Mar 31, 2015
1. BASIS OF PREPARATION
These Financial Statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention, as applicable to going concern, on the accrual basis
except for certain financial instruments which are measured at fair
values. GAAP comprises mandatory accounting standards as prescribed
under Section 133 of the Companies Act, 2013 (Act') read with Rule 7 of
the Companies (Accounts) Rules, 2014 and the provisions of the Act (to
extent notified) and guidelines issued by Securities and Exchange Board
of India (SEBI). The accounting policies have been consistently applied
by the Company and are consistent with those used in previous year.
a) USE OF ESTIMATES
The preparation of financial statements requires management to make
estimates and assumptions that affect the re- ported amounts of assets
and liabilities, the disclosure of contingent liabilities on the date
of the financial statements and the reported amount of revenues and
expenses during the reporting period. Actual results could differ from
those estimates. Appropriate changes in estimates are made as the
Management becomes aware of the changes in circumstances surrounding
the estimates. Changes in estimates are reflected in the Financial
Statements in the period in which changes are made and, if material,
their effects are disclosed in the notes to the financial statements.
b) FIXED ASSETS
Fixed Assets are stated at their original cost of acquisition or
construction less accumulated depreciation (except land) and impairment
loss if any. Cost comprises of purchase price and all expenses directly
attributable to the acquisition or construction of the asset. Capital
Work-in-Progress are capitalized as and when they are ready for use or
put to use whichever is earlier. Till such time expenses incurred
related to project and prior to commencement of project, including
borrowing costs are capitalized under Capital Work-in-Progress.
c) DEPRECIATION /AMORTIZATION
Depreciation on tangible assets is provided on the Written down Value
(WDV) Method over the useful lives of as- sets prescribed in Schedule
II of the Companies Act, 2013. Depreciation for assets purchased/ sold
during a period is provided on Pro-rata basis. Intangible assets are
amortized over the respective individual estimated useful lives on
Straight Line Method (SLM) basis, commencing from the date the asset is
available to the Company for its use. Amortization has not been
provided on the leasehold land.
d) INVENTORIES
Items of Inventory are valued at lower of cost or estimated realizable
value. The valuation of inventories is made as per the requirements of
Accounting Standard  2, "Valuation of Inventories", prescribed under
the Companies (Ac- counting Standards) Rules, 2006.
e) INVESTMENTS
Long Term Investments are stated at cost as per the requirements of
Accounting Standard  13, "Accounting for Investments", prescribed
under the Companies (Accounting Standards) Rules, 2006. Decline in the
value of long- term investments is recognized, if considered other than
temporary.
Current Investments are stated at lower of cost or market value.
f) PROVISION FOR RETIREMENT BENEFITS
i) Periodical contributions made to the concerned authorities towards
Provident Fund and ESI are charged to Revenue on accrual basis.
ii) The Company operates three defined benefit plans for its employees,
viz. Gratuity, Leave Encashment (Earned Leave) and Leave Encashment
(Sick Leave). As per the requirements of Accounting Standard  15,
"Employee Benefits", prescribed under the Companies (Accounting
Standards) Rules, 2006, the costs of providing benefits under these
plans are determined on the basis of actuarial valuation at each
year-end. Separate actuarial valuation is carried out for each plan
using the projected unit credit method. Actuarial gains and losses for
the all (three) defined benefit plans are recognized in full in the
period in which they occur in the Statement of Profit and Loss. The
liability under all three defined benefit plans is unfunded.
g) TAXATION
Income tax comprises current tax and deferred tax. Current tax is the
amount of tax payable as determined in accordance with the provisions
of the Income Tax Act, 1961. As per the requirements of Accounting
Standard  22, "Accounting for Taxes on Income", prescribed under the
Companies (Accounting Standards) Rules, 2006, deferred tax assets 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 rates enacted or
substantively enacted by the balance sheet date.
Minimum Alternative Tax (MAT) paid in a year is charged to the
Statement of Profit and Loss as current tax. The Company recognizes MAT
Credit available as an asset only to the extent that there is
convincing evidence that the Company will pay normal income tax during
the specified period i.e., the period for which MAT Credit is allowed to
be carried forward. In the year in which company recognizes MAT credit
as an asset in accordance with "Guidance Note on Accounting for Credit
Available in respect of Minimum Alternative Tax under the Income Tax
Act, 1961", the said asset is created by way of credit to the statement
of profit and loss and shown as "MAT Credit Entitlement".
h) EXPENSES
The Company has charged all expenses on accrual basis of accounting.
i) INCOME
The Company has recognized all incomes on accrual basis of accounting
as per the requirements of Accounting Standard - 9, "Revenue
Recognition", prescribed under the Companies (Accounting Standards)
Rules, 2006.
