Mar 31, 2015
2.1 BASIS OF ACCOUNTING: These financial statements have been prepared
in accordance with the generally accepted accounting principles in
India under the historical cost convention on an accrual basis, unless
otherwise stated hereinafter and comply with the Accounting Standards
issued by the Institute of Chartered Accountants of India and referred
to Sec 129 & 133 of the Companies Act, 2013. The accounting policies
applied by the Company are consistent with those used in previous year.
2.2 USE OF ESTIMATES: The preparation of financial statements requires
management to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting
period. Accounting estimates could change from period to period and
actual results could differs from those estimates. Appropriate changes
in estimates are made as the management becomes aware of changes.
Changes in estimates are reflected in the financial statements in the
period in which changes are made.
2.3 REVENUE RECOGNITION: Revenue is recognized upon rendering of the
services provided pervasive evidence of an arrangement exists. Revenue
comprises Sale of RoomsFood & Beverages and other allied services
relating to hotel operations including Banquet, Business
Center,"Laundry, Shop Rent and Telephone are included under other
services.
2.4 FIXED ASSETS :
Fixed Assets have been recorded at actual cost inclusive of duties,
taxes and other incidental expenses related to acquisition, improvement
and installation.
2.5 DEPRECIATION:
Depreciation on tangible assets other than freehold land & live stocks
has been provided on the straight-line method over the useful life of
assets as prescribed in Schedule II to the Companies Act, 2013.
Depreciation on assets purchased/sold during the year has been
proportionately charged.
2.6 IMPAIRMENT OF FIXED ASSETS:
Fixed assets are reviewed for impairment losses whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which
the carrying amount of the assets exceeds its recoverable amount, which
is the higher of an asset's net selling price and value in use.
2.7 INVESTMENTS:
Investments are Long Term Investments and are stated at cost and
provision is made for diminution, other than temporary, in value of the
investments.
2.8 FOREIGN CURRENCY TRANSACTIONS:
Earnings in foreign currencies are recorded at the exchange rate
prevailing on the date of transactions. Gain/Loss arising out of
fluctuations in exchange rates is accounted for on settlement and the
same is charged to the Statement of Profit and Loss. Payments in
foreign currencies are recorded at the rates prevailing on the date of
actual remittance.
2.9 BORROWING COST:
Borrowing costs directly attributable to the acquisition or
construction of qualifying fixed assets and are capitalized as a part
of cost of that assets till such time the fixed assets are
substantially ready for their intended use. Qualifying fixed asset is
an asset that necessarily takes a substantial period of time to get
ready for their intended use or sale. All other borrowing costs are
charged to Statement of Profit and Loss over the tenure of the
borrowing.
2.10 INVENTORIES:
Inventories have been valued at cost on First in First Out (FIFO)
basis.
2.11 EMPLOYEES' BENEFITS:
Company accounts for leave encashment benefits on the basis of
actuarial valuation. Further, contribution to the Gratuity Fund linked
with Life Insurance Corporation of India is charged to Statement of
Profit & Loss.
2.12 TAXES ON INCOME:
Taxes on Income are accounted in the same period to which the revenue
and expenses relate. Provision for current income tax is made on the
basis of estimated taxable income, in accordance with the provisions of
the Income Tax Act, 1961 and rules framed there under. Deferred tax is
the tax effect of timing differences. The timing differences are
differences between the taxable income and accounting income for a
period that originate in one period and are capable of reversal in one
or more subsequent periods.
MAT credit is recognized as an asset only when and to the extent there
is convincing evidence that the Company will pay normal income tax
during the specified period.
2.13 EARNING PER SHARE (EPS):
Basic earnings per share is computed by dividing the profit/ (loss)
after tax by the weighted average number of equity shares outstanding
during the year. Diluted earnings per share is computed by dividing the
profit/(loss) after tax by the weighted average number of equity shares
considered for deriving basic earnings per share and also the weighted
average number of equity shares which could be issued on the conversion
of OCPS (Optionally Convertible Preference Shares).
