Mar 31, 2010
The Companys accounting policies are as follows :
a) Method of accounting :
The accounts are prepared on the basis of Going Concern Concept and
under the historical cost convention. The Company adopts accrual basis
in preparation of its accounts to comply in all material aspects with
applicable accounting principles in India, the Accounting Standards
notified vide Companies (Accounting Standards) Rules, 2006 and the
relevant provisions of the Companies Act, 1956.
b) Use of estimates:
The preparation of financial statement in conformity with the generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amounts of the assets and liabilities on
the date of financial statements and the reported amounts of revenues
and expenses during the reporting period. Difference between actual
results and estimates are recognized in the period in which the results
get materialized.
c) Investments:
Long term investments are stated at cost. Provision for diminution in
value of investments is made, if such diminution is of permanent nature
in the opinion of the management. Earning from investments is taken
into revenue on accrual.
d) Revenue Recognition
The Company follows the mercantile system of accounting and recognizes
income and expenditure on an accrual basis except in case of
significant uncertainties about ultimate realization of revenue.
e) Provisions & Contingent liabilities:
Provision is recognized when an enterprise has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on management estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current
management estimates. Contingent liabilities are disclosed when the
Company has possible obligation or a present obligation and it is
probable that a cash outflow will not be required to settle the
obligation.
f) Taxation:
i) Provision for Current Tax is made on the basis of taxable profits
computed for the current accounting period in accordance with the
Income Tax Act, 1961.
ii) Deferred Tax is calculated at the tax rates and laws that have been
enacted or substantively enacted as of the Balance Sheet date and is
recognized on timing differences that originate in one period and are
capable of reversal in one or more subsequent periods. Deferred Tax
Assets, subject to consideration of prudence, are recognized and
carried forward only to the extent that they can be realized.
g) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by number of
equity shares outstanding during the period.
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