Interest Income on late payment of dues by customers is recognized on
actual receipt basis.
j) DERIVATIVE CONTRACTS
For transactions in derivative contracts, the company has adopted
Guidance Note on Accounting for Derivative Contracts (2015) issued by
Institute of Chartered Accountants of India. Accordingly, as on the
balance sheet date derivative contracts have been valued at fair value
derived by taking the market value of respective derivatives at the
concerned stock exchanges where the derivative contracts are
outstanding. Gains and/or losses arising on the above basis have been
recognized in the Statement of Profit & Loss.
k) FOREIGN CURRENCY TRANSACTIONS
Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing on the date of the transaction.
l) IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying value of asset
exceeds its recoverable value. An impairment loss is charged to
Statement of Profit and Loss in the year in which an asset is identifed
as impaired. The impairment loss recognized in prior accounting period
is reversed, if there has been a change in the estimate of recoverable
value.
m) BORROWING COSTS
Borrowing costs that are attributable to the acquisition and/ or
construction of a qualifying asset are capitalized as part of the cost
of such asset and other borrowing costs are recognized as an expense in
the period in which they are incurred. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its
intended use.
n) LEASE
Assets given under operating leases are included under fixed assets.
Lease income is recognized in the Statement of Profit and Loss on a
straight line basis over the lease term. Costs, including depreciation
are recognized as an expense in the Statement of Profit and Loss.
Initial Direct Costs are charged to the Statement of Profit and Loss in
period in which the same are incurred.
o) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Depending upon the facts of each case and after due evaluation of legal
aspects, claims against the Company not acknowledged as debts are
treated as contingent liabilities. 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. In respect of statutory dues
disputed and contested by the Company, Contingent Liabilities are
provided for and disclosed as per original demand without taking into
account any interest or penalty that may accrue thereafter. Contingent
Liabilities are not recognized but are disclosed in the notes. Contin-
gent Assets are neither recognized nor disclosed in the financial
statements.
p) INTANGIBLE ASSETS
According to Accounting Standard - 26 on "Intangible Assets" prescribed
under the Companies (Accounting Standards) Rules, 2006, in case of an
expenditure incurred by the Company which may provide future economic
benefits to the Company, however out of which, no intangible asset or
other asset is acquired or created that can be recognized, the
expenditure is recognized as an expense as and when it is incurred.
q) CASH FLOW STATEMENT
Cash Flows are reported using the indirect method as set out in the
Accounting Standard - 3 on "Cash Flow Statement" prescribed under the
Companies (Accounting Standards) Rules, 2006, whereby net profit before
tax is adjusted for the effects of the transactions of non-cash
nature and any deferrals or accruals of the past or future cash
receipts or payments. The cash flows from regular revenue generating,
investing and financing activities of the Company are segregated.
r) CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents for the purpose of "Cash Flow Statement"
comprise cash at bank and in hand and de- posits with bank with an
original maturity of three months or less.
s) EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the
weighted number of equity shares outstanding during the period.
For the purpose of calculating of diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted number of equity shares outstanding during the period are
adjusted for the effects of all potentially dilutive equity shares.
Defined Benefit Plans
The Company operates three defined benefit plans, viz., Gratuity, Leave
Encashment (Earned Leave) and Leave Encashment (Sick Leave) for its
employees. Under Gratuity Plan, every employee who has completed at
least five years of service gets a gratuity on departure @ 15 days of
last drawn salary for each completed year of service. The liability is
unfunded.
Under Leave Encashment (Earned Leave) Plan, every employee who has
completed at least one year of service is eligible to get 15 earned
leaves. The liability is unfunded.
Under Leave Encashment (Sick Leave) Plan, every employee who has
completed at least three months of service is eligible to get 6 sick
leaves on proportionate basis in a year. The liability is unfunded.
