Mar 31, 2014
A RECOGNITION OF REVENUES/EXPENDITURE
Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the customer, which generally coincides with their consumption of goods by the consumer; but in some cases on delivery of goods Revenue in respect services is recognised on rendering of services, only when it is reasonably certain that the ultimate
b RETIREMENT BENEFITS
Retirement benefit in the form of Provident Fund is a defined benefit obligation. However, no expenses have been charged to account in this regard as the Provident Fund Act, 1952 is not applicable to the Company.
Retirement benefit in the form of Superannuation is a defined benefit scheme. However, the company does not have any such scheme. Hence, no expense is charged on account of Superannuation liability.
Gratuity Liability is a defined benefit obligation. However, the company is recognising the expenses on account of Gratuity in the year of payment as no significant liability is envisaged by the management under this head of account.
Leave encashment is a defined benefit obligation. However, no provision for the same has been made in the accounts since the
c ACCOUNTING FOR TAXES ON INCOME
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income tax
d EARNINGS PER SHARE
Earnings per share is calculated by dividing the net profit or loss for the year after prior period adjustments attributable to
e PROVISIONS &CONTINGENCIES
Necessary Provisions are made for the present obligations that arise out of past events prior to the Balance Sheet date entailing
future outflow of economic resources. Such provisions reflect best estimates based on available information.
However, a disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but properly will not, require an outflow of resources. When there is a present obligation or possible obligation in respect of which.