Mar 31, 2015
1.1 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 accrual basis, in accordance with the applicable
mandatory Accounting Standards as prescribed under Section 133 of the
Companies Act, 2013 (Act') read with Rule 7 of the Companies
(Accounts) Rule, 2014. As the standards of accounting or any addendum
thereto are not yet prescribed by the Central Government in
consultation with and recommendation of the National Financial
Reporting Authority, the existing accounting standards notified under
the Companies Act, 1956 shall continue to apply. As such, these
financial statements have been prepared to comply in all material
aspects with the accounting standards notified under Section 211 (3C)
of the Companies Act, 1956, Companies (Accounting Standards) Rules,
2006, (as amended) and other relevant provisions of the Act. The
Company is in the business of rendering various administrative and
allied services. The Company has considered its operating cycle as 12
months and all assets and liabilities have been classified as current
or non-current as per the criteria set out in Schedule III to the
Companies Act, 2013
1.2 Use of Estimates :
The preparation of Financial Statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures relating to
contingent assets and liabilities on the date of the financial
statements and the reported amounts of revenues and expenses during
the reported period. Differences between actual results and estimates
are recognised in the period in which the results are known.
Changes in the estimates, if material, are reflected in the financial
statements in the period in which changes are made and their effects
are disclosed in the notes to the financial statements.
1.3 Recognition of Revenue and Expenditure :
a. Income from rendering of services and related expenses are
recognised on accrual basis in the year in which the services are
rendered.
b. Dividend income is recognised in the year in which the right to
receive dividend is established.
1.4. Employee Benefits :
a. Short term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related services are rendered;
b. Post employment benefits:
Defined Benefit Plans:
-Gratuity
The present value of the obligation is determined based on an
actuarial valuation at the close of the year using the Projected Unit
Credit Method.
Actuarial gains and losses arising on such valuation are recognized
immediately in the Statement of Profit and Loss. In the case of
gratuity which is funded with the Life Insurance Corporation of India,
fair value of the Plan Assets , is reduced from the gross obligation
under the Defined Benefit Plans, to recognize the obligation on a net
basis;
Provident Fund
Monthly contributions are made to a Trust, constituted for the benefit
of the employees. The interest rate payable by the Trust to the
beneficiaries is notified by the Government. The Company has an
obligation to make good the shortfall, if any, between the return on
investments of the Trust and the notified interest rate.
c. Long term compensated absences are provided on the basis of an
actuarial valuation, using the Projected Unit Credit Method.
d. Termination Benefits are recognised as an expense in the Statement
of Profit and Loss of the year in which they are incurred.
1.5 Fixed Assets and Depreciation:
a. Fixed Assets:
Fixed Assets are carried at cost of acquisition / book value less
accumulated depreciation / amortisation. Costs include all expenses
incurred to bring the assets to its present location and condition.
b. Depreciation/Amortisation:
i. Depreciation is provided on Straight Line Method, in accordance
with Schedule II to the Act. The useful lives of the assets for
computing depreciation are as per Schedule II of the Act.
ii. Depreciation on additions to assets or on sale/disposal of assets
is calculated pro-rata from the day of such addition or upto the day
of such sale/disposal as the case may be.
iii. Cost of computer software is amortised over a period of three
years.
1.6 Investments:
Investments are classified into Non Current and Current Investments.
Non Current Investments are stated at cost of acquisition. Diminution,
if any, in the value of Non Current Investments, other than temporary,
is provided for each investment individually. Current Investments are
stated at lower of cost and market value/ net realisable value.
1.7 Borrowing Costs:
Interest and other borrowing costs attributable to qualifying assets
are capitalized. Other interest and borrowing costs are charged to
revenue.
