Mar 31, 2015
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 accrual basis. GAAP comprises mandatory Accounting
Standards as specified under section 133 of the Companies Act, 2013
read with Rule 7 of the Companies (Accounts) Rules, 2014 and the
Companies Act, 2013 (to the extent notified) and guidelines issued by
Securities and Exchange Board of India.
1.2. Presentation and disclosure of financial statements:
All assets and liabilities have been classified as current &
non-current as per company's normal operating cycle and other criteria
set out in the Schedule III of the Companies Act, 2013.
In view of no business activities carried on by the Company, 12 months
has been considered by the Company as its operating cycle for the
purpose of current / non- current classification of assets and
liabilities.
1.3. Use of estimates
The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the application of accounting
policies, reported balances of assets and liabilities, disclosure of
contingent liabilities as on the date of financial statements and
reported amounts of income and expenses during the period. Management
believes that the estimates and assumptions used in the preparation of
financial statements are prudent and reasonable. Actual results could
differ from those estimates. Any difference between the actual results
and estimates are recognized in the period in which the results are
known / materialize. Any revision to accounting estimates is recognized
prospectively in the current and future periods.
1.4. Fixed Assets
Tangible assets are stated at cost of acquisition / construction less
accumulated depreciation and accumulated impairment losses, if any.
Cost of fixed assets includes non - refundable taxes and duties,
borrowing cost directly attributable to the qualifying asset and any
directly attributable costs of bringing the asset to its working
condition for its intended use.
Capital work - in - progress comprises of cost incurred on fixed assets
under construction / development / acquisition that are not yet ready
for their intended use at the Balance Sheet Date.
1.5. Depreciation and Amortization
Depreciation is provided using straight line basis in accordance with
schedule II to the Companies Act. 2013.
As per the transitional provision under Part C of Schedule II of the
Companies Act, 2013, in respect of assets acquired prior to 1st April,
2014, the carrying amount as on 1st April, 2014 is depreciated over the
remaining useful life of the assets and in respect of assets whose
remaining useful life of an asset is nil, the carrying value after
retaining the residual value (if any) is recognized in the opening
balance of retained earnings (net of taxes).
Depreciation on individual assets whose cost does not exceed five
thousand rupees has been provided at the rate of hundred per cent in
the year of capitalization.
1.6. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date
for any indication of impairment based on internal / external factors.
An impairment loss is recognized wherever the carrying amount of an
asset exceeds its recoverable amount. The recoverable amount is the
greater of the asset's net selling price and value in use. Value in use
is the present value of estimated future cash flows expected to arise
from the continuing use of an asset and from its disposal at the end of
its useful life.
Based on the assessment done at each balance sheet date, recognised
impairment loss is further provided or reversed depending on changes in
circumstances. After recognition of impairment loss or reversal of
impairment loss as applicable, the depreciation charge for the fixed
asset is adjusted in future periods to allocate the asset's revised
carrying amount, less its residual value (if any), on a systematic
basis over its remaining useful life. If the conditions leading to
recognition of impairment losses no longer exist or have decreased,
impairment losses recognised are reversed to the extent it does not
exceed the carrying amount that would have been determined after
considering depreciation/ amortization had no impairment loss been
recognised in earlier years.
1.7. Investments
Investments are classified into current and long-term investments.
Investments that are readily realizable and intended to be held for not
more than a year from the date on which such investments are made are
classified as current investments. All other investments are classified
as long-term investments.
Current investments are carried at lower of cost and fair value
determined on an individual investment basis. Long term investments are
carried at cost. However, provision for diminution in value of long
term investments is made to recognize a decline, other than temporary,
on an individual investment basis.
The cost of investments comprises purchase price and directly
attributable acquisition charges such as brokerage, fees and duties. In
determining the holding cost of investments and the or loss on sale of
investments, the 'weighted average cost' method is followed.
1.8. Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
1.9. Employee Benefits
There is no employee in the Company as on 31st March 2015. There are no
short term employee benefits, defined contribution and benefit plan
which requires accounting in the financial statements.
1.10. Borrowing cost
Borrowing costs that are directly attributable to the acquisition,
construction or development of a qualifying asset are capitalized as
part of the cost of the respective asset till such time the asset is
ready for its intended use or sale. A qualifying asset is an asset
which necessarily takes a substantial period of time to get ready for
its intended use or sale. All other borrowing costs are expensed in the
period in which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the borrowing of
funds.
