Mar 31, 2014
Basis of Accounting
These financial statements have been prepared under the historical cost
convention, in accordance with Indian Generally Accepted Accounting
Principles (GAAP) and the provisions of the Companies Act, 1956.
The Ministry of Corporate Affairs revised Schedule VI to the Act for
financial years commencing on or after 1st April, 2011. The Balance
Sheet, Statement of profit and Loss and the comparative financial
information for the previous year have accordingly been prepared and
presented with disclosures as required under the Revised Schedule VI.
Accounting Convention
The financial statements are prepared under the historical cost
convention on the "Accrual Concept" of accountancy in accordance with
the accounting principles generally accepted in India and comply with
the accounting standards issued by the Institute of Chartered
Accountants of India to the extent applicable and with the relevant
provisions of the Companies Act, 1956.
Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which results are known / materialized.
Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises of all expenses incurred to
bring the assets to its present location and condition. Borrowing costs
directly attributable to the acquisition / construction are included in
the cost of fixed assets. Adjustments arising from exchange rate
variations attributable to the fixed assets are capitalized.
In case of new projects / expansion of existing projects, expenditure
incurred during construction / preoperative period including interest
and finance charges on specific / general purpose loans, prior to
commencement of commercial production are capitalized. The same has
been allocated to the respective fixed assets on completion of
construction / erection of the capital project/fixed assets.
Capital assets (including expenditure incurred during the construction
period) under erection / installation are stated in the Balance Sheet
as "Capital Work in Progress."
Impairment of Assets
At each balance sheet date, the Company reviews the carrying amounts of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to
determine the extent of impairment loss. Recoverable amount is the
higher of an asset''s net selling price and value in use. In assessing
value in use, the estimated future cash flows expected from the
continuing use of the asset and from its disposal are discounted to
their present value using a pre-tax discount rate that reflects the
current market assessments of time value of money and the risks
specific to the asset.
Depreciation
All fixed assets, except capital work in progress, are depreciated on a
STRAIGHT LINE METHOD at the rates and in the manner prescribed in
Schedule XIV of the Companies''Act, 1956.
Depreciation on additions to / deletions from fixed assets made during
the period is provided on pro-rata basis from / up to the month of such
addition / deletion as the case may be. However, the company did not
hold any depreciable assets during the year.
Investments
Long term investments are stated at cost. Current investments are
stated at lower of cost and market price. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary in the opinion of the management.
Inventories
Inventories are valued at the lower of cost and net realizable value.
Cost of raw materials, stores & spares parts are ascertained on FIFO
basis. Cost for finished goods and process stock is ascertained on full
absorption cost basis. Cost of inventories comprise all costs of
purchase, costs of conversion and other costs incurred in bringing the
inventories to their present location & condition.
Revenue Recognition
Sales are recognized when goods are supplied. Sales are net of trade
discounts, rebates and vat. It does not include interdivisional sales.
Revenue in respect of other item is recognized when no significant
uncertainty as to its determination or realization exists.
Borrowing Cost
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
Employee Benefits
Short term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
Post employment and other long term employee benefits are recognized as
an expense in the profit and loss account for the year in which the
employee has rendered services.
Taxes on Income
Income tax expenses for the year comprises of current tax and deferred
tax. Current tax provision is determined on the basis of taxable income
computed as per the provisions of the Income Tax Act. Deferred tax is
recognized for all timing differences that are capable of reversal in
one or more subsequent periods subject to conditions of prudence and by
applying tax rates that have been substantively enacted by the balance
sheet date.
Provision, Contingent Liabilities and Contingent Assets
Contingent liabilities as defined in Accounting Standard-29
"Provisions, Contingent Liabilities and Contingent Assets" are
disclosed by way of notes to the accounts. Disclosure is not made if
the possibility of an outflow of future economic benefits is remote.
Provision is made if it is probable that an outflow of future economic
benefits will be required to settle the obligation.
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 assets are neither recognized nor disclosed in the financial
statements.
