Mar 31, 2016
1. Accounting Convention
The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis. The financial statements are prepared under the historical cost convention as a going concern, and are consistent with generally accepted accounting principles in India and relevant Companies Act 2013 including accounting standards notified therein, except otherwise stated.
2. Use of Estimates
The preparation of financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions considered in the reported amounts of the assets and liabilities (including current liabilities) as of the date of financial statements, the reported income & expenses during the reporting period and disclosure of contingent liabilities. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ from theses estimates.
3. Revenue Recognition
a) Sales include sale of hardware & software products. Sales are recognized when products are supplied and are recorded net of sales return, rebates, trade discounts and VAT/central sales tax.
b) Income from rendering of services is recognized based on agreements/arrangements on completed service contract method.
c) Interest income is recognized on accrual basis.
d) Dividends from investments are recognized in Profit and Loss A/c only when the right to receive the payment is established.
4. Fixed Assets
Fixed assets are stated at cost of acquisition less accumulated depreciation. Cost includes taxes, duties, freight, installation expenses and other non-refundable incidental expenses related to acquisition. Gains or losses arising on disposal of fixed assets are recognized in the Profit & Loss Account.
5. Investment
Long term investments are valued at cost, less provision for diminution, other than temporary. Short term investments are valued at cost or market value, which is lower.
6. Depreciation
In respect of fixed assets (other than freehold land and capital work-in-progress) acquired during the year, depreciation / amortization is charged on a straight line basis so as to write off the cost of the assets over the useful lives and for the assets acquired prior to April 1,
2014, the carrying amount as on April 1, 2014 is depreciated over the remaining useful life based on an evaluation.
Type of asset Period
Computer equipment 3 years
Vehicles 8 years
Plant & Machinery 13 years
Office equipment 5 years
Furniture and fixtures 10 years
Office Premises 60 Years
Depreciation is provided on pro-rata basis, with reference to the date of addition. Intangible assets (Computer Software) are amortized over as period of 5 years as per Accounting standard 26 as no useful life provided in schedule II of companies Act 2013.
7. Inventory
a) Finished goods are valued at cost or net realizable value, whichever is lower.
b) Raw materials and stores & spares are valued at cost.
c) Work in progress is valued at the cost incurred.
d) The cost of inventories comprises all costs of purchase (including duties for which no credit/rebate is to be received), costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Trade discounts, rebates, duty drawbacks and other similar items are deducted in determining the costs of purchase.
e) The cost of inventories is arrived by using First-In-First-Out (FIFO) cost formula.
8. Retirement benefits
a) Provident Fund is a defined contribution scheme and the contribution wherever required by the statute are charged to the Profit & Loss Accounts incurred
b) Gratuity liability is a defined obligation and the Company provides for gratuity benefit covering all its eligible employees.
9. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, prior to the commencement of commercial production are capitalized as part of the cost of that asset. A qualifying asset is one which necessarily takes substantial period of time to get ready for its intended use. Other borrowing costs are charged to revenue.
10. Foreign Exchange Transaction
The reporting currency of the company is the Indian rupee. Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of the transaction. Exchange differences that arise on settlement of monetary item or on reporting of monetary item at Balance Sheet date at the closing rate is recognized as income or expense in the period in which they arise.
11. Taxation
a) Current Tax - Provision is made for Income Tax is determined as the amount of tax payable in respect of taxable income for the year after taking into account the allowances, disallowances and exemptions available under the Income Tax Act, 1961.
b) Deferred Tax - Deferred tax is recognized on timing differences between the accounting income and the taxable income that originate in one period and are capable of reversal in one or more periods and qualified using the tax rates and tax laws enacted or substantively enacted as at the Balance Sheet date. Deferred tax asset is recognized and carried forward to the extent there is reasonable certainty that future taxable income will be available, against which such deferred tax asset can be realized.
12. Impairment of Assets
The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If such indication exists, the Company estimates the recoverable amount of the assets. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account.
13. Intangible Assets
a) Revenue expenditure on Research and Development is charged to Profit and Loss account in the year the expenditure is incurred.
b) Capital expenditure during the development phase is recognized as an asset, only if in the opinion of the management, it is feasible to complete its production, it is intended to be used or sold, it will generate future economic benefits, there are adequate resources available for its completion and it is possible to measure the expenditure incurred on it.
c) Intangible Assets are amortized over their useful life.
14. Miscellaneous Expenditure
Miscellaneous expenditure is amortized over a period of 10 years.