1.11. Taxes on income
Tax expenses comprises of current tax, deferred tax charge or credit
and adjustments of taxes for earlier years.
Provision for current tax is made as per the provisions of Income Tax
Act, 1961.
Deferred tax charge or credit reflects the impact of current year
timing differences between taxable income and accounting income for the
year and reversal of timing differences of earlier years and are
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date.
Deferred tax assets are recognised only to the extent there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realised. In
situations where the Company has unabsorbed depreciation or carry
forward tax losses, all deferred tax assets are recognised only if
there is virtual certainty supported by convincing evidence that they
can be realised against future taxable profits. Deferred tax assets
are reviewed for the appropriateness of their respective carrying
amounts at each balance sheet date.
At each balance sheet date the Company re-assesses unrecognized
deferred tax assets. It recognizes unrecognized deferred tax assets to
the extent that it has become reasonably/virtually certain as the case
may be that sufficient future taxable income will be available against
which such deferred tax assets can be realized.
1.12. Cash and cash equivalents
Cash and cash equivalents include cash in hand, bank balances, deposits
with banks (other than on lien) and all short term and highly liquid
investments that are readily convertible into known amounts of cash and
are subject to an insignificant risk of changes in value.
1.13. Cash flow statements
Cash flows are reported using the indirect method, whereby net profit
before tax is adjusted for the effects of transactions of non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.
1.14. Provisions and contingent liabilities
A provision is recognized when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
A disclosure for a 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. When there is a possible
obligation or a present obligation in respect of which likelihood of
outflow of resources is remote, no provision or disclosure is made.
1.15. Earnings per share
Basic earning per share is calculated by dividing the net profit or
loss (after tax) for the year attributable to equity shareholders by
the weighted average number of equity shares outstanding during the
year. The weighted average number of equity shares outstanding during
the period is adjusted for events of bonus issue, share warrants and
share split. Diluted earnings per share calculated by dividing the net
profit or loss (after tax) for the year attributable to shareholders
and the weighted average number of equity shares outstanding during the
year are adjusted for the effects of all dilutive potential equity
shares.
1.16. Segmental reporting
The segments have been identified taking into account the nature of the
products, geographical locations, nature of risks and returns, internal
organization structure and internal financial reporting system. The
Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the company as a whole.
1.17. Prior period items
Prior period items are disclosed separately in the Financial Statement.
Mar 31, 2014
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 prescribed by the Central Government and the
relevant provisions of the Companies Act, 1956 (to the extent
applicable) and the Companies Act, 2013 (to the extent notified). As
clarified by General circular 08/2014 dated 4th April 2014 issued by
the Ministry of Corporate Affairs, financial statements for the year
ended 31st March 2014 have been prepared in accordance with the
Companies Act, 1956.
1.2. Presentation and disclosure of financial statements
All assets and liabilities have been classified as current &
non-current as per company''s normal operating cycle and other criteria
set out in the revised schedule VI.
In view of no business activities carried on by the Company, 12 months
has been considered by the Company as its operating cycle for the
purpose of current/ non- current classification of assets and
liabilities.
1.3. Use of estimates
The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the application of accounting
policies, reported balances of assets and liabilities, disclosure of
contingent liabilities as on the date of financial statements and
reported amounts of income and expenses during the period. Management
believes that the estimates and assumptions used in the preparation of
financial statements are prudent and reasonable. Actual results could
differ from those estimates. Any difference between the actual results
and estimates are recognized in the period in which the results are
known / materialize. Any revision to accounting estimates is recognized
prospectively in the current and future periods.
1.4. Fixed Assets
Tangible assets are stated at cost of acquisition / construction less
accumulated depreciation and accumulated impairment losses, if any.
Cost of fixed assets includes non - refundable taxes and duties,
borrowing cost directly attributable to the qualifying asset and any
directly attributable costs of bringing the asset to its working
condition for its intended use.
Capital work - in - progress comprises of cost incurred on fixed assets
under construction/ development/acquisition that are not yet ready for
their intended use at the Balance Sheet Date.
1.5. Depreciation and Amortization
Depreciation is provided using straight line method on pro - rata basis
at the rates prescribed under schedule XIV to the Companies Act, 1956,
except in respect of certain items of plant & machinery where triple
shift depreciation rate is charged instead of single shift rate.
Depreciation on individual assets whose cost does not exceed five
thousand rupees has been provided at the rate of hundred per cent in
the year of capitalization
1.6. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date
for any indication of impairment based on internal / external factors.
