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Accounting Policies of James Hotels Ltd. Company

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.



 
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