Mar 31, 2015
1.1. Basis of Accounting
The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India under the historical
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 continue to be
applicable in terms of General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of
the Companies Act, 2013), other relevant provisions of the Act (to the
extent notified) and the presentation requirements as prescribed by the
Schedule III of the Companies Act, 2013 to the extent applicable.
1.2. Use of Estimates
The preparation of financial statements inconformity with generally
accepted accounting principles requires that management makes estimates
and assumptions that affect the reported amounts of income and expenses
of the year, the reported balance of assets and liabilities and the
disclosure relating to contingent liabilities as at the date of the
financial statements. These estimates are based upon management's best
knowledge of current events and actions. The difference between the
actual results and estimates are recognised in the period in which the
results are known/materialised.
1.3. Fixed Assets
-Tangible Assets
Tangible Assets are stated at cost of acquisition or construction less
accumulated depreciation and impairment of assets, if any.
The cost comprises purchase price, borrowing costs if capitalisation
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use and net of Cenvat VAT
availed.
-Intangible Assets
Intangible Assets are stated at cost less accumulated amortisation.
-Capital Work-in-Progress
Expenses incurred during construction/installation period are included
under capital work-in- progress and allocated to relevant fixed assets
in the ratio of cost of the respective assets on completion of
construction/installation.
1.4 Depreciation/Amortisation
Depreciation on tangible assets is provided on written down value
method over the useful life of assets assigned to each asset in
accordance with Schedule - II of the Companies Act, 2013.
Depreciation on additions to fixed assets is calculated on month-end
balances. Depreciation on assets sold & scrapped, during the year, is
provided upto the month in which such fixed assets are sold or
scrapped.
Intangible Assets (i.e. Computer Software) have been amortised on
straight line method pro-rata on month end balances over a period of
five years in accordance with Accounting Standard -26 "Intangible
Assets".
1.5. Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An asset is treated as impaired when the carrying cost of the
assets exceeds its recoverable value. An impairment loss, if any, is
charged to the Statement of Profit & Loss in the year in which an asset
is identified as impaired. Reversal of impairment losses recognised in
prior years is recorded when there is an indication that the impairment
losses recognised for the assets no longer exist or have decreased.
1.6. Valuation of Inventories
Inventories are valued at cost which is based on first-in first-out
(first) method. Unserviceable/damaged/discarded stock and shortages
are charged to the Statement of Profit & Loss.
1.7 Revenue Recognition
Revenue from sale of goods is recognised when risk and rewards of
ownership are transferred to the customers.
Revenue from services is recognised when services are rendered and
related costs are incurred.
Other income is recognised on accrual basis unless otherwise stated.
Insurance and other claims are accounted for on settlement of claims/on
receipt.
Revenue from sales/services are shown net of taxes, as applicable.
1.8. Employee Benefits
a) Short-term Employee Benefits:
-Leave Encashment, on the basis of actual computation, is accounted for
on actual payment basis, during the tenure of employment the payment in
respect thereof is made by the Company from its own funds as per the
past practice consistently followed by the Company.
-Bonus is accounted for on actual payment.
b) Post-Employment Benefits
(i) Defined Contribution Plans:
Contributions as required under the Statute/Rule are made to Employees'
State Insurance & Provident Fund and charged to the Statement of Profit
& Loss of the year when the contributions to the respective funds are
due.
(ii) Defined Benefit Plans:
Gratuity is accounted for on accrual basis - the Company has not taken
any Gratuity policy with Life Insurance Corporation of India or any
other insurer covered under the specified provisions of the Income Tax
Act, 1961.
c) Termination Benefits:
Termination benefits are recognised as an expense as and when incurred.
1.9. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets to the extent that they relate to the period till such
assets are ready to be put to use. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged to the Statement of
Profit & Loss.
1.10 Foreign Currency Transactions
-The Company accounts for the effects of difference in foreign exchange
rates in accordance with Accounting Standard 11 notified by Companies
(Accounting Standards) Rules, 2006 under Section 211(3C) (which
continue to be applicable in terms of General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013).
-Foreign currency transactions are recorded using the exchange rate
prevailing on the date of transaction. Exchange differences arising on
foreign currency transactions settled during the year are recognised in
the Statement of Profit & Loss.
-Monetary assets and liabilities denominated in foreign currency are
restated at the exchange rate prevailing at the year end. The resultant
differences are recognised in the Statement of Profit & Loss.
1.11. Operating Lease
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating leases. Operating lease charges are recognised as an expense
in the Statement of Profit & Loss on a straight line basis.
