Mar 31, 2014
1. (a) General
The financial statements are prepared under the historical cost
convention on the accounting principles of a going concern and comply
with the applicable Accounting Standards issued by the Institute of
Chartered Accountants of India and the relevant provisions of the
Companies Act, 1956.
The Company follows mercantile system of accounting and recognises
Income and Expenditure on accrual basis except dividend, which is
accounted on receipt basis, and those with significant uncertainties
and in accordance with the applicable accounting standards.
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses during the reported period. Actual result could differ from
these estimates and differences between actual results and estimates
are recognised in the periods in which the results are known/
materialize.
(b) Revenue Recognition:
Revenue from construction contract is recognised for the consideration
amount received or receivable based on the completion of the physical
proportion of the contract work as per agreement.
Revenue from variation in contract work is recognised when such revenue
can be reliably measured and there exist reasonable certainty as to its
recovery.
(c) Fixed Assets
Fixed Assets are stated at cost of acquisition, including any
attributable cost for bringing the asset to its working conditions for
its intended use, less accumulated depreciation.
(d) Depreciation
The Company provides depreciation on Written Down Value Method on
pro-rata basis at the rates and in the manner prescribed in Schedule
XIV to the Companies Act, 1956.
(e) Contract Work-In-Progress
Contract work in progress represents the contract costs incurred in
relation to activity undertaken on the contract which amounts are due
from the customers but have not been recognized as revenue pending
completion of the physical proportion of the contract work as per the
agreement. Contract costs consists of cost that directly relate to a
specific contract and those which are attributable to contract activity
in general and can be allocated to contract.
(f) Inventories
Items of inventories are measured at lower of cost or net realisable
value after providing for obsolence, if any. Cost of Stores and
materials are determined on FIFO basis.
(g) Retirement Benefits
Retirement Benefits to the employees comprises of payments under
defined contribution plans like Provident Fund and Family Pension. The
liability in respect of defined benefit scheme like Gratuity is
provided on the basis of actuarial valuation as at the year end.
(h) Investments
Long term Investments are stated at cost. In case, there is a permanent
diminution in the value of investments, a provision for the same is
made in the accounts.
(i) Taxation
Income Tax expenses comprise current tax (i.e. amount of tax for the
period determined in accordance with the Income Tax law) and deferred
tax charges or credit (reflecting the tax effects of timing differences
between accounting income and taxable income of the year).
Current Tax is determined as the amount of tax payable in respect of
taxable income for the year in accordance with the Income Tax Act,
1961.
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realised in future; however
where there is unabsorbed depreciation or carry forward loss under
taxation laws, deferred tax assets are recognised only if there is a
virtual certainty of realisation of such assets. Deferred tax assets
are reviewed at each balance sheet date and written down or written up
to reflect the amount that is reasonably/virtually certain as the case
may be to be realised.
(j) Impairment of Fixed Assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company''s fixed assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is greater of the net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor.
(k) Earnings Per Share
The Company reports basic and diluted Earnings per share (EPS) in
accordance with Accounting Standard (AS) -20 on "Earnings per Share".
Basic EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equity shares outstanding during the
year. Diluted EPS is computed by dividing the net profit or loss for
the year by the weighted average number of equity shares outstanding
during the year as adjusted for the effects of all dilutive potential
equity shares, except where the results are anti-dilutive.
(l) Provisions and Contingent Liabilities
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
a) The Company has a present obligation as a result of a past event
b) A probable outflow of resources is expected to settle the obligation
and
c) The amount of the obligation can be reliably estimated.
Where some or all the expenditure required to settle a provision is
expected to be reimbursed by another party, such reimbursement is
recognized to the extent of provision or contingent liability as the
case may be, only when it is virtually certain that the reimbursement
will be received.
Contingent liability is disclosed in the case of
a) At present obligation arising from a past event, when it is not
probable that a outflow of resources will be required to settle the
obligation.
b) A possible obligation, unless the probability of outflow of
resources is remote.
2. a. Contingent Liabilities : Nil
b. Commitments : Nil
3. Managerial Remuneration:
The Remuneration has been paid to the Directors as per Schedule XIII of
the Companies Act, 1956.
4. Employee Benefits
(i) Gratuity (Non-Funded): The Company has defined benefit gratuity
plan. Every employee who has completed five years or more of service
gets a gratuity on departure at 15 days salary (last drawn salary) for
the each completed year of service. The following tables summarise the
components of net benefit expense recognised in the profit and loss
account and the funded status and amounts recognised in the balance
sheet.