2.24 CONTINGENCIES AND PROVISIONS:
Provisions are recognized when there is a present legal obligation as a
result of past events, where it is probable that there will be outflow
of resources to settle the obligation and when a reliable estimate of
the amount of the obligation can be made.
Contingent liabilities are recognized only when there is a possible
obligation arising from past events, due to occurrence or
non-occurrence of one or more uncertain future events, not wholly
within the control of the Company or where any present obligation
cannot be measured in terms of future outflow of resources or where a
reliable estimate of obligation cannot be made. Contingent assets are
not recognized in the financial statements.
2.15 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 available information.
Mar 31, 2014
1.1 BASIS OF ACCOUNTING:
(i) The Financial Statements have been prepared under the Historical
Cost Convention and generally accepted accounting practices followed in
India and provisions of Companies Act, 1956 and comply with the
mandatory accounting standards and statements issued by the Institute
of Chartered Accountants of India(ICAI).
(ii) The Company generally follows mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties.
(iii) The presentation of financial statements requires certain
estimates and assumptions. These estimates and assumptions affect the
reported amounts of assets and liabilities on the date of financial
statements and the reported amount of revenue and expenses during the
reporting period. Difference between the actual result and estimates
are recognized in the period in which results are known / materialized.
1.2 FIXED ASSETS :
Fixed Assets have been recorded at actual cost inclusive of freights,
duties, taxes and other incidental expenses related to acquisition,
improvement and installation. Capital Work-in- progress includes Cost
of Assets not installed.
1.3 DEPRECIATION:
Depreciation on Fixed Assets other than freehold land & live stocks has
been provided on "Straight Line Method (SLM)" at the rates
specified in Schedule XIV to the Companies Act 1956, as existing on
that date, except in case of Heat Ventilating & Air Conditioning and
Plumbing Machineries included in Plant and Machineries which have been
depreciated @ 7.42% p.a. on double shift basis.
1.4 BORROWING COSTS:
Borrowing costs directly attributable to the acquisition or
construction of fixed assets are capitalized as part of the cost of
respective assets. Other borrowing costs are recognized as an expense
in the year in which they are incurred.
1.5 INVESTMENTS:
Investments are long term trade investments and are stated at Cost.
1.6 INVENTORIES:
Inventories have been valued at cost on First in First Out (FIFO)
basis.
1.7 REVENUE RECOGNITION:
Revenue from sale of Rooms, Food & Beverages and other allied services
is recognized when the services are rendered and the same becomes
chargeable. Revenue from Banquet, Business Centre, Laundry, Shop Rent &
Telephone are included under Other services.
1.8 EMPLOYEES BENEFITS:
The Company accounts for leave encashment benefits on the basis of
actuarial valuation. Further, contribution to the Gratuity Fund linked
with Life Insurance Corporation of India is charged to Statement of
Profit & Loss.
1.9 FOREIGN CURRENCY TRANSACTIONS:
Earnings in foreign currencies are recorded at the exchange rate
prevailing on the date of transactions. Gain/Loss arising out of
fluctuations in exchange rates are accounted for on settlement and the
same is charged to the Statement of Profit and Loss. Payments in
foreign currencies are recorded at the rates prevailing on the date of
actual remittance.
1.10 IMPAIRMENT OF FIXED ASSETS:
Fixed assets are reviewed for impairment losses whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which
the carrying amount of the assets exceeds its recoverable amount, which
is the higher of an asset''s net selling price and value in use.
1.11 TAXATION:
Income Tax expense comprises of Current Tax and Deferred Tax
expense/credit.
(i) Current Tax
Provision for current income tax is made on the basis of estimated
taxable income, in accordance with the provisions of the Income Tax
Act, 1961 and rules framed there under.
(ii) Deferred Tax
Consequent to the issuance of AS-22 "Accounting for Taxes on
Income" by the ICAI, Deferred Tax is recognized, on timing
differences, between taxable income and accounting income that
originate in one period and is capable of reversal in one or more
subsequent periods.
