Mar 31, 2015
The significant accounting policies adopted by the Company in respect
of these financial statement, are set out below:
1.1 Basis of Preparation of financial statements
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as specified in the Companies (Accounting
Standards) Rules, 2006, the provisions of the Companies Act, 1956,
guidelines issued by the Securities and Exchange Board of India and
pronouncements of the Institute of Chartered Accountants of India.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.
The management evaluates all recently issued or revised accounting
standards on an ongoing basis.
1.2 Revenue Recognition
Revenues of all material items and nature are recognized in accordance
with Accounting Standard - 9, i.e., at the time of rendering of
services or sales. If at the time of rendering of services or sales
there is significant uncertainty in ultimate collection of the revenue,
then the revenue recognition is postponed and in such cases revenue is
recognized only when it becomes reasonably certain that ultimate
collection will be made. When uncertainty of collection of revenue
arises subsequently after the revenue recognition, provision for the
uncertainty in collection is made rather than adjustment in revenue
already recognized. Turnover includes gross value of goods and services
and taxes. Dividend income is recognized when right to receive is
established. Interest income is recognized on time proportion basis
taking in to account the amount outstanding and rate applicable.
1.3 Fixed Assets, Intangible Assets and Capital Work-In -Progress
Fixed Assets are stated at cost less accumulated depreciation. Direct
costs are capitalized until fixed assets are ready to use. Capital
work-in progress comprises outstanding advances paid to acquire fixed
assets, and the cost of fixed assets that are not ready for their
intended use at the balance sheet date. Intangible assets are recorded
at the consideration paid for acquisition.
1.4 Depreciation/ Amortization
Depreciation is provided on the straight-line method at the rates and
in the manner prescribed in Schedule XIV to the Companies Act 1956 on
all the assets. Intangible Assets are amortized in accordance with
Accounting Standard 26 on "Intangible Assets". Purchased 'Intangible
Assets' is accordingly amortized on a straight line method over its
estimated useful lives of 10 years. Software licenses with a purchase
cost below Rs. 5000 are fully amortized in the year of acquisition
itself.
The cost of internally generated website is accordingly amortized on a
straight line method over its useful life of 10 years.
Depreciation for assets purchased / sold during a period is
proportionately charged. Individual low cost assets (acquired for less
than Rs. 5,000/-) are entirely depreciated in the year of acquisition
1.5 Investments
Trade Investments are the investments made to enhance the Company's
business interests. Investments are either classified as current and
long- term based on the management intention at the time of purchase.
Current investments are carried at the lower of cost and fair value.
Long-term investments are carried at cost and provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
1.6 Inventory
Inventory of Newsprint, goods in transit are stated at cost or net
realizable value, whichever is lower. Cost comprises all cost of
purchase, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition. Cost formulae used
are 'First In First Out', 'Average cost', or 'Specific Identification',
as applicable. Due allowance is estimated and made for defective and
obsolete items, wherever necessary, based on the past experience of the
Company.
1.7 Foreign Currency Transactions
Transactions in Foreign Currency are recorded at the exchange rate
prevailing at the date of transaction. Monetary items are restated at
year-end foreign exchange rates. Resultant exchange differences arising
on payment or conversion of liabilities are recognized as income or
expense in the year in which they arise.
1.8 Retirement Benefits
a) Company's contribution to the Employees' Provident Fund is charged
to the profit and loss account each year.
b) Short term employee benefits (Medical, Leave travel allowance, etc.)
expected to be paid in exchange for the services rendered are
recognised on undiscounted basis
c) Actuarial gains and losses arising from experience adjustments and
effects of changes in actuarial assumptions are immediately recognised
in the statement of profit and loss account as income or expense.
d) Gratuity and Leave encashment are provided for on the basis of an
actuarial valuation using projected unit credit method (PUCM).