Earning PerShare
The Company reports basic and diluted earnings pershare (EPS) in
accordance with Accounting Standard 20 "Earnings per Share". Basic EPS
is computed by dividing the net profit or loss for the year
attributable to equity shareholders by the weighted average number of
equity shares outstanding during the year. Diluted EPS is computed by
dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the year as adjusted for the effects of all dilutive
potential equity shares, except where the results are anti-dilutive.
Cash Flow Statement
The cash flow statement is prepared using the "indirect method" set out
in Accounting Standard-3 "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 cash on hand and unencumbered, highly liquid bank balances.
Micro & Small Enterprises Dues
The Company has not received information from vendors regarding their
status under Micro, Small and Medium Enterprises Development Act, 2006
and hence disclosure relating to amounts unpaid as at the year end
together with interest paid / payable underthis Act has not been given.
PROVISIONS/PAYMENTS MADE TO DIRECTORS
Payments & Provisions for employees include Directors Remuneration Rs.
NIL(P.Y. - Rs. NIL).
PROVISION FOR CONTINGENT LIABILITIES
Acontingent liability (not provided for) is Nil.
CURRENT INCOME TAX
Tax provision has been made as per tax on the profits available to the
company under Income tax Act,1961. DEFERRED INCOME TAX
Considering the volume of huge accumulated losses, the management is of
the opinion that it is not necessary torecognise "Deferred Tax
Assets"as thereis noreasonable certainty of recoupment past carry
forward losses. Hence no provision for "Deferred Tax Assets" as per the
Accounting Standard-22 on "Accounting for Taxes on Income"issued by the Institute of Chartered Accountants of India,is being made in theaccounts.
In the opinion of the directors, current assets, loan and advances,
other than doubtful have the value at which they are stated in the
balance-sheet if realized in the ordinary course of business. The
provision for all known liabilities is adequate & not in excess of the
amount reasonably necessary.
EARNING PERSHARES (BASIC & DILUTED)
In compliance of the Accounting Standard 20 on "Earning Per Share"
issued by the Institute of Chartered Accountants of India, the elements
considered for calculation of Earning Per Share (Basic and Diluted) are
as under:
Mar 31, 2012
Basis of Accounting
These financial statements have been prepared under the historical cost
convention' in accordance with Indian Generally Accepted Accounting
Principles (GAAP) and the provisions of the Companies Act' 1956.
The Ministry of Corporate Affairs revised Schedule VI to the Act for
financial years commencing on or after 1 st April' 2011 .The Balance
Sheet' Statement of profit and Loss and the comparative financial
information for the previous year have accordingly been prepared and
presented with disclosures as required under the Revised Schedule VI.
Accounting Convention
The financial statements are prepared under the historical cost
convention on the 'Accrual Concept" of accountancy in accordance with
the accounting principles generally accepted in India and comply with
the accounting standards issued by the Institute of Chartered
Accountants of India to the extent applicable and with the relevant
provisions of the Companies Act' 1956.
Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which results are known / materialized.
Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
impairment losses' if any. Cost comprises of all expenses incurred to
bring the assets to its present location and condition. Borrowing costs
directly attributable to the acquisition / construction are included in
the cost of fixed assets. Adjustments arising from exchange rate
variations attributable to the fixed assets are capitalized.
In case of new projects / expansion of existing projects' expenditure
incurred during construction / preoperative period including interest
and finance charges on specific / general purpose loans' prior to
commencement of commercial production are capitalized. The same has
been allocated to the respective fixed assets on completion of
construction /erection of the capital project/fixed assets. Capital
assets (including expenditure incurred during the construction period)
under erection / installation are stated in the Balance Sheet as
"Capital Work in Progress."
Impairment of Assets
At each balance sheet date' the Company reviews the carrying amounts of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication
exists' the recoverable amount of the asset is estimated in order to
determine the extent of impairment loss. Recoverable amount is the
higher of an asset's net selling price and value in use. In assessing
value in use' the estimated future cash flows expected from the
continuing use of the asset and from its disposal are discounted to
their present value using a pre-tax discount rate that reflects the
current market assessments of time value of money and the risks
specific to the asset.