1.12 EARNING PER SHARE (EPS):
Basic earnings per share is computed by dividing the profit/ (loss)
after tax by the weighted average number of equity shares outstanding
during the year. Diluted earnings per share is computed by dividing
the profit/(loss) after tax by the weighted average number of equity
shares considered for deriving basic earnings per share and also the
weighted average number of equity shares which could be issued on the conversion of all dilutive potential equity shares viz. OCPS
(Optionally Convertible Preference Shares) and Share Warrants.
1.13 CONTINGENCIES AND PROVISIONS:
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 disclosed after careful evaluation of the
facts and legal aspects of the matter, by the management. Contingent
Assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2013
1.1 BASIS OF ACCOUNTING:
(i) The Financial Statements have been prepared under the Historical
Cost Convention and generally accepted accounting practices followed in
India and provisions of Companies Act, 1956 and comply with the
mandatory accounting standards and statements issued by the Institute
of Chartered Accountants of India(ICAI).
(ii) The Company generally follows mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties.
(iii) The presentation of financial statements requires certain
estimates and assumptions. These estimates and assumptions affect the
reported amounts of assets and liabilities on the date of financial
statements and the reported amount of revenue and expenses during the
reporting period. Difference between the actual result and estimates
are recognized in the period in which results are known / materialized.
1.2 FIXED ASSETS :
Fixed Assets have been recorded at actual cost inclusive of freights,
duties, taxes and other incidental expenses related to acquisition,
improvement and installation. Capital Work-in-progress includes Cost of
Assets not installed.
1.3 DEPRECIATION:
Depreciation on Fixed Assets other than freehold land & live stocks has
been provided on "Straight Line Method (SLM)" at the rates specified in
Schedule XIV to the Companies Act 1956, as existing on that date,
except in case of Heat Ventilating & Air Conditioning and Plumbing
Machineries included in Plant and Machineries which have been
depreciated @ 7.42% p.a. on double shift basis.
1.4 BORROWING COSTS:
Borrowing costs directly attributable to the acquisition or
construction of fixed assets are capitalized as part of the cost of
respective assets. Other borrowing costs are recognized as an expense
in the year in which they are incurred.
1.5 INVESTMENTS:
Investments are long term trade investment and are stated at Cost.
1.6 INVENTORIES:
Inventories have been valued at cost on First in First Out (FIFO)
basis.
1.7 REVENUE RECOGNITION:
Revenue from sale of Rooms, Food & Beverages and other allied services
is recognized when the services are rendered and the same becomes
chargeable. Revenue from Banquet, Business Centre, Laundry, Shop Rent &
Telephone are included under Other services.
1.8 EMPLOYEES BENEFITS:
The Company accounts for leave encashment benefits on the basis of
actuarial valuation. Further, contribution to the Gratuity Fund linked
with Life Insurance Corporation of India is charged to Statement of
Profit & Loss.
1.9 FOREIGN CURRENCY TRANSACTIONS:
Earnings in foreign currencies are recorded at the exchange rate
prevailing on the date of transactions. Gain/Loss arising out of
fluctuations in exchange rates are accounted for on settlement and the
same is charged to the Statement of Profit & Loss. Payments in foreign
currencies are recorded at the rates prevailing on the date of actual
remittance.
1.10 IMPAIRMENT OF FIXED ASSETS:
Fixed assets are reviewed for impairment losses whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which
the carrying amount of the assets exceeds its recoverable amount, which
is the higher of an asset''s net selling price and value in use.
1.11 TAXATION:
Income Tax expense comprises of Current Tax and Deferred Tax
expense/credit.
(i) Current Tax
Provision for current income tax is made on the basis of estimated
taxable income, in accordance with the provisions of the Income Tax
Act, 1961 and rules framed there under.
(ii) Deferred Tax
Consequent to the issuance of AS-22 "Accounting for Taxes on Income" by
the ICAI, Deferred Tax is recognized, on timing differences, between
taxable income and accounting income that originate in one period and
is capable of reversal in one or more subsequent periods.
