Mar 31, 2015
(i) Basis of Preparation of Financial Statements:
The accompanying financial statements of the company have been prepared
in accordance with Indian GAAP and presented under the historical cost
convention on the accrual basis of accounting and comply with
Accounting Standards by the Companies (Accounting Standards) Rules,
2006 and the relevant provisions of the Companies Act, 1956 ("Act") to
the extent applicable and the revised Schedule VI to the accounting
policies have been consistently by the company. The financial
statements are presented in Indian rupees. (ii) Use of estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles ("GAAP") requires management to make
certain estimates and assumption that affect reported amount of assets,
liabilities (including disclosures of contingent liabilities) as on the
date of the financial statements and the reported income and expenses
during the reporting period. The estimates and assumptions used in the
accompanying financial statements are bases on management's evaluation
of the relevant facts and circumstances as of the date of the financial
statements. Actual results may differ from those estimates. Any
revisions to accounting estimates are recognized prospectively in
current and future goods. (iii) Fixed Assets:
All tangible assets are stated at cost accumulated depreciation and
amortization. The cost of the assets includes purchase price and any
attributable cost of bringing the assets to its working condition for
its intended use.
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to profit & loss
account 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. (iv)
Depreciation/amortization:
Depreciation on all tangible fixed assets is provided on written down
valued method in terms of Section 350 of the Companies Act, 1956, at
the rates prescribed in Schedule XIV to the said act. Asset each
costing Rs.5, 000/- or less are depreciated at 100% in the year of
capitalization.
3. Investments:
Investment, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as non-current investments. Non Current Investments are
stated at cost. However, provisions for diminution in value are made to
recognize a decline other than temporary in the value of investments.
Current Assets are carried in the financial statement at lower cost and
fair value determined on an individual investment basis. In case of
unquoted securities, where fair market value is not available, lower of
break up value or cost is considered. On disposal of an Investment, the
difference between its carrying amount and net disposal proceeds is
charged to the statement of profit and loss.
4. Recognition of Income and Expenditure:
Revenue is recognized and reported to the extent it is probable that
the economic benefits will flow to the company and the revenue can be
reliably measured. Interest Income is recognized as when the same has
accrued on time proportion basis and company's right to receive
interest is established. Dividend Income is recognized when right to
receive the same is established by the reporting date.
5. Employee retirement and other benefits:
Short term employees benefits are recognized in the periods in which
employee's service are rendered.
(viii) Income Taxes Income Tax
Income Tax expense is aggregate of current tax (i,e amount of tax for
the period determined in accordance with Income Tax Laws), deferred tax
charges or credit (reflecting tax effect on timing differences between
accounting income and taxable income for the period) borne by company.
Current Tax expense is recognized on an annual basis under the taxes
payable method, bases on the estimated tax liability after taking the
tax credit for the allowances and exemption in accordance with Income
Tax Act, 1961. Deferred Taxation
The deferred tax charge or credit and the corresponding deferred tax
liability or assets are recognized using the tax rates that have been
enacted or substantively enacted by the balance sheet date. Deferred
Tax assets are recognized only to the extent there is reasonable
certainty that the assets can be realized in future; however, where
there is unabsorbed depreciation or carried forward losses under the
taxation laws, deferred tax assets are recognized only if there is
virtual certainty of realization of such assets. Deferred Tax assets
are reviewed as at each balance sheet date and written down or written
up to reflect the amount that is reasonably/virtually certain (as the
case may be) to be realized.
6. Provisions and Contingencies:
The Company creates a provision when there is present obligation as a
result of a past event and it is probable that an outflow of resources
would be required to settle the obligation, and in respect of which a
reliable estimates can be made of the amount of the obligation.
A disclosure for the contingent liability is made when there is
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or discloser is made.
Provisions are reviewed at each balance sheet date and are adjusted to
reflect the current best estimates. A contingent liability is
disclosed unless the possibilities of an outflow of resources embodying
the economic benefits are remote.
Contingent assets are neither recognized nor disclosed in the financial
statements. However, contingent assets are assessed continually and if
it is virtually certain that an inflow of economic benefits will arise,
the assets and related income are recognized in the period in which the
change occurs.