1.9 Taxation
Income tax is computed using the tax effect accounting method; where
income tax is accrued in the same period in which the related revenue
and expenses arise. A provision is made for income tax annually based on
the tax liability computed, after considering tax allowances and
exemptions. Provision is also recorded when it is estimated that a
liability due to disallowances or other matters is probable.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of the aggregate amount being considered. The tax effect is
calculated on the accumulated timing differences at the end of an
accounting period based on prevailing enacted or substantively enacted
regulations. Deferred tax assets are recognized only if there is
reasonable or virtual certainty that they will be realized and are
reviewed for the appropriateness of their respective carrying values at
each balance sheet date.
1.10 Borrowing Cost
Borrowing cost attributable to the acquisition or construction of a
qualifying asset is capitalized as a part of the cost of that asset. A
qualifying asset is one, which takes substantial period of time to get
ready for intended use. Other borrowing costs are recognized as an
expense in the period in which they are incurred.
1.11 Impairment of Assets
Assets that are subject to amortization are reviewed for
impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is
recognized for the amount by which the assets' carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of the
assets' fair value less cost to sell and value in use. For the purpose
of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows (Cash generating
units).
1.12 Earnings Per Share
In determining earnings per share, the Company considers the net profit
after tax and includes the post tax effect of any extraordinary /
exceptional items. The number of shares used in computing basic
earnings per share is the weighted average number of shares outstanding
during the period. The number of shares used in computing Diluted EPS
comprises weighted average shares considered for deriving Basic EPS,
and also the weighted average number of equity shares which could have
been issued on the conversion of all dilutive potential equity shares.
The anti-dilutive effect, if any, of potential equity shares on diluted
EPS is ignored as per the requirement of accounting standard -20 on
"Earning per Share".
1.13 Provisions, 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 disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial
statement.
1.14 Leases
Lease rentals in respect of assets taken on "Operating Lease" are
charged to the Profit & Loss Account.
Mar 31, 2014
The significant accounting policies adopted by the Company in respect
of these financial statement, are set out below:
1.1 Basis of Preparation of financial statements
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (ÂGAAP") under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as specified in the Companies (Accounting
Standards) Rules, 2006, the provisions of the Companies Act, 1956,
guidelines issued by the Securities and Exchange Board of India and
pronouncements of the Institute of Chartered Accountants of India.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.
The management evaluates all recently issued or revised accounting
standards on an ongoing basis.
1.2 Revenue Recognition
Revenues of all material items and nature are recognized in accordance
with Accounting Standard  9, i.e., at the time of rendering of
services or sales. If at the time of rendering of services or sales
there is significant uncertainty in ultimate collection of the revenue,
then the revenue recognition is postponed and in such cases revenue is
recognized only when it becomes reasonably certain that ultimate
collection will be made. When uncertainty of collection of revenue
arises subsequently after the revenue recognition, provision for the
uncertainty in collection is made rather than adjustment in revenue
already recognized. Turnover includes gross value of goods and services
and taxes. Dividend income is recognized when right to receive is
established. Interest income is recognized on time proportion basis
taking in to account the amount outstanding and rate applicable.
1.3 Fixed Assets, Intangible Assets and Capital Work-In - Progress
Fixed Assets are stated at cost less accumulated depreciation. Direct
costs are capitalized until fixed assets are ready to use. Capital
work-in progress comprises outstanding advances paid to acquire fixed
assets, and the cost of fixed assets that are not ready for their
intended use at the balance sheet date. Intangible assets are recorded
at the consideration paid for acquisition.
1.4 Depreciation/ Amortization
Depreciation is provided on the straight-line method at the rates and
in the manner prescribed in Schedule XIV to the Companies Act 1956 on
all the assets. Intangible Assets are amortized in accordance with
Accounting Standard 26 on ÂIntangible Assets". Purchased ''Intangible
Assets'' is accordingly amortized on a straight line method over its
estimated useful lives of 10 years. Software licenses with a purchase
cost below Rs. 5000 are fully amortized in the year of acquisition
itself.
The cost of internally generated website is accordingly amortized on a
straight line method over its useful life of 10 years.