1.8 Taxation:
Income-tax expense comprises Current tax and Deferred tax charge or
credit.
a) Provision for current tax is made on the assessable income at the
tax rate applicable to the relevant assessment year. Minimum Alternate
Tax (MAT) eligible for set off in subsequent years, (as per tax laws)
is recognized as an asset by way of credit to the Statement of Profit
and Loss only if there is convincing evidence of its realisation. At
each balance sheet date, the carrying amount of MAT Credit Entitlement
receivable is reviewed to reassure realisation.
b) Deferred Tax is recognized on timing difference between taxable
income and accounting income that originated in one period and are
capable of reversal in one or more subsequent period(s). The Deferred
Tax Asset and Deferred Tax Liability is calculated by applying tax
rate and tax laws that have been enacted or substantively enacted by
the Balance Sheet date. Deferred Tax Assets arising on account of
brought forward losses and unabsorbed depreciation under tax laws are
recognised only if there is a virtual certainty of its realisation
supported by convincing evidence. Deferred Tax Assets on account of
other timing differences are recognised only to the extent there is a
reasonable certainty of its realisation. At each Balance Sheet date,
the carrying amount of Deferred Tax Assets is reviewed to reassure
realisation.
1.9 Impairment of Assets:
The Company, at each balance sheet date, assesses whether there is any
indication that an individual asset or group of assets constituting a
Cash Generating Unit (CGU) may be impaired. Provision for impairment
loss is recognised where the recoverable amount of an asset or a CGU,
is less than its carrying amount. Provisions for impairment losses
recognised in earlier years, if any, are further reviewed at each
balance sheet date and adjusted for changes in the estimated
recoverable amount of asset / CGU.
1.10 Provisions, Contingent Liabilities and Contingent Assets :
Provisions involving a 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
and reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are not recognized and are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
1.11 Cash Flow Statement:
Cash flows are reported using the Indirect Method, whereby profit/
(loss) before tax is adjusted for the effects of transactions of
non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on the
available information
1.12 Cash and Cash Equivalents :
Cash and cash equivalents comprise cash and cash on deposit with
banks. The Company considers all highly liquid investments with a
remaining maturity at the date of purchase of three months or less and
that are readily convertible to known amounts of cash to be cash
equivalents.
1.13 Earnings Per Share:
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit
or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2014
1.1 Basis of preparation of financial statements:
The financial statements are prepared under the historical cost
convention on the accrual basis of accounting in accordance with the
generally accepted accounting principles, the applicable mandatory
Accounting Standards prescribed by the Companies (Accounting Standards)
Rules, 2006 (as amended), the relevant provisions of the Companies Act,
1956 and the provisions of Companies Act, 2013, to the extent notified.
The Company is in the business of rendering various administrative and
allied services. The Company has considered its operating cycle as 12
months and all assets and liabilities have been classified as current
or non-current as per the criteria set out in the Revised Schedule VI
to the Companies Act, 1956.
1.2 Use of Estimates:
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities on the date of the financial statements and the reported
amounts of revenues and expenses during the reported period.
Differences between actual results and estimates are recognised in the
period in which the results are known.
1.3 Recognition of Revenue and Expenditure:
a. Income from rendering of services is recognised in the year in which
the services are rendered.
b. All other revenues/incomes and costs/expenditure are generally
accounted on accrual, as they are earned or incurred.
c. Dividend income is recognised in the year in which the right to
receive dividend is established.
1.4. Employee Benefits:
a. Short term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related services are rendered;
b. Post employment benefits:
Defined benefit plans:
-Gratuity
The present value of the obligation is determined based on an actuarial
valuation at the close of the year using the Projected Unit Credit
Method
Actuarial gains and losses arising on such valuation are recognized
immediately in the Statement of Profit and Loss. In the case of
gratuity which is funded with the Life Insurance Corporation of India,
fair value of the Plan Assets , is reduced from the gross obligation
under the Defined Benefit Plans, to recognize the obligation on a net
basis;
-Provident Fund
Monthly contributions are made to a Trust, constituted for the benefit
of the employees. The interest rate payable by the Trust to the
beneficiaries is notified by the Government. The Company has an
obligation to make good the shortfall, if any, between the return on
investments of the Trust and the notified interest rate.
c. Long term compensated absences are provided on the basis of an
actuarial valuation, using the Projected Unit Credit Method.
d. Termination Benefits are recognised as an expense in the Statement
of Profit and Loss of the year in which they are incurred.
1.5 Fixed Assets and Depreciation:
a. Fixed Assets:
Fixed Assets are carried at cost of acquisition / book value less
accumulated depreciation / amortisation. Costs include all expenses
incurred to bring the assets to its present location and condition.
