Mar 31, 2016
1.1 Basis of Preparation of Financial Statement
These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 (''Act''), the provisions of the Act & Rules (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable.
All assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013, based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents.
The figures are presented rounded off nearest to a rupee.
1.2 Use of Estimates
The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent 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 the results are known/materialized.
1.3 Revenue Recognition
Revenue is primarily derived from sale of iodized salt. Revenues are recognized on accrual basis when the substantial risks and reward of ownership in the goods are transferred to the buyers upon supply of the goods except disputed claims, demands, discounts, rebates etc, which are accounted for on cash basis as per consistent practice.
Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities except disputed claims & demands and discounts, rebates etc., which are accounted for on cash basis as per consistent practice.
1.4 Tangible Assets
Fixed assets are stated at their cost of acquisition including all direct cost attributable to the installation less accumulated depreciation comprising of its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use. Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Whereas Expenditure and outlays of money on uncompleted plant & machinery, building etc., which are of a capital nature, are shown as capital work-in-progress until such time these projects are completed and are put to use.
1.5 Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion and impairment loss, if any.
1.6 Depreciation
Depreciation is provided on a pro-rata basis on the Written Down value method at the rates prescribed under Schedule II to the Companies Act, 2013. Useful life of the assets has been taken as provided in the said Schedule II to the Companies Act, 2013.
1.7 Impairment
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. There is no impairment loss charged during the year.
1.8 Inventories
Inventories consisting of raw salt and packing materials are valued on the weighted-average basis and taken at the lower of the cost or net realizable value. Unserviceable raw material, if any, is valued at net realizable value. The cost of manufactured finished goods and work-in-progress includes material cost determined on weighted-average basis including an appropriate portion of allocable overheads. However, it does not include interest and administrative overheads which are indirect in nature.
1.9 Provisions and Contingent Liabilities
Provision is recognized in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognized nor disclosed in the financial statements
1.10 Employee Benefits
1.10.1 Short Term Employee Benefits
The amount of employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. These benefits include performance incentive and compensated absences.
1.10.2 Post-Employment Benefits
No Provision for post employment benefit is being made.
1.10.3 Employee Separation Costs - Non Compliance of Mandatory AS-15
The company does not provide for leave encashment, medical etc. and the same is accounted for on cash basis as and when actual payment is made. The mandatory accounting standard AS-15 requires that an actuarial valuation of the retirement benefits be made. Though, provision is made as per company''s own method , however, no such actuarial valuation report has been taken nor any other prescribed method is followed to provide for the pre or post-retirement benefits for the employees. As such AS-15 not stood complied with however, impact on profit is not ascertainable. The impact not expected to be substantial no qualification of the audit report is made.
1.11 Investments
Investments are classified into current and long term investments. Current investments are stated at lower of cost or fair value. Non-current investments are stated at cost. Provision for diminution in the value of Non Current investments is made only if such a decline is other than temporary.
1.12 Current & Deferred Tax
Current tax is the provision made for income tax liability, if any, on the profits of the current year calculated in accordance with the provisions of the Income Tax Act 1961.
Deferred tax is recognized subject to the consideration of prudence on timing difference; being the difference between the taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed depreciation and brought forward losses unless there is virtual certainty that sufficient future income shall be available against which the deferred tax assets can be realized. Deferred tax assets and liabilities are measured using the tax rate and the Tax Law as applicable on the Balance Sheet date. No provision for deferred tax is made for the period.
1.13 Foreign Currency Transactions
Foreign currency transactions are accounted for at the exchange rate prevailing at the date of the transaction. Gains and losses resulting from the settlement of such transactions and translation of monetary assets and liabilities in foreign currencies are recognized in the profit and loss account.
1.14 Segment Reporting
The company derives its main revenue from sale of iodized salt. The company also derives revenue from power generation activities and the total income from such activities during the year stood at Rs.170.45 lacs. The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the Company. Further,
(a) There has been no inter segment transfer during the year.