Depreciation for assets purchased / sold during a period is
proportionately charged. Individual low cost assets (acquired for less
than Rs. 5,000/-) are entirely depreciated in the year of acquisition
1.5 Investments
Trade Investments are the investments made to enhance the Company''s
business interests. Investments are either classified as current and
long- term based on the management intention at the time of purchase.
Current investments are carried at the lower of cost and fair value.
Long-term investments are carried at cost and provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
1.6 Inventory
Inventory of Newsprint, goods in transit are stated at cost or net
realizable value, whichever is lower. Cost comprises all cost of
purchase, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition. Cost formulae used
are ''First In First Out'', ''Average cost'', or ''Specific Identification'',
as applicable. Due allowance is estimated and made for defective and
obsolete items, wherever necessary, based on the past experience of the
Company.
1.7 Foreign Currency Transactions
Transactions in Foreign Currency are recorded at the exchange rate
prevailing at the date of transaction. Monetary items are restated at
year-end foreign exchange rates. Resultant exchange differences arising
on payment or conversion of liabilities are recognized as income or
expense in the year in which they arise.
1.8 Retirement Benefits
a) Company''s contribution to the Employees'' Provident Fund is charged
to the profit and loss account each year.
b) Short term employee benefits (Medical, Leave travel allowance, etc.)
expected to be paid in exchange for the services rendered are
recognised on undiscounted basis
c) Actuarial gains and losses arising from experience adjustments and
effects of changes in actuarial assumptions are immediately recognised
in the statement of profit and loss account as income or expense.
d) Gratuity and Leave encashment are provided for on the basis of an
actuarial valuation using projected unit credit method (PUCM).
1.9 Taxation
Income tax is computed using the tax effect accounting method; where
income tax is accrued in the same period in which the related revenue
and expenses arise. A provision is made for income tax annually based
on the tax liability computed, after considering tax allowances and
exemptions. Provision is also recorded when it is estimated that a
liability due to disallowances or other matters is probable.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of the aggregate amount being considered. The tax effect is
calculated on the accumulated timing differences at the end of an
accounting period based on prevailing enacted or substantively enacted
regulations. Deferred tax assets are recognized only if there is
reasonable or virtual certainty that they will be realized and are
reviewed for the appropriateness of their respective carrying values at
each balance sheet date.
1.10 Borrowing Cost
Borrowing cost attributable to the acquisition or construction of a
qualifying asset is capitalized as a part of the cost of that asset. A
qualifying asset is one, which takes substantial period of time to get
ready for intended use. Other borrowing costs are recognized as an
expense in the period in which they are incurred.
1.11 Impairment of Assets
Assets that are subject to amortization are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognized for the
amount by which the assets'' carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of the assets'' fair value
less cost to sell and value in use. For the purpose of assessing
impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (Cash generating units).
1.12 Earnings Per Share
In determining earnings per share, the Company considers the net profit
after tax and includes the post tax effect of any extraordinary /
exceptional items. The number of shares used in computing basic
earnings per share is the weighted average number of shares outstanding
during the period. The number of shares used in computing Diluted EPS
comprises weighted average shares considered for deriving Basic EPS,
and also the weighted average number of equity shares which could have
been issued on the conversion of all dilutive potential equity shares.
The anti-dilutive effect, if any, of potential equity shares on diluted
EPS is ignored as per the requirement of accounting standard -20 on
"Earning per Share".
1.13 Provisions, 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 disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial
statement.
1.14 Leases
Lease rentals in respect of assets taken on ÂOperating Lease" are
charged to the Profit & Loss Account.
Mar 31, 2013
1.1 Basis of Preparation of financial statements
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as specified in the Companies (Accounting
Standards) Rules, 2006, the provisions of the Companies Act, 1956,
guidelines issued by the Securities and Exchange Board of India and
pronouncements of the Institute of Chartered Accountants of India.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.
