Mar 31, 2015
1.1 Basis of Accounting and Preparation of Financial Statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards specified under
Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013 ("the 2013 Act"). The financial statements have
been prepared on accrual basis under the historical cost convention.
The accounting policies adopted in the preparation of the financial
statements are consistent with those followed in the previous year.
1.2 Use of Estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
1.3. Fixed Assets and Depreciation
Fixed assets are stated at actual cost less accumulated depreciation.
The actual cost capitalized comprises material cost, freight,
installation cost, duties and taxes, eligible borrowing costs and other
incidental expenses incurred during the construction/installation stage
Expenditure incurred during construction period directly attributable
to the fixed assets is transferred to capital work in progress. The
estimated Useful life of assets is based on past experience of the
company, which is different from the useful life as prescribed in
Schedule- II to the companies Act, 2013.
1.4 Revenue Recognition
Revenue is primarily derived from sale of trading goods and software
development and related Services.
Income is recognized on accrual basis unless otherwise stated in these
accounts.
a) Revenue from Sale of Trading goods:
Revenue from sale of goods is recognized when all the significant risks
and rewards of ownership of the goods have been passed to the buyer,
usually on delivery of the goods. The company collects sales tax and
value added taxes (VAT) on behalf of the government and, therefore,
these are not economic benefits flowing to the company. Hence they are
excluded from revenue.
b) Revenue from software development services:
i. Revenue for services is recognized after completion of each stage
of service.
ii. Revenue from software development (on time or material basis) is
recognized based on software developed and billed to the clients.
The company collects service tax on behalf of the government and,
therefore, these are not economic benefits flowing to the company.
Hence they are excluded from revenue.
1.5 Foreign currency transactions
Foreign-currency denominated monetary assets and liabilities are
translated at exchange rates in effect at the Balance Sheet date. The
gains or losses resulting from such translations are included in the
Statement of profit and loss. Non-monetary assets and non-monetary
liabilities denominated in a foreign currency and measured at fair
value are translated at the exchange rate prevalent at the date when
the fair value was determined. Non-monetary assets and non-monetary
liabilities denominated in a foreign currency and measured at
historical cost are translated at the exchange rate prevalent at the
date of transaction.
1.6 Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments. All investments
are stated at cost, i.e., cost of acquisition inclusive of expenditure
incidental to acquisition. Income from investments is recognised in the
accounts in the year in which it is accrued and stated at gross values.
Short Term Investments are valued at cost or market value whichever is
lower. In case of Long Term Investments, provision for diminution in
value is made when it is permanent and material.
1.7 Inventories:
Items of inventories are measured at lower of cost and net realisable
value. Net realizable value is the estimated selling price in the
ordinary course of business less estimated cost necessary to make the
sale.
1.8 Employee Benefits
a) Short Term Employee Benefits
A short term employee benefit includes salaries and incentives.
b) Defined Contribution Plan
The Company's contribution to provident fund and employee state
insurance scheme are considered as defined contribution plans and are
charged as an expense based on the amount of contribution required to
be made and when services are rendered by the employees.
1.9. Borrowing Costs
Borrowing Costs include interest and amortisation of ancillary costs
incurred. Costs in connection with the borrowing of funds to the extent
not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the
loan. Borrowing Costs allocated to and utilised for qualifying assets,
pertaining to the period from commencement of activities relating to
construction / development of the qualifying asset upto the date of
capitalisation of such asset is added to the cost of the assets.
1.10. Earnings per Share
Basic earnings per share are calculated by dividing the net profit/
(loss) after tax for the year attributable to equity shareholders by
the weighted average number of equity shares outstanding during the
year.
For the purpose of calculating basic and diluted earnings per share,
the net profit/ (loss) for the year attributable to equity shareholders
and the weighted average number of shares outstanding during the year
will be adjusted for the effects of all dilutive potential equity
shares. Potential equity shares are deemed to be dilutive only if
their conversion to equity shares would decrease the net profit per
share from continuing ordinary operations.