1.12. Taxes on Income
-Current Tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Indian Income Tax Act, 1961.
-Deferred tax is recognised, subject to the consideration of prudence
in respect of deferred tax assets, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
-Deferred tax assets and liabilities are offset when there is a legally
enforceable right to set off assets against liabilities.
1.13. Earnings Per Share (EPS)
-Annualised basic earnings per equity share is arrived at based on net
profit/(loss) attributable to equity shareholders to the basic weighted
average number of equity shares outstanding.
-Annualised diluted earnings per equity share is arrived at based on
adjusted net profit/(loss) attributable to equity shareholders to the
adjusted weighted average number of equity shares outstanding, for the
effects of all dilutive potential equity shares; except where the
results are anti-dilutive. At present the Company does not have any
dilutive potential equity shares.
1.14. Cash Flow Statement
-The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard (AS) 3 on Cash Flow Statements and presents the
cash flows by operating, investing and financing activities of the
Company.
-Cash and cash equivalents presented in the Cash Flow Statement consist
of balance in current accounts and cash balances.
1.15. Contingencies and Provisions
A provision is recognised when the Company has a present obligation as
a result of past event. It is probable that an outflow of resources
embodying economic benefit 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 the best
estimate of the expenditure 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 estimate. A contingent liability
is disclosed, unless the possibility of an outflow of resources
embodying the economic benefit is remote.
Mar 31, 2014
1. Basis of Accounting
The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India under the historical
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 13th September,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of
the Companies Act, 2013), other relevant provisions of the Companies
Act, 1956 and the presentation requirements as prescribed by the
revised Schedule VI of the Companies Act, 1956, to the extent
applicable.
2. Use of Estimates
The preparation of financial statements inconformity with generally
accepted accounting principles requires that management makes estimates
and assumptions that affect the reported amounts of income and expenses
of the year, the reported balance of assets and liabilities and the
disclosure relating to contingent liabilities as at the date of the
financial statements. These estimates are based upon management''s best
knowledge of current events and actions. The difference between the
actual results and estimates are recognised in the period in which the
results are known/materialised.
3. Fixed Assets
* Tangible Assets
Fixed Assets are stated at their cost of acquisition or construction
less accumulated depreciation and impairment of assets, if any.
The cost comprises of purchase price, borrowing costs if capitalisation
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use.
* Intangible Assets
Intangible Assets are stated at cost less accumulated amortisation.
* Capital Work-in-Progress
Expenses incurred during construction/installation period are included
under capital work-in- progress and allocated to relevant fixed assets
in the ratio of cost of the respective assets on completion of
construction/installation.
4. Depreciation/Amortisation
* Depreciation is provided on written down value method, at the rates
specified in Schedule XIV of the Companies Act, 1956.
* Depreciation on additions to fixed assets is calculated on month end
balances.
* Depreciation on assets sold & scrapped, during the year, is provided
upto the month in which such fixed assets are sold or scrapped.
* Intangible Assets (i.e. Computer Software) has been amortised on
straight line method pro-rata on month end balances over a period of
five years in accordance with Accounting Standard -26 "Intangible
Assets".
5. Impairment of Assets
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An asset is treated as impaired when the carrying cost of the
assets exceeds its recoverable value. An impairment loss, if any, is
charged to the Statement of Profit & Loss in the year in which an asset
is identified as impaired. Reversal of impairment losses recognised in
prior years is recorded when there is an indication that the impairment
losses recognised for the assets no longer exist or have decreased.
6. Valuation of Inventories
Inventories are valued at cost which is based on first-in first-out
(FIFO) method. Unserviceable/ damaged/discarded stock and shortages are
charged to the Statement of Profit & Loss
7. Revenue Recognition
* Revenue from sale of goods is recognised when risk and rewards of
ownership are transferred to the customers.
* Revenue from services is recognised when services are rendered and
related costs are incurred.
* Other income is recognised on accrual basis unless otherwise stated.
* Insurance and other claims are accounted for on settlement of
claims/on receipt.
* Revenue from sales/services are shown net of taxes, as applicable.
8. Employee Benefits
a) Short-term Employee Benefits:
* Leave Encashment, on the basis of actual computation, is accounted
for on accrual basis, during the tenure of employment the payment in
respect thereof is made by the Company from its own funds as per the
past practice consistently followed by the Company.
* Bonus is accounted for on actual payment.
b) Post-Employment Benefits
(i) Defined Contribution Plans:
Contributions as required under the Statute/Rule are made to Employees''
State Insurance & Provident Fund and charged to the Statement of Profit
& Loss of the year when the contributions to the respective funds are
due.