(b) Revenue and expenses have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the Company as a whole and if are not allocable to segments on a reasonable basis, have been included under " Un- allocated corporate expenses net of un allocated incomeâ
(c) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated, if any, to a segment on reasonable basis have been disclosed as "Unallocableâ
1.15 Investment Income
Income from investments are accounted for on accrual basis
1.16 Earnings per Share
Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the equity shares outstanding at the end of the year. For the purposes of calculating diluted earnings per share, all potential equity shares have been taken into consideration including convertible warrants.
Mar 31, 2015
1.1 Basis of Preparation of Financial Statement
These financial statements have been prepared to comply in all material
aspects with applicable accounting principles in India, the applicable
Accounting Standards prescribed under Section 133 of the Companies Act,
2013 ('Act'), the provisions of the Act & Rules (to the extent
notified) and other accounting principles generally accepted in India,
to the extent applicable.
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013, based
on the nature of products and the time between acquisition of assets
for processing and their realization in cash and cash equivalents. The
figures are presented rounded off nearest to a rupee.
1.2 Use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires judgments, estimates and assumptions to be made that affect
the reported amount of assets and liabilities, disclosure of contingent
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 the results are known materialized.
1.3 Revenue Recognition
Revenue is primarily derived from sale of iodized salt. Revenues are
recognized on accrual basis when the substantial risks and reward of
ownership in the goods are transferred to the buyer upon supply of the
goods except disputed claims, demands, discounts, rebates etc, which is
accounted for on cash basis as per consistent practice.
Expenses are accounted for on accrual basis and provision is made for
all known losses and liabilities except disputed claims & demands and
discounts, rebates etc., which are accounted for on cash basis as per
consistent practice.
1.4 Tangible Assets
Fixed assets are stated at their cost of acquisition including all
direct cost attributable to the installation less accumulated
depreciation comprising of its purchase price, borrowing cost and any
cost directly attributable to bringing the asset to its working
condition for its intended use. Subsequent expenditures related to an
item of tangible asset are added to its book value only if they
increase the future benefits from the existing asset beyond its
previously assessed standard of performance. Whereas Expenditure and
outlays of money on uncompleted plant & machinery, building etc., which
are of a capital nature, are shown as capital work-in-progress until
such time these projects are completed and are put to use.
1.5 Depreciation
Depreciation is provided on a pro-rata basis on the written down value
method at the rates prescribed under Schedule II to the Companies Act,
2013. Useful life of the assets has been taken as provided in the said
Schedule II to the Companies Act, 2013.
1.6 Impairment
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Statement in the year in which an asset is identified as impaired.
The impairment loss recognized in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
1.7 Inventories
Inventories consisting of raw salt, packing materials & trading items
are valued on the weighted-average basis and taken at the lower of the
cost or net realizable value. Unserviceable raw material, if any, is
valued at net realizable value. The cost of manufactured finished goods
and work-in-progress (nil for the period) includes material cost
determined on weighted-average basis including an appropriate portion
of allocable overheads. However, it does not include interest and
administrative overheads which are indirect in nature.
1.8 Provisions and Contingent Liabilities
Provision is recognized in the accounts when there is a present
obligation as a result of past event(s) and it is probable that an
outflow of resources will be required to settle the obligation and a
reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on the best estimate required to
settle the obligation at the reporting date. These estimates are
reviewed at each reporting date and adjusted to reflect the current
best estimates. Contingent liabilities are disclosed unless the
possibility of outflow of resources is remote. Contingent assets are
neither recognized nor disclosed in the financial statements
1.9 Employee Benefits
1.9.1 Short Term Employee Benefits
The amount of employee benefits expected to be paid in exchange for the
services rendered by employees are recognized as an expense during the
period when the employees render the services. These benefits include
performance incentive and compensated absences.
1.9.2 Post-Employment Benefits
No Provision for post employment benefit is being made.
