Mar 31, 2023
SIGNIFICANT ACCOUNTING POLICIES
a) Basis of preparation
These standalone financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time
to time) and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant
Schedule III). These standalone financial statements are presented in INR Lakhs and all values are rounded to the
nearest lakhs, except when otherwise indicated.
The regulatory disclosures as required by Master Directions for Non-Banking Financial Company - Non-Systemically
Important Non-Deposit taking Company Directions, 2016 issued by the RBI (''RBI Master Directions'') to be included
as a part of the Notes to Accounts are prepared as per the Ind AS financial statements pursuant to the notification
on Implementation of Indian Accounting Standards, dated March 13, 2020.
b) Use of estimates and judgements
The preparation of standalone financial statements in conformity with the recognition and measurement principles
of Ind AS requires the management to make estimates and assumptions that affect the balances of assets and
liabilities, disclosures of contingent liabilities as at the date of the standalone financial statements and the reported
amounts of income and expenses for the periods presented. The Company has a policy to review these estimates
and underlying assumptions on an ongoing basis. Revisions to accounting estimates are recognized in the period in
which the estimates are revised, and future periods are affected.
c) Revenue recognition
Interest Income
Under Ind AS 109 interest income is recorded using the effective interest rate (''EIR'') method for all financial
instruments measured at amortised cost. The EIR is the rate that discounts estimated future cash receipts through
the expected life of the financial instrument to the net carrying amount of the financial asset.
Income from dividend on shares of corporate bodies is taken into account on accrual basis when such dividend has
been declared by the corporate body in its annual general meeting and the Company''s right to receive payment is
established.
d) Employee Benefits Expense(i) Defined contribution plans
Contributions to the Provident Fund based on the statutory provisions as per the Employee Provident Fund Scheme
is recognised as an expense in the Statement of Profit and Loss in the period when services are rendered by the
employees.
(ii) Defined benefit plans
Gratuity
Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent
actuary, at each balance sheet date using the projected unit credit method. The Company recognizes the net
obligation of a defined benefit plan in its balance sheet as an asset or liability.
The company treats its liability for long-term compensated absences based on actuarial valuation as at the Balance
Sheet date, determined by an independent actuary using the Projected Unit Credit method. Actuarial gains and
losses are recognised in the Statement of Profit and Loss in the year in which they occur.
e) Property, Plant and Equipment(i) Measurement
Items of Property, plant and equipment, are measured at cost (which includes capitalized borrowing costs, if any)
less accumulated depreciation and accumulated impairment losses, if any.
Cost of an item of property, plant and equipment includes its purchase price, duties, taxes, after deducting trade
discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use
and estimated costs of dismantling and removing the item and restoring the site on which it is located.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted
for as separate items (major components) of property, plant and equipment.
Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.
Subsequent expenditure is capitalized only if it is probable that it will increase the future economic benefits from
the existing asset beyond its previously assessed standard of performance/life. All other expenses on existing
Property, plants and equipment, including day to day repair and maintenance and cost of replacing parts are charged
to the Statement of Profit and Loss for the period during which such expenses are incurred.
An item of Property, plant and equipment is derecognized upon its disposal or when no future economic benefit is
expected to arise from its continued use. Any gain or loss arising on the same (calculated as the difference between
the net disposal proceeds and its carrying amount) is recognized in the Statement of Profit and Loss in the period
the item is derecognized.
Depreciation is calculated using Straight Line Method (SLM) over the useful lives of assets and is recognized in the
Statement of profit and loss. Depreciation for assets purchased / sold during the period is proportionately charged.
Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year-end and adjusted prospectively, if appropriate.
f) Impairment of Non-financial Assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s
recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair
value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.
Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
In determining fair value less costs of disposal, recent market transactions are taken into account, if available.
If no such transactions can be identified, an appropriate valuation model is used. Impairment losses including
impairment on inventories are recognized in the Statement of profit and loss. After impairment, depreciation is
provided on the revised carrying amount of the asset over its remaining useful life.
g) Investment in Subsidiaries and Associate
On transition to Ind AS, the Company has elected to continue with the carrying value of investments in subsidiaries
and associate as on 1 April 2018, measured as per the previous GAAP, and use that carrying value as the deemed
cost of such investments.