1.11. Taxes on Income
Income-tax expense comprises current tax (i.e. amount of tax for the
year determined in accordance with the income-tax law) and deferred tax
charge or credit (reflecting the tax effects of timing differences
between accounting income and taxable income for the year).
a) Provision for current taxation has been made in accordance with the
income tax laws prevailing for the relevant assessment years.
b) The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
substantially enacted by the balance sheet date. Deferred tax assets
are recognized only to the extent there is reasonable certainty that
the asset can be realized in the future; however where there is
unabsorbed depreciation or carry forward of losses, deferred tax assets
are recognized only if there is a virtual certainty of realization of
such assets.
c) The Company offsets current tax assets and liabilities (on a year on
year basis) and deferred tax assets and liabilities, where it has a
legally enforceable right and where it intends to settle such assets
and liabilities on a net basis.
1.12. Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information
1.13. Provisions and contingent liabilities
A 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 best 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 best
estimates.
Contingent liabilities are not recognized but are disclosed in the
Notes to the Financial Statements. A Contingent asset is neither
recognized nor disclosed in the Financial Statements.
1.14 Earnings per Share (EPS)
Particulars 2014-15 2013-14
Net Profit/ (Loss) after taxes for the year (Rs.) 16,81,530 19,15,138
Weighted average number of Equity Shares of
Rs.10 each outstanding during the period(Used
for calculation of Basic and Diluted Earnings 55,09,000 5,509,000
Per Share)
Earnings per Share Basic and Diluted (Rs.) 0.31 0.35
Nominal value per share (Rs.) 10 10
1.15. Contingent Liabilities and Commitments
Estimated amount of contracts remaining to be executed on capital
accounts and not provided for, net of advances is Rs. Nil
1.16. Investments
a. Investment includes 5000 shares of Arihant Optics Limited amounting
to Rs.5,00,000/-.
b. Investment includes Rs.98,000/- towards subscription of shares in
Minfy Technologies Private Limited
c. Investment includes Rs.3,00,000/- towards subscription of shares in
Mahaveer Telecom Private Limited.
d. Investments in Skyscrapers unquoted equity shares of worth Rs. 26,
19,000/-
e. Investment in TechMinfy Info Solutions LLP amounts to Rs.50,000/-.
1.17. Fixed Assets
Capital Work-in-progress: current status for 2015
Company has incurred an expenditure on construction of building of
Rs.1,42, 10,170/- which is certified by the management of the company
is shown as capital work-in-progress along with the opening Capital
work-in-progress.
1.18. Segment Reporting
Consequent to the internal reorganization there were changes effected
in the reportable industry segments based on the "management approach"
as laid down in AS17.
Industry segments for the company are
1. Bitumen Trading
2. Staffing/HR Related Services
3. IT Software Development
4. Mobile-Handsets trading.
Revenue and identifiable operating expenses in relation to segments are
categorized based on items that are individually identifiable to that
segment. Allocated expenses of segments include expenses incurred for
rendering services from the company's off shore software development
centres which are categorized in relation to the associated turnover of
the segment.
1.19. Related Party transactions
The company has identified all related parties and details of
transactions are given below. No provision for doubtful debts or
advances is required to be made. No amounts have been written off or
written back during the year in respect of debts due from or related
parties. There are no other related parties where control exists that
need to be disclosed.
a) Names of related parties and description of relationship:
Nature of Relationship Name of the Related Party
Subsidiary Minfy Technologies Private Limited
Mahaveer Telecom Private Limited
Key Management Personnel (KMP) Mr. Ashok Kumar Jain - Managing
Director
Mr. Rajender Kumar Jain - Director
Mr. Vijay Jain -Director
Mr. Jeetendra Bhansali - Director
Mr. Prasanna Dixit - Director
Mrs. Allola Neelima Reddy -
Director
Mr. Vinit Maharia -Director
Mr. Budhi Prakash Toshniwal -
Director
Mr. Harinarayan Vyas-Director
Enterprises where KMP have Mahaveer Skyscrapers Ltd
significant influence
Firm in which Director/Manager or Mahaveer Industries
his relative is a partner
Private company in which Director/ LARR Resources Private Limited
Manager is a Member or Director
Any other Body Corporate Tech Minfy Info Solutions LLP
1.20. Taxation
Current tax is the amount of tax payable on taxable income for the
period determined in accordance with the provisions of Income Tax Act,
1961.
