Mar 31, 2015
1.1 BASIS OF PREPRATION OF FINANCIAL STATEMENTS
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis. 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, the provisions of the Act (to the extent notified) 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 are vision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.
1.2 USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Actual results could differ from these
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
1.3 REVENUE RECOGNITION
1.3.1 All Income & Expenditure are accounted for on accrual basis
except in case of uncertainties where accrual is postponed upto
resolution of uncernainty.
1.3.2 Investments are capitalised at cost inclusive of brokerage,
Service Tax, Education Cess, transfer stamps and Security Transaction
Tax. Depository Charges and other miscellaneous transaction charges
which due to practical difficulty cannot be identified / allocated to a
particular transaction are charged directly to the Statement of Profit
and Loss.
1.4 FIXED ASSETS
Fixed Assets are stated at cost less depreciation.
1.5 DEPRECIATION
Depreciation on tangible assets is provided on Straight Line method
over the useful life of assets in the manner specified in Schedule II
to the Companies Act, 2013.
1.6 INVESTMENTS
1.6.1 Non current / Long Term Investments are valued at cost. Provision
for diminution in the value of Long term / Non current Investments is
made only if such a decline is other than temporary.
1.7 EMPLOYEE BENEFITS
1.7.1 Employee Benefits are recognized / accounted for on the basis of
revised AS-15 detailed as under:-
1.7.2 Short Term Employee benefits are recognized as expense at the
undiscounted amount in the Profit & Loss account of the year in which
they are incurred.
17.3 Employee benefits under defined contribution plans comprise of
contribution to Provident Fund and Superannuation. Contributions to
Provident Fund are deposited with appropriate authorities and charged
to Profit & Loss account. Contribution to Superannuation are funded
with Life Insurance Corporation of India.
1.7.4 Employee Benefits under defined benefit plans comprise of
gratuity and leave encashment which are accounted for as at the year
end based on actuarial valuation by following the Projected Unit Credit
(PUC) method. Liability for gratuity is funded with Life Insurance
Corporation of India.
1.7.5 Termination benefits are recognized as an Expense as and when
incurred.
1.7.6 The actuarial gains and losses arising during the year are
recognized in the Profit & Loss account of the year without resorting
to any amortization.
1.8 TAXATION
Tax expenses for the year comprises of Current tax and deferred tax
charge or credit. The deferred Tax Asset and deferred Tax Liability is
calculated by applying tax rates and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred Tax assets
arising mainly on account of brought forward losses and unabsorbed
depreciation under tax law are recognised only if there is virtual
certainty of its realisation. Other deferred tax assets are recognised
only to the extent there is a reasonable certainty of realisation in
future. Deferred Tax Assets / Liabilities are reviewed at each balance
sheet date based on development during the year, further future
expectations and available case laws to reassess realisation /
liabilities.
1.9 IMPAIRMENT OF FIXED ASSETS
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company's Fixed Assets. If any indication exists, an asset's
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor.
Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses recognized for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognized to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation) had no impairment loss
been recognized for the assets in prior years.
1.10 CONTINGENCIES:
The Company creates a provision when there is present obligation as
result of a past 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,
requires 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 disclosure is made.
Mar 31, 2014
1.1 BASIS OF PREPRATION OF FINANCIAL STATEMENTS:
The Financial Statements are prepared under the Historical Cost
Convention method in accordance with the generally accepted Accounting
Principles and the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956.
1.2 USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Actual results could differ from these
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
1.3 REVENUE RECOGNITION
1.3.1 All Income & Expenditure are accounted for on accrual basis
except in case of uncertainties where accrual is postponed upto
resolution of uncertainity.
1.3.2 Investments are capitalised at cost inclusive of brokerage,
Service Tax, Education Cess, transfer stamps and Security Transaction
Tax. Depository Charges and other miscellaneous transaction charges
which due to practical difficulty cannot be identified/allocated to a
particular transaction are charged directly to the Statement of Profit
and Loss.
1.4 FIXED ASSETS
Fixed Assets are stated at cost less depreciation.
1.5 DEPRECIATION
Depreciation is provided on Fixed Assets on Straight Line method at the
rates and in the manner specified in Schedule XIV to the Companies Act,
1956.