Mar 31, 2014
A) USE OF ESTIMATES
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities, the disclosure of contingent liabilities on the date of
the financial statements and the reported amount of revenues and
expenses during the reporting period. Actual results could differ from
those estimates. Difference between the actual results and estimates
are reflected in the Financial Statements for the period in which the
results are known/ materialized.
b) FIXED ASSETS
Fixed Assets are stated at their original cost of acquisition or
construction less accumulated depreciation (except land) and impairment
loss if any. Cost comprises of purchase price and all expenses
directly attributable to the acquisition or construction of the asset.
Capital Work-in-Progress are capitalized as and when they are ready for
use or put to use whichever is earlier. Till such time expenses
incurred related to project and prior to commencement of project,
including financing costs are capitalized under Capital
Work-in-Progress, which also includes material at site.
c) DEPRECIATION / AMORTIZATION
i) Depreciation has been provided on the value capitalized on the
assets actually put to use during the current year, as per the Written
down Value (WDV) Method at rates prescribed in Schedule XIV of the
Companies Act, 1956.
ii) Depreciation is calculated on pro-rata basis from the date of
acquisition and/or capitalization, as may be applicable.
iii) Assets individually costing Rs. 5,000/- (Rupees Five Thousand
only) or less are fully depreciated in the year of purchase.
iv) Amortization has not been provided on the leasehold land.
d) INVENTORIES
Inventories are valued as under:
Stores and Spares - At lower of cost or estimated realizable value
Stock of Software - At lower of costor estimated realizable value
The valuation of inventories are made as per the requirements of
Accounting Standard - 2, "Valuation of Inventories", prescribed under
the Companies (Accounting Standards) Rules, 2006.
e) INVESTMENTS
Long Term Investments are stated at cost as per the requirements of
Accounting Standard -13, "Accounting for Investments", prescribed under
the Companies (Accounting Standards) Rules, 2006. Decline in the value
of long-term investments is recognized, if considered other than
temporary.
Current Investments are stated at lower of cost or market value.
f) PROVISION FOR RETIREMENT BENEFITS
i) Periodical contributions made to the concerned authorities towards
Provident Fund and ESI are charged to Revenue on accrual basis,
ii) The Company operates three defined benefit plans for its employees,
viz. Gratuity, Leave Encashment (Earned Leave) and Leave Encashment
(Sick Leave). As per the requirements of Accounting Standard - 15,
"Employee Benefits", prescribed under the Companies (Accounting
Standards) Rules, 2006, the costs of providing benefits under these
plans are determined on the basis of actuarial valuation at each
year-end. Separate actuarial valuation is carried out for each plan
using the projected unit credit method. Actuarial gains and losses for
the all (three) defined benefit plans are recognized in full in the
period in which they occur in the Statement of profit and loss. The
liability under all three defined benefit plans is unfunded.
g) TAXATION
Income tax comprises current tax and deferred tax. Current tax is the
amount of tax payable as determined in accordance with the provisions
of the Income Tax Act, 1961. As per the requirements of Accounting
Standard -22, "Accounting for Taxes on Income", prescribed under the
Companies (Accounting Standards) Rules, 2006, deferred tax assets 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 rates enacted or
substantively enacted by the balance sheet date.
Minimum Alternative Tax (MAT) paid in a year is charged to the
statement of profit and loss as current tax. The Company recognizes MAT
Credit available as an asset only to the extent that there is
convincing evidence that the Company will pay normal income tax during
the specified period i.e., the period for which MAT Credit is allowed
to be carried forward. In the year in which company recognizes MAT
credit as an asset in accordance with "Guidance Note on Accounting for
Credit Available in respect of Minimum Alternative Tax under the Income
Tax Act, 1961", the said asset is created by way of credit to the
statement of profit and loss and shown as " MAT Credit Entitlement".
h) EXPENSES
The Company has charged all expenses on accrual basis of accounting.
i) INCOME
The Company has recognized all incomes on accrual basis of accounting
as per the requirements of Accounting Standard - 9, "Revenue
Recognition", prescribed under the Companies (Accounting Standards)
Rules, 2006.
j) FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the exchange rates
prevailing on the dates of the transactions.
k) IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to
Statement of Profit and Loss 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 value.