15. 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, 2015
1. Accounting Convention
The Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis. The financial statements are
prepared under the historical cost convention as a going concern, and
are consistent with generally accepted accounting principles in India
and relevant Companies Act 2013 including accounting standards notified
therein, except otherwise stated.
2. Use of Estimates
The preparation of financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions considered in the reported amounts of
the assets and liabilities (including current liabilities) as of the
date of financial statements, the reported income & expenses during the
reporting period and disclosure of contingent liabilities. Management
believes that the estimates used in the preparation of financial
statements are prudent and reasonable. Future results could differ
from theses estimates.
3. Revenue Recognition
a) Sales include sale of hardware & software products. Sales are
recognized when products are supplied and are recorded net of sales
return, rebates, trade discounts and VAT/central sales tax.
b) Income from rendering of services is recognized based on
agreements/arrangements on completed service contract method.
c) Interest income is recognized on accrual basis.
d) Dividends from investments are recognized in Profit and Loss A/c
only when the right to receive the payment is established.
4. Fixed Assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. Cost includes taxes, duties, freight, installation
expenses and other non-refundable incidental expenses related to
acquisition. Gains or losses arising on disposal of fixed assets are
recognized in the Profit & Loss Account.
5. Investment
Long term investments are valued at cost, less provision for
diminution, other than temporary. Short term investments are valued at
cost or market value, which is lower.
6. Depreciation
In respect of fixed assets (other than freehold land and capital
work-in-progress) acquired during the year, depreciation / amortization
is charged on a straight line basis so as to write off the cost of the
assets over the useful lives and for the assets acquired prior to April
1,2014, the carrying amount as on April 1,2014 is depreciated over the
remaining useful life based on an evaluation.
Type of asset Period
Computer equipment 3 years
Vehicles 8 years
Plant & Machinery 13 years
Office equipment 5 years
Furniture and fixtures 10 years
Office Premises 60 Years
Depreciation is provided on pro-rata basis, with reference to the date
of addition. Intangible assets (Computer Software) are amortized over
as period of 5 years as per Accounting standard 26 as no useful life
provided in schedule II of companies Act 2013.
7. Inventory
a) Finished goods are valued at cost or net realizable value, whichever
is lower.
b) Raw materials and stores & spares are valued at cost.
c) Work in progress is valued at the cost incurred.
d) The cost of inventories comprises all costs of purchase (including
duties for which no credit/rebate is to be received), costs of
conversion and other costs incurred in bringing the inventories to
their present location and condition. Trade discounts, rebates, duty
drawbacks and other similar items are deducted in determining the costs
of purchase.
e) The cost of inventories is arrived by using First-In-First-Out
(FIFO) cost formula.
8. Retirement benefits
a) Provident Fund is a defined contribution scheme and the contribution
wherever required by the statute are charged to the Profit & Loss
Accounts incurred
b) Gratuity liability is a defined obligation and the Company provides
for gratuity benefit covering all its eligible employees.
9. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset, prior to the
commencement of commercial production are capitalized as part of the
cost of that asset. A qualifying asset is one which necessarily takes
substantial period of time to get ready for its intended use. Other
borrowing costs are charged to revenue.
10. Foreign Exchange Transaction
The reporting currency of the company is the Indian rupee. Foreign
currency transactions are recorded on initial recognition in the
reporting currency, using the exchange rate at the date of the
transaction. Exchange differences that arise on settlement of monetary
item or on reporting of monetary item at Balance Sheet date at the
closing rate is recognized as income or expense in the period in which
they arise.
11. Taxation
a) Current Tax - Provision is made for Income Tax is determined as the
amount of tax payable in respect of taxable income for the year after
taking into account the allowances, disallowances and exemptions
available under the Income Tax Act, 1961.
b) Deferred Tax - Deferred tax is recognized on timing differences
between the accounting income and the taxable income that originate in
one period and are capable of reversal in one or more periods and
qualified using the tax rates and tax laws enacted or substantively
enacted as at the Balance Sheet date. Deferred tax asset is recognized
and carried forward to the extent there is reasonable certainty that
future taxable income will be available, against which such deferred tax
asset can be realized.
12. Impairment of Assets
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If such indication exists,
the Company estimates the recoverable amount of the assets. If such
recoverable amount of the asset is less than its carrying amount, the
carrying amount is reduced to its recoverable amount. The reduction is
treated as an impairment loss and is recognized in the profit and loss
account.