The management evaluates all recently issued or revised accounting
standards on an ongoing basis.
1.2 Revenue Recognition
Revenues of all material items and nature are recognized in accordance
with Accounting Standard - 9, i.e., at the time of rendering of
services or sales. If at the time of rendering of services or sales
there is significant uncertainty in ultimate collection of the revenue,
then the revenue recognition is postponed and in such cases revenue is
recognized only when it becomes reasonably certain that ultimate
collection will be made. When uncertainty of collection of revenue
arises subsequently after the revenue recognition, provision for the
uncertainty in collection is made rather than adjustment in revenue
already recognized. Turnover includes gross value of goods and services
and taxes. Dividend income is recognized when right to receive is
established. Interest income is recognized on time proportion basis
taking in to account the amount outstanding and rate applicable.
1.3 Fixed Assets, Intangible Assets and Capital Work-in - Progress
Fixed Assets are stated at cost less accumulated depreciation. Direct
costs are capitalized until fixed assets are ready to use. Capital
work-in progress comprises outstanding advances paid to acquire fixed
assets, and the cost of fixed assets that are not ready for their
intended use at the balance sheet aate. Intangible assets are recorded
at the consideration paid for acquisition.
1.4 Depreciation/ Amortization
Depreciation is provided on the straight-line method at the rates and
in the manner prescribed in Schedule XIV to the Companies Act 1956 on
all the assets. Intangible Assets are amortized in accordance with
Accounting Standard 26 on "Intangible Assets". Purchased ''Intangible
Assets'' is accordingly amortized on a straight line method over its
estimated useful lives of 10 years. Software licenses with a purchase
cost below Rs. 5000 are fully amortized in the year of acquisition
itself.
The cost of internally generated website is accordingly amortized on a
straight line method over its useful life of 10 years.
Depreciation for assets purchased / sold during a period is
proportionately charged. Individual low cost assets (acquired for less
than Rs. 5,000/-) are entirely depreciated in the year of acquisition.
1.5 Investments
Trade Investments are the investments made to enhance the Company''s
business interests. Investments are either classified as current and
long- term based on the management intention at the time of purchase.
Current investments are carried at the lower of cost and fair value.
Long-term investments are carried at cost and provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
1.6 Inventory
Inventory of Newsprint, goods in transit are stated at cost or net
realizable value, whichever is lower. Cost comprises all cost of
purchase, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition. Cost formulae
used are ''First In First Out'', ''Average cost'', or ''Specific
Identification'', as applicable. Due allowance is estimated and made for
defective and obsolete items, wherever necessary, based on the past
experience of the Company.
1.7 Foreign Currency Transactions
Transactions in Foreign Currency are recorded at the exchange rate
prevailing at the date of transaction. Monetary items are restated at
year-end foreign exchange rates. Resultant exchange differences arising
on payment or conversion of liabilities are recognized as income or
expense in the year in which they arise.
1.8 Retirement Benefits
a) Company''s contribution to the Employees'' Provident Fund is charged
to the profit and loss account each year.
b) Short term employee benefits (Medical, Leave travel allowance, etc.)
expected to be paid in exchange for the services rendered are
recognised on undiscounted basis
c) Actuarial gains and losses arising from experience adjustments and
effects of changes in actuarial assumptions are immediately recognised
in the statement of profit and loss account as income or expense.
d) Gratuity and Leave encashment are provided for on the basis of an
actuarial valuation using projected unit credit method (PUCM).
1.9 Taxation
Income tax is computed using the tax effect accounting method; where
income tax is accrued in the same period in which the related revenue
and expenses arise. A provision is made for income tax annually based
on the tax liability computed, after considering tax allowances and
exemptions. Provision is also recorded when it is estimated that a
liability due to disallowances or other matters is probable.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax asset or deferred tax liability is
recorded for timing differences, namely the differences that originate
in one accounting period and reverse in another, based on the tax
effect of the aggregate amount being considered. The tax effect is
calculated on the accumulated timing differences at the end of an
accounting period based on prevailing enacted or substantively enacted
regulations. Deferred tax assets are recognized only if there is
reasonable or virtual certainty that they will be realized and are
reviewed for the appropriateness of their respective carrying values at
each balance sheet date.