I) BORROWING COSTS
Borrowing cost that is attributable to the acquisition or construction
of a qualifying asset is capitalized as part of the cost of such asset
and other borrowing costs are recognized as an expense in the period in
which they are incurred. A qualifying asset is one that necessarily
takes substantial period of time to get ready for its intended use.
m) LEASE
Assets given under operating leases are included in fixed assets. Lease
income is recognized in the Statement of Profit and Loss on a straight
line basis over the lease term. Costs, including depreciation are
recognized as an expense in the statement of profit and loss.
n) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Depending upon the facts of each case and after due evaluation of legal
aspect, claims against the Company not acknowledged as debts are
treated as contingent liabilities. 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. In respect of statutory dues
disputed and contested by the Company, Contingent Liabilities are
provided for and disclosed as per original demand without taking into
account any interest or penalty that may accrue thereafter. Contingent
Liabilities are not recognized but are disclosed in the notes.
Contingent Assets are neither recognized nor disclosed in the financial
statements,
o) INTANGIBLE ASSETS
According to Accounting Standard -26 on "Intangible Assets" prescribed
under the Companies (Accounting Standards) Rules, 2006, in case of an
expenditure incurred by the Company which may provide future economic
benefits to the Company, however out of which, no intangible asset or
other asset is acquired or created that can be recognized, the
expenditure is recognized as an expense as and when it is incurred.
p) CASH FLOW STATEMENT
Cash Flows are reported using the indirect method as set out in the
Accounting Standard - 3 on "Cash Flow Statement" prescribed under the
Companies (Accounting Standards) Rules, 2006, whereby net profit before
tax is adjusted for the effects of the transactions of non-cash nature
and any deferrals or accruals of the past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.
q) CASHAND CASH EQUIVALENTS
Cash and Cash Equivalents for the purpose of "Cash Flow Statement"
comprise cash at bank and in hand and deposits with bank with an
original maturity of three months or less.
r) EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
number of equity shares outstanding during the period.
For the purpose of calculating of diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted number of equity shares outstanding during the period are
adjusted for the effects of all potential dilutive equity shares.
Mar 31, 2013
A) USE OF ESTIMATES
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities, the disclosure of contingent liabilities on the date of
the financial statements and the reported amount of revenues and
expenses during the reporting period. Actual results could differ from
those estimates. Difference between the actual results and estimates
are reflected in the Financial Statements for the period in which the
results are known / materialized.
b) FIXED ASSETS
Fixed Assets are stated at their original cost of acquisition or
construction less accumulated depreciation (except land) and impairment
loss if any. Cost comprises of purchase price and all expenses directly
attributable to the acquisition or construction of the asset. Capital
Work-in-Progress are capitalized as and when they are ready for use or
put to use whichever is earlier. Till such time expenses incurred
related to project and prior to commencement of project, including
financing costs are capitalized under Capital Work-in-Progress, which
also includes material at site.
c) DEPRECIATION /AMORTIZATION
i) Depreciation has been provided on the value capitalized on the
assets actually put to use during the current year, as per the Written
down Value (WDV) Method at rates prescribed in Schedule XIV of the
Companies Act, 1956.
ii) Depreciation is calculated on pro-rata basis from the date of
acquisition and/or capitalization, as may be applicable.
iii) Assets individually costing Rs. 5,000/- (Rupees Five Thousand
only) or less are fully depreciated in the year of purchase.
iv) Amortization has not been provided on the leasehold land.
d) INVENTORIES
Inventories have been valued as under:
Stores and Spares - At lower of cost or estimated realizable value
Stock of Software - At lower of cost or estimated realizable value
The valuation of inventories has been made as per the requirements of
Accounting Standard  2, "Valuation of Inventories", prescribed under
the Companies (Accounting Standards) Rules, 2006.
e) INVESTMENTS
Long Term Investments are stated at cost as per the requirements of
Accounting Standard  13, "Accounting for Investments", prescribed
under the Companies (Accounting Standards) Rules, 2006. Decline in the
value of long-term investments is recognized, if considered other than
temporary. Current Investments are stated at lower of cost or market
value.
f) PROVISION FOR RETIREMENT BENEFITS
i) Periodical contributions made to the concerned authorities towards
Provident Fund and ESI are charged to Revenue on accrual basis.
ii) The Company operates three defined benefit plans for its employees,
viz. Gratuity, Leave Encashment (Earned Leave) and Leave Encashment
(Sick Leave). As per the requirements of Accounting Standard  15,
"Employee Benefits", prescribed under the Companies (Accounting
Standards) Rules, 2006, the costs of providing benefits under these
plans are determined on the basis of actuarial valuation at each
year-end. Separate actuarial valuation is carried out for each plan
using the projected unit credit method. Actuarial gains and losses for
all the three defined benefit plans are recognized in full in the
period in which they occur in the Statement of profit and loss. The
liability under all three defined benefit plans is unfunded.