13. Intangible Assets
a) Revenue expenditure on Research and Development is charged to Profit
and Loss account in the year the expenditure is incurred.
b) Capital expenditure during the development phase is recognized as an
asset, only if in the opinion of the management, it is feasible to
complete its production, it is intended to be used or sold, it will
generate future economic benefits, there are adequate resources
available for its completion and it is possible to measure the
expenditure incurred on it.
c) Intangible Assets are amortised over their useful life.
14. Miscellaneous Expenditure
Miscellaneous expenditure is amortized over a period of 10 years.
15. 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, 2014
1. Accounting Convention
The Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis. The financial statements are
prepared under the historical cost convention as a going concern, and
are consistent with generally accepted accounting principles in India,
and applicable accounting standards referred to in Section 211(3C) of
the Companies Act, 1956.
2. Use of Estimates
The preparation of financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions considered in the reported amounts of
the assets and liabilities (including current liabilities) as of the
date of financial statements, the reported income & expenses during the
reporting period and disclosure of contingent liabilities. Management
believes that the estimates used in the preparation of financial
statements are prudent and reasonable. Future results could differ
from theses estimates.
3. Revenue Recognition
a) Sales include sale of hardware & software products. Sales are
recognized when products are supplied and are recorded net of sales
return, rebates, trade discounts and VAT/central sales tax.
b) Income from rendering of services is recognized based on
agreements/arrangements on completed service contract method.
c) Interest income is recognized on accrual basis
d) Dividends from investments are recognized in Profit and Loss A/c
only when the right to receive the payment is established.
4. Fixed Assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. Cost includes taxes, duties, freight, installation
expenses and other non- refundable incidental expenses related to
acquisition. Gains or losses arising on disposal of fixed assets are
recognized in the Profit & Loss Account.
5. Investment
Long term investments are valued at cost, less provision for
diminution, other than temporary. Short term investments are valued at
cost or market value, which is lower.
6. Depreciation
a) Depreciation on fixed assets is provided on the straight line method
at the rates prescribed in Schedule XIV of the Companies Act, 1956.
b) Depreciation is provided on pro-rata basis, with reference to the
date of addition.
7. Inventory
a) Finished goods are valued at cost or net realizable value, whichever
is lower.
b) Raw materials and stores & spares are valued at cost.
c) Work in progress is valued at the cost incurred.
d) The cost of inventories comprises all costs of purchase (including
duties for which no credit/rebate is to be received), costs of
conversion and other costs incurred in bringing the inventories to
their present location and condition. Trade discounts, rebates, duty
drawbacks and other similar items are deducted in determining the costs
of purchase.
e) The cost of inventories is arrived by using First- In-First-Out
(FIFO) cost formula.
8. Retirementbenefits
a) Provident Fund is a defined contribution scheme and the contribution
wherever required by the statute are charged to the Profit & Loss
Accounts incurred
b) Gratuity liability is a defined obligation and the Company provides
for gratuity benefit covering all its eligible employees.
9. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset, prior to the
commencement of commercial production are capitalized as part of the
cost of that asset. A qualifying asset is one which necessarily takes
substantial period of time to get ready for its intended use. Other
borrowing costs are charged to revenue.
10. Foreign Exchange Transaction
The reporting currency of the company is the Indian rupee. Foreign
currency transactions are recorded on initial recognition in the
reporting currency, using the exchange rate at the date of the
transaction. Exchange differences that arise on settlement of monetary
item or on reporting of monetary item at Balance Sheet date at the
closing rate is recognized as income or expense in the period in which
they arise.
11. Taxation
a) Current Tax  Provision is made for Income Tax is determined as the
amount of tax payable in respect of taxable income for the year after
taking into account the allowances, disallowances and exemptions
available under the Income Tax Act, 1961.
b) Deferred Tax  Deferred tax is recognized on timing differences
between the accounting income and the taxable income that originate in
one period and are capable of reversal in one or more periods and
qualified using the tax rates and tax laws enacted or substantively
enacted as at the Balance Sheet date. Deferred tax asset is recognized
and carried forward to the extent there is reasonable certainty that
future taxable income will be available, against which such deferred
tax asset can be realized.
12. Impairment of Assets
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If such indication exists,
the Company estimates the recoverable amount of the assets. If such
recoverable amount of the asset is less than its carrying amount, the
carrying amount is reduced to its recoverable amount. The reduction is
treated as an impairment loss and is recognized in the profit and loss
account.