1.6 INVESTMENTS
1.6.1 Non current/Long Term Investments are valued at cost. Provision
for diminution in the value of Long term/Non current Investments is
made only if such a decline is other than temporary.
1.7 EMPLOYEE BENEFITS
1.7.1 Employee Benefits are recognized/accounted for on the basis of
revised AS-15 detailed as under :-
1.7.2 Short Term Employee benefits are recognized as expense at the
undiscounted amount in the Profit & Loss account of the year in which
they are incurred.
1.7.3 Employee benefits under defined contribution plans comprise of
contribution to Provident Fund and Superannuation. Contributions to
Provident Fund are deposited with appropriate authorities and charged
to Profit & Loss account. Contribution to Superannuation are funded
with Life Insurance Corporation of India.
1.7.4 Employee Benefits under defined benefit plans comprise of
gratuity and leave encashment which are accounted for as at the year
end based on actuarial valuation by following the Projected Unit Credit
(PUC) method. Liability for gratuity is funded with Life Insurance
Corporation of India.
1.7.5 Termination benefits are recognized as an Expense as and when
incurred.
1.7.6 The actuarial gains and losses arising during the year are
recognized in the Profit & Loss account of the year without resorting
to any amortization.
1.8 TAXATION
Tax expenses for the year comprises of Current tax and deferred tax
charge or credit. The deferred Tax Asset and deferred Tax Liability is
calculated by applying tax rates and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred Tax assets
arising mainly on account of brought forward losses and unabsorbed
depreciation under tax law are recognised only if there is virtual
certainty of its realisation. Other deferred tax assets are recognised
only to the extent there is a reasonable certainty of realisation in
future. Deferred Tax Assets/Liabilities are reviewed at each balance
sheet date based on development during the year, further future
expectations and available case laws to reassess realisation/
liabilities.
1.9 IMPAIRMENT OF FIXED ASSETS
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company''s Fixed Assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor. Reversal of impairment losses recognized in prior
years is recorded when there is an indication that the impairment
losses recognized for the asset no longer exist or have decreased.
However, the increase in carrying amount of an asset due to reversal of
an impairment loss is recognized to the extent it does not exceed the
carrying amount that would have been determined (net of depreciation)
had no impairment loss been recognized for the assets in prior years.
1.10 CONTINGENCIES:
The company creates a provision when there is present obligation as
result of a past 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,
requires 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 disclosure is made.
Mar 31, 2013
1.1 BASIS OF PREPRATION OF FINANCIAL STATEMENTS:
The Financial Statements are prepared under the Historical Cost
Convention method in accordance with the generally accepted Accounting
Principles and the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956.
1.2 USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Actual results could differ from these
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
1.3 REVENUE RECOGNITION
1.3.1 All Income & Expenditure are accounted for on accrual basis
except in case of uncertainties where accrual is postponed upto
resolution of uncernainty.
1.3.2 Investments are capitalised at cost inclusive of brokerage,
Service Tax, Education Cess,transfer stamps and Security Transaction
Tax.Depository Charges and other miscellaneous transaction charges
which due to practical difficulty cannot be identified/allocated to a
particular transaction are charged directly to the Statement of Profit
and Loss.
1.4 FIXED ASSETS
Fixed Assets are stated at cost less depreciation.
1.5 DEPRECIATION
Depreciation is provided on Fixed Assets on Straight Line method at the
rates and in the manner specified in Schedule XIV to the Companies Act,
1956.
1.6 INVESTMENTS
1.6.1 Non current/Long Term Investments are valued at cost.Provision
for diminution in the value of Long term/Non current Investments is
made only if such a decline is other than temporary.
1.7 EMPLOYEE BENEFITS
1.7.1 Employee Benefits are recognized/accounted for on the basis of
revised AS-15 detailed as under :-
1.7.2 Short Term Employee benefits are recognized as expense at the
undiscounted amount in the Profit & Loss account of the year in which
they are incurred.