1.9.3 Employee Separation Costs  Non Compliance of Mandatory AS-15
The company does not provide for leave encashment, medical etc. and the
same is accounted for on cash basis as and when actual payment is made.
The mandatory accounting standard AS-15 requires that an actuarial
valuation of the retirement benefits be made and provision be made for
future liabilities on this account. However the same is not being done
and as such provisions of AS-15 are not complied with however, impact
on profit is not ascertainable. The impact not expected to be
substantial in the current year no qualification of the audit report is
made.
1.10 Investments
Investments are classified into current and long term investments.
Current investments are stated at lower of cost or fair value.
Non-current investments are stated at cost. Provision for diminution in
the value of Non Current investments is made only if such a decline is
other than temporary
1.11 Current & Deferred Tax
Current tax is the provision made for income tax liability, if any, on
the profits of the current year calculated in accordance with the
provisions of the Income Tax Act 1961.
Deferred tax is recognized subject to the consideration of prudence on
timing difference; being the difference between the taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets are not
recognized on unabsorbed depreciation and brought forward losses unless
there is virtual certainty that sufficient future income shall be
available against which the deferred tax assets can be realized.
Deferred tax assets and liabilities are measured using the tax rate and
the Tax Law as applicable on the Balance Sheet date. No provision for
deferred tax is made for the period.
1.12 Foreign Currency Transactions
Foreign currency transactions are accounted for at the exchange rate
prevailing at the date of the transaction. Gains and losses resulting
from the settlement of such transactions and translation of monetary
assets and liabilities in foreign currencies are recognized in the
profit and loss account.
1.13 Segment Reporting
The company derives its main revenue from sale of iodized salt. The
company also derives revenue from power generation activities and the
total income from such activities during the year stood at Rs. 43.65
lacs. The accounting policies adopted for segment reporting are in
conformity with the accounting policies adopted for the Company.
Further,
(a) There has been no inter segment transfer during the year;
(b) Revenue and expenses have been identified to segments on the basis
of their relationship to the operating activities of the segment.
Revenue and expenses, which relate to the Company as a whole and if are
not allocable to segments on a reasonable basis, have been included
under "Un-allocated corporate expenses net of un-allocated income"
(c) Segment Assets and Segment Liabilities represent Assets and
Liabilities in respective segments. Investments, tax related assets
and other assets and liabilities that cannot be allocated, if any, to a
segment on reasonable basis have been disclosed as "Unallocable"
1.14 Earnings per Share
Basic earnings per share are calculated by dividing the net profit for
the period attributable to equity shareholders by the equity shares
outstanding at the end of the year. For the purposes of calculating
diluted earnings per share, all potential equity shares have been taken
into consideration including convertible warrants.
Mar 31, 2014
1.1) Basis of Preparation of Financial Statement
These financial statements are prepared in accordance with Indian
General Accepted Accounting Principles (GAAP) under historical cost
convention on the accrual basis. The Indian GAAP comprises mandatory
Accounting Standards as prescribed under the Companies (Accounting
Standards) Rules, 2006 and the provision of the Companies Act, 1956. The
accounting policies not specifically referred to otherwise, are
consistent and in consonance with Indian GAAP issued by the Institute of
Chartered Accountants of India, provisions of the Companies Act, 1956 &
Securities and Exchange Board of India.
1.2) Revenue Recognition
Revenues are recognized on accrual basis when the substantial risks and
reward of ownership in the goods are transferred to the buyer upon
supply of the goods. Expenses are accounted for on accrual basis and
provision is made for all known losses and liabilities except disputed
claims & demands and discounts, rebates etc., which are accounted for on
cash basis as per consistent practice. Further, profit & loss in trading
of shares and future & options have been shown on net basis. Though no
such trading has taken place during the year under consideration.
