Mar 31, 2015
A. Basis of preparation of financial statements
These financial statements are prepared and presented in accordance
with the Indian Generally Accepted Accounting Principles (GAAP) under
the historical cost convention on the accrual basis of accounting. GAAP
comprises mandatory accounting standards as prescribed under Section
133 of the Companies Act,2013 ('the Act') read with Rule 7 of the
Companies (Accounts) Rules,2014,the provisions of the Act (to the
extent notified) and guidelines issued by the Securities and Exchange
Board of India (SEBI). Accounting policies have been consistently
applied except where a newly issued accounting standard is initially
adopted or are vision to an existing accounting standard requires a
change in the accounting policy hitherto in use.
B. Use of estimates
Preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent assets and
liabilities at the date of financial statements and the reported
amounts of revenues and expenses during the reporting period. Examples
of such estimates include estimate of useful life of assets and
provision for retirement benefits. Actual results could differ from the
estimates. Difference between the actual results and estimates are
recognized in the period in which the results are known/materialized.
Any revisions to accounting estimates are recognized prospectively in
current and future periods.
C. Revenue recognition and expenses
Revenues are recognized on accrual basis. Revenue from operations is
accounted for on the basis of services rendered and billed to /
accepted by clients. Interest income, if any, is recognized on time
proportion basis taking into account the amount outstanding and rate
applicable.
Expenses are accounted on accrual basis and provisions are made for all
known liabilities as on the date of the financial statements.
D. Fixed Assets
Fixed Assets are stated at cost of acquisition including freight,
installation charges, finance charges, duties & taxes & other
incidental expenses related to acquisition and installation of the
concerned assets.
Advances paid, if any, towards the acquisition of fixed assets are
disclosed under the head Long Term Loans & Advances, as capital advance
E. Depreciation / Amortization
Depreciation is charged on fixed assets, other than the assets
mentioned below, on straight line basis using useful lives of tangible
assets contained in Part "C" Schedule II to the Companies Act, 2013.
Following fixed assets are subjected to accelerated rate of
depreciation on straight line basis to take care of technology
obsolescence, data relevance, etc.,
Particulars Useful life
(A) Tangible Assets
* Computer hardware (servers & 3 years
networks)
* Imaging Systems 3 years
* Other assets As specified in
Schedule II
(B) Intangible Assets
* Computer software 3 years
* GIS database 3 years
Depreciation/Amortization is charged on a pro-rata basis on assets
purchased /sold during the year with reference to date of
installation/disposal. Assets costing individually Rs 5,000/- or less
are fully depreciated in the year of purchase / installation.
F. Impairment of assets
The carrying amounts of the Company's assets including intangible
assets are reviewed at each Balance Sheet date to determine whether
there is any indication of impairment. If any such indication exists,
the assets recoverable amount is estimated, as the higher of the net
selling price and the value in use. An impairment loss is recognized
whenever the carrying amount of an asset or its cash generating units
exceeds its recoverable amount. If at the Balance Sheet date, there is
an indication that a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is
reinstated at the recoverable amount subject to a maximum of
depreciable historical cost.
G. Borrowing Costs
Borrowing costs, if any, directly attributable to the acquisition of
the fixed assets are capitalized for the period until the asset is
ready for its intended use.
Other borroing costs are recognized as expense in the period in which
they are incurred.
H. Investments
Investments are classified either as current or long term in accordance
with Accounting Standard (AS) -13 on "Accounting for Investments".
Current investments are stated at lower of cost or fair value. Any
reduction in the carrying amount and any reversal of such reductions
are charged or credited to the statement of profit & loss.
Long Term Investments are stated at cost. Provision is made to recognize
a decline, other than temporary, in the value of such investments.
I. Leases
(i) Finance Lease
Assets taken on finance lease if any, are accounted for as fixed assets
in accordance with Accounting Standard 19 on leases, (AS 19) issued by
The Institute of Chartered Accountants of India.
(ii) Operating Lease
Assets taken on lease under which all the risk and rewards of ownership
are effectively retained by the lesser if any, are classified as
operating lease. Lease payments under operating lease are recognized as
expenses on accrual basis in accordance with the respective lease
agreement.
J. Foreign Currency Transactions
Transactions denominated in foreign currency, if any, are recorded at
rates that approximate the exchange rate prevailing on the date of the
respective transaction.