(ii) Defined Benefit Plans:
Gratuity is accounted for on actual payment basis - the Company has not
taken any Gratuity policy with Life Insurance Corporation of India or
any other insurer covered under the specified provisions of the Income
Tax Act, 1961.
c) Termination Benefits:
Termination benefits are recognised as an expense as and when incurred.
9. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets to the extent that they relate to the period till such
assets are ready to be put to use. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged to the Statement of
Profit & Loss.
10 Foreign Currency Transactions
* The Company accounts for the effects of difference in foreign
exchange rates in accordance with Accounting Standard 11 notified by
the Companies (Accounting Standards) Rules, 2006. Foreign currency
transactions are recorded using the exchange rate prevailing on the
date of transaction. Exchange differences arising on foreign currency
transactions settled during the year are recognised in the Statement of
Profit & Loss.
* Monetary assets and liabilities denominated in foreign currency are
restated at the exchange rate prevailing at the year end. The resultant
differences are recognised in the Statement of Profit & Loss.
11. Investments
* Investments are classified into current and non-current investments.
Investments that are readily realisable and are intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as non-current investments.
* Current investments are carried at cost or fair value, whichever is
lower.
* Non-current investments are carried at cost. Provision for diminution
in value of non-current investments is made only, if a decline is other
than temporary.
12. Operating Lease
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets are classified as
operating leases. Operating lease charges are recognised as an expense
in the Statement of Profit & Loss on a straight line basis.
13. Taxes on Income
* Current Tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Indian Income Tax Act, 1961.
* Deferred tax is recognised, subject to the consideration of prudence
in respect of deferred tax assets, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
* Deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off assets against liabilities.
14. Earnings Per Share (EPS)
* Annualised basic earnings per equity share is arrived at based on net
profit/(loss) attributable to equity shareholders to the basic weighted
average number of equity shares outstanding.
* Annualised diluted earnings per equity share is arrived at based on
adjusted net profit/(loss) attributable to equity shareholders to the
adjusted weighted average number of equity shares outstanding, for the
effects of all dilutive potential equity shares; except where the
results are anti- dilutive. At present the Company does not have any
dilutive potential equity shares.
15. Cash Flow Statement
-The Cash Flow Statement is prepared by the indirect method set out in
Accounting Standard (AS) 3 on Cash Flow Statements and presents the
cash flows by operating, investing and financing activities of the
Company.
* Cash and cash equivalents presented in the Cash Flow Statement
consist of balance in current accounts and cash balances.
16. Contingencies and Provisions
A provision is recognised when the Company has a present obligation as
a result of past event. It is probable that an outflow of resources
embodying economic benefit 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 the best
estimate of the expenditure 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 estimate.
A contingent liability is disclosed, unless the possibility of an
outflow of resources embodying the economic benefit is remote.
Mar 31, 2012
1.1 Basis of Accounting
The financial statements are prepared under historical cost convention,
on accrual basis of accounting in accordance with the Generally
Accepted Accounting Principles in India and comply with the Accounting
Standards (AS) as notified under the Companies (AS) Rules, 2006 and the
presentation requirements as prescribed by the Revised Schedule VI of
the Companies Act, 1956, to the extent applicable.
1.2 Prior Period Items/Extra-ordinary Items
Prior period items/Extra-ordinary items, having material impact on the
financial affairs of the Company, are disclosed separately.
1.3 Depreciation
- Depreciation on fixed assets is provided, on written down value
method, at the rates and in the manner specified in the Schedule XIV of
the Companies Act, 1956.
- Depreciation on additions to fixed assets is calculated on month end
balances.
- Depreciation on assets sold & scrapped, during the year, is provided
upto the month in which such fixed assets are sold or scrapped.
1.4 Revenue Recognition
Other income is recognised on accrual basis unless otherwise stated.
1.5 Fixed Assets Tangible Assets
- Fixed Assets are stated at their cost of acquisition or construction
less accumulated depreciation and impairment of assets, if any.
- Cost comprises of purchase price and any attributable cost of
bringing the asset to its working condition for its intended use.
Capital Work-in-Progress
Expenses incurred during construction/installation period are included
under capital work-in-progress and allocated to relevant fixed assets
in the ratio of cost of the respective assets on completion of
construction/installation.
1.6 Foreign Currency Transactions
- Foreign currency transactions are recorded at the exchange rate
prevailing on the date of transaction.
- Gains or losses, if any. arising due to exchange differences at the
time of transaction or settlement are accounted for in the Statement of
Profit & Loss.
1.7 Investments
- Current Investments are carried at cost or fair value whichever is
lower.