Deferred tax - Deferred tax resulting from "timing differences" between
book profit and taxable profit is accounted for using the tax rates and
laws that have been enacted or substantially enacted as on the balance
sheet date. Deferred tax assets are recognised only to the extent that
there is a virtual certainty that such assets will be realised in
future. Deferred tax assets and liabilities are offset if such items
relate to taxes on income levied by the same governing tax laws and the
Company has a legally enforceable right for such set off. Deferred tax
assets are reviewed at each Balance Sheet date for their realisability.
1.21 The Company has not having the suppliers who are registered as
Micro, Small, Medium Enterprise as on March 31,2015 in terms of the
provisions of "The Micro, Small, and Medium Enterprises Development
Act, 2006".
1.24 In the opinion of the Management and to the best of their
knowledge and belief realization of current assets and loans and
advances are not less than the amount at which they are stated in the
Balance Sheet and are subject to confirmation from respective parties.
1.26 The management is of the opinion that the carrying amounts of
fixed assets and other assets are not less than their respective net
realizable values.
1.27 Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current year's
classification/disclosure.
Mar 31, 2014
Accounting Assumptions
The Financial statements have been prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on accrual basis. GAAP comprises mandatory accounting
standards issued by the Institute of Chartered Accountants of India
(ICAI), Accounting Standards (''AS'') prescribed by Companies (Accounting
Standards), Rules, 2006 (as amendment) the provisions of the Companies
Act, 1956, to the extent applicable. These accounting policies will be
consistently applied. The Board will evaluate the effect of accounting
standards issued on an on-going basis and ensure they are adopted as
mandated by the ICAI.
Use of Estimates
In the preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires Board to make estimates
and assumptions that will affect the reported amounts of assets and
liabilities and the disclosure of contingent liabilities on the date of
the financial statements. Although these estimates are based upon
management''s best knowledge of current events and actions, actual
results could differ from these estimates. Any revision to accounting
estimates will be recognized prospectively in current and future
periods.
Fixed Assets and Depreciation
Fixed Assets are stated at cost of acquisition less depreciation. Cost
of acquisition is inclusive of freight, duties levies and all
incidentals attributable to bringing the assets to its working
condition. Assets under installation or under construction as at
balance sheet date are shown as capital work in progress.
Depreciation is provided pro rata to the period of use on the written
down value method at the rates specified under Schedule XIV of the
Companies Act, 1956 except the Temporary structures. Depreciation on
Temporary structures is provided over the construction period on
straight line method.
Individual assets costing less than Rs.5,000 are fully depreciated in
the year of acquisition.
Revenue Recognition
Income is recognized on accrual basis unless otherwise stated in these
accounts.
a) Sale of Trading goods:
Revenue from sale of goods is recognized when all the significant risks
and rewards of ownership of the goods have been passed to the buyer,
usually on delivery of the goods. The company collects sales tax and
value added taxes (VAT) on behalf of the government and, therefore,
these are not economic benefits flowing to the company. Hence they are
excluded from revenue.
b) Sale of services:
i) Revenue for services is recognized after completion of each stage of
service.
ii) Revenue from software development (on time or material basis) is
recognized based on software developed and billed to the clients.
The company collects service tax on behalf of the government and,
therefore, these are not economic benefits flowing to the company.
Hence they are excluded from revenue.
Foreign Exchange Transactions
The transactions in foreign currency are accounted at the exchange rate
prevailing on the date of transaction. Gains / Losses arising out of
fluctuations in exchange rates are accounted for in the Profit and Loss
Account on realization / payment.