Investment in Subsidiaries and associates are carried at cost in accordance with the option available in Ind AS 27,
''Separate Financial Statements''. Where the carrying amount of an investment in greater than its estimated
recoverable amount, it is written down immediately to its recoverable amount and the difference is transferred to
the Statement of Profit and Loss. Upon disposal of investment, the difference between the net disposal proceeds
and the carrying amount is credited or charged to the Statement of Profit and Loss.
Cash and cash equivalent in the balance sheet and in the Statement of Cash flows comprise of cash in hand and
balance with banks in current accounts.
Borrowing cost includes interest and other costs incurred in connection with the borrowing of funds and charged to
Statement of Profit & Loss on the basis of effective interest rate (EIR) method. Borrowing costs directly attributable
to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get
ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs
are recognized as expense in the period in which they occur.
Mar 31, 2018
1. Significant Accounting Policies
a. Basis of 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 notified under section 133 of the Companies Act 2013 and Companies (Accounting Standard) Amendment Rules 2016, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of Companies Act 2013. 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.
The company follows the prudential norms for income recognition, asset classification and provisioning as prescribed by the Reserve Bank of India (RBI) for Non-Systemically Important Non-deposit taking Non-Banking Finance Companies (NBFC-ND-NSI).
b. Use of estimates
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) as of the date of the financial statements and the reported income and expenses during the year. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates and the differences between the actual results and the estimates are recognised prospectively in the periods in which the results are known.
c. Revenue recognition
(i) Interest Income
Interest Income on loans and advances given by the Company is recognised on accrual basis. However, interest on Non-Performing Accounts (NPA) is recognised only when it is actually realised.
(ii) Dividend Income
Income from dividend on shares of corporate bodies is taken into account on accrual basis when such dividend has been declared by the corporate body in its annual general meeting and the Company''s right to receive payment is established.
d. Property, plant and equipment and depreciation
Property, plant and equipment are stated at their cost of acquisition less accumulated depreciation. Cost comprises of all cost, net of income (if any), incurred to bring the assets to their present location and working condition and other related overheads till such assets are ready for intended use.
Depreciation on property, plant and equipment of the Company is provided on Straight Line Method at the rates specified in Schedule II to the Companies Act, 2013, as amended up to date or at the rates calculated to write off 95% of the value of the assets over the remaining useful life of the assets, as determined by the management.
e. Investments
Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on an individual investment basis and decline is charged to the Statement of Profit and Loss. Appropriate adjustment is made in carrying cost of investment in case of subsequent rise in value of investments.
f. Retirement and other benefits
(i) Defined contribution plans
Contributions to the Provident Fund based on the statutory provisions as per the Employee Provident Fund Scheme is recognised as an expense in the Statement of Profit and Loss in the period when services are rendered by the employees.
(ii) Defined benefit plans
Gratuity
Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each balance sheet date using the projected unit credit method. The Company recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability.
Leave encashment
The company treats its liability for long-term compensated absences based on actuarial valuation as at the Balance Sheet date, determined by an independent actuary using the Projected Unit Credit method. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the year in which they occur.
g. Taxation
Income Tax: Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.
Deferred Tax: Deferred tax is recognised on timing differences, being the difference between the taxable income and the accounting income, that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed depreciation and carry forward of losses and items relating to capital losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income available to realise the assets.
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.
h. Earnings Per Share
Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value.
i. Cash and cash equivalents
The Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with a maturity period of three months or less from the balance sheet date, which are subject to an insignificant risk of changes in value.
j. Provisions and Contingencies
A provision is recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources in respect of which a reliable estimate can be made. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements. Contingent assets are not recognised.
Mar 31, 2015
I) Basis of Preparation of Financial Statements:
The financial statements are prepared under the historical cost
convention as a going concern. The accounts have been prepared by
adopting the accrual system of accounting and in accordance with
directions prescribed by the Reserve Bank of India for Non Banking
Financial Companies. Accounting Policies, not specifically referred to
otherwise are consistent and in consonance with the generally accepted
accounting principles.
ii) Foreign Currency Transactions:
Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions. Monetary assets and
liabilities related to foreign currency transactions remaining
unsettled are translated at year end rate.
The difference in translation of Monetary assets and liabilities and
realized gains and losses on foreign exchange transaction are
recognized in profit & loss account.