Exchange differences arising on foreign exchange transactions settled
during the year are recognized in the statement of profit and loss of
the year. Monetary assets and liabilities in foreign currency, which
are outstanding as at the year-end, are translated at the year end
closing exchange rate and the resultant exchange differences are
recognized in the Statement of profit and loss.
The premium or discount arising at the inception of the forward
exchange contracts, if any, related to underlying receivables and
payables are amortized as an expense or income recognized over the
period of the contracts. Gains or losses on renewal or cancellation of
foreign exchange forward contracts are recognized as income or expense
for the period.
Investments in overseas Subsidiary are recognized at the relevant
exchange rates prevailing on the date of investments.
K. Earning per Share
In accordance with the Accounting Standard 20 (AS - 20) "Earning per
Share" issued by the Institute of Chartered Accountants of India, basic
and diluted earnings per share are computed using weighted average
number of shares outstanding during the year.
L. Taxation
i. Current Tax
The provision for current tax is made on the basis of tax liability
computed after considering the admissible deductions and exemptions
under the provisions of the Income Tax Act, 1961.
ii. Deferred Tax
Deferred tax asset or liability is recognized for reversible timing
differences between the profit as per financial statements and the
profit offered for income taxes, based on tax rates that have been
enacted or substantively enacted at the Balance Sheet date.
Deferred tax assets are recognized and carried forward to the extent
there is a virtual/reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realized.
Deferred tax assets on unabsorbed losses are not recognized unless
there is virtual/reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets will be
realized.
Deferred Tax assets and liabilities are reviewed at each balance sheet
date.
M. Employee Benefits :
(i) Short-term employee benefits - Employee benefits payable wholly
within twelve months of rendering the service are classified as short
term employee benefits and are recognized in the period in which the
employee renders the related service.
(ii) Post employment benefits (defined benefit plans) - The employees'
gratuity scheme is a defined benefit plan. The obligation under such
defined benefit plan is determined at each Balance Sheet date based on
management estimates unless they are significant for actuarial
valuation.
(iii) Post employment benefits (defined contribution plans) -
Contributions to the provident fund is defined contribution scheme and
is recognized as an expense in the Statement of profit and loss in the
period in which the contribution is due.
(iv) Long-term employee benefits - Long-term employee benefits comprise
of compensated absences and other employee incentives. These are
measured based on management estimates unless they are significant for
actuarial valuation.
N. Provisions and Contingent Liabilities
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources, which can be reliably estimated. Disclosures for a
contingent liability is made, without a provision in books, when there
is an obligation that may, but probably will not, require outflow of
resources. Where there is a possible obligation or a present obligation
that the likelihood of outflow of resources is remote, no provision or
disclosure is made. Provisions are not discounted to their present
value and are determined.
Contingent assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2014
A. Basis of preparation of financial statements
These financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India (Indian "GAAP") under
the historical cost convention on accrual basis. These financial
statements have been prepared to comply in all material aspects with
the accounting standards notified under section 211(3C) (which
continues to be applicable in terms of General Circular 15/2013 dated
September 13, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013) and other relevant provisions
of the Companies Act, 1956.
B. Use of estimates
Preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent assets and
liabilities at the date of financial statements and the reported
amounts of revenues and expenses during the reporting period. Examples
of such estimates include estimate of useful life of assets and
provision for retirement benefits. Actual results could differ from the
estimates. Difference between the actual results and estimates are
recognized in the period in which the results are known/materialized.
Any revisions to accounting estimates are recognized prospectively in
current and future periods.
C. Revenue recognition and expenses
Revenues are recognized on accrual basis. Revenue from operations is
accounted for on the basis of services rendered and billed to /
accepted by clients. Interest income, if any, is recognized on time
proportion basis taking into account the amount outstanding and rate
applicable.
Expenses are accounted on accrual basis and provisions are made for all
known liabilities as on the date of the financial statements.
D. Fixed Assets
Fixed Assets are stated at cost of acquisition including freight,
installation charges, finance charges, duties & taxes & other
incidental expenses related to acquisition and installation of the
concerned assets.
Advances paid, if any, towards the acquisition of fixed assets are
disclosed under the head Long Term Loans & Advances, as capital
advance.
E. Depreciation / Amortization
Depreciation is provided on straight line method (SLM) at the rates and
in the manner prescribed in Schedule XIV to the Companies Act, 1956
except in respect of the following assets, where rates higher than
those prescribed in Schedule XIV are used.