1.12 EARNING PER SHARE (EPS):
Basic earnings per share is computed by dividing the profit/ (loss)
after tax by the weighted average number of equity shares outstanding
during the year. Diluted earnings per share is computed by dividing the
profit/(loss) after tax by the weighted average number of equity shares
considered for deriving basic earnings per share and also the weighted
average number of equity shares which could be issued on the conversion
of all dilutive potential equity shares viz. OCPS (Optionally
Convertible Preference Shares) and Share Warrants.
1.13 CONTINGENCIES AND PROVISIONS:
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 disclosed after careful evaluation of the
facts and legal aspects of the matter, by the management. Contingent
Assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2012
1.1 BASIS OF ACCOUNTING:
(i) The Financial Statements have been prepared under the Historical
Cost Convention and generally accepted accounting practices followed in
India and provisions of Companies Act, 1956 and comply with the
mandatory accounting standards and statements issued by the Institute
of Chartered Accountants of India(ICAI).
(ii) The Company generally follows mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties.
1.2 FIXED ASSETS AND DEPRECIATION:
(i) FIXED ASSETS:
Fixed Assets have been recorded at actual cost inclusive of freights,
duties, taxes and other incidental expenses related to acquisition,
improvement and installation. Capital Work-in- progress includes Cost
of Assets not installed.
(ii) DEPRECIATION:
Depreciation on Fixed Assets other than freehold land & live stocks has
been provided on "Straight Line Method (SLM)" at the rates
specified in Schedule XIV to the Companies Act 1956, as existing on
that date, except in case of Heat Ventilating & Air Conditioning and
Plumbing Machineries included in Plant and Machineries which have been
depreciated @ 7.42% p.a. on double shift basis.
(iii) BORROWING COSTS:
Borrowing costs directly attributable to the acquisition or
construction of fixed assets are capitalized as part of the cost of
respective assets. Other borrowing costs are recognized as an expense
in the year in which they are incurred.
1.3 INVESTMENTS:
Investments are long term trade investment and are stated at Cost.
1.4 INVENTORIES:
Inventories have been valued at cost on First in First Out (FIFO)
basis.
1.5 REVENUE RECOGNITION:
Sales and services are stated at net of discounts and inclusive of
surplus of luxury tax but exclusive of Taxes. The duty exemption, tax
incentives and insurance claims etc. are accounted as and when it is
determined and approved by concerned authorities.
1.6 EMPLOYEES BENEFITS:
The Company accounts for leave encashment benefits on the basis of
actuarial valuation. Further, contribution to the Gratuity Fund linked
with Life Insurance Corporation of India is charged to Statement of
Profit and Loss.
1.7 FOREIGN CURRENCY TRANSACTIONS:
Earnings in foreign currencies are recorded at the exchange rate
prevailing on the date of transactions. Gain/Loss arising out of
fluctuations in exchange rates are accounted for on settlement and the
same is charged to the Statement of Profit And Loss. Payments in
foreign currencies are recorded at the rates prevailing on the date of
actual remittance.
1.8 USE OF ESTIMATES:
The presentation of financial statements requires certain estimates and
assumptions. These estimates and assumptions affect the reported
amounts of assets and liabilities on the date of financial statements
and the reported amount of revenue and expenses during the reporting
period. Difference between the actual result and estimates are
recognized in the period in which results are known / materialized.
1.9 IMPAIRMENT OF FIXED ASSETS:
Fixed assets are reviewed for impairment losses whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which
the carrying amount of the assets exceeds its recoverable amount, which
is the higher of an asset's net selling price and value in use.
1.10 TAXATION:
Income Tax expense comprises of Current Tax and Deferred Tax
expense/credit.
(i) Current Tax
Provision for current income tax is made on the basis of estimated
taxable income, in accordance with the provisions of the Income Tax
Act, 1961 and rules framed there under.
(ii) Deferred Tax
Consequent to the issuance of AS-22 "Accounting for Taxes on
Income" by the ICAI, Deferred Tax is recognized, on timing
differences, between taxable income and accounting income that
originate in one period and is capable of reversal in one or more
subsequent periods.