1.7.3 Employee benefits under defined contribution plans comprise of
contribution to Provident Fund and Superannuation. Contributions to
Provident Fund are deposited with appropriate authorities and charged
to Profit & Loss account. Contribution to Superannuation are funded
with Life Insurance Corporation of India.
1.7.4 Employee Benefits under defined benefit plans comprise of
gratuity and leave encashment which are accounted for as at the year
end based on actuarial valuation by following the Projected Unit Credit
(PUC) method. Liability for gratuity is funded with Life Insurance
Corporation of India.
1.7.5 Termination benefits are recognized as an Expense as and when
incurred.
1.7.6 The actuarial gains and losses arising during the year are
recognized in the Profit & Loss account of the year without resorting
to any amortization.
1.8 TAXATION
Tax expenses for the year comprises of Current tax and deferred tax
charge or credit. The deferred Tax Asset and deferred Tax Liability is
calculated by applying tax rates and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred Tax assets
arising mainly on account of brought forward losses and unabsorbed
depreciation under tax law are recognised only if there is virtual
certainty of its realisation. Other deferred tax assets are recognised
only to the extent there is a reasonable certainty of realisation in
future. Deferred Tax Assets/Liabilities are reviewed at each balance
sheet date based on development during the year, further future
expectations and available case laws to reassess realisation/
liabilities.
1.9 IMPAIRMENT OF FIXED ASSETS
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company''s Fixed Assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor. Reversal of impairment losses recognized in prior
years is recorded when there is an indication that the impairment
losses recognized for the asset no longer exist or have decreased.
However, the increase in carrying amount of an asset due to reversal of
an impairment loss is recognized to the extent it does not exceed the
carrying amount that would have been determined (net of depreciation)
had no impairment loss been recognized for the assets in prior years.
1.10 CONTINGENCIES:
The company creates a provision when there is present obligation as
result of a past 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,
requires 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 disclosure is made.
Mar 31, 2012
1.1 BASIS OF PREPRATION OF FINANCIAL STATEMENTS: -
The Financial Statements are prepared under the Historical Cost
Convention method in accordance with the generally accepted Accounting
Principles and the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956.
1.2 USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Actual results could differ from these
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
1.3 REVENUE RECOGNITION
1.3.1 All Income & Expenditure are accounted for on accrual basis
except in case of uncertainties where accrual is postponed upto
resolution of uncernainty.
1.3.2 Investments are capitalised at cost inclusive of brokerage,
Service Tax, Education Cess,transfer stamps and Security Transaction
Tax.Depository Charges and other miscellaneous transaction charges
which due to practical difficulty cannot be identified/allocated to a
particular transaction are charged directly to the Statement of Profit
and Loss.
1.4 FIXED ASSETS
Fixed Assets are stated at cost less depreciation.
1.5 DEPRECIATION
Depreciation is provided on Fixed Assets on Straight Line method at the
rates and in the manner specified in Schedule XIV to the Companies Act,
1956.
1.6 INVESTMENTS
1.6.1 Non current/Long Term Investments are valued at cost.Provision
for diminution in the value of Long term/Non current Investments is
made only if such a decline is other than temporary.
1.7 EMPLOYEE BENEFITS
1.7.1 Employee Benefits are recognized/accounted for on the basis of
revised AS-15 detailed as under :-
1.7.2 Short Term Employee benefits are recognized as expense at the
undiscounted amount in the Profit & Loss account of the year in which
they are incurred.
1.7.3 Employee benefits under defined contribution plans comprise of
contribution to Provident Fund and Superannuation. Contributions to
Provident Fund are deposited with appropriate authorities and charged
to Profit & Loss account. Contribution to Superannuation are funded
with Life Insurance Corporation of India.
1.7.4 Employee Benefits under defined benefit plans comprise of
gratuity and leave encashment which are accounted for as at the year
end based on actuarial valuation by following the Projected Unit Credit
(PUC) method. Liability for gratuity is funded with Life Insurance
Corporation of India.
1.7.5 Termination benefits are recognized as an Expense as and when
incurred.
1.7.6 The actuarial gains and losses arising during the year are
recognized in the Profit & Loss account of the year without resorting
to any amortization.