Foreign currency gain/loss relating to translation of net investment in
non-integral foreign operation is recognized in the foreign currency
translation reserve.
iii) Fixed Assets and Depreciation :
a) Fixed Assets
Fixed Assets are stated at their cost of acquisition less accumulated
depreciation. Cost comprises of all cost, net of income (if any),
incurred to bring the assets to their present location and working
condition and other related overheads till such assets are ready for
intended use.
b) Depreciation
Depreciation on all Fixed Assets of the Company is provided on Straight
Line Method at the rates specified in Schedule II to the Companies Act,
2013, as amended up to date or at the rates calculated to write off 95%
of the value of the assets over the remaining useful life of the
assets, as determined by the management.
iv) Investments:
Long term investments are stated at cost. When there is a decline other
than temporary in their value, the carrying amount is reduced on an
individual investment basis and decline is charged to the Profit and
Loss Account. Appropriate adjustment is made in carrying cost of
investment in case of subsequent rise in value of investments.
v) Retirement Benefits:
Defined Benefit Plans:
Leave Encashment and Gratuity are defined benefit plans. The Company
has provided for the liability at the year end based on actuarial
valuation using the Projected Unit Credit Method. Actuarial gains and
losses are recognized as and when incurred.
vi) Taxation :
Provision is made for income-tax liability estimated to arise on the
results for the year at the current rate of tax in accordance with
Income-Tax Act, 1961.
Deferred tax resulting from timing differences between book profits and
tax profits is accounted for, at the rate on the Balance Sheet date, to
the extent that the timing differences that originate in one period and
are capable of reversal in one or more subsequent periods.
Deferred Tax Assets arising from timing differences are recognized to
the extent there is a reasonable/virtual certainty that the assets can
be realized in future.
Mar 31, 2014
I) Basis of Preparation of Financial Statements:
The financial statements are prepared under the historical cost
convention as a going concern. The accounts have been prepared by
adopting the accrual system of accounting and in accordance with
directions prescribed by the Reserve Bank of India for Non Banking
Financial Companies. Accounting Policies, not specifically referred to
otherwise are consistent and in consonance with the generally accepted
accounting principles.
ii) Foreign Currency Transactions:
Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions. Monetary assets and
liabilities related to foreign currency transactions remaining
unsettled are translated at year end rate.
The difference in translation of Monetary assets and liabilities and
realized gains and losses on foreign exchange transaction are
recognized in profit & loss account.
Foreign currency gain/loss relating to translation of net investment in
non-integral foreign operation is recognized in the foreign currency
translation reserve.
iii) Fixed Assets and Depreciation :
a) Fixed Assets
Fixed Assets are stated at their cost of acquisition less accumulated
depreciation. Cost comprises of all cost, net of income (if any),
incurred to bring the assets to their present location and working
condition and other related overheads till such assets are ready for
intended use.
b) Depreciation
Depreciation on Fixed Asset is provided on Straight Line Method basis
at the rates and in manner specified in schedule XIV of the Companies
Act, 1956.
iv) Investments:
Long term investments are stated at cost. When there is a decline other
than temporary in their value, the carrying amount is reduced on an
individual investment basis and decline is charged to the Profit and
Loss Account. Appropriate adjustment is made in carrying cost of
investment in case of subsequent rise in value of investments.
v) Retirement Benefits:
Defined Benefit Plans:
Leave Encashment and Gratuity are defined benefit plans. The Company
has provided for the liability at the year end based on actuarial
valuation using the Projected Unit Credit Method. Actuarial gains and
losses are recognized as and when incurred.
vi) Taxation:
Provision is made for income-tax liability estimated to arise on the
results for the year at the current rate of tax in accordance with
Income-Tax Act, 1961.
Deferred tax resulting from timing differences between book profits and
tax profits is accounted for, at the rate on the Balance Sheet date, to
the extent that the timing differences that originate in one period and
are capable of reversal in one or more subsequent periods.
Deferred Tax Assets arising from timing differences are recognized to
the extent there is a reasonable/virtual certainty that the assets can
be realized in future.
Mar 31, 2013
I) Basis of Preparation of Financial Statements:
The financial statements are prepared under the historical cost
convention as a going concern. The accounts have been prepared by
adopting the accrual system of accounting and in accordance with
directions prescribed by the Reserve Bank of India for Non Banking
Financial Companies. Accounting Policies, not specifically referred to
otherwise are consistent and in consonance with the generally accepted
accounting principles.
ii) Foreign Currency Transactions:
Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions. Monetary assets and
liabilities related to foreign currency transactions remaining
unsettled are translated at year end rate.
The difference in translation of Monetary assets and liabilities and
realized gains and losses on foreign exchange transaction are
recognized in profit & loss account.