g) TAXATION
Income tax comprises current tax and deferred tax. Current tax is the
amount of tax payable as determined in accordance with the provisions
of the Income Tax Act, 1961. As per the requirements of Accounting
Standard  22, "Accounting for Taxes on Income", prescribed under the
Companies (Accounting Standards) Rules, 2006, deferred tax assets 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 rates enacted or
substantively enacted by the balance sheet date. Minimum Alternative
Tax (MAT) paid in a year is charged to the statement of profit and loss
as current tax. The Company recognizes MAT Credit available as an asset
only to the extent that there is convincing evidence that the Company
will pay normal income tax during the specified period i.e., the period
for which MAT Credit is allowed to be carried forward. In the year in
which company recognizes MAT credit as an asset in accordance with
"Guidance Note on Accounting for Credit Available in respect of Minimum
Alternative Tax under the Income Tax Act, 1961", the said asset is
created by way of credit to the statement of profit and loss and shown
as " MAT Credit".
h) EXPENSES
The Company has charged all expenses on accrual basis of accounting.
i) INCOME
The Company has recognized all incomes on accrual basis of accounting
as per the requirements of Accounting Standard  9, "Revenue
Recognition", prescribed under the Companies (Accounting Standards)
Rules, 2006.
j) FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the exchange rates
prevailing on the dates of the transactions.
k) IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to
Statement of Profit and Loss 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 value.
l) BORROWING COSTS
Borrowing cost that is attributable to the acquisition or construction
of a qualifying asset is capitalized as part of the cost of such asset
and other borrowing costs are recognized as an expense in the period in
which they are incurred. A qualifying asset is one that necessarily
takes substantial period of time to get ready for its intended use.
m) LEASE
Assets given under operating leases are included in fixed assets. Lease
income is recognized in the Statement of Profit and Loss on a straight
line basis over the lease term. Costs, including depreciation are
recognized as an expense in the statement of profit and loss.
n) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
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.
o) INTANGIBLE ASSETS
According to Accounting Standard  26 on "Intangible Assets" prescribed
under the Companies (Accounting Standards) Rules, 2006, in case of an
expenditure incurred by the Company which may provide future economic
benefits to the Company, however out of which, no intangible asset or
other asset is acquired or created that can be recognized, the
expenditure is recognized as an expense as and when it is incurred.
p) CASH FLOW STATEMENT
Cash Flows are reported using the indirect method as set out in the
Accounting Standard - 3 on "Cash Flow Statement" prescribed under the
Companies (Accounting Standards) Rules, 2006, whereby net profit before
tax is adjusted for the effects of the transactions of non-cash nature
and any deferrals or accruals of the past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.
q) CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents for the purpose of "Cash Flow Statement"
comprise cash at bank and in hand and deposits with bank with an
original maturity of three months or less.
r) EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
number of equity shares outstanding during the period. For the purpose
of calculating of diluted earnings per share, the net profit or loss
for the period attributable to equity shareholders and the weighted
number of equity shares outstanding during the period are adjusted for
the effects of all potential dilutive equity shares.
Mar 31, 2012
A) USE OF ESTIMATES
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities, the disclosure of contingent assets and liabilities on the
date of the financial statements and the reported amount of revenues
and expenses during the reporting period. Actual results could differ
from those estimates. Difference between the actual results and
estimates are reflected in the Financial Statements for the period in
which the results are known / materialized.
b) FIXED ASSETS
Fixed Assets are stated at their original cost of acquisition or
construction less accumulated depreciation (except land) and subsequent
improvements thereto. Cost comprises of purchase price and all expenses
directly attributable to the acquisition or construction of the asset.
Expenses incurred related to project and prior to commencement of
business, including financing costs are capitalized under Capital
Work-in-Progress, which also includes material at site.
c) DEPRECIATION /AMORTIZATION
i) Depreciation has been provided on the value capitalized on the
assets actually put to use during the current year, as per the Written
down Value (WDV) Method at rates prescribed in Schedule XIV of the
Companies Act, 1956.
ii) Depreciation is calculated on pro-rata basis from the date of
acquisition and/or capitalization, as may be applicable.
iii) Assets costing individually Rs. 5,000/- (Rupees Five Thousand
only) or less are depreciated fully in the year of purchase.
iv) Amortization has not been provided on the leasehold land.