Particulars Deprecia- Rate
tion Method
(A) Tangible Assets
* Computer hardware Straight line 3 to 5 year and data processing units
* Other assets Straight line Rates specified in schedule XIV
(B) Intangible Assets
* Computer software Straight line 3 to 5 year
Depreciation / Amortization is charged on a pro-rata basis for assets
purchased / sold during the year with reference to date of
installation/disposal. Assets costing below Rs. 5,000/- are fully
depreciated in the year of purchase.
F. Impairment of assets
The carrying amounts of the Company''s assets including intangible
assets are reviewed at each Balance Sheet date to determine whether
there is any indication of impairment. If any such indication exists,
the assets recoverable amount is estimated, as the higher of the net
selling price and the value in use. An impairment loss is recognized
whenever the carrying amount of an asset or its cash generating units
exceeds its recoverable amount. If at the Balance Sheet date, there is
an indication that a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is
reinstated at the recoverable amount subject to a maximum of
depreciable historical cost.
G. Borrowing Costs
Borrowing costs, if any, directly attributable to the acquisition of
the fixed assets are capitalized for the period until the asset is
ready for its intended use.
Other borrowing costs are recognized as expense in the period in which
they are incurred.
H. Investments
Investments are classified either as current or long term in accordance
with Accounting Standard (AS) -13 on "Accounting for Investments".
Current investments are stated at lower of cost or fair value. Any
reduction in the carrying amount and any reversal of such reductions
are charged or credited to the statement of profit & loss.
Long Term Investments are stated at cost. Provision is made to
recognize a decline, other than temporary, in the value of such
investments.
I. Leases
(i) Finance Lease
Assets taken on finance lease if any, are accounted for as fixed assets
in accordance with Accounting Standard 19 on leases, (AS 19) issued by
The Institute of Chartered Accountants of India.
(ii) Operating Lease
Assets taken on lease under which all the risk and rewards of ownership
are effectively retained by the lessor if any, are classified as
operating lease. Lease payments under operating lease are recognized as
expenses on accrual basis in accordance with the respective lease
agreement.
J. Foreign Currency Transactions
Transactions denominated in foreign currency, if any, are recorded at
rates that approximate the exchange rate prevailing on the date of the
respective transaction.
Exchange differences arising on foreign exchange transactions settled
during the year are recognized in the statement of profit and loss of
the year. Monetary assets and liabilities in foreign currency, which
are outstanding as at the year-end, are translated at the year end
closing exchange rate and the resultant exchange differences are
recognized in the Statement of profit and loss.
The premium or discount arising at the inception of the forward
exchange contracts, if any, related to underlying receivables and
payables are amortized as an expense or income recognized over the
period of the contracts. Gains or losses on renewal or cancellation of
foreign exchange forward contracts are recognized as income or expense
for the period.
Investments in overseas Subsidiary are recognized at the relevant
exchange rates prevailing on the date of investments.
K. Earning per Share
In accordance with the Accounting Standard 20 (AS - 20) "Earning per
Share" issued by the Institute of Chartered Accountants of India, basic
and diluted earnings per share are computed using weighted average
number of shares outstanding during the year.
L. Taxation
i. Current Tax
The provision for current tax is made on the basis of tax liability
computed after considering the admissible deductions and exemptions
under the provisions of the Income Tax Act, 1961.
ii. Deferred Tax
Deferred tax asset or liability is recognized for reversible timing
differences between the profit as per financial statements and the
profit offered for income taxes, based on tax rates that have been
enacted or substantively enacted at the Balance Sheet date.
Deferred tax assets are recognized and carried forward to the extent
there is a reasonable certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
Deferred tax assets on unabsorbed losses are not recognized unless
there is virtual certainty that sufficient future taxable income will
be available against which such deferred tax assets will be realized.
Deferred Tax assets and liabilities are reviewed at each balance sheet
date.
M. Employee Benefits :
(i) Short-term employee benefits - Employee benefits payable wholly
within twelve months of rendering the service are classified as short
term employee benefits and are recognized in the period in which the
employee renders the related service.
(ii) Post employment benefits (defined benefit plans) - The employees''
gratuity scheme is a defined benefit plan. The present value of the
obligation under such defined benefit plan is determined at each
Balance Sheet date based on an actuarial valuation using the projected
unit credit method. Actuarial gains and losses and current plan costs
are recognized in the Statement of profit and loss.