Foreign currency gain/loss relating to translation of net investment in
non-integral foreign operation is recognized in the foreign currency
translation reserve.
iii) Fixed Assets and Depreciation :
a) Fixed Assets
Fixed Assets are stated at their cost of acquisition less accumulated
depreciation. Cost comprises of all cost, net of income (if any),
incurred to bring the assets to their present location and working
condition and other related overheads till such assets are ready for
intended use.
b) Depreciation
Depreciation on Fixed Asset is provided on Straight Line Method basis
at the rates and in manner specified in schedule XIV of the Companies
Act, 1956.
iv) Investments:
Long term investments are stated at cost. When there is a decline other
than temporary in their value, the carrying amount is reduced on an
individual investment basis and decline is charged to the Profit and
Loss Account. Appropriate adjustment is made in carrying cost of
investment in case of subsequent rise in value of investments.
v) Retirement Benefits:
Defined Benefit Plans:
Leave Encashment and Gratuity are defined benefit plans. The Company
has provided for the liability at the year end based on actuarial
valuation using the Projected Unit Credit Method. Actuarial gains and
losses are recognized as and when incurred.
vi) Taxation:
Provision is made for income-tax liability estimated to arise on the
results for the year at the current rate of tax in accordance with
Income-Tax Act, 1961.
Deferred tax resulting from timing differences between book profits and
tax profits is accounted for, at the rate on the Balance Sheet date, to
the extent that the timing differences that originate in one period and
are capable of reversal in one or more subsequent periods.
Deferred Tax Assets arising from timing differences are recognized to
the extent there is a reasonable/virtual certainty that the assets can
be realized in future.
Mar 31, 2012
I) Basis of Preparation of Financial Statements:
The financial statements are prepared under the historical cost
convention as a going concern. The accounts have been prepared by
adopting the accrual system of accounting and in accordance with
directions prescribed by the Reserve Bank of India for Non Banking
Financial Companies. Accounting Policies, not specifically referred to
otherwise are consistent and in consonance with the generally accepted
accounting principles.
Consequent to the notification under the Companies Act, 1956, the
financial statement for the year ended 31st March, 2012, have been
prepared under Revised Schedule VI. Accordingly the previous year
figures have also been reclassified as per revised schedule VI.
ii) Foreign Currency Transactions:
Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions. Monetary assets and
liabilities related to foreign currency transactions remaining
unsettled are translated at year end rate. The difference in
translation of Monetary assets and liabilities and realized gains and
losses on foreign exchange transaction are recognized in profit & loss
account.
Foreign currency gain/loss relating to translation of net investment in
non-integral foreign operation is recognized in the foreign currency
translation reserve.
iii) Fixed Assets and Depreciation :
a) Fixed Assets
Fixed Assets are stated at their cost of acquisition less accumulated
depreciation. Cost comprises of all cost, net of income (if any),
incurred to bring the assets to their present location and working
condition and other related overheads till such assets are ready for
intended use.
b) Depreciation
Depreciation on Fixed Asset is provided on Straight Line Method basis
at the rates and in manner specified in schedule XIV of the Companies
Act, 1956.
iv) Investments:
Long term investments are stated at cost. When there is a decline other
than temporary in their value, the carrying amount is reduced on an
individual investment basis and decline is charged to the Profit & Loss
Account. Appropriate adjustment is made in carrying cost of investment
in case of subsequent rise in value of investments.
v) Retirement Benefits:
Defined Benefit Plans:
Leave Encashment and Gratuity are defined benefit plans. The Company
has provided for the liability at the year end based on actuarial
valuation using the Projected Unit Credit Method. Actuarial gains and
losses are recognized as and when incurred.
vi) Taxation:
Provision is made for income-tax liability estimated to arise on the
results for the year at the current rate of tax in accordance with
Income-Tax Act, 1961.
Deferred tax resulting from timing differences between book profits and
tax profits is accounted for, at the rate on the Balance Sheet date, to
the extent that the timing differences that originate in one period and
are capable of reversal in one or more subsequent periods.
Deferred Tax Assets arising from timing differences are recognized to
the extent there is a reasonable/virtual certainty that the assets can
be realized in future.