- Long-term investments are carried at cost. Provision for diminution
in value of long term investments is made only, if a decline is other
than temporary.
1.8 Employee Benefits Short-term Employee Benefits :
- Leave Encashment is accounted for on accrual basis.
- Bonus is accounted for at the time of actual payment.
Post-Employment Benefits
(a) Defined Contribution Plans:
Contributions as required under the Statute/Rule are made to Employees
State Insurance & Provident Fund and charged to the Statement of Profit
& Loss of the year when the contributions to the funds are due.
(b) Defined Benefit Plan:
Gratuity is accounted for at the time of actual payment.
Termination Benefits:
Termination benefits are recognised as an expense as and when incurred.
1.9 Borrowing Costs
Borrowing costs which are directly attributable to acquisition,
construction or production of qualifying assets are capitalised as a
part of the cost of such assets. Other borrowing costs are recognised
as an expense in the period in which they are incurred.
1.10 Operating Lease
Lease arrangements where the risks and rewards incidental to ownership
of an asset substantially vest with the lesson are recognised as
operating leases. Lease rentals under operating leases are recognised
in the Statement of Profit and Loss on a "straight- line basis".
1.11 Earning Per Share (EPS)
Annualised basic earning per equity share, is arrived at based on net
profit/(loss) attributable to equity shareholders to the basic weighted
average number of equity shares.
1.12 Taxes on Income
- Current Tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Indian Income Tax Act. 1961.
- Deferred tax is recognised, subject to the consideration of prudence
in respect of deferred tax assets/liabilities, on timing differences,
being the difference between taxable income and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods.
1.13 Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal/external
factors. An asset is treated as impaired when the carrying cost of the
assets exceeds its recoverable value. An impairment loss, if any, is
charged to the Statement of Profit and Loss in the year in which an
asset is identified as impaired. Reversal of impairment losses
recognised in prior years is recorded when there is an indication that
the impairment losses recognised for the assets no longer exist or have
decreased.
1.14 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised 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 recognised but are disclosed in the
Notes to Accounts. Contingent assets are neither recognised nor
disclosed in the financial statements.
1.15 Insurance and other claims
Insurance claims are accounted for on settlement of claims/on receipt.
Mar 31, 2011
1. Accounting Concepts
- The financial statements have been prepared under the historical cost
convention on an accrual basis in compliance with all material aspect
of the Notified accounting standard by Companies Accounting Standard
Rules, 2006 and the relevant provisions of the Companies Act, 1956. The
accounting policies have been consistently applied by the Company and
are consistent with those used in the previous year.
2 Fixed Assets
Fixed Assets are stated at cost, less accumulated depreciation and
impairment loss, if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use.
Capital Work-in-Progress
Expenses incurred during construction/installation period are included
under capital work-in-progress and allocated to relevant fixed assets
in the ratio of cost of the respective assets on completion of
construction/installation.
3. Depreciation
Depreciation on fixed assets is provided, on written down value method,
at the rates and in the manner specified in the Schedule XIV of the
Companies Act, 1956.
-Depreciation on the Fixed Assets added/disposed off/discarded during
the year is provided on pro-rata basis with reference to the month of
addition/disposal/discarding.
4. Impairment of Assets
The cash generating units are evaluated at the Balance Sheet date to
ascertain the estimated recoverable amount/value in use as against the
written down value. Impairment loss, if any, is recognized whenever
the written down value exceeds estimated recoverable amount/value in
use.
5. Borrowing Costs
- Borrowing costs, attributable to acquisition and construction of
qualifying assets, are capitalised as a part of the cost of such asset
up to the date when such assets are ready for its intended use.
- Other borrowing costs are charged to Profit & Loss Account.
6. Lease
Lease rental for assets taken on operating lease are charged to the
profit and loss account in accordance with Accounting Standard 19 on
leases.
7. Foreign Currency Transactions
- Foreign currency transactions are recorded at the exchange rate
prevailing on the date of transaction.
- Gains or losses, if any, arising due to exchange differences at the
time of transaction or settlement are accounted for in the Profit &
Loss Account (except those relating to acquisition of fixed assets,
which are adjusted in the cost of assets).
8. Investments
Current Investments are stated at lower of cost and fair value. Long
terminvestments are stated at cost after deducting provisions made, if
any, for other than temporary diminution in the value. ,-
9. Earning perShare (EPS)
- Basic earning per share is calculated by dividing the net profit or
loss for Ihe period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
- For the purpose of calculating diluted earnings per share, the net
profit or loss for the period 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.