(iii) Post employment benefits (defined contribution plans) -
Contributions to the provident fund is defined contribution scheme and
is recognized as an expense in the Statement of profit and loss in the
period in which the contribution is due.
(iv) Long-term employee benefits - Long-term employee benefits comprise
of compensated absences and other employee incentives. These are
measured based on an actuarial valuation carried out by an independent
actuary at each Balance Sheet date unless they are insignificant.
Actuarial gains and losses and past service costs are recognized
immediately in the Statement of profit and loss.
N. Provisions and Contingent Liabilities
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources, which can be reliably estimated. Disclosures for a
contingent liability is made, without a provision in books, when there
is an obligation that may, but probably will not, require outflow of
resources. Where there is a possible obligation or a present
obligation that the likelihood of outflow of resources is remote, no
provision or disclosure is made. Provisions are not discounted to
their present value and are determined.
Contingent assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2012
A. Basis of preparation of financial statements
The financial statements have been prepared under the historical cost
convention in accordance with the Generally Accepted Accounting
Principles (GAAP) in India and comply with the Accounting Standards
("AS") prescribed in the Companies (Accounting Standards) Rules, 2006
read with relevant provisions of the Companies Act, 1956, to the extent
applicable.
b. Use of estimates
Preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent assets and
liabilities at the date of financial statements and the reported
amounts of revenues and expenses during the reporting period. Examples
of such estimates include estimate of useful life of assets and
provision for retirement benefits. Actual results could differ from the
estimates. Any revisions to accounting estimates are recognized
prospectively in current and future periods.
c. Revenue recognition and expenses
Revenues are recognized on accrual basis. Revenue from operations is
accounted for on the basis of services rendered and billed to /
accepted by clients.
Expenses are accounted on accrual basis and provisions are made for all
known liabilities as on the date of the financial statements.
d. Fixed Assets
Fixed Assets are stated at cost of acquisition including freight,
installation charges, finance charges, duties & taxes & other
incidental expenses related to acquisition and installation of the
concerned assets.
Advances paid if any, towards the acquisition of fixed assets are
disclosed under the head Long Term Loans & Advances as capital
advances.
e. Depreciation / Amortization
Depreciation / Amortization is charged on a pro- rata basis for assets
purchased / sold during the year with reference to date of
installation/ disposal. Assets costing below Rs. 5,000/- are fully
depreciated in the year of purchase.
f. Impairment of assets
The carrying amounts of the Company's assets including intangible
assets are reviewed at each Balance Sheet date to determine whether
there is any indication of impairment. If any such indication exists,
the assets recoverable amount is estimated, as the higher of the net
selling price and the value in use. An impairment loss is recognized
whenever the carrying amount of an asset or its cash generating units
exceeds its recoverable amount. If at the Balance Sheet date, there is
an indication that a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is
reinstated at the recoverable amount subject to a maximum of
depreciable historical cost.
g. Borrowing Costs
Borrowing costs directly attributable to the acquisition of the fixed
assets are capitalized for the period until the asset is ready for its
intended use.
Other borrowing costs are recognized as expense in the period in which
they are incurred.
h. Investments
Investments are classified either as current or long term in accordance
with Accounting Standard (AS) -13 on "Accounting for Investments".
Current investments are stated at lower of cost or fair value. Any
reduction in the carrying amount and any reversal of such reductions
are charged or credited to the statement of Profit & Loss.
Long Term Investments are stated at cost. Provision is made to
recognize a decline, other than temporary, in the value of such
investments.
i) Leases
i) Finance Lease
Assets taken on finance lease if any, are accounted for as fixed assets
in accordance with Accounting Standard 19 on leases, (AS 19) issued by
The Institute of Chartered Accountants of India.
ii) Operating Lease
Assets taken on lease under which all the risk and rewards of ownership
are effectively retained by the lessor if any, are classified as
operating lease. Lease payments under operating lease are recognized as
expenses on accrual basis in accordance with the respective lease
agreement.
j) Foreign Currency Transactions
Transactions denominated in foreign currency are recorded at rates that
approximate the exchange rate prevailing on the date of the respective
transaction.
Exchange differences arising on foreign exchange transactions settled
during the year are recognized in the statement of Profit & Lossof the
year. Monetary assets and liabilities in foreign currency, which are
outstanding as at the year-end, are translated at the year end closing
exchange rate and the resultant exchange differences are recognized in
the statement of Profit & Loss.