Depreciation
All fixed assets' except capital work in progress' are depreciated on a
STRAIGHT LINE METHOD at the rates and in the manner prescribed in
Schedule XIV of the Companies'Act' 1956.
Depreciation on additions to / deletions from fixed assets made during
the period is provided on pro-rata basis from / up to the month of such
addition / deletion as the case may be. However' the company did not
hold any fixed assets during the year.
Investments
Long term investments are stated at cost. Current investments are
stated at lower of cost and market price. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary in the opinion of the management
Inventories
Inventories are valued at the lower of cost and net realizable value.
Cost of raw materials' stores & spares parts are ascertained on FIFO
basis. Costforfinished goods and process stock is ascertained on full
absorption cost basis. Cost of inventories comprise all costs of
purchase costs of conversion and other costs incurred in bringing the
inventories to their present location & condition.
Revenue Recognition
Sales are recognized when goods are supplied. Sales are net of trade
discounts' rebates and vat. It does not include interdivisional sales
Revenue in respect of other item is recognized when no significant
uncertainty as to its determination or realization exists
Borrowing Cost
Borrowing costs that are attributable to the acquisition' construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
Employee Benefits
Short term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
Post employment and other long term employee benefits are recognized as
an expense in the profit and loss accountforthe yearin which the
employee has rendered services.
Taxes on Income
Income tax expenses for the year comprises of current tax and deferred
tax. Current tax provision is determined on the basis of taxable income
computed as per the provisions of the Income Tax Act. Deferred tax is
recognized for all timing differences that are capable of reversal in
one or more subsequent periods subject to conditions of prudence and by
applying tax rates that have been substantively enacted by the balance
sheet date.
Provision' Contingent Liabilities and Contingent Assets
Contingent liabilities as defined in Accounting Standard-29
"Provisions' Contingent Liabilities and Contingent Assets" are
disclosed byway of notes to the accounts. Disclosure is not made if the
possibility of an outflow of future economic benefits is remote.
Provision is made if it is probable that an outflow of future economic
benefits will be required to settle the obligation.
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 assets are neither recognized nor disclosed in the financial
statements.
Earning Per Share
The Company reports basic and diluted earnings per share (EPS) in
accordance with Accounting Standard 20 "Earnings per Share". Basic EPS
is computed by dividing the net profit or loss for the year
attributable to equity shareholders by the weighted average number of
equity shares outstanding during the year. Diluted EPS is computed by
dividing the net profit or loss for the yW attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the year as adjusted for the effects of all dilutive
potential equity shares' except where the results are anti-dilutive.
Cash Flow Statement
The cash flow statement is prepared using the "indirect method" set out
in Accounting Standard-3 "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 cash on hand and unencumbered' highly liquid bank balances.
Micro & Small Enterprises Dues
The Company has not received information from vendors regarding their
status under Micro' Small and Medium Enterprises Development Act' 2006
and hence disclosure relating to amounts unpaid as at the year end
together with interest paid / payable underthis Act has not been given.
Mar 31, 2011
Accounting Convention
The financial statements are prepared under the historical cost
convention on the "Accrual Concept" of accountancy in accordance with
the accounting principles generally accepted in India and comply with
the accounting standards issued by the Institute of Chartered
Accountants of India to the extent applicable and with the relevant
provisions of the Companies Act, 1956.
Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which results are known / materialized.
Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises of all expenses incurred to
bring the assets to its present location and condition. Borrowing costs
directly attributable to the acquisition / construction are included in
the cost of fixed assets. Adjustments arising from exchange rate
variations attributable to the fixed assets are capitalized.
In case of new projects / expansion of existing projects, expenditure
incurred during construction / preoperative period including interest
and finance charges on specific / general purpose loans, prior to
commencement of commercial production are capitalized. The same has
been allocated to the respective fixed assets on completion of
construction / erection of the capital project / fixed assets.
Capital assets (including expenditure incurred during the construction
period) under erection / installation are stated in the Balance Sheet
as "Capital Work in Progress." However, the company did not hold any
fixed assets during the year.