1.3) Fixed Assets & Impairment Thereof
Fixed assets are stated at their cost of acquisition including all
direct cost attributable to the installation less accumulated
depreciation. Impairment loss, if any, is provided wherever the carrying
value of the assets exceeds the recoverable amount. Assessment is done
at the each balance sheet date by the management to ascertain if there
is any indication of impairment loss in any carrying value of fixed
assets.
1.4) Depreciation& Amortization
Depreciation, if any, on fixed assets has been provided on the basis of
written down value method as per rates provided in Schedule XIV of the
Companies Act, 1956.
1.5) Inventories
Inventories are valued on the weighted -average basis and taken at the
lower of the cost or net realizable value. Unserviceable raw material,
if any, is valued at net realizable value. The cost of finished goods
includes material cost determined on weighted -average basis and also
includes an appropriate portion of allocable overheads. However, it does
not include interest and administrative overheads which are indirect in
nature. There is no change in the valuation method followed by the
Company.
1.6) Provisions and Contingent Liabilities
Provisions and contingent liabilities as defined under the relevant
accounting standard are provided on the basis of information made
available from the management. These are reviewed each year end date and
adjusted to reflect the best current estimate.
1.7) Investments
Investments, if any, are classified into current and long term
investments. Current investments are stated at lower of cost or fair
value. Long term investments are stated at cost. Investments which are
readily realizable and are intended to be held for not more than one
year as on the date of the balance sheet are classified as current
investment
1.8) Retirement & Post Retirement Benefits
The company is not providing for retirement and post retirement benefits
in the form of gratuity, pension, leave encashment etc. and to this
extent AS -15 not stood complied with, however, impact on profit is not
ascertainable. The impact not expected to be substantial no
qualification of the audit report is made.
1.9)Segment Reportinct
In the year under consideration, there is only one visible segment of
the company i.e. sale of salt and as such no separate reporting is
needed on segment basis.
1.10) Taxation
a. Current tax is the provision made for income tax liability, if any,
on the profits calculated in accordance with the provisions of the
Income Tax Act 1961.
b. Deferred tax is recognized subject to the consideration of prudence
on timing differences being the difference between the taxable incomes
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Brought forward losses are
considered only when there is visible certainty that the company will be
able to utilize the brought forward losses to reduce its tax liability.
1.11)Earnings Per Share
Basic earnings per share is calculate by dividing the net profit for the
period attributable to equity shareholders by the equity shares
outstanding at the end of the year. For the purposes of calculating
diluted earnings per share, all potential equity shares have been taken
into consideration including convertible warrants.
Mar 31, 2013
1.1) Basis of Preparation of Financial Statement
These financial statements are prepared in accordance with Indian
General Accepted Accounting Principles (GAAP) under historical cost
convention on the accrual basis. The Indian GAAP comprises mandatory
Accounting Standards as prescribed under the Companies (Accounting
Standards) Rules, 2006 and the provision of the Companies Act, 1956.
The accounting policies not specifically referred to otherwise, are
consistent and in consonance with Indian GAAP issued by the Institute
of Chartered Accountants of India, provisions of the Companies Act,
1956 & Securities and Exchange Board of India.
1.2) Revenue Recognition
Revenue is primarily derived from sale of iodized salt. Revenues are
recognized on accrual basis when the substantial risks and reward of
ownership in the goods are transferred to the buyer upon supply of the
goods. Expenses are accounted for on accrual basis and provision is
made for all known losses and liabilities except disputed claims &
demands and discounts, rebates etc., which are accounted for on cash
basis as per consistent practice. Further, profit & loss in trading of
shares and future & options have been shown on net basis. Though no
such trading has taken place during the year under consideration.
1.3) Fixed Assets & Impairment Thereof
Fixed assets are stated at their cost of acquisition including all
direct cost attributable to the installation less accumulated
depreciation. Impairment loss, if any, is provided wherever the
carrying value of the assets exceeds the recoverable amount. Assessment
is done at the each balance sheet date by the management to ascertain
if there is any indication of impairment loss in any carrying value of
fixed assets.