13. Intangible Assets
a) Revenue expenditure on Research and Development is charged to Profit
and Loss account in the year the expenditure is incurred.
b) Capital expenditure during the development phase is recognized as an
asset, only if in the opinion of the management, it is feasible to
complete its production, it is intended to be used or sold, it will
generate future economic benefits, there are adequate resources
available for its completion and it is possible to measure the
expenditure incurred on it.
c) Intangible Assets are amortised over their useful life.
14. Miscellaneous Expenditure
Miscellaneous expenditure is amortized over a period of 10 years.
15. 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.
Jun 30, 2013
1. Accounting Convention
The Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis. The financial statements are
prepared under the historical cost convention as a going concern, and
are consistent with generally accepted accounting principles in India,
and applicable accounting standards referred to in Section 211(3C) of
the Companies Act, 1956.
2. Use of Estimates
The preparation of financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions considered in the reported amounts of
the assets and liabilities (including current liabilities) as of the
date of financial statements, the reported income & expenses during the
reporting period and disclosure of contingent liabilities. Management
believes that the estimates used in the preparation of financial
statements are prudent and reasonable. Future results could differ
from theses estimates.
3. Revenue Recognition
a) Sales include sale of hardware & software products. Sales are
recognized when products are supplied and are recorded net of sales
return, rebates, trade discounts and VAT/central sales tax.
b) Income from rendering of services is recognized based on
agreements/arrangements on completed service contract method.
c) Interest income is recognized on accrual basis.
d) Dividends from investments are recognized in Profit and Loss A/c
only when the right to receive the payment is established.
4. Fixed Assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. Cost includes taxes, duties, freight, installation
expenses and other non-refundable incidental expenses related to
acquisition. Gains or losses arising on disposal of fixed assets are
recognized in the Profit & Loss Account.
5. Investment
Long term investments are valued at cost, less provision for
diminution, other than temporary. Short term investments are valued at
cost or market value, which is lower.
6. Depreciation
a) Depreciation on fixed assets is provided on the straight line method
at the rates prescribed in Schedule XIV of the Companies Act, 1956.
b) Depreciation is provided on pro-rata basis, with reference to the
date of addition.
7. Inventory
a) Finished goods are valued at cost or net realizable value, whichever
is lower.
b) Raw materials and stores & spares are valued at cost.
c) Work in progress is valued at the cost incurred.
d) The cost of inventories comprises all costs of purchase (including
duties for which no credit/rebate is to be received), costs of
conversion and other costs incurred in bringing the inventories to
their present location and condition. Trade discounts, rebates, duty
drawbacks and other similar items are deducted in determining the costs
of purchase.
e) The cost of inventories is arrived by using First-In-First-Out
(FIFO) cost formula.
8. Retirement benefits
a) Provident Fund is a defined contribution scheme and the contribution
wherever required by the statute are charged to the Profit & Loss
Accounts incurred
b) Gratuity liability is a defined obligation and the Company provides
for gratuity benefit covering all its eligible employees.
9. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset, prior to the
commencement of commercial production are capitalized as part of the
cost of that asset. A qualifying asset is one which necessarily takes
substantial period of time to get ready for its intended use. Other
borrowing costs are charged to revenue.
10. Foreign Exchange Transaction
The reporting currency of the company is the Indian rupee. Foreign
currency transactions are recorded on initial recognition in the
reporting currency, using the exchange rate at the date of the
transaction. Exchange differences that arise on settlement of monetary
item or on reporting of monetary item at Balance Sheet date at the
closing rate is recognized as income or expense in the period in which
they arise.
11. Taxation
a) Current Tax - Provision is made for Income Tax is determined as the
amount of tax payable in respect of taxable income for the year after
taking into account the allowances, disallowances and exemptions
available under the Income Tax Act, 1961.
b) Deferred Tax - Deferred tax is recognized on timing differences
between the accounting income and the taxable income that originate in
one period and are capable of reversal in one or more periods and
qualified using the tax rates and tax laws enacted or substantively
enacted as at the Balance Sheet date. Deferred tax asset is recognized
and carried forward to the extent there is reasonable certainty that
future taxable income will be available, against which such deferred
tax asset can be realized.
12. Impairment of Assets
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If such indication exists,
the Company estimates the recoverable amount of the assets. If such
recoverable amount of the asset is less than its carrying amount, the
carrying amount is reduced to its recoverable amount. The reduction is
treated as an impairment loss and is recognized in the profit and loss
account.
13. Intangible Assets
a) Revenue expenditure on Research and Development is charged to Profit
and Loss account in the year the expenditure is incurred.
b) Capital expenditure during the development phase is recognized as an
asset, only if in the opinion of the management, it is feasible to
complete its production, it is intended to be used or sold, it will
generate future economic benefits, there are adequate resources
available for its completion and it is possible to measure the
expenditure incurred on it.
c) Intangible Assets are amortised over their useful life.