Impairment of Assets
At each balance sheet date, the Company reviews the carrying amounts of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to
determine the extent of impairment loss. Recoverable amount is the
higher of an asset's net selling price and value in use. In assessing
value in use, the estimated future cash flows expected from the
continuing use of the asset and from its disposal are discounted to
their present value using a pre-tax discount rate that reflects the
current market assessments of time value of money and the risks
specific to the asset.
Depreciation
All fixed assets, except capital work in progress, are depreciated on a
STRAIGHT LINE METHOD at the rates and in the manner prescribed in
Schedule XIV of the Companies' Act, 1956.
Depreciation on additions to / deletions from fixed assets made during
the period is provided on pro- rata basis from / up to the month of
such addition / deletion as the case may be. However, the company did
not hold any fixed assets during the year.
Investments
Long term investments are stated at cost. Current investments are
stated at lower of cost and market price. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary in the opinion of the management.
Inventories
Inventories are measured at lower of cost and net realizable value.
Cost of raw materials, stores & spares parts are ascertained on FIFO
basis. Cost for finished goods and process stock is ascertained on full
absorption cost basis. Cost of inventories comprises of cost of
purchase, cost of conversion and other costs incurred in bringing them
to their present location & condition.
Revenue Recognition
Sales are recognized when goods are supplied. Sales are net of trade
discounts, rebates and vat. It does not include interdivisional sales.
Revenue in respect of other item is recognized when no significant
uncertainty as to its determination or realization exists.
Borrowing Cost
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
Employee Benefits
Short Ãterm employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
Post employment and other long term employee benefits are recognized as
an expense in the profit and loss account for the year in which the
employee has rendered services.
Taxes on Income
Income tax expenses for the year comprises of current tax and deferred
tax. Current tax provision is determined on the basis of taxable income
computed as per the provisions of the Income Tax Act. Deferred tax is
recognized for all timing differences that are capable of reversal in
one or more subsequent periods subject to conditions of prudence and by
applying tax rates that have been substantively enacted by the balance
sheet date.
Provision, 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 recognized but are disclosed in the
notes.
Contingent assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2010
Accounting Convention
The financial statements are prepared under the historical cost
convention on the "Accrual Concept" of accountancy in accordance with
the accounting principles generally accepted in India and comply with
the accounting standards issued by the Institute of Chartered
Accountants of India to the extent applicable and with the relevant
provisions of the Companies Act, 1956.
Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which results are known / materialized.
Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises of all expenses incurred to
bring the assets to its present location and condition. Borrowing costs
directly attributable to the acquisition / construction are included in
the cost of fixed assets. Adjustments arising from exchange rate
variations attributable to the fixed assets are capitalized.
In case of new projects / expansion of existing projects, expenditure
incurred during construction / preoperative period including interest
and finance charges on specific / general purpose loans, prior to
commencement of commercial production are capitalized. The same has
been allocated to the respective fixed assets on completion of
construction / erection of the capital project / fixed assets.
Capital assets (including expenditure incurred during the construction
period) under erection / installation are stated in the Balance Sheet
as "Capital Work in Progress."
Impairment of Assets
At each balance sheet date, the Company reviews the carrying amounts of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to
determine the extent of impairment loss. Recoverable amount is the
higher of an assets net selling price and value in use. In assessing
value in use, the estimated future cash flows expected from the
continuing use of the asset and from its disposal are discounted to
their present value using a pre-tax discount rate that reflects the
current market assessments of time value of money and the risks
specific to the asset.
Depreciation
All fixed assets, except capital work in progress, are depreciated on a
STRAIGHT LINE METHOD at the rates and in the manner prescribed in
Schedule XIV of the Companies Act, 1956.
Depreciation on additions to / deletions from fixed assets made during
the period is provided on pro-rata basis from / up to the montof such
addition / deletion as the case may be.
Investments
Long term investments are stated at cost. Current investments are
stated at lower of cost and market price. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary in the opinion of the management.
Inventories
Inventories are measured at lower of cost and net realizable value.
Cost of raw materials, stores & spares parts are ascertained on FIFO
basis. Cost for finished goods and process stock is ascertained on full
absorption cost basis. Cost of inventories comprises of cost of
purchase, cost of conversion and other costs incurred in bringing them
to their present location & condition.