1.4) Depreciation& Amortization
Depreciation, if any, on fixed assets has been provided on the basis of
written down value method as per rates provided in Schedule XIV of the
Companies Act, 1956.
1.5) Inventories
Inventories are valued on the weighted-average basis and taken at the
lower of the cost or net realizable value. Unserviceable raw material,
if any, is valued at net realizable value. The cost of finished goods
includes material cost determined on weighted-average basis and also
includes an appropriate portion of allocable overheads. However, it
does not include interest and administrative overheads which are
indirect in nature. There is no change in the valuation method followed
by the Company.
1.6) Provisions and Contingent Liabilities
Provisions and contingent liabilities as defined under the relevant
accounting standard are provided on the basis of information made
available from the management. These are reviewed each year end date
and adjusted to reflect the best current estimate.
1.7) Investments
Investments, if any, are classified into current and long term
investments. Current investments are stated at lower of cost or fair
value. Long term investments are stated at cost. Investments which are
readily realizable and are intended to be held for not more than one
year as on the date of the balance sheet are classified as current
investment
1.8) Retirement & Post Retirement Benefits
The company is not providing for retirement and post retirement
benefits in the form of gratuity, pension, leave encashment etc. and to
this extent AS-15 not stood complied with, however, impact on profit is
not ascertainable. The impact not expected to be substantial no
qualification of the audit report is made.
1.9)Segment Reporting
In the year under consideration, there is only one visible segment of
the company i.e. sale of salt and as such no separate reporting is
needed on segment basis.
1.10) Taxation
a. Current tax is the provision made for income tax liability, if any,
on the profits calculated in accordance with the provisions of the
Income Tax Act 1961.
b. Deferred tax is recognized subject to the consideration of prudence
on timing differences being the difference between the taxable incomes
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Brought forward losses are
considered only when there is visible certainty that the company will
be able to utilize the brought forward losses to reduce its tax
liability.
1.11)Earnings Per Share
Basic earnings per share is calculate by dividing the net profit for
the period attributable to equity shareholders by the equity shares
outstanding at the end of the year. For the purposes of calculating
diluted earnings per share, all potential equity shares have been taken
into consideration including convertible warrants.
Mar 31, 2012
1.1) Basis of Preparation of Financial Statement
These financial statements are prepared in accordance with Indian
General Accepted Accounting Principles (GAAP) under historical cost
convention on the accrual basis. The Indian GAAP comprises mandatory
Accounting Standards as prescribed under the Companies (Accounting
Standards) Rules, 2006 and the provision of the Companies Act, 1956.
The accounting policies not specifically referred to otherwise, are
consistent and in consonance with Indian GAAP issued by the Institute
of Chartered Accountants of India, provisions of the Companies Act,
1956 & Securities and Exchange Board of India.
1.2) Revenue Recognition
Revenue is primarily derived from sale of iodized salt. Revenues are
recognized on accrual basis when the substantial risks and reward of
ownership in the goods are transferred to the buyer upon supply of the
goods. Expenses are accounted for on accrual basis and provision is
made for all known losses and liabilities except disputed claims &
demands and discounts, rebates etc., which are accounted for on cash
basis as per consistent practice. Further, profit & loss in trading of
shares and future & options have been shown on net basis.
1.3) Fixed Assets & Impairment Thereof
Fixed assets are stated at their cost of acquisition including all
direct cost attributable to the installation less accumulated
depreciation. Impairment loss, if any, is provided wherever the
carrying value of the assets exceeds the recoverable amount. Assessment
is done at the each balance sheet date by the management to ascertain
if there is any indication of impairment loss in any carrying value of
fixed assets.
1.4) Depreciation& Amortization
Depreciation, if any, on fixed assets has been provided on the basis of
written down value method as per rates provided in Schedule XIV of the
Companies Act, 1956.