1.11 EARNING PER SHARE (EPS):
Basic EPS is computed using the weighted average number of equity
shares outstanding during the year. Diluted EPS is computed using the
weighted average number of equity and dilative equity equivalent shares
outstanding during the year except where the results would be anti
dilative.
1.12 CONTINGENCIES AND PROVISIONS:
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 disclosed after careful evaluation of the
facts and legal aspects of the matter, by the management. Contingent
Assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2011
1.1 BASIS OF ACCOUNTING :
(i) The Financial Statements have been prepared under the Historical
Cost Convention and generally accepted accounting practices followed in
India and provisions of Companies Act, 1956 and comply with the
mandatory accounting standards and statements issued by the Institute
of Chartered Accountants of India(ICAI).
(ii) The Company generally follows mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties.
1.2 FIXED ASSETS AND DEPRECIATION : (i) FIXED ASSETS :
Fixed Assets have been recorded at actual cost inclusive of freights,
duties, taxes and other incidental expenses related to acquisition,
improvement and installation. Capital Work-in- progress includes Cost
of Assets not installed and advances made for acquisition of capital
Assets.
(ii) DEPRECIATION :
Depreciation on Fixed Assets other than freehold land & live stocks has
been provided on "Straight Line Method (SLM)" at the rates specified in
Schedule XIV to the Companies Act 1956, as existing on that date,
except in case of Heat Ventilating & Air Conditioning and Plumbing
Machineries included in Plant and Machineries which have been
depreciated @ 7.42% p.a. on double shift basis.
(iii) BORROWING COSTS:
Borrowing costs directly attributable to the acquisition or
construction of fixed assets, are capitalized as part of the cost of
respective assets. Other borrowing costs are recognized as an expense
in the year in which they are incurred.
1.3 INVESTMENTS:
Investments are long term trade investment and are stated at Cost.
1.4 INVENTORIES :
Inventories have been valued at cost on First in First Out (FIFO)
basis.
1.5 REVENUE RECOGNITION:
Sales and services are stated at net of discounts and inclusive of
surplus of luxury tax but exclusive of Taxes. The duty exemption, tax
incentives and insurance claims etc. are accounted as and when it is
determined and approved by concerned authorities.
1.6 EMPLOYEE BENEFITS :
The company accounts for leave encashment benefits on the basis of
actuarial valuation. Further, contribution to the Gratuity Fund linked
with Life Insurance Corporation of India is charged to Profit and Loss
Account.
1.7 FOREGIN CURRENCY TRANSACTIONS :
Earnings in foreign currencies are recorded at the exchange rate
prevailing on the date of transactions. Gain/Loss arising out of
fluctuations in exchange rates are accounted for on settlement and the
same is charged to the Profit And Loss Account. Payments in foreign
currencies are recorded at the rates prevailing on the date of actual
remittance.
1.8 TAXATION :
Income Tax expense comprises current tax, minimum alternative tax and
deferred tax expense/
credit.
(i) Current Tax and Minimum Alternative Tax (MAT)
Provision for current tax (if any) is calculated in accordance with the
provisions of the Income Tax Act, 1961 and is made annually based on
the tax liability computed after considering tax allowances and
exemptions.
The company has provided for MAT in accordance with the provision of
Income Tax Act, 1961.
(ii) Deferred Tax
Current tax (if any) is determined as the amount of tax payable in
respect of taxable income for the year. Deferred tax is recognized, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
Where there is unabsorbed depreciation or carry forward losses,
deferred tax assets are recognized if there is virtual certainty that
sufficient future taxable income will be available against which such
assets can be realized. Other deferred tax assets are recognized only
to the extent there is reasonable certainty of realization in future.
Such assets are reviewed at each Balance sheet date to reassess
realization.
Deferred tax assets and liabilities are measured using the tax rates
and tax laws that have been enacted or substantively enacted by the
balance-sheet date.
1.9 EARNING PER SHARE (EPS) :
Basic EPS is computed using the weighted average number of equity
shares outstanding during the year. Diluted EPS is computed using the
weighted average number of equity and dilative equity equivalent shares
outstanding during the year except where the results would be anti
dilative.