1.10 Borrowing Cost
Borrowing cost attributable to the acquisition or construction of a
qualifying asset is capitalized as a part of the cost of that asset. A
qualifying asset is one, which takes substantial period of time to get
ready for intended use. Other borrowing costs are recognized as an
expense in the period in which they are incurred.
1.11 Impairment of Assets
Assets that are subject to amortization are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognized for the
amount by which the assets'' carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of the assets'' fair value
less cost to sell and value in use. For the purpose of assessing
impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (Cash generating units).
1.12 Earnings Per Share
In determining earnings per share, the Company considers the net profit
after tax and includes the post tax effect of any extraordinary /
exceptional items. The number of shares used in computing basic
earnings per share is the weighted average number of shares outstanding
during the period. The number of shares used in computing Diluted EPS
comprises weighted average shares considered for deriving Basic EPS,
and also the weighted average number of equity shares which could have
been issued on the conversion of all dilutive potential equity shares.
The anti-dilutive effect, if any, of potential equity shares on diluted
EPS is ignored as per the requirement of accounting standard -20 on
"Earning per Share".
1.13 Provisions, 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 disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial
statement.
1.14 Leases
Lease rentals in respect of assets taken on "Operating Lease" are
charged to the Profit & Loss Account.
Mar 31, 2010
1) Basis of Preparation of financial statements
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as specified in the Companies (Accounting
Standards) Rules, 2006, the provisions of the Companies Act, 1956,
guidelines issued by the Securities and Exchange Board of India and
pronouncements of the Institute of Chartered Accountants of India.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.
The management evaluates all recently issued or revised accounting
standards on an ongoing basis.
2) Revenue Recognition
Revenues of all material items and nature are recognized in accordance
with Accounting Standard à 9, i.e., at the time of rendering of
services or sales. If at the time of rendering of services or sales
there is significant uncertainty in ultimate collection of the revenue,
then the revenue recognition is postponed and in such cases revenue is
recognized only when it becomes reasonably certain that ultimate
collection will be made. When uncertainty of collection of revenue
arises subsequently after the revenue recognition, provision for the
uncertainty in collection is made rather than adjustment in revenue
already recognized. Turnover includes gross value of goods and services
and service tax. Dividend income is recognized when right to receive is
established. Interest income is recognized on time proportion basis
taking in to account the amount outstanding and rate applicable.
3) Fixed Assets, Intangible Assets and Capital Work-In - Progress
Fixed Assets are stated at cost less accumulated depreciation. Direct
costs are capitalized until fixed assets are ready to use. Capital
work-in progress comprises outstanding advances paid to acquire fixed
assets, and the cost of fixed assets that are not ready for their
intended use at the balance sheet date. Intangible assets are recorded
at the consideration paid for acquisition.
4) Depreciation/ Amortization
Depreciation is provided on the straight-line method at the rates and
in the manner prescribed in Schedule XIV to the Companies Act 1956 on
all the assets. Intangible Assets are amortized in accordance with
Accounting Standard 26 on ÃIntangible AssetsÃ. Purchased ÃIntangible
Assets is accordingly amortized on a straight line method over its
estimated useful lives of 10 years. Software licenses with a purchase
cost below Rs.5000 are fully amortized in the year of acquisition
itself.
The cost of internally generated Intangible assets is accordingly
amortized on a straight line method over its useful life of 10 years.
Depreciation for assets purchased / sold during a period is
proportionately charged. Individual low cost assets (acquired for less
than Rs. 5,000/-) are entirely depreciated in the year of acquisition
5) Investments
Trade Investments are the investments made to enhance the Companys
business interests. Investments are either classified as current and
long- term based on the management intention at the time of purchase.