5. Segment Reporting
The Company''s business activities fall within a single segment, viz
Real Estate Construction Contractor and predominantly operates in
domestic market. Accordingly disclosure requirements under Accounting
Standard - 17 "Segment Reporting", is not applicable.
6. Related Party Disclosure
Related party Disclosure as per Accounting Standard 18:
Key Management Personnel
i) Shri Sanjiv Bansal, Whole Time Director
ii) Shri Naman Shah
Nature of Transactions with related parties
Notes: Related party relationships have been identified by the
management and relied upon by the auditors.
7. Small and Medium Enterprises
The Company has not received any intimation from suppliers regarding
their status under the Micro, Small and Medium Enterprises Act, 2006
and hence disclosures, if any, relating to amounts unpaid as at the
year end together with interest paid/payable as required under the said
Act have not been given.
8. No provision for tax has been made for the year as there is no
taxable income and book profit Under Section 115JB of the Income-Tax
Act, 1961.
9. Previous Years figures reclassification
Previous year''s figures have been regrouped/reclassified wherever
necessary to correspond with the current year''s
classification/disclosure.
Mar 31, 2013
(a) General
The financial statements are prepared under the historical cost
convention on the accounting principles of a going concern and comply
with the applicable Accounting Standards issued by the Institute of
Chartered Accountants of India and the relevant provisions of the
Companies Act, 1956.
The Company follows mercantile system of accounting and recognizes
Income and Expenditure on accrual basis except dividend, which is
accounted on receipt basis, and those with significant uncertainties
and in accordance with the applicable accounting standards.
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses during the reported period. Actual result could differ from
these estimates and differences between actual results and estimates
are recognized in the periods in which the results are known/
materialize.
(b) Revenue Recognition :
Revenue from construction contract is recognized for the consideration
amount received or receivable based on the completion of the physical
proportion of the contract work as per agreement.
Revenue from variation in contract work is recognized when such revenue
can be reliably measured and there exist reasonable certainty as to its
recovery.
(c) Fixed Assets
Fixed Assets are stated at cost of acquisition, including any
attributable cost for bringing the asset to its working conditions for
its intended use, less accumulated depreciation.
(d) Depreciation
The Company provides depreciation on Written Down Value Method on
pro-rata basis at the rates and in the manner prescribed in Schedule
XIV to the Companies Act, 1956.
(e) Contract Work-In-Progress
Contract work in progress represents the contract costs incurred in
relation to activity undertaken on the contract which amounts are due
from the customers but have not been recognized as revenue pending
completion of the physical proportion of the contract work as per the
agreement. Contract costs consists of cost that directly relate to a
specific contract and those which are attributable to contract activity
in general and can be allocated to contract.
(f) Inventories
Items of inventories are measured at lower of cost or net realizable
value after providing for obsolesced, if any.
Cost of Stores and materials are determined on FIFO basis.
(g) Retirement Benefits
Retirement Benefits to the employees comprises of payments under
defined contribution plans like Provident Fund and Family Pension. The
liability in respect of defined benefit scheme like Gratuity is
provided on the basis of actuarial valuation as at the year end.
(h) Investments
Long term Investments are stated at cost. In case, there is a permanent
diminution in the value of investments, a provision for the same is
made in the accounts.
(i) Taxation
Income Tax expenses comprise current tax (i.e. amount of tax for the
period determined in accordance with the Income Tax law) and deferred
tax charges or credit (reflecting the tax effects of timing differences
between accounting income and taxable income of the year).
Current Tax is determined as the amount of tax payable in respect of
taxable income for the year in accordance with the Income Tax Act,
1961.
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future; however
where there is unabsorbed depreciation or carry forward loss under
taxation laws, deferred tax assets are recognized only if there is a
virtual certainty of realization of such assets. Deferred tax assets
are reviewed at each balance sheet date and written down or written up
to reflect the amount that is reasonably / virtually certain as the
case may be to be realized.
(j) Impairment of Fixed Assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company''s fixed assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is greater of the net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor.
(k) Earnings Per Share
The Company reports basic and diluted Earnings per share (EPS) in
accordance with Accounting Standard (AS) -20 on "Earnings per Share".
Basic EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equity shares outstanding during the
year. Diluted EPS is computed by dividing the net profit or loss for
the year by the weighted average number of equity shares outstanding
during the year as adjusted for the effects of all dilutive potential
equity shares, except where the results are anti-dilutive.