Mar 31, 2014
(i) Basis of Preparation of Financial Statements:
The accompanying financial statements of the company have been prepared
in accordance with Indian GAAP and presented under the historical cost
convention on the accrual basis of accounting and comply with
Accounting Standards by the Companies (Accounting Standards) Rules,
2006 and the relevant provisions of the Companies Act, 1956 ("Act") to
the extent applicable and the revised Schedule VI to the accounting
policies have been consistently by the company. The financial
statements are presented in Indian rupees.
(ii) Use of estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles ("GAAP") requires management to make
certain estimates and assumption that affect reported amount of assets,
liabilities (including disclosures of contingent liabilities) as on the
date of the financial statements and the reported income and expenses
during the reporting period. The estimates and assumptions used in the
accompanying financial statements are bases on management''s evaluation
of the relevant facts and circumstances as of the date of the financial
statements. Actual results may differ from those estimates. Any
revisions to accounting estimates are recognized prospectively in
current and future goods.
(iii) Fixed Assets:
All tangible assets are stated at cost accumulated depreciation and
amortization. The cost of the assets includes purchase price and any
attributable cost of bringing the assets to its working condition for
its intended use.
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to profit & loss
account 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.
(iv) Depreciation/amortization:
Depreciation on all tangible fixed assets is provided on written down
valued method in terms of Section 350 of the Companies Act, 1956, at
the rates prescribed in Schedule XIV to the said act. Asset each
costing Rs. 5,000/- or less are depreciated at 100% in the year of
capitalization.
(v) Investments:
Investment, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as non-current investments. Non Current Investments are
stated at cost. However, provisions for diminution in value are made to
recognize a decline other than temporary in the value of investments.
Current Assets are carried in the financial statement at lower cost and
fair value determined on an individual investment basis. In case of
unquoted securities, where fair market value is not available, lower of
break up value or cost is considered. On disposal of an Investment, the
difference between its carrying amount and net disposal proceeds is
charged to the statement of profit and loss.
(vi) Recognition of Income and Expenditure:
Revenue is recognized and reported to the extent it is probable that
the economic benefits will flow to the company and the revenue can be
reliably measured. Interest Income is recognized as when the same has
accrued on time proportion basis and company''s right to receive
interest is established. Dividend Income is recognized when right to
receive the same is established by the reporting date.
(vii) Employee retirement and other benefits:
Short term employees benefits are recognized in the periods in which
employee''s service are rendered.
(viii) Income Taxes
Income Tax
Income Tax expense is aggregate of current tax (i,e amount of tax for
the period determined in accordance with Income Tax Laws), deferred tax
charges or credit (reflecting tax effect on timing differences between
accounting income and taxable income for the period) borne by company.
Current Tax expense is recognized on an annual basis under the taxes
payable method, bases on the estimated tax liability after taking the
tax credit for the allowances and exemption in accordance with Income
Tax Act, 1961.
Deferred Taxation
The deferred tax charge or credit and the corresponding deferred tax
liability or assets are recognized using the tax rates that have been
enacted or substantively enacted by the balance sheet date. Deferred
Tax assets are recognized only to the extent there is reasonable
certainty that the assets can be realized in future; however, where
there is unabsorbed depreciation or carried forward losses under the
taxation laws, deferred tax assets are recognized only if there is
virtual certainty of realization of such assets. Deferred Tax assets
are reviewed as at each balance sheet date and written down or written
up to reflect the amount that is reasonably/virtually certain (as the
case may be) to be realized.
(x) Provisions and Contingencies:
The Company creates a provision when there is present obligation as a
result of a past event and it is probable that an outflow of resources
would be required to settle the obligation, and in respect of which a
reliable estimates can be made of the amount of the obligation.
A disclosure for the contingent liability is made when there is
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or discloser is made.
Provisions are reviewed at each balance sheet date and are adjusted to
reflect the current best estimates. A contingent liability is disclosed
unless the possibilities of an outflow of resources embodying the
economic benefits are remote.
Contingent assets are neither recognized nor disclosed in the financial
statements. However, contingent assets are assessed continually and if
it is virtually certain that an inflow of economic benefits will arise,
the assets and related income are recognized in the period in which the
change occurs.