The premium or discount arising at the inception of the forward
exchange contracts related to underlying receivables and payables are
amortized as an expense or income recognized over the period of the
contracts. Gains or losses on renewal or cancellation of foreign
exchange forward contracts are recognized as income or expense for the
period.
Investments in overseas Subsidiary are recognized at the relevant
exchange rates prevailing on the date of investments.
k) Earning per Share
In accordance with the Accounting Standard 20 (AS - 20) "Earning per
Share" issued by the Institute of Chartered Accountants of India, basic
and diluted earnings per share is computed using weighted average
number of shares outstanding during the year.
l) Taxation
i) Current Tax
The provision for current tax is made on the basis of tax liability
computed after considering the admissible deductions and exemptions
under the provisions of the Income Tax Act, 1961.
ii) Deferred Tax
Deferred tax asset or liability is recognized for reversible timing
differences between the profit as per financial statements and the
profit offered for income taxes, based on tax rates that have been
enacted or substantively enacted at the Balance Sheet date.
Deferred tax assets are recognized and carried forward to the extent
there is a reasonable certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
Deferred tax assets on unabsorbed losses are not recognized unless
there is virtual certainty that sufficient future taxable income will
be available against which such deferred tax assets will be realized.
Deferred Tax assets and liabilities are reviewed at each balance sheet
date.
m) Employee Benefits :
i) Short-term employee benefits - Employee benefits payable wholly
within twelve months of rendering the service are classified as short
term employee benefits and are recognized in the period in which the
employee renders the related service.
ii) Post employment benefits (defined benefit plans) - The employees'
gratuity scheme is a defined benefit plan. The present value of the
obligation under such defined benefit plan is determined at each
Balance Sheet date based on an actuarial valuation using the projected
unit credit method. Actuarial gains and losses and current plan costs
are recognized in the statement of Profit & Loss.
iii) Post employment benefits (defined contribution plans) -
Contributions to the provident fund is defined contribution scheme and
is recognized as an expense in the statement of Profit & Loss in the
period in which the contribution is due.
iv) Long-term employee benefits - Long- term employee benefits comprise
of compensated absences and other employee incentives. These are
measured based on an actuarial valuation carried out by an independent
actuary at each Balance Sheet date unless they are insignificant.
Actuarial gains and losses and past service costs are recognized
immediately in the statement of Profit & Loss.
n) Provisions and Contingent Liabilities
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources, which can be reliably estimated. Disclosures for a
contingent liability is made, without a provision in books, when there
is an obligation that may, but probably will not, require outflow of
resources. Where there is a possible obligation or a present obligation
that the likelihood of outflow of resources is remote, no provision or
disclosure is made.
Mar 31, 2010
A) Basis of preparation of financial statements
The financial statements have been prepared under the historical cost
convention in accordance with the Generally Accepted Accounting
Principles (GAAP), the Accounting Standards issued by The Institute of
Chartered Accountants of India and the provisions of the Companies Act,
1956.
b) Use of estimates
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the date of financial statements and the
reported amounts of revenues and expenses during the reporting period.
Examples of such estimates include estimate of useful life of assets
and provision for retirement benefits. Actual results could differ from
the estimates.
c) Method of accounting
Revenues are recognized on accrual basis. Revenue from operations is
accounted for on the basis of services rendered and billed to /
accepted by clients.
Expenses are accounted on accrual basis and provisions are made for all
known liabilities as on the date of the financial statements.
d) Fixed Assets
Fixed Assets are stated at cost of acquisition including freight,
installation charges, finance charges, duties & taxes & other
incidental expenses related to acquisition and installation of the
concerned assets.
Advances paid towards the acquisition of fixed assets are disclosed
under the head advances for capital expenditure.
e) Depreciation / Amortisation
Tangible Assets
Depreciation is provided using the straight line method, at the rates
and in the manner specified in Schedule XIV of the Companies Act, 1956
except on computer hardware on which depreciation has been provided
based on the useful lives as estimated by the management, being 3 to 5
years.
Intangible Assets
Depreciation is provided on computer software using the straight line
method based on the useful lives as estimated by the management, being
3 to 5 years.