Foreign currency monetary assets and liabilities are translated at the
exchange rate prevailing on the Balance Sheet date and resultant gain
or loss is recognised in the Profit and Loss Account.
Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments.
All investments are stated at cost, i.e., cost of acquisition inclusive
of expenditure incidental to acquisition. Income from investments is
recognised in the accounts in the year in which it is accrued and
stated at gross values.
Short Term Investments are valued at cost or market value whichever is
lower. In case of Long Term Investments, provision for diminution in
value is made when it is permanent and material.
Inventories:
Items of inventories are measured at lower of cost and net realisable
value. Net realizable value is the estimated selling price in the
ordinary course of business less estimated cost necessary to make the
sale.
Employee Benefits
a) Retirement benefit in the form of provident fund is a defined
contribution scheme and the contributions are charged to the profit and
loss account in the year the contributions to the fund are due. There
are no other obligations other than the contributions payable to the
provident fund authorities.
b) Gratuity liability under the Payment of Gratuity Act, if any,
accrued and provided for on cash basis.
Borrowing Costs
Borrowing costs are recognized as expenditure in the year in which they
are incurred.
Earnings per Share
The earnings considered in ascertaining the Company''s Earnings per
Share (EPS) comprise the net profit/ (loss) after tax. The number of
shares used in computing Basic EPS is the weighted average number of
shares outstanding during the year. The number of shares used in
computing Diluted EPS comprises of weighted average shares considered
for deriving Basic EPS, and also the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares where applicable. Dilutive potential equity
shares are deemed to have been converted as of the beginning of the
year, unless they have been issued at a later date.
Taxes on Income
Income-tax expense comprises current tax (i.e. amount of tax for the
year determined in accordance with the income-tax law) and deferred tax
charge or credit (reflecting the tax effects of timing differences
between accounting income and taxable income for the year).
a) Provision for current taxation has been made in accordance with the
income tax laws prevailing for the relevant assessment years.
b) The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
substantially enacted by the balance sheet date. Deferred tax assets
are recognized only to the extent there is reasonable certainty that
the asset can be realized in the future; however where there is
unabsorbed depreciation or carry forward of losses, deferred tax assets
are recognized only if there is a virtual certainty of realization of
such assets.
c) The Company offsets current tax assets and liabilities (on a year on
year basis) and deferred tax assets and liabilities, where it has a
legally enforceable right and where it intends to settle such assets
and liabilities on a net basis.
Cash flow statement
Cash flows are reported using indirect method, whereby the net profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.
Provisions and contingent liabilities
The Company recognizes a provision when there is a present obligation
as a result of an obligating event that probably requires outflow of
resources and a reliable estimate can be made of the amount of the
obligation.
The disclosure of contingent liability is made when, as a result of
obligating events, there is a possible obligation or a present
obligation that may, but probably will not, require outflow or
resources.
Mar 31, 2013
Accounting Assumptions
The Financial statements have been prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on accrual basis. GAAP comprises mandatory accounting
standards issued by the Institute of Chartered Accountants of India
(ICAI), Accounting Standards (''AS'') prescribed by Companies (Accounting
Standards), Rules, 2006 (as amendment) the provisions of the Companies
Act, 1956, to the extent applicable. These accounting policies will be
consistently applied. The Board will evaluate the effect of accounting
standards issued on an on-going basis and ensure they are adopted as
mandated by the ICAI.
Use of Estimates
In the preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires Board to make estimates
and assumptions that will affect the reported amounts of assets and
liabilities and the disclosure of contingent liabilities on the date of
the financial statements. Although these estimates are based upon
management''s best knowledge of current events and actions, actual
results could differ from these estimates. Any revision to accounting
estimates will be recognized prospectively in current and future
periods.
Fixed Assets and Depreciation
Fixed Assets are stated at cost of acquisition less depreciation. Cost
of acquisition is inclusive of freight, duties levies and all
incidentals attributable to bringing the assets to its working
condition. Assets under installation or under construction as at
balance sheet date are shown as capital work in progress.