(l) Provisions and Contingent Liabilities
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
a) The Company has a present obligation as a result of a past event
b) A probable outflow of resources is expected to settle the obligation
and
c) The amount of the obligation can be reliably estimated.
Where some or all the expenditure required to settle a provision is
expected to be reimbursed by another party, such reimbursement is
recognized to the extent of provision or contingent liability as the
case may be, only when it is virtually certain that the reimbursement
will be received.
Contingent liability is disclosed in the case of
a) At present obligation arising from a past event, when it is not
probable that a outflow of resources will be required to settle the
obligation.
b) A possible obligation, unless the probability of outflow of
resources is remote.
a. Contingent Liabilities : Nil
b. Commitments: Preference Shares Dividend:- The Company has sought
the waiver of dividend from the preference shareholders for the
financial year under review which were duly approved by them.
Mar 31, 2012
(a) General
The financial statements are prepared under the historical cost
convention on the accounting principles of a going concern and comply
with the applicable Accounting Standards issued by the Institute of
Chartered Accountants of India and the relevant provisions of the
Companies Act, 1956.
The Company follows mercantile system of accounting and recognises
Income and Expenditure on accrual basis except dividend, which is
accounted on receipt basis, and those with significant uncertainties
and in accordance with the applicable accounting standards.
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses during the reported period. Actual result could differ from
these estimates and differences between actual results and estimates
are recognised in the periods in which the results are known/
materialize.
(b) Revenue Recognition :
Revenue from construction contract is recognised for the consideration
amount received or receivable based on the completion of the physical
proportion of the contract work as per agreement.
Revenue from variation in contract work is recognised when such revenue
can be reliably measured and there exist reasonable certainty as to its
recovery.
(c) Fixed Assets
Fixed Assets are stated at cost of acquisition, including any
attributable cost for bringing the asset to its working conditions for
its intended use, less accumulated depreciation.
(d) Depreciation
The Company provides depreciation on Written Down Value Method on
pro-rata basis at the rates and in the manner prescribed in Schedule
XIV to the Companies Act, 1956.
(e) Contract Work-In-Progress
Contract work in progress represents the contract costs incurred in
relation to activity undertaken on the contract which amounts are due
from the customers but have not been recognized as revenue pending
completion of the physical proportion of the contract work as per the
agreement. Contract costs consists of cost that directly relate to a
specific contract and those which are attributable to contract activity
in general and can be allocated to contract.
(f) Inventories
Items of inventories are measured at lower of cost or net realisable
value after providing for obsolence, if any. Cost of Stores and
materials are determined on FIFO basis.
(g) Retirement Benefits
Retirement Benefits to the employees comprises of payments under
defined contribution plans like Provident Fund and Family Pension. The
liability in respect of defined benefit scheme like Gratuity is
provided on the basis of actuarial valuation as at the year end.
(h) Investments
Long term Investments are stated at cost. In case, there is a permanent
diminution in the value of investments, a provision for the same is
made in the accounts.
(i) Taxation
Income Tax expenses comprise current tax (i.e. amount of tax for the
period determined in accordance with the Income Tax law) and deferred
tax charges or credit (reflecting the tax effects of timing differences
between accounting income and taxable income of the year).
Current Tax is determined as the amount of tax payable in respect of
taxable income for the year in accordance with the Income Tax Act,
1961.
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realised in future; however
where there is unabsorbed depreciation or carry forward loss under
taxation laws, deferred tax assets are recognised only if there is a
virtual certainty of realisation of such assets. Deferred tax assets
are reviewed at each balance sheet date and written down or written up
to reflect the amount that is reasonably / virtually certain as the
case may be to be realised.
(j) Impairment of Fixed Assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company's fixed assets. If any indication exists, an asset's
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is greater of the net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor.
(k) Earnings Per Share
The Company reports basic and diluted Earnings per share (EPS) in
accordance with Accounting Standard (AS) - 20 on "Earnings per Share".
Basic EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equity shares outstanding during the
year. Diluted EPS is computed by dividing the net profit or loss for
the year by the weighted average number of equity shares outstanding
during the year as adjusted for the effects of all dilutive potential
equity shares, except where the results are anti-dilutive.
(l) Provisions and Contingent Liabilities
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
a) The Company has a present obligation as a result of a past event
b) A probable outflow of resources is expected to settle the obligation
and
c) The amount of the obligation can be reliably estimated.