10. Employee Benefits
- Provisions of Employees State Insurance. Provident Fund & Gratuity
are not yet applicable.
-Leave Encashment is accounted for on accrual basis.
11. Revenue Recognition
Income from investment/other income is recognized on accrual basis
unless otherwise stated.
12. Taxation
- Current Tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Indian Income Tax Act, 1961.
- The Deferred tax is recognised, subject to the consideration of
prudence in respect of deferred tax assets, on timing differences,
being the difference between taxable income and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods.
13. Insurance and other claims
Insurance claims are accounted for on settlement of claims/on receipt.
14. Prior Period Items/Extra-ordinary Items
Prior period items/Extra-ordinary items, having material impact on the
financial affairs of the Company, are disclosed separately.
15. Miscellaneous Expenditure
The Company follows the policy of treating some expenditure, the
benefits of which accrue to the Company over an extended period as
miscellaneous or deferred revenue expenditure and amortises such
expenditure over a period of upto five years depending on the nature &
expected future benefits of such expenditure.
16. Provisions, Contingent Liabilities and Contingent Assets.
- Provisions are recognised when there is 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 determined based on best estimate required to settle
the obligation at the Balance Sheet date.
- Contingent liabilities are not recognised but are disclosed in the
Notes to Accounts. Contingent assets are neither recognised nor
disclosed in the financial statements.
Mar 31, 2010
1. Accounting Concepts
The financial statements are prepared under historical cost convention
on accrual basis of accounting in accordance with generally accepted
accounting principles, applicable Accounting Standards and the relevant
provisions of the Companies Act, 1956.
2 Fixed Assets
Tangible Assets
Fixed Assets are stated at their cost of acquisition or construction
less accumulated depreciation and impairment of assets, if any.
Cost comprises of purchase price and any attributable cost of bringing
the asset to its working condition for its intended use.
Intangible Assets
Intangible Assets are shown at acquisition cost less accumulated
amortisation.
Capital Work-in-Progress
Expenses incurred during construction/installation period are included
under capital work-in-progress and allocated to relevant fixed assets
in the ratio of cost of the respective assets on completion of
construction/installation.
3. Depreciation
Depreciation on fixed assets is provided, on written down value method,
as per the rates prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation on additions to fixed assets is calculated on month-end
balances.
Depreciation on assets sold & scrapped, during the year, is provided
upto the month in which such fixed assets are sold or scrapped.
4. Revenue Recognition
Income from investment/other income is recognized on accrual basis
unless otherwise stated.
5. Earning per Share (EPS)
Annualised basic earning per equity share is arrived at based on net
profit/(loss) after taxation to the basic weighted average number of
equity shares.
6. Employee Benefits
Provisions of Employees State Insurance, Provident Fund & Gratuity are
not yet applicable.
-Leave Encashment is accounted for on accrual basis.
7. Foreign Currency Transactions
Foreign currency transactions are recorded at the exchange rate
prevailing on the date of transaction.
- Ail gains or losses arising due to exchange differences at the time
of transaction or settlement are accounted for in the Profit & Loss
Account (except those relating to acquisition of fixed assets, which
are adjusted in the cost of assets).
8. Borrowing Costs
Borrowing costs which are directly attributable to acquisition,
construction or production of a qualifying asset are capitalised as a
part of the cost of such assets. Other borrowing costs are recognised
as an expense in the period in which they are incurred.
9. investments
Current Investments are carried at lower of cost & fair value.
Long-term investments are carried at cost. Provision for diminution in
value of long term investments is made only, if a decline is other than
temporary.
10. Impairment of Assets
The cash generating units are evaluated at the Balance Sheet date to
ascertain the estimated recoverable amount/value in use as against the
written down value. Impairment loss, if any, is recognized whenever
the written down value exceeds estimated recoverable amount/value in
use.
11. Taxes on Income
Deferred tax is recognised, subject to the consideration of prudence in
respect of deferred tax assets, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.
12. Insurance and other claims
Insurance claims are accounted for on settlement of claims/on receipt.
13. Prior Period Items/Extra-ordinary Items
Prior period items/Extra-ordinary items, having material impact on the
financial affairs of the Company, are disclosed separately.
14. Miscellaneous Expenditure
The Company follows the policy of treating some expenditure, the
benefits of which accrue to the Company over an extended period as
miscellaneous or deferred revenue expenditure and amortises such
expenditure over a period of upto five years depending on the nature &
expected future benefits of such expenditure.
15. 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 recognised but are disclosed in the
Notes to Accounts. Contingent assets are neither recognised nor
disclosed in the financial statements.