d) INVENTORIES
Inventories have been valued as under:
Diesel - At lower of cost or estimated realizable value
Stock of Software - At lower of cost or estimated realizable value
The valuation of inventories has been made as per the requirements of
Accounting Standard-2, "Valuation of Inventories", prescribed under the
Companies (Accounting Standards) Rules, 2006.
e) INVESTMENTS
Long Term Investments are stated at cost as per the requirements of
Accounting Standard  13, "Accounting for Investments", prescribed
under the Companies (Accounting Standards) Rules, 2006. Provision for
diminution in the value of long-term investment is not made as the
decline in the value of Investment is considered temporary by the
management.
f) PROVISION FOR RETIREMENT BENEFITS
i) Periodical contributions made to the concerned authorities towards
Provident Fund and ESI are charged to Revenue on accrual basis.
ii) The Company operates three defined benefit plans for its employees,
viz. Gratuity, Leave Encashment (Earned Leave) and Leave Encashment
(Sick Leave). As per the requirements of Accounting Standard  15,
"Employee Benefits", prescribed under the Companies (Accounting
Standards) Rules, 2006, the costs of providing benefits under these
plans are determined on the basis of actuarial valuation at each
year-end. Separate actuarial valuation is carried out for each plan
using the projected unit credit method. Actuarial gains and losses for
the all (three) defined benefit plans are recognized in full in the
period in which they occur in the Statement of profit and loss. The
liability under all three defined plans is unfunded.
g) TAXATION
Income tax comprises current tax and deferred tax. Current tax is the
amount of tax payable as determined in accordance with the provisions
of the Income Tax Act, 1961. As per the requirements of Accounting
Standard  22, "Accounting for Taxes on Income", prescribed under the
Companies (Accounting Standards) Rules, 2006, deferred tax assets 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 rates enacted or
substantively enacted by the balance sheet date. Minimum Alternative
Tax (MAT) paid in a year is charged to the Statement of profit and loss
as current tax. The Company recognizes MAT Credit available as an asset
only to the extent that there is convincing evidence that the Company
will pay normal income tax during the specified period i.e., the period
for which MAT Credit is allowed to be carried forward. In the year in
which company recognizes MAT credit as an asset in accordance with
"Guidance Note on Accounting for Credit Available in respect of Minimum
Alternative Tax under the Income Ta x Act, 1961", the said asset is
created by way of credit to the statement of profit and loss and shown
as " MAT Credit".
h) EXPENSES
The Company has charged all expenses on accrual basis of accounting.
i) INCOME
The Company has recognized all incomes on accrual basis of accounting
as per the requirements of Accounting Standard  9, "Revenue
Recognition", prescribed under the Companies (Accounting Standards)
Rules, 2006.
j) FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the exchange rates
prevailing on the dates of the transactions.
k) IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to
Statement of Profit & Loss 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
value.
l) BORROWING COSTS
Borrowing cost that is attributable to the acquisition or construction
of a qualifying asset is capitalized as part of the cost of such asset
and other borrowing costs are recognized as an expense in the period in
which they are incurred. A qualifying asset is one that necessarily
takes substantial period of time to get ready for its intended use.
m) LEASE
Assets given under operating leases are included in fixed assets. Lease
income is recognized in the Statement of Profit & Loss on a straight
line basis over the lease term. Costs, including depreciation are
recognized as an expense in the Statement of profit & loss.
n) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
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.
o) INTANGIBLE ASSETS
According to Accounting Standard  26 on "Intangible Assets" prescribed
under the Companies (Accounting Standards) Rules, 2006, in case of an
expenditure incurred by the Company which may provide future economic
benefits to the Company, however out of which, no intangible asset or
other asset is acquired or created that can be recognized, the
expenditure is recognized as an expense as and when it is incurred.
p) CASH FLOW STATEMENT
Cash Flows are reported using the indirect method as set out in the
Accounting Standard - 3 on "Cash Flow Statement" prescribed under the
Companies (Accounting Standards) Rules, 2006, whereby net profit before
tax is adjusted for the effects of the transactions of non-cash nature
and any deferrals or accruals of the past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.
q) CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents for the purpose of "Cash Flow Statement"
comprise cash at bank and in hand and deposits with bank with an
original maturity of three months or less.
