Mar 31, 2011
1. General
i) The Accounts have been prepared on historical cost basis ignoring
Changes, if any in the purchasing power of money.
ii) All revenue and expenses are accounted on accrual basis.
2. Taxation
i) Provision for current tax is made after taking into consideration
benefits admissible under the provision of the Income Tax Act, 1961.
ii) Deferred Tax resulting from timing difference between book and
taxable profit is accounted for using tax rates and law that have been
enacted as on the Balance Sheet Date. Deferred Tax Asset, if any, is
recognized and carried forward only to the extent that there is a
reasonable certainly that the assets will be realized in future.
3. Borrowing Cost.
Borrowing cost directly attributable to the acquisition or construction
of fixed asset are capitalized as part of the cost of the asset, up to
the date the asset is put to use, Other borrowing costs are changed to
the profit & loss account in the year in which they are incurred.
4. Investment
Long term investments are stated at cost. Provision for diminution in
value of long term investment is made only if such a decline is other
than temporary.
5. Income Recognition
Income earned during the year is from Consultancy fees and is shown in
the Profit & Loss Account.
2) In the opinion of the Directors:
a) The current assets, Loans and advances are approximately of the
value stated, if realized in the ordinary course of business.
b) The provisions for all known liabilities are adequate and not in
excess of the amount reasonably necessary.
V. Deferred Tax
The company has not created deferred tax assets in respect of brought
forward losses on prudence basis in accordance with Accounting
Standard-22 Accounting for taxes on Income as no certainty in respect
of future profitability of the company.
VI. Depreciation.
The company does not have any fixed assets during the year under audit.
Additional information required under Para 3, 4-C and 4-D in part II of
schedule VI of the Companies Act, 1956. (As certified by the managing
Director and upon by the Auditors) is NIL.
Previous years figures have been regrouped and rearranged wherever
considered necessary to make them comparable with the current year
figures.