Fixed assets individually costing Rs.5000/- or less are depreciated
fully in the year of Acquisition.
b. Depreciation:
i. Depreciation is provided as per the rates and in the manner
prescribed under Schedule XIV to the Companies Act, 1956, on Straight
Line Method.
ii. Depreciation on additions to assets or on sale/disposal of assets
is calculated pro-rata from the month of such addition or upto the
month of such sale/disposal as the case may be.
1.6 Investments:
Investments are classified into Long-term and Current Investments. Long
Term Investments are stated at cost of acquisition. Diminution, if any,
in the value of Long Term Investments, other than temporary, is
provided for each investment individually. Current Investments are
stated at lower of cost and market value/net realisable value.
1.7 Borrowing Costs:
Interest and other borrowing costs attributable to qualifying assets
are capitalized. Other interest and borrowing costs are charged to
revenue.
1.8 Taxation:
Income-tax expense comprises Current tax and Deferred tax charge or
credit.
a) Provision for current tax is made on the assessable income at the
tax rate applicable to the rel evant assessment year. Minimum Alternate
Tax (MAT) eligible for set off in subsequent years, (as per tax laws)
is recognized as an asset by way of credit to the Statement of Profit
and Loss only if there is convincing evidence of its realisation. At
each balance sheet date, the carrying amount of MAT Credit Entitlement
receivable is reviewed to reassure realisation.
b) Deferred Tax is recognized on timing difference between taxable
income and accounting income that originated in one period and are
capable of reversal in one or more subsequent period(s). The Deferred
tax Asset and Deferred tax Liability is calculated by applying tax rate
and tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred tax Assets arising on account of brought
forward losses and unabsorbed depreciation under tax laws are
recognised only if there is a virtual certainty of its realisation
supported by convincing evidence. Deferred tax assets on account of
other timing differences are recognised only to the extent there is a
reasonable certainty of its realisation. At each Balance Sheet date,
the carrying amount of deferred tax assets is reviewed to reassure
realisation.
1.9 Impairment of Assets:
The Company, at each balance sheet date, assesses whether there is any
indication that an individual asset or group of assets constituting a
Cash Generating Unit (CGU) may be impaired. Provision for impairment
loss is recognised where the recoverable amount of an asset or a CGU,
is less than its carrying amount. Provisions for impairment losses
recognised in earlier years are further reviewed at each balance sheet
date and adjusted for changes in the estimated recoverable amount of
asset / CGU.
1.10 Provisions Contingent Liabilities and Contingent Assets:
Provisions involving a 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
and reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are not recognized and are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements
1.11 Cash Flow Statement:
Cash flows are reported using the Indirect Method, whereby profit/
(loss) before tax is adjusted for the effects of transactions of
non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on the
available information
1.12 Cash and Cash Equivalents:
Cash and cash equivalents comprise cash and cash on deposit with banks.
The Company considers all highly liquid investments with a remaining
maturity at the date of purchase of three months or less and that are
readily convertible to known amounts of cash to be cash equivalents.
1.13 Earnings Per Share:
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit
or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
2.1 The Company has only one class of shares referred to as equity
shares having a par value of Rs. 25/-. Each holder of equity shares is
entitled to one vote per share.
2.2 In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all the preferential amount, in the proportion of
the number of equity shares held by each share holders.
Mar 31, 2013
1.1 Basis of preparation of financial statements:
The financial statements are prepared under the historical cost
convention on accrual basis in accordance with the generally accepted
accounting principles, the applicable mandatory Accounting Standards
and the relevant provisions of the Companies Act 1956.
The Company is in the business of rendering various administrative and
allied services. The Company has considered its operating cycle as 12
months and all assets and liabilities have been classified as current
or non-current as per the criteria set out in the Revised Schedule VI
to the Companies Act, 1956.
1.2 Use of Estimates:
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities on the
date of the financial statements and reported amounts of revenues and
expenses during the reporting period. Differences between actual
results and estimates are recognised in the period in which the results
are known.