An impairment loss is recognized wherever the carrying amount of an
asset exceeds its recoverable amount. The recoverable amount is the
greater of the asset''s net selling price and value in use. Value in use
is the present value of estimated future cash flows expected to arise
from the continuing use of an asset and from its disposal at the end of
its useful life.
Based on the assessment done at each balance sheet date, recognised
impairment loss is further provided or reversed depending on changes in
circumstances. After recognition of impairment loss or reversal of
impairment loss as applicable, the depreciation charge for the fixed
asset is adjusted in future periods to allocate the asset''s revised
carrying amount, less its residual value (if any), on a systematic
basis over its remaining useful life. If the conditions leading to
recognition of impairment losses no longer exist or have decreased,
impairment losses recognized are reversed to the extent it does not
exceed the carrying amount that would have been determined after
considering depreciation / amortization had no impairment loss been
recognized in earlier years.
1.7. Investments
Investments are classified into current and long-term investments.
Investments that are readily realizable and intended to be held for not
more than a year from the date on which such investments are made are
classified as current investments. All other investments are classified
as long-term investments.
Current investments are carried at lower of cost and fair value
determined on an individual investment basis. Long term investments are
carried at cost. However, provision for diminution in value of long
term investments is made to recognize a decline, other than temporary,
on an individual investment basis.
The cost of investments comprises purchase price and directly
attributable acquisition charges such as brokerage, fees and duties. In
determining the holding cost of investments and the gain or loss on
sale of investments, the ''weighted average cost'' method is followed.
1.8. Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
i. Dividend income on investment is accounted for in the year in which
the right to receive the payment is established.
1.9. Employee Benefits
There is no employee in the Company as on 31st March 2014. There are no
short term employee benefits, defined contribution and benefit plan
which requires accounting in the financial statements.
1.10. Borrowing cost
Borrowing costs that are directly attributable to the acquisition,
construction or development of a qualifying asset are capitalized as
part of the cost of the respective asset till such time the asset is
ready for its intended use or sale. A qualifying asset is an asset
which necessarily takes a substantial period of time to get ready for
its intended use or sale. All other borrowing costs are expensed in the
period in which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the borrowing of
funds.
1.11. Taxes on income
Tax expenses comprises of current tax, deferred tax charge or credit
and adjustments of taxes for earlier years.
Provision for current tax is made as per the provisions of Income Tax
Act, 1961.
Deferred tax charge or credit reflects the impact of current year
timing differences between taxable income and accounting income for the
year and reversal of timing differences of earlier years and are
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date.
Deferred tax assets are recognised only to the extent there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realised. In
situations where the Company has unabsorbed depreciation or carry
forward tax losses, all deferred tax assets are recognised only if
there is virtual certainty supported by convincing evidence that they
can be realised against future taxable profits. Deferred tax assets are
reviewed for the appropriateness of their respective carrying amounts
at each balance sheet date.
At each balance sheet date the Company re-assesses unrecognized
deferred tax assets. It recognizes unrecognized deferred tax assets to
the extent that it has become reasonably/virtually certain as the case
may be that sufficient future taxable income will be available against
which such deferred tax assets can be realized.
1.12. Cash and cash equivalents
Cash and cash equivalents include cash in hand, bank balances, deposits
with banks (other than on lien) and all short term and highly liquid
investments that are readily convertible into known amounts of cash and
are subject to an insignificant risk of changes in value.
1.13. Cash flow statements
Cash flows are reported using the indirect method, whereby net profit
before tax is adjusted for the effects of transactions of non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.
1.14. Provisions and contingent liabilities
A provision is recognized when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
A disclosure for a 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. When there is a possible
obligation or a present obligation in respect of which likelihood of
outflow of resources is remote, no provision or disclosure is made.
1.15. Earnings per share
Basic earning per share is calculated by dividing the net profit or
loss (after tax) for the year attributable to equity shareholders by
the weighted average number of equity shares outstanding during the
year. The weighted average number of equity shares outstanding during
the period is adjusted for events of bonus issue, share warrants and
share split. Diluted earnings per share is calculated by dividing the
net profit or loss (after tax) for the year attributable to equity
shareholders and the weighted average number of equity shares
outstanding during the year are adjusted for the effects of all
dilutive potential equity shares.
1.16. Segmental reporting
The segments have been identified taking into account the nature of the
products, geographical locations, nature of risks and returns, internal
organization structure and internal financial reporting system. The
Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the company as a whole.