Where some or all the expenditure required to settle a provision is
expected to be reimbursed by another party, such reimbursement is
recognized to the extent of provision or contingent liability as the
case may be, only when it is virtually certain that the reimbursement
will be received.
Contingent liability is disclosed in the case of
a) At present obligation arising from a past event, when it is not
probable that a outflow of resources will be required to settle the
obligation.
b) A possible obligation, unless the probability of outflow of
resources is remote.
a. Contingent Liabilities : Nil
b. Commitments: Preference Shares Dividend:- The Company has sought
the waiver of dividend from the preference shareholders for the
financial year under review which were duly approved by them.
Mar 31, 2011
(a) General
The financial statements are prepared under the historical cost
convention on the accounting principles of a going concern and comply
with the applicable Accounting Standards issued by the Institute of
Chartered Accountants of India and the relevant provisions of the
Companies Act, 1956, except otherwise stated.
The Company follows mercantile system of accounting and recognises
Income and Expenditure on accrual basis except dividend, which is
accounted on receipt basis, and those with significant uncertainties
and in accordance with the applicable accounting standards.
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses during the reported period. Actual result could differ from
these estimates and differences between actual results and estimates
are recognised in the periods in which the results are known/
materialize.
(b) Revenue Recognition :
Revenue from construction contract is recognised for the consideration
amount received or receivable based on the completion of the physical
proportion of the contract work as per agreement. Revenue from
variation in contract work is recognised when such revenue can be
reliably measured and there exist reasonable certainty as to its
recovery.
(c) Fixed Assets
Fixed Assets are stated at cost of acquisition, including any
attributable cost for bringing the asset to its working conditions for
its intended use, less accumulated depreciation.
(d) Depreciation
The Company provides depreciation on Written Down Value Method on
pro-rata basis at the rates and in the manner prescribed in Schedule
XIV to the Companies Act, 1956.
(e) Contract work in progress
Contract work in progress represents the contract costs incurred in
relation to activity undertaken on the contract which amounts are due
from the customers but have not been recognized as revenue pending
completion of the physical proportion of the contract work as per the
agreement. Contract costs consists of cost that directly relate to a
specific contract and those which are attributable to contract activity
in general and can be allocated to contract.
(f) Inventories
Items of inventories are measured at lower of cost or net realisable
value after providing for obsolence, if any.
Cost of Stores and materials are determined on FIFO basis.
(g) Retirement Benefits
Retirement Benefits to the employees comprises of payments under
defined contribution plans like Provident Fund and Family Pension. The
liability in respect of defined benefit scheme like Gratuity is
provided on the basis of actuarial valuation as at the year end.
(h) Investments
Long term Investments are stated at cost. In case, there is a permanent
diminution in the value of investments, a provision for the same is
made in the accounts.
(i) Taxation
Income Tax expenses comprise current tax (i.e. amount of tax for the
period determined in accordance with the Income Tax law) and deferred
tax charges or credit (reflecting the tax effects of timing differences
between accounting income and taxable income of the year).
Current Tax is determined as the amount of tax payable in respect of
taxable income for the year in accordance with the Income Tax Act,
1961.
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realised in future; however
where there is unabsorbed depreciation or carry forward loss under
taxation laws, deferred tax assets are recognised only if there is a
virtual certainty of realisation of such assets. Deferred tax assets
are reviewed at each balance sheet date and written down or written up
to reflect the amount that is reasonably / virtually certain as the
case may be to be realised.
(j) Impairment of Fixed Assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company's fixed assets. If any indication exists, an asset's
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is greater of the net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor.
(k) Earnings Per Share
The Company reports basic and diluted Earnings per share (EPS) in
accordance with Accounting Standard (AS) -20 on "Earnings per Share".
Basic EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equity shares outstanding during the
year. Diluted EPS is computed by dividing the net profit or loss for
the year by the weighted average number of equity shares outstanding
during the year as adjusted for the effects of all dilutive potential
equity shares, except where the results are anti-dilutive.
(l) Provisions and Contingent Liabilities
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
a) The Company has a present obligation as a result of a past event
b) A probable outflow of resources is expected to settle the obligation
and
c) The amount of the obligation can be reliably estimated.
Where some or all the expenditure required to settle a provision is
expected to be reimbursed by another party, such reimbursement is
recognized to the extent of provision or contingent liability as the
case may be, only when it is virtually certain that the reimbursement
will be received.