1.5) Inventories
Inventories are valued on the weighted-average basis and taken at the
lower of the cost or net realizable value. Unserviceable raw material,
if any, is valued at net realizable value. The cost of finished goods
includes material cost determined on weighted-average basis and also
includes an appropriate portion of allocable overheads. However, it
does not include interest and administrative overheads which are
indirect in nature. There is no change in the valuation method followed
by the Company.
1.6) Provisions and Contingent Liabilities
Provisions and contingent liabilities as defined under the relevant
accounting standard are provided on the basis of information made
available from the management. These are reviewed each year end date
and adjusted to reflect the best current estimate.
1.7) Investments
Investments, if any, are classified into current and long term
investments. Current investments are stated at lower of cost or fair
value. Long term investments are stated at cost. Investments which are
readily realizable and are intended to be held for not more than one
year as on the date of the balance sheet are classified as current
investment
1.8) Retirement & Post Retirement Benefits
The company is not providing for retirement and post retirement
benefits in the form of gratuity, pension, leave encashment etc. and to
this extent AS-15 not stood complied with, however, impact on profit is
not ascertainable. The impact not expected to be substantial no
qualification of the audit report is made.
1.9)Segment Reporting
There is only one visible segment of the company i.e. sale of salt and
as such no separate reporting is needed on segment basis.
1.10) Taxation
a. Current tax is the provision made for income tax liability, if any,
on the profits calculated in accordance with the provisions of the
Income Tax Act 1961.
b. Deferred tax is recognized subject to the consideration of prudence
on timing differences being the difference between the taxable incomes
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Brought forward losses are
considered only when there is visible certainty that the company will
be able to utilize the brought forward losses to reduce its tax
liability.
1.11)Earnings Per Share
Basic earnings per share is calculate by dividing the net profit for
the period attributable to equity shareholders by the equity shares
outstanding at the end of the year. For the purposes of calculating
diluted earnings per share, all potential equity shares have been taken
into consideration including convertible warrants.
Mar 31, 2010
1. General
The accounts are prepared on the historical cost convention and in
accordance with the Compa- nies Act, 1956. The accounting policies not
specifically referred to otherwise, are consistent and in consonance
with generally accepted accounting principles accepted in India.
2. Revenue Recognition
Expenses and income, considered payable and receivable respectively,
are generally accounted for on accrual basis except claims, discounts,
rebates, wastage, which are accounted for on cash basis as per last
year practice. The sale and purchase of shares through same contract
note (intra day) have been taken on net basis.
3. Inventories
Inventories are valued at cost or market value whichever is lower. In
case of shares, the market values have been taken on the basis of last
available quotation as reported by the management otherwise the
valuation is made at cost. If the fair values of the unquoted shares
are substan- tially lower than the cost, the fair value has been taken
into consideration for valuation on the basis of last available
financial statements.
4. Investments
Investments, if any, are valued at cost.
5. Contingent Liabilities
Contingent liabilities are determined on the basis of available
information as supplied by the management. As explained to us, there
was no contingent liability at the end of the year.
6. Retirement Benefits
Liabilities towards retirement benefits are accounted for only when the
same becomes due for payment. To this extent the AS issued by the
Institute of Chartered Accountants of India stood not complied with.
Extent of effect of the same on the financials of the company is not
ascer- tained.
7. Taxation- Deferred Taxation
a. Current tax is the provision made for income tax liability, if any,
on the profits calculated in accordance with the provisions of the
Income Tax Act 1961.
b. Deferred tax is recognized subject to the consideration of prudence
on timing difference being the difference between the taxable income
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets are not
recognized on unabsorbed depreciation, carry forward losses and
expendi- ture, which are to be allowed later as per the provisions of
the Income Tax Act 1961, unless there is virtual certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
c. In any case, deferred tax assets and liabilities are measured using
the tax rate and the Tax Law as applicable on the Balance Sheet date.
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