Current investments are carried at the lower of cost and fair value.
Long-term investments are carried at cost and provisions recorded to
recognize any decline, other than temporary, in the carrying value of
each investment.
6) Inventory
Inventory of Newsprint, goods in transit are stated at cost or net
realizable value, whichever is lower. Cost comprises all cost of
purchase, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition. Cost formulae used
are ÃFirst In First Out, ÃAverage cost, or ÃSpecific Identification,
as applicable. Due allowance is estimated and made for defective and
obsolete items, wherever necessary, based on the past experience of the
Company.
7) Foreign Currency Transactions
Transactions in Foreign Currency are recorded at the exchange rate
prevailing at the date of transaction. Monetary items are restated at
year-end foreign exchange rates. Resultant exchange differences arising
on payment or conversion of liabilities are recognized as income or
expense in the year in which they arise.
8) Retirement Benefits
a) Companys contribution to the Employees Provident Fund is charged
to the profit and loss account each year.
b) Short term employee benefits (Medical, Leave travel allowance, etc.)
expected to be paid in exchange for the services rendered are
recognised on undiscounted basis
c) Actuarial gains and losses arising from experience adjustments and
effects of changes in actuarial assumptions are immediately recognised
in the statement of profit and loss account as income or expense.
d) Gratuity and Leave encashment are provided for on the basis of an
actuarial valuation using projected unit credit method (PUCM).
9) Taxation
Income tax is computed using the tax effect accounting method; where
income tax is accrued in the same period in which the related revenue
and expenses arise. A provision is made for income tax annually based
on the tax liability computed, after considering tax allowances and
exemptions. Provision is also recorded when it is estimated that a
liability due to disallowances or other matters is probable.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,
and thereafter a deferred tax
asset or deferred tax liability is recorded for timing differences,
namely the differences that originate in one accounting period and
reverse in another, based on the tax effect of the aggregate amount
being considered. The tax effect is calculated on the accumulated
timing differences at the end of an accounting period based on
prevailing enacted or substantively enacted regulations. Deferred tax
assets are recognized only if there is reasonable or virtual certainty
that they will be realized and are reviewed for the appropriateness of
their respective carrying values at each balance sheet date.
10) Borrowing Cost
Borrowing cost attributable to the acquisition or construction of a
qualifying asset is capitalized as a part of the cost of that asset. A
qualifying asset is one, which takes substantial period of time to get
ready for intended use. Other borrowing costs are recognized as an
expense in the period in which they are incurred.
11) Impairment of Assets
Assets that are subject to amortization are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognized for
the amount by which the assets carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of the assets fair value
less cost to sell and value in use.For the purpose of assessing
impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (Cash generating units).
12) Earnings Per Share
In determining earnings per share, the Company considers the net profit
after tax and includes the post tax effect of any extraordinary /
exceptional items. The number of
shares used in computing basic earnings per share is the weighted
average number of shares outstanding during the period. The number of
shares used in computing Diluted EPS comprises weighted average shares
considered for deriving Basic EPS, and also the weighted average number
of equity shares which could have been issued on the conversion of all
dilutive potential equity shares. The anti- dilutive effect,if any, of
potential equity shares on diluted EPS is ignored as per the
requirement of accounting standard -20 on ÃEarning Per ShareÃ.
13) Provisions ,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 disclosed in the notes. Contingent assets are
neither recognized nor disclosed in the financial statement.
14) Deferred Revenue Expenditure
Deferred Revenue Expenditure represents new projects implementation
cost to be amortized over a period of 60 months or earlier equally,
commencing from the month of commencement of commercial activities of
the project.
15) Initial Public Offering (IPO) Expenses
Public Issue Expenses are written off from share premium account as per
section 78(2) (c) of the Companies Act, 1956 in five equal accounting
year commencing with the year of listing of equity share on the
designated stock exchange.
16. Leases
Lease rentals in respect of assets taken on "Operating Lease" are
charged to the Profit & Loss Account.
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