14. Miscellaneous Expenditure
Miscellaneous expenditure is amortized over a period of 10 years.
15. 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
1. Accounting Convention
The Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis. The financial statements are
prepared under the historical cost convention as a going concern, and
are consistent with generally accepted accounting principles in India,
and applicable accounting standards referred to in Section 211(3C) of
the Companies Act, 1956.
2. Use of Estimates
The preparation of financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions considered in the reported amounts of
the assets and liabilities (including current liabilities) as of the
date of financial statements, the reported income & expenses during the
reporting period and disclosure of contingent liabilities. Management
believes that the estimates used in the preparation of financial
statements are prudent and reasonable. Future results could differ from
these estimates.
3. Revenue Recognition
a) Sales include sale of hardware & software products. Sales are
recognized when products are supplied and are recorded net of sales
return, rebates, trade discounts and VAT/central sales tax.
b) Income from rendering of services is recognized based on
agreements/arrangements on completed service contract method.
c) Interest income is recognized on accrual basis.
d) Dividends from investments are recognized in Profit and Loss A/c
only when the right to receive the payment is established.
4. Fixed Assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. Cost includes taxes, duties, freight, installation
expenses and other non-refundable incidental expenses related to
acquisition. Gains or losses arising on disposal of fixed assets are
recognized in the Profit & Loss Account.
5. Investment
Long term investments are valued at cost, less provision for
diminution, other than temporary. Short term investments are valued at
cost or market value, which is lower.
6. Depreciation
a) Depreciation on fixed assets is provided on the straight line method
at the rates prescribed in Schedule XIV of the Companies Act, 1956.
b) Depreciation is provided on pro-rata basis, with reference to the
date of addition.
7. Inventory
a) Finished goods are valued at cost or net realizable value, whichever
is lower.
b) Raw materials and stores & spares are valued at cost.
c) Work in progress is valued at the cost incurred.
d) The cost of inventories comprises all costs of purchase (including
duties for which no credit/rebate is to be received), costs of
conversion and other costs incurred in bringing the inventories to
their present location and condition. Trade discounts, rebates, duty
drawbacks and other similar items are deducted in determining the costs
of purchase.
e) The cost of inventories is arrived by using First-In-First-Out
(FIFO) cost formula.
8. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset, prior to the
commencement of commercial production are capitalized as part of the
cost of that asset. A qualifying asset is one which necessarily takes
substantial period of time to get ready for its intended use. Other
borrowing costs are charged to revenue.
9. Foreign Exchange Transaction
The reporting currency of the company is the Indian rupee. Foreign
currency transactions are recorded on initial recognition in the
reporting currency, using the exchange rate at the date of the
transaction. Exchange differences that arise on settlement of monetary
item or on reporting of monetary item at Balance Sheet date at the
closing rate is recognized as income or expense in the period in which
they arise.
10. Taxation
a) Current Tax - Provision is made for Income Tax is determined as the
amount of tax payable in respect of taxable income for the year after
taking into account the allowances, disallowances and exemptions
available under the Income Tax Act, 1961.
b) Deferred Tax - Deferred tax is recognized on timing differences
between the accounting income and the taxable income that originate in
one period and are capable of reversal in one or more periods and
qualified using the tax rates and tax laws enacted or substantively
enacted as at the Balance Sheet date. Deferred tax asset is recognized
and carried forward to the extent there is reasonable certainty that
future taxable income will be available, against which such deferred
tax asset can be realized.
11. Impairment of Assets
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If such indication exists,
the Company estimates the recoverable amount of the assets. If such
recoverable amount of the asset is less than its carrying amount, the
carrying amount is reduced to its recoverable amount. The reduction is
treated as an impairment loss and is recognized in the profit and loss
account.
12. Intangible Assets
a) Revenue expenditure on Research and Development is charged to Profit
and Loss account in the year the expenditure is incurred.
b) Capital expenditure during the development phase is recognized as an
asset, only if in the opinion of the management, it is feasible to
complete its production, it is intended to be used or sold, it will
generate future economic benefits, there are adequate resources
available for its completion and it is possible to measure the
expenditure incurred on it.
c) Intangible Assets are amortized over their useful life.
13. Miscellaneous Expenditure
Miscellaneous expenditure is amortized over a period of 5 years.
14. 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 often amount often 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.
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