Mar 31, 2011
A) ACCOUNTING CONVENTION
The financial statements have been prepared under the historical cost
convention, as applicable to a going concern and in accordance with
generally accepted accounting principles in India, mandatory accounting
standards and provisions of the Companies Act, 1956.
b) USE OF ESTIMATES
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities, the disclosure of contingent assets and liabilities on the
date of the financial statements and the reported amount of revenues
and expenses during the reporting period. Actual results could differ
from those estimates. Difference between the actual results and
estimates are recognised in the period in which the results are known /
materialized.
c) FIXED ASSETS
Fixed Assets are stated at their original cost of acquisition or
construction less accumulated depreciation (except land) and subsequent
improvements thereto. Cost comprises of purchase price and all expenses
directly attributable to the acquisition or construction of the asset.
Expenses incurred related to project and prior to commencement of
business, including financing costs are capitalized under Capital
Work-in-Progress Account, which also includes material at site.
d) DEPRECIATION /AMORTIZATION
i) Depreciation has been provided on the value capitalized on the
assets actually put to use during the current year, as per the Written
Down Value Method at rates prescribed in Schedule XIV of the Companies
Act, 1956.
ii) Depreciation is calculated on pro-rata basis from the date of
acquisition and/or capitalization, as may be applicable.
iii) Assets costing individually Rs. 5,000/- (Rupees Five Thousand
only) or less are depreciated fully in the year of purchase.
iv) Amortization has not been provided on the leasehold land.
e) INVENTORIES
Inventories have been valued as under:
Diesel - At lower of cost or estimated realizable value
Stock of Software - At lower of cost or estimated realizable value
The valuation of inventories has been made as per the requirements of
Accounting Standard - 2, "Valuation of Inventories", prescribed under
the Companies (Accounting Standards) Rules, 2006.
f) INVESTMENTS
Long Term Investments are stated at cost as per the requirements of
Accounting Standard - 13, "Accounting for Investments", prescribed
under the Companies (Accounting Standards) Rules, 2006. Provision for
diminution in the value of long-term investment is not made as the
decline in the value of Investment is considered temporary by the
management.
g) PROVISION FOR RETIREMENT BENEFITS
i) Periodical contributions made to the concerned authorities towards
Provident Fund and ESI are charged to Revenue on accrual basis.
ii) Long term employee benefits are recognized as an expense in the
Profit and Loss account for the year in which the employee has rendered
services. The expense is recognized at the present value of the amounts
payable determined using actuarial valuation techniques. Actuarial
gains and losses in respect of long term benefits are charged to the
Profit and Loss account. The liability is unfunded.
h) TAXATION
Income tax comprises current tax and deferred tax. Current tax is the
amount of tax payable as determined in accordance with the provisions
of the Income Tax Act, 1961. Deferred tax assets 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 rates enacted or substantively
enacted by the balance sheet date.
i) EXPENSES
The Company has charged all expenses on accrual basis of accounting.
j) INCOME
The Company has recognized all incomes on accrual basis of accounting
as per the requirements of Accounting Standard - 9, "Revenue
Recognition", prescribed under the Companies (Accounting Standards)
Rules, 2006.
k) FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are recorded at the exchange rates
prevailing on the dates of the transactions.
l) IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to Profit
& Loss Account in the year in which an asset is identified as impaired.
m) BORROWING COSTS
Borrowing cost that is attributable to the acquisition or construction
of a qualifying asset is capitalised as part of the cost of such asset
and other borrowing costs are recognized as an expense in the period in
which they are incurred. A qualifying asset is one that necessarily
takes substantial period of time to get ready for its intended use.
n) LEASE
Assets given under operating leases are included in fixed assets. Lease
income is recognized in the Profit & Loss Account on a straight line
basis over the lease term. Costs, including depreciation are recognized
as an expense in the profit & loss account.
o) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
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.
p) INTANGIBLE ASSETS
According to Accounting Standard - 26 on "Intangible Assets" prescribed
under the Companies (Accounting Standards) Rules, 2006, in case of an
expenditure incurred by the Company which may provide future economic
benefits to the Company, however out of which, no intangible asset or
other asset is acquired or created which can be recognized, the
expenditure is recognized as an expense as and when it is incurred.
q) CASH FLOW STATEMENT
Cash Flows are reported using the indirect method as set out in the
Accounting Standard - 3 on "Cash Flow Statement" prescribed under the
Companies (Accounting Standards) Rules, 2006, whereby net profit before
tax is adjusted for the effects of the transactions of non cash nature
and any deferrals or accruals of the past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and
financing activities of the Company are segregated.