1.3 Recognition of Revenue and Expenditure:
a. Income from rendering of services is recognised in the year in
which the services are rendered.
b. All other revenues/incomes and costs/expenditure are generally
accounted on accrual, as they are earned or incurred.
c. Dividend income is recognised in the year in which the right to
receive dividend is established.
1.4. Employee Benefits:
a. Short term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related services are rendered;
b. Post employment benefits:
Defined benefit plans:
-Gratuity
The present value of the obligation is determined based on an actuarial
valuation at the close of the year using the Projected Unit Credit
Method
Actuarial gains and losses arising on such valuation are recognized
immediately in the Statement of Profit and Loss. In the case of
gratuity which is funded with the Life Insurance Corporation of India,
fair value of the Plan Assets , is reduced from the gross obligation
under the Defined Benefit Plans, to recognize the obligation on a net
basis;
-Provident Fund
Monthly contributions are made to a Trust, constituted for the benefit
of the employees. The interest rate payable by the Trust to the
beneficiaries is notified by the Government. The Company has an
obligation to make good the shortfall, if any, between the return on
investments of the Trust and the notified interest rate.
c. Long term compensated absences are provided on the basis of an
actuarial valuation;
d. Termination Benefits are recognised as an expense in the Statement
of Profit and Loss of the year in which they are incurred.
1.5 Fixed Assets and Depreciation:
a. Fixed Assets:
Fixed Assets are carried at cost of acquisition less accumulated
depreciation. Costs include all expenses incurred to bring the assets
to its present location and condition.
Fixed assets individually costing Rs. 5000/- or less are depreciated
fully in the year of Acquisition.
b. Depreciation:
i. Depreciation is provided as per the rates and in the manner
prescribed under Schedule XIV to the Companies Act, 1956, on Straight
Line Method.
ii. Depreciation on additions to assets or on sale/disposal of assets
is calculated pro-rata from the month of such addition or upto the
month of such sale/disposal as the case may be.
1.6 Investments:
Investments are classified into Long-term and Current Investments. Long
Term Investments are stated at cost of acquisition. Diminution, if any,
in the value of Long Term Investments, other than temporary, is
provided for each investment individually. Current Investments are
stated at lower of cost and market value/ net realisable value.
1.7 Borrowing Costs:
Interest and other borrowing costs attributable to qualifying assets
are capitalized. Other interest and borrowing costs are charged to
revenue.
1.8 Taxation:
Income-tax expense comprises Current tax and Deferred tax charge or
credit.
a) Provision for current tax is made on the assessable income at the
tax rate applicable to the relevant assessment year.
b) Deferred Tax is recognized on timing difference between taxable
income and accounting income that originated in one period and are
capable of reversal in one or more subsequent period(s). The Deferred
tax Asset and Deferred tax Liability is calculated by applying tax rate
and tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred tax Assets arising on account of brought
forward losses and unabsorbed depreciation under tax laws are
recognised only if there is a virtual certainty of its realisation
supported by convincing evidence. Deferred tax assets on account of
other timing differences are recognised only to the extent there is a
reasonable certainty of its realisation. At each Balance Sheet date,
the carrying amount of deferred tax assets is reviewed to reassure
realisation.
i .9 Impairment of Assets:
The Company, at each balance sheet date, assesses whether there is any
indication that an individual asset or group of assets constituting a
Cash Generating Unit (CGU) may be impaired. Provision for impairment
loss is recognised where the recoverable amount of an asset or a CGU,
is less than its carrying amount. Provisions for impairment losses
recognised in earlier years are further reviewed at each balance sheet
date and adjusted for changes in the estimated recoverable amount of
asset / CGU.
1. 10 Provisions Contingent Liabilities and Contingent Assets:
Provisions involving a 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
and reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are not recognized and are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements
1. 11 Cash Flow Statement:
Cash flows are reported using the Indirect Method, whereby profit/
(loss) before tax is adjusted for the effects of transactions of
non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on the
available information
1.12 Cash and Cash Equivalents:
Cash and cash equivalents comprise cash and cash on deposit with banks.
The Company considers all highly liquid investments with a remaining
maturity at the date of purchase of three months or less and that are
readily convertible to known amounts of cash to be cash equivalents.
1.13 Earnings Per Share:
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit
or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of ail dilutive potential equity shares.