Depreciation is provided pro rata to the period of use on the written
down value method at the rates specified under Schedule XIV of the
Companies Act, 1956 except the Temporary structures. Depreciation on
Temporary structures is provided over the construction period on
straight line method. Individual assets costing less than Rs.5, 000 are
fully depreciated in the year of acquisition.
Revenue Recognition
a) Income is recognized on accrual basis unless otherwise stated in
these accounts.
b) Revenue from sale is recognized after dispatch of goods to
customers.
c) Revenue for services is recognized after completion of each stage of
service
d) Revenue from software development (on time or material basis) is
recognized based on software developed and billed to the clients.
Foreign Exchange Transactions
The transactions in foreign currency are accounted at the exchange rate
prevailing on the date of transaction. Gains / Losses arising out of
fluctuations in exchange rates are accounted for in the Profit and Loss
Account on realization / payment.
Foreign currency monetary assets and liabilities are translated at the
exchange rate prevailing on the Balance Sheet date and resultant gain
or loss is recognised in the Profit and Loss Account.
Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments.
All investments are stated at cost, i.e., cost of acquisition inclusive
of expenditure incidental to acquisition. Income from investments is
recognised in the accounts in the year in which it is accrued and
stated at gross values.
Short Term Investments are valued at cost or market value whichever is
lower. In case of Long Term Investments, provision for diminution in
value is made when it is permanent and material.
Employee Benefits
Gratuity liability under the Payment of Gratuity Act, if any, accrued
and provided for on cash basis.
Borrowing Costs
Borrowing costs are recognized as expenditure in the year in which they
are incurred.
Earnings per Share
The earnings considered in ascertaining the Company''s Earnings per
Share (EPS) comprise the net profit/ (loss) after tax. The number of
shares used in computing Basic EPS is the weighted average number of
shares outstanding during the year. The number of shares used in
computing Diluted EPS comprises of weighted average shares considered
for deriving Basic EPS, and also the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares where applicable. Dilutive potential equity
shares are deemed to have been converted as of the beginning of the
year, unless they have been issued at a later date.
Taxes on Income
Income-tax expense comprises current tax (i.e. amount of tax for the
year determined in accordance with the income-tax law) and deferred tax
charge or credit (reflecting the tax effects of timing differences
between accounting income and taxable income for the year).
a) Provision for current taxation has been made in accordance with the
income tax laws prevailing for the relevant assessment years.
b) The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
substantially enacted by the balance sheet date. Deferred tax assets
are recognized only to the extent there is reasonable certainty that
the asset can be realized in the future; however where there is
unabsorbed depreciation or carry forward of losses, deferred tax assets
are recognized only if there is a virtual certainty of realization of
such assets.
c) The Company offsets current tax assets and liabilities (on a year on
year basis) and deferred tax assets and liabilities, where it has a
legally enforceable right and where it intends to settle such assets
and liabilities on a net basis.
Cash flow statement
Cash flows are reported using indirect method, whereby the net profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing
and financing activities of the Company are segregated.
Provisions and contingent liabilities
The Company recognizes a provision when there is a present obligation
as a result of an obligating event that probably requires outflow of
resources and a reliable estimate can be made of the amount of the
obligation.
The disclosure of contingent liability is made when, as a result of
obligating events, there is a possible obligation or a present
obligation that may, but probably will not, require outflow or
resources.
Mar 31, 2012
Accounting Assumptions
The Financial statements have been prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on accrual basis. GAAP comprises mandatory accounting
standards issued by the Institute of Chartered Accountants of India
(ICAI), Accounting Standards ('AS') prescribed by Companies (Accounting
Standards), Rules, 2006 (as amendment) the provisions of the Companies
Act, 1956, to the extent applicable. These accounting policies will be
consistently applied. The Board will evaluate the effect of accounting
standards issued on an on-going basis and ensure they are adopted as
mandated by the ICAI.