1.8 TAXATION
Tax expenses for the year comprises of Current tax and deferred tax
charge or credit. The deferred Tax Asset and deferred Tax Liability is
calculated by applying tax rates and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred Tax assets
arising mainly on account of brought forward losses and unabsorbed
depreciation under tax law are recognised only if there is virtual
certainty of its realisation. Other deferred tax assets are recognised
only to the extent there is a reasonable certainty of realisation in
future. Deferred Tax Assets/ Liabilities are reviewed at each balance
sheet date based on development during the year, further future
expectations and available case laws to reassess realisation/
liabilities.
1.9 IMPAIRMENT OF FIXED ASSETS
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company's Fixed Assets. If any indication exists, an asset's
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor.
Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses recognized for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognized to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation) had no impairment loss
been recognized for the assets in prior years.
1.10 CONTINGENCIES:
The company creates a provision when there is present obligation as
result of a past 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,
requires 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 disclosure is made.
Mar 31, 2011
A. BASIS OF PREPRATION OF FINANCIAL STATEMENTS:-
(1) The Financial Statements have been prepared under the Historical
Cost Convention method in accordance with the generally accepted
Accounting Principles and the Accounting Standards referred to in
Section 211(3C) of the Companies Act, 1956.
(2) USE OF ESTIMATES: - The preparation of financial statements in
conformity with generally accepted accounting principles (GAAP)
requires Management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosures of
contingent liabilities on the date of financial statements and reported
amounts of revenue and expenses for that year. Actual results could
differ from these estimates. Any revision to accounting estimates is
recognized prospectively in current and future periods.
B. REVENUE RECOGNITION:-
(1) All Income & Expenditure are accounted for on accrual basis except
in case of uncertainties where accrual is postponed upto resolution of
uncertainty.
(2) Investments are capitalized at cost inclusive of brokerage, Service
Tax, Education Cess, Transfer stamps and Security Transaction Tax.
Depository Charges and other miscellaneous transaction charges which
due to practical difficulty cannot be identified/allocated to a
particular transaction are charged directly to the Profit and Loss
Account.
C. FIXED ASSETS: - Fixed Assets are stated at cost less depreciation.
D. DEPRECIATION: - Depreciation is provided on Straight Line Method at
the rate and in the manner specified in Schedule XIV to the Companies
Act, 1956.
E. INVESTMENTS: - Long term Investments are stated at cost. Provision
for diminution in the value of Long Term Investments is made only if
such a decline is other than temporary.
F. EMPLOYEE BENEFITS: - Employee Benefits are recognized/accounted for
on the basis of revised AS-15 detailed as under:-
a) Short Term Employee benefits are recognized as expense at the
undiscounted amount in the Profit & Loss account of the year in which
they are incurred.
b) Employee benefits under defined contribution plans comprise of
contribution to Provident Fund and Superannuation. Contributions to
Provident Fund are deposited with appropriate authorities and charged
to Profit & Loss account. Contribution to Superannuation are funded
with Life Insurance Corporation of India.
c) Employee Benefits under defined benefit plans comprise of gratuity
and leave encashment which are accounted for as at the year end based
on actuarial valuation by following the Projected Unit Credit (PUC)
method. Liability for gratuity is funded with Life Insurance
Corporation of India.
d) Termination benefits are recognized as an Expense as and when
incurred.
e) The actuarial gains and losses arising during the year are
recognized in the Profit & Loss account of the year without resorting
to any amortization.
G. TAXATION: - Tax expenses for the year comprise of current tax and
deferred tax charge or credit. The deferred tax asset and deferred tax
liability is calculated by applying tax rates and tax laws that have
been enacted or substantially enacted by the Balance Sheet date.
Deferred tax assets arising mainly on account of brought forward losses
and unabsorbed depreciation under tax laws are recognised, only if
there is a virtual certainly of its realisation. Other deferred tax
assets are recognised only to the extent there is a reasonable
certainty of realisation in future. Deferred tax assets/liabilities
are reviewed at each balance sheet date based on developments during
the year, further future expectations and available case laws to
reassess realisation/liabilities.