Mar 31, 2012
1.1 Basis of preparation of financial statements:
The financial statements are prepared under the historical cost
convention on accrual basis in accordance with the generally accepted
accounting principles, the applicable mandatory Accounting Standards
and the relevant provisions of the Companies Act 1956.
The Company is in the business of rendering various administrative and
allied services. The Company has considered its operating cycle as 12
months and all assets and liabilities have been classified as current
or non-current as per the criteria set out the Revised Schedule VI to
the Companies Act, 1956.
1.2 Use of Estimates:
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities on the
date of the financial statements and reported amounts of revenues and
expenses during the reporting period. Differences between actual
results and estimates are recognised in the period in which the results
are known.
1.3 Recognition of Revenue and Expenditure:
a. Income from rendering of services is recognised in the year in
which the services are rendered.
b. All other revenues/incomes and costs/expenditure are generally
accounted on accrual, as they are earned or incurred.
c. Dividend income is recognised in the year in which the right to
receive dividend is established.
1.4. Employee Benefits:
a. Short term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related services are rendered;
b. Post employment benefits:
Defined benefit plans:
-Gratuity
The present value of the obligation is determined based on an actuarial
valuation at the close of the year using the Projected Unit Credit
Method
Actuarial gains and losses arising on such valuation are recognized
immediately in the Statement Profit and Loss. In the case of gratuity
which is funded with the Life Insurance Corporation of India, fair
value of the Plan Assets , is reduced from the gross obligation under
the Defined Benefit Plans, to recognize the obligation on a net basis;
-Provident Fund
Monthly contributions are made to a Trust, constituted for the benefit
of the employees. The interest rate payable by the Trust to the
beneficiaries is notified by the Government. The Company has an
obligation to make good the shortfall, if any, between the return on
investments of the Trust and the notified interest rate.
c. Long term compensated absences are provided on the basis of an
actuarial valuation;
d. Termination Benefits are recognised as an expense in the Statement
of Profit and Loss of the year in which they are incurred.
1.5 Fixed Assets and Depreciation:
a. Fixed Assets:
Fixed Assets are carried at cost of acquisition less accumulated
depreciation. Costs include all expenses incurred to bring the assets
to its present location and condition.
Fixed assets individually costing 5000/- or less are depreciated fully
in the year of Acquisition.
b. Depreciation:
i. Depreciation is provided as per the rates and in the manner
prescribed under Schedule XIV to the Companies Act, 1956, on the
Straight Line Method.
ii. Depreciation on additions to assets or on sale/disposal of assets
is calculated pro-rata from the month of such addition or upto the
month of such sale/disposal as the case may be.
1.6 Investments:
Investments are classified into Long-term and Current Investments. Long
Term Investments are stated at cost of acquisition. Diminution, if any,
in the value of Long Term Investments, other than temporary, is
provided for each investment individually. Current Investments are
stated at lower of cost and market value/ net realisable value.
1.7 Borrowing Costs:
Interest and other borrowing costs attributable to qualifying assets
are capitalized. Other interest and borrowing costs are charged to
revenue.
1.8 Taxation:
Income-tax expense comprises Current tax and Deferred tax charge or
credit.
a) Provision for current tax is made on the assessable income at the
tax rate applicable to the relevant assessment year.
b) Deferred Tax is recognized on timing difference between taxable
income and accounting income that originated in one period and are
capable of reversal in one or more subsequent period(s). The Deferred
tax Asset and Deferred tax Liability is calculated by applying tax rate
and tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred tax Assets arising on account of brought
forward losses and unabsorbed depreciation under tax laws are
recognised only if there is a virtual certainty of its realisation
supported by convincing evidence. Deferred tax assets on account of
other timing differences are recognised only to the extent there is a
reasonable certainty of its realisation. At each Balance Sheet date,
the carrying amount of deferred tax assets is reviewed to reassure
realisation.
1.9 Impairment of Assets:
The Company, at each balance sheet date, assesses whether there is any
indication that an individual asset or group of assets constituting a
Cash Generating Unit (CGU) may be impaired. Provision for impairment
loss is recognised where the recoverable amount of an asset or a CGU,
is less than its carrying amount. Provisions for impairment losses
recognised in earlier years are further reviewed at each balance sheet
date and adjusted for changes in the estimated recoverable amount of
asset / CGU.