Use of Estimates
In the preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires Board to make estimates
and assumptions that will affect the reported amounts of assets and
liabilities and the disclosure of contingent liabilities on the date of
the financial statements. Although these estimates are based upon
management's best knowledge of current events and actions, actual
results could differ from these estimates. Any revision to accounting
estimates will be recognized prospectively in current and future
periods.
Fixed Assets and Depreciation
Fixed Assets are stated at cost of acquisition less depreciation. Cost
of acquisition is inclusive of freight, duties levies and all
incidentals attributable to bringing the assets to its working
condition. Assets under installation or under construction as at
balance sheet date are shown as capital work in progress.
Depreciation is provided pro rata to the period of use on the written
down value method at the rates specified under Schedule XIV of the
Companies Act, 1956 except the Temporary structures. Depreciation on
Temporary structures is provided over the construction period on
straight line method. Individual assets costing less than Rs.5, 000 are
fully depreciated in the year of acquisition.
Revenue Recognition
a) Income is recognized on accrual basis unless otherwise stated in
these accounts.
b) Revenue from sale is recognized after dispatch of goods to
customers.
c) Revenue for services is recognized after completion of each stage of
service
d) Revenue from software development (on time or material basis) is
recognized based on software developed and billed to the clients.
Foreign Exchange Transactions
The transactions in foreign currency are accounted at the exchange rate
prevailing on the date of transaction. Gains / Losses arising out of
fluctuations in exchange rates are accounted for in the Profit and Loss
Account on realization / payment.
Foreign currency monetary assets and liabilities are translated at the
exchange rate prevailing on the Balance Sheet date and resultant gain
or loss is recognised in the Profit and Loss Account.
Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments.
All investments are stated at cost, i.e., cost of acquisition inclusive
of expenditure incidental to acquisition. Income from investments is
recognised in the accounts in the year in which it is accrued and
stated at gross values.
Short Term Investments are valued at cost or market value whichever is
lower. In case of Long Term Investments, provision for diminution in
value is made when it is permanent and material.
Employee Benefits
Gratuity liability under the Payment of Gratuity Act, if any, accrued
and provided for on cash basis. Borrowing Costs
Borrowing costs are recognized as expenditure in the year in which they
are incurred.
Earnings per Share
The earnings considered in ascertaining the Company's Earnings per
Share (EPS) comprise the net profit/ (loss) after tax. The number of
shares used in computing Basic EPS is the weighted average number of
shares outstanding during the year. The number of shares used in
computing Diluted EPS comprises of weighted average shares considered
for deriving Basic EPS, and also the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares where applicable. Dilutive potential equity
shares are deemed to have been converted as of the beginning of the
year, unless they have been issued at a later date.
Taxes on Income
Income-tax expense comprises current tax (i.e. amount of tax for the
year determined in accordance with the income-tax law) and deferred tax
charge or credit (reflecting the tax effects of timing differences
between accounting income and taxable income for the year).
a) Provision for current taxation has been made in accordance with the
income tax laws prevailing for the relevant assessment years.
b) The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
substantially enacted by the balance sheet date. Deferred tax assets
are recognized only to the extent there is reasonable certainty that
the asset can be realized in the future; however where there is
unabsorbed depreciation or carry forward of losses, deferred tax assets
are recognized only if there is a virtual certainty of realization of
such assets.
c) The Company offsets current tax assets and liabilities (on a year on
year basis) and deferred tax assets and liabilities, where it has a
legally enforceable right and where it intends to settle such assets
and liabilities on a net basis.
Cash flow statement
Cash flows are reported using indirect method, whereby the net profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing
and financing activities of the Company are segregated.
Provisions and contingent liabilities
The Company recognizes a provision when there is a present obligation
as a result of an obligating event that probably requires outflow of
resources and a reliable estimate can be made of the amount of the
obligation.
The disclosure of contingent liability is made when, as a result of
obligating events, there is a possible obligation or a present
obligation that may, but probably will not, require outflow or
resources.