Mar 31, 2011
I) Basis of Preparation of Financial Statements:
The financial statements are prepared under the historical cost
convention as a going concern. The accounts have been prepared by
adopting the accrual system of accounting and in accordance with
directions prescribed by the Reserve Bank of India for Non Banking
Financial Companies. Accounting Policies, not specifically referred to
otherwise are consistent and in consonance with the generally accepted
accounting principles.
ii) Foreign Currency Transactions:
Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions. Monetary assets and
liabilities related to foreign currency transactions remaining
unsettled are translated at year end rate.
The difference in translation of Monetary assets and liabilities and
realized gains and losses on foreign exchange transaction are
recognized in profit & loss account.
Foreign currency gain/loss relating to translation of net investment in
non-integral foreign operation is recognized in the foreign currency
translation reserve.
iii) Fixed Assets and Depreciation :
a) Fixed Assets
Fixed Assets are stated at their cost of acquisition less accumulated
depreciation. Cost comprises of all cost, net of income (if any),
incurred to bring the assets to their present location and working
condition and other related overheads till such assets are ready for
intended use.
b) Depreciation
Depreciation on Fixed Asset is provided on Straight Line Method basis
at the rates and in manner specified in schedule XIV of the Companies
Act, 1956.
iv) Investments:
Long term investments are stated at cost. When there is a decline other
than temporary in their value, the carrying amount is reduced on an
individual investment basis and decline is charged to the Profit & Loss
Account. Appropriate adjustment is made in carrying cost of investment
in case of subsequent rise in value of investments.
v) Retirement Benefits:
Defined Benefit Plans:
Leave Encashment and Gratuity are defined benefit plans. The Company
has provided for the liability at the year end based on actuarial
valuation using the Projected Unit Credit Method. Actuarial gains and
losses are recognized as and when incurred.
vi) Taxation:
Provision is made for income-tax liability estimated to arise on the
results for the year at the current rate of tax in accordance with
Income- Tax Act, 1961.
Deferred tax resulting from timing differences between book profits and
tax profits is accounted for, at the rate on the Balance Sheet date, to
the extent that the timing differences that originate in one period and
are capable of reversal in one or more subsequent periods.
Deferred Tax Assets arising from timing differences are recognized to
the extent there is a reasonable/virtual certainty that the assets can
be realized in future.
Mar 31, 2010
I) Basis of Preparation of Financial Stateraents:
The financial statements are prepared under the historical cost
convention as a going concern. The accounts have been prepared
by adopting the accrual system of accounting and in accordance
with directions prescribed by the Reserve Bank of India for Non
Banking Financial Companies. Accounting Policies, not
specifically referred to otherwise are consistent and in consonance
with the generally accepted accounting principles.
ii) Foreign Currency Transactions;
Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transactions. Monetary assets and
liabilities related to foreign currency transactions remaining
unsettled are translated at year end rate.
The difference in translation of Monetary assets and liabilities and
realized gains and losses on foreign exchange
transaction are recognized in profit & loss account.
Foreign currency gain/loss relating to translation of net investment in
non-integral foreign operation is recognized
in the foreign currency translation reserve.
iii) Fixed As&etsand Depteciation;
a) Fixed Assets
Fixed Assets are stated at their cost of acquisition less accumulated
depreciation. Cost comprises of all cost, net of income (if any),
incurred to bring the assets to their present location and working
condition and other related overheads till such assets are ready for
intended use.
b) Depreciation
Depreciation on Fixed Asset is provided on Straight Line Method basis
at the rates and in manner specified in schedule XIV of the Companies
Act, 1956.
iv) Investments;
Long term investments are stated at cost. When there is a decline other
than temporary in their value, the carrying
amount is reduced on an individual investment basis and decline is
charged to the Profit & Loss Account. Appropriate
adjustment is made in carrying cost of investment in case of subsequent
rise in value of investments.
v) Retirement Benefits;
Defined Benefit Plans:
Leave Encashment and Gratuity are defined benefit plans. The Company
has provided for the liability at the year end
based on actuarial valuation using the Projected Unit Credit Method.
Actuarial gains and losses are recognized as
and when incurred.
vi) Taxation;
Provision is made for income-tax liability estimated to arise on the
results for the year at the current rate of tax in
accordance with Income-Tax Act, 1961.
Deferred tax resulting from timing differences between book profits and
tax profits is accounted for, at the rate on the Balance Sheet date,
to the extent that the timing differences that originate in one period
and are capable of reversal in one or more subsequent periods.
Deferred Tax Assets arising from timing differences are recognized to
the extent there is a reasonable/virtual certainty
that the assets can be realized in future.