Depreciation / Amortization is charged on a pro- rata basis for assets
purchased / sold during the year with reference to date of
installation/ disposal. Assets costing below Rs. 5,000/- are fully
depreciated in the year of purchase.
f) Impairment of Fixed assets
In accordance with AS-28 on ÃImpairment of Assets issued by The
Institute of Chartered Accountants of India, where there is an
indication of impairment of the Groups assets related to cash
generating units, the carrying amounts of such assets are reviewed at
each balance sheet date to determine whether there is any impairment.
The recoverable amount of such assets is estimated as the higher of its
net selling price and its value in use. An impairment loss is
recognized in the Profit & Loss account whenever the carrying amount of
such assets exceeds its recoverable amount. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, then such loss is reversed and the assets is restated
to the extent of the carrying value of the asset that would have been
determined (net of amortization/depreciation) had no impairment loss
been recognized.
g) Borrowing Costs
Borrowing costs directly attributable to the acquisition of the fixed
assets are capitalized for the period until the asset is ready for its
intended use.
Other borrowing costs are recognized as expense in the period in which
they are incurred.
h) Investments
Long Term Investments are stated at cost. Provision for diminution is
made, if in the opinion of the management such a diminution is other
than temporary.
i) Foreign Currency Transactions
Transactions denominated in foreign currency are recorded at rates that
approximate the exchange rate prevailing on the date of the respective
transaction.
Exchange differences arising on foreign exchange transactions settled
during the year are recognized in the Profit and Loss Account of the
year. Monetary assets and liabilities in foreign currency, which are
outstanding as at the year-end, are translated at the year end closing
exchange rate and the resultant exchange differences are recognized in
the Profit and Loss Account.
The premium or discount arising at the inception of the forward
exchange contracts related to underlying receivables and payables are
amortized as an expense or income recognized over the period of the
contracts. Gains or losses on renewal or cancellation of foreign
exchange forward contracts are recognized as income or expense for the
period.
Investments in overseas Subsidiary are recognized at the relevant
exchange rates prevailing on the date of investments.
j) Earning per Share
In accordance with the Accounting Standard 20 (AS Ã 20) ÃEarning per
Shareà issued by The Institute of Chartered Accountants of India, basic
and diluted earnings per share is computed using weighted average
number of shares outstanding during the year.
k) Taxation
i. Current Tax
The provision for current tax is made on the basis of tax liability
computed after considering the admissible deductions and exemptions
under the provisions of The Income Tax Act, 1961.
ii. Deferred Tax
Deferred tax asset or liability is recognized for reversible timing
differences between the profit as per financial statements and the
profit offered for income taxes, based on tax rates that have been
enacted or substantively enacted at the Balance Sheet date. Deferred
tax asset or liability is recognized only for those timing differences
that originate during the tax holiday period but reverse after the tax
holiday period.
Deferred tax assets are recognized and carried forward to the extent
there is a reasonable certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
Deferred tax assets on unabsorbed losses are not recognized unless
there is virtual certainty that sufficient future taxable income will
be available against which such deferred tax assets will be realized.
Deferred Tax assets and liabilities are reviewed at each balance sheet
date.
l) Employee Benefits :
(a) Short-term employee benefits à Employee benefits payable wholly
within twelve months of rendering the service are classified as short
term employee benefits and are recognized in the period in which the
employee renders the related service.
(b) Post employment benefits (defined benefit plans) Ã The employees
gratuity scheme is a defined benefit plan. The present value of the
obligation under such defined benefit plan is determined at each
Balance Sheet date based on an actuarial valuation using the projected
unit credit method. Actuarial gains and losses are recognized
immediately in the Profit and Loss account.
(c) Post employment benefits (defined contribution plans) Ã
Contributions to the provident fund is defined contribution scheme and
is recognized as an expense in the Profit and Loss account in the
period in which the contribution is due.
(d) Long-term employee benefits à Long-term employee benefits comprise
of compensated absences and other employee incentives. These are
measured based on an actuarial valuation carried out by an independent
actuary at each Balance Sheet date unless they are insignificant.
Actuarial gains and losses and past service costs are recognized
immediately in the Profit and Loss account.
m) Provisions and Contingent Liabilities
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources, which can be reliably estimated. Disclosures for a
contingent liability is made, without a provision in books, when there
is an obligation that may, but probably will not, require outflow of
resources. Where there is a possible obligation or a present
obligation that the likelihood of outflow of resources is remote, no
provision or disclosure is made.
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