H. IMPAIRMENT OF FIXED ASSETS: - Consideration is given at each balance
sheet date to determine whether there is any indication of impairment
of the carrying amount of the Company's Assets. If any indication
exists, an asset's recoverable amount is estimated. An impairment loss
is recognized whenever the carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is the greater of the net
selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value based
on an appropriate discount factor.
Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses recognized for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognized to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation) had no impairment loss
been recognized for the assets in prior years.
I. CONTINGENCIES: - The Company creates a provision when there is
present obligation as a result of a past 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. 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
disclosure is made.
Mar 31, 2010
A. BASIS OF PREPRATION OF FINANCIAL STATEMENTS :
(1) The Financial Statements have been prepared under the Historical
Cost Convention method in accordance with the generally accepted
Accounting Principles and the Accounting Standards referred to in
Section 211(3C) of the Companies Act, 1956.
(2) USE OF ESTIMATES : The preparation of financial statements in
conformity with generally accepted accounting principles (GAAP)
requires Management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosures of
contingent liabilities on the date of financial statements and reported
amounts of revenue and expenses for that year. Actual results could
differ from these estimates. Any revision to accounting estimates is
recognized prospectively in current and future periods.
B. REVENUE RECOGNITION :
(1) All Income & Expenditure are accounted for on accrual basis except
in case of uncertainties where accrual is postponed upto resolution of
uncertainty.
(2) Investments are capitalized at cost inclusive of brokerage, Service
Tax, education cess, Transfer stamps and Security Transaction Tax.
Depository Charges and other miscellaneous transaction charges which
due to practical difficulty cannot be identified/allocated to a
particular transaction are charged directly to the Profit and Loss
Account.
C. FIXED ASSETS : Fixed Assets are stated at cost less depreciation.
D. DEPRECIATION : Depreciation is provided on Straight Line Method at
the rate and in the manner specified in Schedule XIV to the Companies
Act, 1956.
E. INVESTMENTS : Long term Investments are stated at cost. Provision
for diminution in the value of Long Term Investments is made only if
such a decline is other than temporary.
F. EMPLOYEE BENEFITS : Employee Benefits are recognized/accounted for
on the basis of revised AS-15 detailed as under :- a) Short Term
Employee benefits are recognized as expense at the undiscounted amount
in the Profit & Loss account of the year in which they are incurred.
b) Employee benefits under defined contribution plans comprise of
contribution to Provident Fund and Superannuation. Contributions to
Provident Fund are deposited with appropriate authorities and charged
to Profit & Loss account. Contribution to Superannuation are funded
with Life Insurance Corporation of India.
c) Employee Benefits under defined benefit plans comprise of gratuity
and leave encashment which are accounted for as at the year end based
on actuarial valuation by following the Projected Unit Credit (PUC)
method. Liability for gratuity is funded with Life Insurance
Corporation of India.
d) Termination benefits are recognized as an Expense as and when
incurred.
e) The actuarial gains and losses arising during the year are
recognized in the Profit & Loss account of the year without resorting
to any amortization.
G. TAXATION : Tax expenses for the year comprise of current tax and
deferred tax charge or credit. The deferred tax asset and deferred tax
liability is calculated by applying tax rates and tax laws that have
been enacted or substantially enacted by the Balance Sheet date.
Deferred tax assets arising mainly on account of brought forward losses
and unabsorbed depreciation under tax laws are recognised, only if
there is a virtual certainly of its realisation. Other deferred tax
assets are recognised only to the extent there is a reasonable
certainty of realisation in future. Deferred tax assets/liabilities are
reviewed at each balance sheet date based on developments during the
year, further future expectations and available case laws to reassess
realisation/liabilities.
H. IMPAIRMENT OF FIXED ASSETS : Consideration is given at each balance
sheet date to determine whether there is any indication of impairment
of the carrying amount of the
CompanyÃs Assets. If any indication exists, an assetÃs recoverable
amount is estimated. An impairment loss is recognized whenever the
carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the net selling price and value in
use. In assessing value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor.
Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses recognized for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognized to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation) had no impairment loss
been recognized for the assets in prior years.
I. CONTINGENCIES : The company creates a provision when there is
present obligation as a result of a past 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. 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
disclosure is made.
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