Mar 31, 2012
I. Basis of Preparation of Financial Statements :
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the
historical cost convention on the accrual basis. GAAP comprises
Notified Accounting Standards prescribed by the Companies (Accounting
Standard) Rules 2006 ''as amended'', the provisions of the Companies
Act, 1956 and guidelines issued by the Securities and Exchange Board of
India (SEB1). Accounting policies have been consistently applied
except where a newly issued accounting standard is initially adopted or
a revision of an existing accounting standard requires a change in the
accounting policy hitherto in use.
ii Use of Estimate
The preparation of the financial statements in conformity with GAAP
requires die management to make estimates and assumptions that affect
the reported balances of assets and liabilities and disclosures
relating to contingent assets and liabilities as at the date of the
financial statements and reported amounts of income and expenses during
the period. Examples of such estimates include provisions for doubtful
debts, future obligations under employee retirement benefit plans,
income taxes, post-sales customer support and the useful lives of fixed
assets and intangible assets. The difference between the actual result
and the estimates are recognized in the period in which results are
known or materialized.
ii. Fixed Assets:
The fixed assets are stated at cost less accumulated depreciation and
impairment loss if any.
iii. Depreciation:
Depreciation on fixed assets is provided on written down value method
at the rates specified in Schedule XTV of the Companies Act, 1956.
iv. Investments:
The Long Term Investments are stated at cost, Cost is inclusive of
brokerage, fees and duties. ''the decline in the value of the
investments other than temporary is provided wherever considered
necessary.
v. Earnings Per Share;
Earnings per share is computed by dividing the net profit or loss for
the year attributable to equity shareholders by the weighted average
number of shares outstanding during the year.
vi. Taxation:
a) Income tax expense comprises current tax and deferred tax.
b) Deferred tax asset and liabilities are recognized for the future tax
consequences of timing differences, subject to the consideration of
prudence. Deferred tax assets and liabilities are measured using the
tax rate enacted or substantively enacted by the balance sheet at the
carrying of deferred tax asset / liability are reviewed at each balance
sheet date.
c) Deferred tax asset arising mainly on account of brought forward
losses & unabsorbed depreciation under tax laws are recognized, only if
there is a virtual certainty of its realization, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognized only to the extent there is a reasonable
certainty of its realization.
vii. Impairment of Assets
The Fixed Assets are reviewed for impairment at each Balance Sheet
date. In case of arty such indication, the recoverable amount of these
assets or group of assets is determined, and if such recoverable amount
of the asset is less than it''s carrying amount, the impairment loss is
recognized by writing down such assets to their recoverable amount. An
impairment loss is reversed if there is change in the recoverable
amount and such loss either no longer exists or has decreased
viii. Prior Period Items
Prior period expenses/income is accounted under the respective heads.
Material items, if any, are disclosed separately under the respective
head.
ix. Provisions & Contingent I, abilities
The company creates a provision when there is a present obligation as a
result of an obligating event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made.
x. Other Accounting Policies
These are consistent with the generally accepted accounting practices.
Mar 31, 2010
I. Basis of Preparation of Financial Statemetns:
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles ("GAAP") under the historical
cost convention on the accrual basis. GAAP comprises Notified
Accounting Standards prescribed by the Companies (Accounting Standard)
Rules 2006 'as amended', the provisions of the Companies Act, 1956 and
guidelines issued by the Securities and Exchange Board of India (SEBI).
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision of an
existing accounting standard requires a change in the accounting policy
htherto in use.
i Use of Estimate
The preparation of the financial statements in conformity with GAAP
requires the management to make estimates and assumptions that affect
the reported balances of assets and liabilities and disclosures
relating to contingent assets and liabilities as at the date of the
financial statements and reported amounts of income and expenses during
the period. Examples of such estimates include provisions for doubtful
debts, future obligations under employee retirement benefit plans,
income taxes, post-sales customer support and the useful lives of fixed
assets and intangible assets. The difference between the actual result
and the estimates arc recognized in the period in which results are
known or materialized.
ii. Fixed Assets:
The fixed assets are stated at cost less accumulated depreciation and
impairment loss if any,
iii. Depreciation;
Depreciation on fixed assets is provided on written down value method
at the rates specified in Schedule XIV of the Companies Act, 1956.
iv. Investments:
The long Term Investments are stated at cost, Cost is inclusive of
brokerage, fees and duties. The decline in the market quotation of the
investments other than temporary is provided wherever considered
necessary.
v. Earnings Per Share :
Earnings per share is computed using the weighted average number of
shares outstanding during the year.
vi. Taxation:
a) Income tax expense comprises current tax and deferred tax.
b) Deferred tax asset and liabilities are recognised for the future tax
consequences of timing differences, subject to the consideration of
prudence, Deferred tax assets and liabilities are measured using the
tax rate enacted or substantively enacted by the balance sheet at the
carrying of deferred tax asset / liability are reviewed at each balance
sheet date.
c) Deferred tax asses arising maiuly on account of brought forward
losses & unabsorbed depreciation under tax laws are recognized, only if
there is a virtual certainty of its realization, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognized only to the extent there is a reasonable
certainty of its realization.
vii. Impairment of Assets
The Fixed Assets are reviewed for impairment at each Balance Sheet
date. In case of any such indication, the recoverable amount of these
assets or group of assets is determined, and if such recoverable amount
of the asset is less than it's carrying amount the impairment loss is
recognised by writing down such assets to their recoverable amount. An
impairment loss is reversed if there is change in the recoverable
amount and such loss either no longer exists or has decreased
viii. Prior Period Items
Prior period expenses/income is accounted under the respective heads.
Material items, if any, are disclosed separately under the respective
head.
ix. Provisions & Contingent Liabilities
The company creates a provision when there is a present obligation as a
result of an obligating event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made.
x. Other Accounting Policies
These are consistent with the generally accepted accounting practices,