1.10 CONTINGENCIES AND PROVISIONS :
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
1.1 BASIS OF ACCOUNTING :
(i) The Financial Statements have been prepared under the Historical
Cost Convention and generally accepted accounting practices followed in
India and provisions of Companies Act, 1956 and comply with the
mandatory accounting standards and statements issued by the Institute
of Chartered Accountants of India(ICAI).
(ii) The Company generally follows mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties.
1.2 FIXED ASSETS AND DEPRECIATION : (i) FIXED ASSETS :
Fixed Assets have been recorded at actual cost inclusive of freights,
duties, taxes and other incidental expenses related to acquisition,
improvement and installation. Capital Work-in- progress includes Cost
of Assets not installed and advances made for acquisition of capital
Assets.
(ii) DEPRECIATION :
Depreciation on Fixed Assets other than freehold land & live stocks has
been provided on "Straight Line Method (SLM)" at the rates specified in
Schedule XIV to the Companies Act 1956, as existing on that date,
except in case of Heat Ventilating & Air Conditioning and Plumbing
Machineries included in Plant and Machineries which have been
depreciated @ 7.42% p.a. on double shift basis.
(iii) BORROWING COSTS:
Borrowing costs directly attributable to the acquisition or
construction of fixed assets, are capitalized as part of the cost of
respective assets. Other borrowing costs are recognized as an expense
in the year in which they are incurred.
1.3 INVESTMENTS:
Investments are long term trade investment and are stated at Cost.
1.4 INVENTORIES:
Inventories have been valued at cost on First in First Out (FIFO)
basis.
1.5 REVENUE RECOGNITION:
Sales and services are stated at net of discounts and inclusive of
surplus of luxury tax but exclusive of Taxes. The duty exemption, tax
incentives and insurance claims etc. are accounted as and when it is
determined and approved by concerned authorities.
1.6 EMPLOYEE BENEFITS:
The company accounts for leave encashment benefits on the basis of
actuarial valuation. Further, contribution to the Gratuity Fund linked
with Life Insurance Corporation of India is charged to Profit and Loss
Account.
1.7 FOREGIN CURRENCY TRANSACTIONS :
Earnings in foreign currencies are recorded at the exchange rate
prevailing on the date of transactions. Gain/Loss arising out of
fluctuations in exchange rates are accounted for on settlement and the
same is charged to the Profit And Loss Account. Payments in foreign
currencies are recorded at the rates prevailing on the date of actual
remittance. Difference arising on fluctuations in exchange rates of
Foreign Currency Loan has been capitalized and added to the fixed
assets at the year end.
1.8 TAXATION:
Income Tax expense comprises current tax, minimum alternative tax and
deferred tax expenses / credit.
(i) Current Tax and Minimum Alternative Tax (MAT) Provision for current
tax (if any) is calculated in accordance with the provisions of the
Income Tax Act, 1961 and is made annually based on the tax liability
computed after considering tax allowances and exemptions. The company
has provided for MAT in accordance with the provisions of Income Tax
Act, 1961.
(ii) Deferred Tax Current Tax (if any) is determined as the amount of
tax payable in respect of taxable income for the year.
Deferred tax is recognized, on timing differences, being the difference
between taxable income and accounting income that originate in one period
and are capable of reversal in one or more subsequent period.
Where there is unabsorbed depreciation or carry forward losses, deferred
tax assets are recognized if there is virtual certainty that sufficient
future taxable income will be available against which such assets can be
realized. Other deffered tax assets are recognized only to the extent there
is reasonable certainty of realization in future. Such assets are reviewed
at each balance sheet date to reassess realization.
Deferred tax assets and liabilities are measured using the tax rates
and tax laws that have been enacted or substantively enacted by the
balance-sheet date.
1.9 EARNING PER SHARE (EPS):
Basic EPS is computed using the weighted average number of equity
shares outstanding during the year. Diluted EPS is computed using the
weighted average number of equity and dilative equity equivalent shares
outstanding during the year except where the results would be anti
dilative.
1.10 CONTINGENCIES AND PROVISIONS:
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.
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