Revenue Recognition
Sales are recognized when goods are supplied. Sales are net of trade
discounts, rebates and vat. It does not include interdivisional sales.
Revenue in respect of other item is recognized when no significant
uncertainty as to its determination or realization exists.
Borrowing Cost
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
Employee Benefits
Short -term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
Post employment and other long term employee benefits are recognized as
an expense in the profit and loss account for the year in which the
employee has rendered services.
Taxes on Income
Income tax expenses for the year comprises of current tax and deferred
tax. Current tax provision is determined on the basis of taxable
income computed as per the provisions of the Income Tax Act. Deferred
tax is recognized for all timing differences that are capable of
reversal in one or more subsequent periods subject to conditions of
prudence and by applying tax rates that have been substantively enacted
by the balance sheet date.
Provision, 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 recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2009
Accounting Convention
The financial statements are prepared under the historical cost
convention on the "Accrual Concept" of accountancy in accordance with
the accounting principles generally accepted in India and comply with
the accounting standards issued by the Institute of Chartered
Accountants of India to the extent applicable and with the relevant
provisions of the Companies Act, 1956.
Use of Estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which results are known / mater i alized.
Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises of all expenses incurred to
bring the assets to its present location and condition. Borrowing costs
directly attributable to the acquisition / construction are included in
the cost of fixed assets. Adjustments arising from exchange rate
variations attributable to the fixed assets are capitalized.
In case of new projects / expansion of existing projects, expenditure
incurred during construction / preoperative period including interest
and finance charges on specific / general purpose loans, prior to
commencement of commercial production are capitalized. The same has
been allocated to the respective fixed assets on completion of
construction / erection of the capital project / fixed assets.
Capital assets {including expenditure incurred during the construction
period) Ã under erection / installation are stated in the Balance Sheet
as "Capital Work in Progress."
Impairment of Assets
At each balance sheet date, the Company reviews the carrying amounts of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication
exists, the recoverable amount; of the asset is estimated in order to
determine the extent of impairment loss. Recoverable amount is the
higher of an assets net selling price and value in use. In assessing
value in use, the estimated future cash flows expected from the
continuing use of the asset and from its disposal are discounted to
their present value using a pre-tax discount rate that reflects the
current market assessments of time value of money and the risks
specific to the asset.
Depreciation
All fixed assets, except capital work in progress, are depreciated on a
STRAIGHT LINE METHOD at the rates and in the manner prescribed in
Schedule XIV of the Companies Act, 1956.
Depreciation on additions to / deletions from fixed assets made during
the period is provided on pro-rata basis from / up to the month of such
addition / deletion as the case may be. .æÃ"ÃÃæ^
Investments
Long term investments are stated at cost. Current investments are
stated at lower of cost and market price. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary in the opinion of the management.
Inventories
Inventories are measured at lower of cost and net realizable value.
Cost of raw materials, stores & spares parts are ascertained on FIFO
basis. Cost for finished goods and process stock is ascertained on full
absorption cost basis.
Cost of inventories comprises of cost of purchase, cost of conversion
and other costs incurred in bringing them to their present location &
condition.
Revenue Recognition
Sales are recognized when goods are supplied. Sales are net of trade
discounts, rebates and vat. It does not include interdivisional sales.
Revenue in respect of other item is recognized when no significant
uncertainty as to its determination or realization exists.
Borrowing Cost
Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
Employee Benefits
Short -term employee benefits are recognized as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
Post employment and other long term employee benefits are recognized as
an expense in the- profit and loss account for the year in which the
employee has rendered services.
Taxes on Income
Income tax expenses for the year comprises of current tax and deferred
tax. Current tax provision is determined on the basis of taxable
income computed as per the provisions of the Income Tax Act. Deferred
tax is recognized for all timing differences that are capable of
reversal in one or more subsequent periods subject to conditions of
prudence and by applying tax rates that have been substantively enacted
by the balance sheet date.
Provision, Contingent Inabilities 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 recognized but are disclosed in the
notes.
Contingent assets are neither recognized nor disclosed in the financial
statements.