Contingent liability is disclosed in the case of
a) At present obligation arising from a past event, when it is not
probable that a outflow of resources will be required to settle the
obligation.
b) A possible obligation, unless the probability of outflow of
resources is remote
Mar 31, 2010
(a) General
The financial statements are prepared under the historical cost
convention on the accounting principles of a going concern and comply
with the applicable Accounting Standards issued by the Institute of
Chartered Accountants of India and the relevant provisions of the
Companies Act, 1956, except otherwise stated.
The Company follows mercantile system of accounting and recognises
Income and Expenditure on accrual basis except dividend, which is
accounted on receipt basis, and those with significant uncertainties
and in accordance with the applicable accounting standards.
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses during the reported period. Actual result could differ from
these estimates and differences between actual results and estimates
are recognised in the periods in which the results are known/
materialize.
(b) Revenue Recognition :
Revenue from construction contract is recognised for the consideration
amount received or receivable based on the completion of the physical
proportion of the contract work as per agreement.
Revenue from variation in contract work is recognised when such revenue
can be reliably measured and there exist reasonable certainty as to its
recovery.
(c) Fixed Assets
Fixed Assets are stated at cost of acquisition, including any
attributable cost for bringing the asset to its working conditions for
its intended use, less accumulated depreciation.
(d) Depreciation
The Company provides depreciation on Written Down Value Method on
pro-rata basis at the rates and in the manner prescribed in Schedule
XIV to the Companies Act, 1956.
(e) Contract work in progress
Contract work in progress represents the contract costs incurred in
relation to activity undertaken on the contract which amounts are due
from the customers but have not been recognized as revenue pending
completion of the physical proportion of the contract work as per the
agreement. Contract costs consists of cost that directly relate to a
specific contract and those which are attributable to contract activity
in general and can be allocated to contract.
(f) Inventories
Items of inventories are measured at lower of cost or net realisable
value after providing for obsolence, if any.
Cost of Stores and materials are determined on FIFO basis.
(g) Retirement Benefits
Retirement Benefits to the employees comprises of payments under
defined contribution plans like Provident Fund and Family Pension. The
liability in respect of defined benefit scheme like Gratuity is
provided on the basis of actuarial valuation as at the year end.
(h) Investments
Long term Investments are stated at cost. In case, there is a permanent
diminution in the value of investments, a provision for the same is
made in the accounts.
(i) Taxation
Income Tax expenses comprise current tax and fringe benefit tax (i.e.
amount of tax for the period determined in accordance with the Income
Tax law) and deferred tax charges or credit (reflecting the tax effects
of timing differences between accounting income and taxable income of
the year).
Current Tax is determined as the amount of tax payable in respect of
taxable income for the year in accordance with the Income Tax Act,
1961.
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognised using the tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realised in future; however
where there is unabsorbed depreciation or carry forward loss under
taxation laws, deferred tax assets are recognised only if there is a
virtual certainty of realisation of such assets. Deferred tax assets
are reviewed at each balance sheet date and written down or written up
to reflect the amount that is reasonably / virtually certain as the
case may be to be realised.
(j) Impairment of Fixed Assets
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Companys fixed assets. If any indication exists, an assets
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is greater of the net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor.
(k) Earnings Per Share
The Company reports basic and diluted Earnings per share (EPS) in
accordance with Accounting Standard (AS) -20 on "Earnings per Share".
Basic EPS is computed by dividing the net profit or loss for the year
by the weighted average number of equity shares outstanding during the
year. Diluted EPS is computed by dividing the net profit or loss for
the year by the weighted average number of equity shares outstanding
during the year as adjusted for the effects of all dilutive potential
equity shares, except where the results are anti-dilutive.
(l) Cash Flow Statement
The Cash Flow Statement is prepared by the "Indirect Method" set out in
Accounting Standard (AS) - 3 on "Cash Flow Statements" and presents the
cash flows by operating, investing and financing activities of the
Company.
(m) Provisions and Contingent Liabilities
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
a) The Company has a present obligation as a result of a past event
b) A probable outflow of resources is expected to settle the obligation
and
c) The amount of the obligation can be reliably estimated.
Where some or all the expenditure required to settle a provision is
expected to be reimbursed by another party, such reimbursement is
recognized to the extent of provision or contingent liability as the
case may be, only when it is virtually certain that the reimbursement
will be received.
Contingent liability is disclosed in the case of
a) At present obligation arising from a past event, when it is not
probable that a outflow of resources will be required to settle the
obligation.
b) A possible obligation, unless the probability of outflow of
resources is remote.
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