1.17. Prior period items
Prior period items are disclosed separately in the Financial Statement.
Mar 31, 2013
1.1. Basis of preparation of financial Statements
The financial statements are prepared in accordance with Indian
Generally Accepted Account- ing Principles ("GAAP") under the
historical cost convention on accrual basis. GAAP com- prises mandatory
Accounting Standards as specified in the Companies (Accounting
Standards) Rules, 2006 prescribed by the Central Government and the
relevant provisions of the Compa- nies Act, 1956 and guidelines issued
by the Securities and Exchange Board of India.
1.2. Presentation and disclosure of financial statements:
All assets and liabilities have been classified as current &
non-current as per company''s normal operating cycle and other criteria
set out in the revised schedule VI.
In view of no business activities carried on by the Company, 12 months
has been considered by the Company as its operating cycle for the
purpose of current/ non- current classification of assets and
liabilities.
1.3. Use of estimates
The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the application of accounting
policies, reported balances of assets and liabilities, disclosure of
contingent liabili- ties as on the date of financial statements and
reported amounts of income and expenses during the period. Management
believes that the estimates and assumptions used in the preparation of
financial statements are prudent and reasonable. Actual results could
differ from those esti- mates. Any difference between the actual
results and estimates are recognized in the period in which the results
are known / materialize. Any revision to accounting estimates is
recognized prospectively in the current and future periods.
1.4. Fixed Assets
Tangible assets are stated at cost of acquisition / construction less
accumulated depreciation and accumulated impairment losses, if any.
Cost of fixed assets includes non - refundable taxes and duties,
borrowing cost directly attribut- able to the qualifying asset and any
directly attributable costs of bringing the asset to its working
condition for its intended use.
Capital work - in - progress comprises of cost incurred on fixed assets
under construction/ development/acquisition that are not yet ready for
their intended use at the Balance Sheet Date.
1.5. Depreciation and Amortization
Depreciation is provided using straight line method on pro - rata basis
at the rates prescribed under schedule XIV to the Companies Act, 1956,
except in respect of certain items of plant &
machinery where triple shift depreciation rate is charged instead of
single shift rate.
Depreciation on individual assets whose cost does not exceed five
thousand rupees has been provided at the rate of hundred per cent in
the year of capitalization
1.6. Impairment of assets
The carrying amounts of assets are reviewed at each balance sheet date
for any indication of impairment based on internal / external factors.
An impairment loss is recognized wherever the carrying amount of an
asset exceeds its recoverable amount. The recoverable amount is the
greater of the asset''s net selling price and value in use. Value in use
is the present value of estimated future cash flows expected to arise
from the continuing use of an asset and from its disposal at the end of
its useful life.
Based on the assessment done at each balance sheet date, recognised
impairment loss is further provided or reversed depending on changes in
circumstances. After recognition of impairment loss or reversal of
impairment loss as applicable, the depreciation charge for the fixed
asset is adjusted in future periods to allocate the asset''s revised
carrying amount, less its residual value (if any), on a systematic
basis over its remaining useful life.
1.7. Investments
Investments are classified into current and long-term investments.
Investments that are readily realizable and intended to be held for not
more than a year from the date on which such investments are made are
classified as current investments. All other invest- ments are
classified as long-term investments.
Current investments are carried at lower of cost and fair value
determined on an individual investment basis. Long term investments are
carried at cost. However, provision for diminution in value of long
term investments is made to recognize a decline, other than temporary,
on an individual investment basis.
The cost of investments comprises purchase price and directly
attributable acquisition charges such as brokerage, fees and duties. In
determining the holding cost of investments and the gain or loss on
sale of investments, the ''weighted average cost'' method is followed.
1.8. Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Dividend income on investment is accounted for in the year in which the
right to receive the payment is established.
1.9. Employee Benefits
There is no employee in the Company as on 31 st March 2013. During the
year and in the previ- ous year, there was only one employee in the
Company. There are no short term employee ben- efits, defined
contribution and benefit plan which requires accounting in the
financial state- ments.
1.10. Borrowing cost
Borrowing costs that are directly attributable to the acquisition,
construction or development of a qualifying asset are capitalized as
part of the cost of the respective asset till such time the asset is
ready for its intended use or sale. A qualifying asset is an asset
which necessarily takes a substantial period of time to get ready for
its intended use or sale. All other borrowing costs are expensed in the
period in which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the borrowing of
funds.
1.11. Taxes on income
Tax expenses comprises of current tax, deferred tax charge or credit
and adjustments of taxes for earlier years.
