Mar 31, 2015
1. METHOD OF ACCOUNTING :
The Company follows Mercantile System of accounting and recognizes income and expenditure on an accrual basis. The accounts are prepared on historical cost basis.
2. FIXED ASSETS :
Fixed Assets are accounted for on historical cost basis less accumulated depreciation. Cost comprises of purchase price and all expenses directly attributable to bringing the asset to its present working condition.
3. DEPRECIATION :
Depreciation is provided on the Straight Line Method. The useful life of the assets adopted are as per Schedule II of the Companies Act, 2013.
4. INVESTMENTS: Long Term:
Investments are stated at cost less provision for permanent diminution in value.
Short term investments are stated at cost or market value which ever is lower.
5 PRIOR PERIOD ADJUSTMENTS:
Income and expenditure pertaining to prior periods are accounted under respective heads of profit and loss account. However, net effect of such amount, where material, is disclosed separately.
6 RECOGNITION OF INCOME
Rental Income is recognised on accrual basis.
7 TAXES ON INCOME:
a) Current Tax:
Tax on Income for the Current Period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act 1961, and based on expected out come of assessments / appeals, if any.
b) Deferred Tax:
Deferred Tax for timing differences between taxable income and accounting income are considered by using the tax rates that are substantively enacted by the Balance Sheet date. Deferred Tax assets are recognised only to the extent where there is reasonable certainity that they shall be realised.