it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Possible future obligations or present obligations that may but will
probably not require outflow of resources or where the same cannot be
reliably estimated, is disclosed as contingent liabilities in the notes
to accounts of financial statements.
Contingent Assets are neither recognized nor disclosed in the financial
statements.
k) Cash Flow Statement
Cash flow statement has been prepared under the ÂIndirect Method''. Cash
and cash equivalents, in the cash flow statement comprise unencumbered
cash and bank balances.
Mar 31, 2012
A. Accounting Convention
The financial statements are prepared under the historical cost
convention, on an accrual basis and in accordance with the generally
accepted accounting principles in India, the applicable mandatory
Accounting Standards as notified by the Companies (Accounting Standard)
Rules, 2006 and the relevant provisions of the Companies Act, 1956 of
India.
B. Use of Estimates
The preparation of financial statements require estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized In the period
in which the results are known / materialized.
C Fixed Assets
(a). Tangible Assets are stated at cost less accumulated depreciation
and impairment loss, if any. Cost comprises of purchase price and any
directly attributable cost of bringing the assets to its working
condition for its intended use.
D. Depreciation and Amortization
(a). Depreciation on Tangible Fixed Assets, except leasehold land, has
been provided using Written Down Method at the rates and manner
prescribed under Schedule XIV of Companies Act, 19S6 of India.
Leasehold lands are amortized over the period of lease on straight line
basis.
E. Impairment
An asset is treated as Impaired when the carrying cost of the asset
exceeds its recoverable value being higher of value in use and net
selling price. Value in use is computed at net present value of cash
flow expected over the balance useful life of the assets. An impairment
loss is recognized as an expense in the Profit & Loss Account in the
yëãr in which an asset is , identified as impaired. The impairment
loss recognized in prior accounting period is reversed if there has
been an improvement in recoverable amount. There is no Impairments
expense in Profit & loss.
F. Leases
Lease payments under an operating lease are recognized as expense in
the Statement of Profit and Loss as per terms of lease agreement
G. Investments
(a). Long term investments are carried at cost after deducting
provision, if any, for diminution in value considered to be other than
temporary in nature.
(b). Current investments are stated at lower of cost and fair value.
(c). There are no Investments for the company
H. inventories
(a). Inventories' consists of shares & securities which are valued at
cost or market price whichever is lower.
I Employee benefits
Employee benefits of short term nature are recognized as expense as and
when it accrues. Long term employee benefits (e.g. long-service leave)
and post employment benefits (e.g, gratuity), both funded and unfunded,
are recognized as expense based on actuarial valuation at year end
using the Projected unit credit method. Actuarial gain and losses are
recognized immediately in the Profit & Loss Account
J Revenue Recognition
Sales revenue is recognized on transfer of significant risk and rewards
of the ownership of the goods to the buyer and stated at net of trade
discount and rebates. Dividend income on investments is accounted for
when the right to receive the payment is established. Export incentive,
certain insurance, railway and other claims where quantum of accruals
cannot be ascertained with reasonable certainty, are accounted on
acceptance basis.
K Borrowing Cost '
Borrowing costs directly attributable to the acquisition or
construction of qualifying assets are capitalized. Other borrowing
costs are recognized as expenses in the period in which they are
incurred. In determining the amount of borrowing costs eligible for
capitalization during a period, any income earned on the temporary
investment of those borrowings is deducted from the borrowing costs
incurrefl.
There are no borrowing cost for Qualifying Assets during the Current &
Previous Financial Year Ã
L Taxation
Provision for current income tax is made in accordance with the Income
tax Act 1961. Deferred tax liabilities and assets are recognized at
substantively enacted tax rates, subject to the
M Provisions, Contingent Liabilities and Contingent Assets
Provision is recognized when there is a present obligation as a result
of a past event that probably requires an outflow of resources and a
reliable estimate can be made of the amount of the obligation.
Disclosure for contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not
require an outflow of resources. No provision is recognized or
disclosure for contingent liability is made when there is a possible
obligation or a present obligation and the likelihood of outflow of
resources is remote. Contingent Asset is neither recognized nor
disclosed in the financial statements.
Mar 31, 2011
(a) Basis of Preparation of Financial Statements
The financial statements have been prepared on a going concern basis
and on accrual basis, under the historical cost convention and in
accordance with the generally accepted accounting principles, the
accounting standards issued by the Institute of Chartered Accountants
of India and provisions of the Companies Act, 1956, which have been
adopted consistently by the Company.
(b) Use of Estimates
The preparation of financial statements requires estimates and
assumption to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/ materialized.
(c) Revenue recognition
Revenue from sale of goods is recognized when significant risk and
rewards of ownership are transferred to the customers. Sales are net of
sales return and trade discount.
(d) Fixed Assets
Fixed Assets are stated at their historical costs less depreciation and
upon provision of Impairment Losses duly recognized as per the
provisions of AS28 issued by the Institute of Chartered Accountants of
India. Cost of Acquisition is inclusive of taxes and other incidental
expenses up to date, the assets are put to use.
(e) Depreciation
Depreciation on Fixed Assets has been provided on WDV basis for the
period of use at the rates prescribed in Schedule XIV to the Companies
Act, 1956.
(f) Investments
Long term investments are stated at cost, Provision for diminution in
the value of long term investments is made only if such decline is of a
permanent nature.
(g) Inventories
Inventories are valued at cost or net realizable value whichever is
lower.
(h) Retirement Benefits
Provision for retirement benefits to employees was not provided on
accrual basis, which is not in conformity with Accounting Standard-15
issued by ICAI and the amount has not been quantified because actuarial
valuation report is not available. However, in the opinion of the
management the amount involved is negligible and has no material impact
on the Profit & Loss Account.
(i) Foreign Currency Transactions
Foreign currency transactions are recorded at the rates of exchange
prevailing on the date of transaction. Exchange differences, if any
arising out of transactions settled during the year are recognized in
the profit and loss account. Monetary assets and liabilities
denominated in foreign currencies as at the balance sheet date are
translated at the closing exchange rate on that date. The exchange
difference, if any, are recognized in the profit and loss account and
related asstes and liabilities are accordingly restated in the Balance
Sheet. During the period under review company has not entered into any
foreign currency transaction.
(j) Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
Notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
(k) Deferred Tax
In accordance with AS-22 on "Accounting for taxes on income" issued by
the Institute of Chartered Accountants of India, the Bank has
recognized Deferred Tax Assets on such timing differences where there
is a virtual certainty based on contracts and arrangements in place
that such deferred tax assets can be reversed. Deferred Tax Assets have
been recognized on unabsorbed depreciation to the extent of deferred
tax liability arising on account of timing difference arising between
book depreciation and tax depreciation.
Mar 31, 2010
A. Basis of Accounting :
The accounts have been prepared on the basis of historical costs
b. Method of Accounting : Income and Expenses are accounted on accrual
basis
c. Fixed Assets: Fixed assets are stated at cost less accumulated
depreciation.
d Depreciation: The Company has provided depreciation an W,D.V basis at
the rates specified in Schedule XIV of the Companies Act, 1956
e. Investments:
Investments are slated at Cost.
f. Gratuity :
No provision for gratuty has been made in the accounts, the same is
accounted for as and when paid.
The Company has not made provision of Gratuity and Leave Encashment
Liability as required by the Accounting statndard - IS Employee
Benefits (Revised) issued by the Institute of Chartered Accountants of
India.