Provision for current tax is made as per the provisions of Income Tax
Act, 1961.
Deferred tax charge or credit reflects the impact of current year
timing differences between taxable income and accounting income for the
year and reversal of timing differences of earlier years and are
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date.
Deferred tax assets are recognised only to the extent there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realised. In
situations where the Company has unabsorbed depreciation or carry
forward tax losses, all de- ferred tax assets are recognised only if
there is virtual certainty supported by convincing evidence that they
can be realised against future taxable profits. Deferred tax assets are
reviewed for the appropriateness of their respective carrying amounts
at each balance sheet date.
At each balance sheet date the Company re-assesses unrecognized
deferred tax assets. It recog- nizes unrecognized deferred tax assets
to the extent that it has become reasonably/virtually certain as the
case may be that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
1.12. Cash and cash equivalents
Cash and cash equivalents include cash in hand, bank balances, deposits
with banks (other than on lien) and all short term and highly liquid
investments that are readily convertible into known amounts of cash and
are subject to an insignificant risk of changes in value.
1.13. Cash flow statements
Cash flows are reported using the indirect method, whereby net profit
before tax is adjusted for the effects of transactions of non-cash
nature, any deferrals or accruals of past or future operat- ing cash
receipts or payments and item of income or expenses associated with
investing or fi- nancing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.
i.14. Provisions and contingent liabilities
A provision is recognized when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
A disclosure for a 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. When there is a possible
obligation or a present obligation in respect of which likelihood of
outflow of resources is remote, no provision or disclosure is made.
1.15. Earnings per share
Basic earning per share is calculated by dividing the net profit or
loss (after tax) for the year attributable to equity shareholders by
the weighted average number of equity shares outstanding during the
year. The weighted average number of equity shares outstanding during
the period is. adjusted for events of bonus issue, share warrants and
share split. Diluted earnings per share is calculated by dividing the
net profit or loss (after tax) for the year attributable to equity
share- holders with weighted average number of equity shares
outstanding during the year and are adjusted for the effects of all
dilutive potential equity shares.
1.16. Segmental reporting
The segments have been identified taking into account the nature of the
products, geographical locations, nature of risks and returns, internal
organization structure and internal financial re- porting system. The
Company prepares its segment information in conformity with the
account- ing policies adopted for preparing and presenting the
financial statements of the company as a whole.
1.17. Prior period items
Prior period items are disclosed separately in the Financial Statement.
Mar 31, 2010
(A) Basis of preparation of financial statements :
(i) The financial statements have been prepared under the historical
cost convention and accrual basis in accordance with the generally
accepted accounting principles and provisions of the Companies Act,
1956 as adopted consistently by the Company.
(ii) Accounting policies not specifically referred to otherwise be
consistent with generally accepted accounting principles followed by
the Company.
(B) Fixed Assets and Depreciation :
(i) Fixed Assets are stated at cost less depreciation.
(ii) Depreciation is provided on Straight-Line method at the rates
specified in Schedule - XIV of the Companies Act, 1956
(C) Impairment of Assets
An asset is treated as impaired when carrying cost of the asset exceeds
its recoverable amount. An impairment loss, if any, is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting periods is
reversed if there has been a change in the estimate of the recoverable
amount.
(D) Investments:
(i) Long Term Investments are carried at cost after deducting
provisions, where the fall in market value has been considered as other
than temporary in nature.
(ii) Current Investments are valued at lower of cost or market value.
(E) Valuation of Inventories:
Raw materials, stores & spares and finished goods are valued at cost or
net realizable value, whichever is lower. Cost is determined on FIFO
Basis.
(F) Borrowing Cost:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
till the assets are ready for use. A qualifying asset is one that
necessarily takes substantial period of time to get ready for intended
use. All other borrowing costs are treated as expense in the period in
which these are incurred.
(G) Sales:
Sales are net off sales tax. Revenue from sales is recognized at the
point of dispatch to the customers when the risk and reward stands
transferred to the customers.
(H) Provisions, Contingent Liabilities & Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes to the accounts. Contingent Asset is neither recognized nor
disclosed in the financial statements.
(I) Taxes on Income
Current Tax is determined as the tax payable in respect of taxable
income for the year.
Provision is made for Deferred tax for all timing differences arising
between taxable in- come and accounting income at currently enacted or
substantively enacted tax rate.
Deferred Tax assets are recognized, only if there is reasonable
certainty that they will be realized and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet date.
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