1.10 Provisions Contingent Liabilities and Contingent Assets:
Provisions involving a 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
and reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are not recognized and are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements
Mar 31, 2011
1. Basis of preparation of financial statements:
The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles, the applicable mandatory Accounting Standards and the
relevant provisions of the Companies Act 1956.
2. Use of Estimates:
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities on the
date of the financial statements and reported amounts of revenues and
expenses during the reporting period. Differences between actual
results and estimates are recognised in the period in which the results
are known.
3. Recognition of Revenue and Expenditure:
a. Income from rendering of services is recognised in the year in
which the service is performed as per the proportionate completion
method.
b. All other revenues/incomes and costs/expenditure are generally
accounted on accrual, as they are earned or incurred.
c. Dividend income is recognised in the year in which the right to
receive dividend is established.
4. Employee Benefits:
a. Short term employee benefits are recognised as an expense at the
undiscounted amount in the Profit and Loss Account of the year in which
the related service is rendered;
b. Post employment benefits:
Defined benefit plans:
-Gratuity
The present value of the obligation is determined based on an actuarial
valuation at the close of the year using the Projected Unit Credit
Method Actuarial gains and losses arising on such valuation are
recognized immediately in the Profit and Loss Account. In the case of
gratuity which is funded with the
Life Insurance Corporation of India, fair value of the Plan Assets , is
reduced from the gross obligation under the Defined Benefit Plans, to
recognize the obligation on a net basis;
-Provident Fund
Monthly contributions are made to a Trust, constituted for the benefit
of the employees. The interest rate payable by the Trust to the
beneficiaries is notified by the Government. The Company has an
obligation to make good the shortfall, if any, between the return on
investments of the Trust and the notified interest rate..
c. Long term compensated absences are provided on the basis of an
actuarial valuation;
d. Termination Benefits are recognised as an expense in the Profit and
Loss Account of the year in which they are incurred.
5. Fixed Assets and Depreciation:
a. Fixed Assets:
Fixed Assets are carried at cost of acquisition less accumulated
depreciation.
b. Depreciation:
i. Depreciation is provided as per the rates and in the manner
prescribed under Schedule XIV to the Companies Act, 1956, on the
Straight Line Method.
ii. Depreciation on additions to assets or on sale/disposal of assets
is calculated pro-rata from the month of such addition or upto the
month of such sale/disposal as the case may be.
6. Investments:
Investments are classified into Long-term and Current Investments. Long
Term Investments are stated at cost of acquisition. Diminution, if any,
in the value of Long Term Investments, other than temporary, is
provided for each investment individually. Current Investments are
stated at lower of cost and fair value.
7. Taxation:
Income-tax expense comprises Current tax and Deferred tax charge or
credit.
a) Provision for current tax is made on the assessable income at the
tax rate applicable to the relevant assessment year.
b) Deferred Tax is recognized on timing difference between taxable
income and accounting income that originated in one period and are
capable of reversal in one or more subsequent period(s). The Deferred
tax Asset and Deferred tax Liability is calculated by applying tax rate
and tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred tax Assets arising on account of brought
forward losses and unabsorbed depreciation under tax laws are
recognised only if there is a virtual certainty of its realisation
supported by convincing evidence. Deferred tax assets on account of
other timing differences are recognised only to the extent there is a
reasonable certainty of its realisation. At each Balance Sheet date the
carrying amount of deferred tax assets are reviewed to reassure
realisation.
8. 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, it is probable that there will be an outflow of resources and
reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are not recognized and are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
Mar 31, 2010
1. Basis of preparation of financial statements:
The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles, the applicable mandatory Accounting Standards and the
relevant provisions of the Companies Act 1956.
2. Use of Estimates:
The preparation of Financial Statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities on the
date of the financial statements and reported amounts of revenues and
expenses during the reporting period. Differences between actual
results and estimates are recognised in the period in which the results
are known.
3. Recognition of Revenue and Expenditure:
a. Income from rendering of services is recognised in the year in
which the service is performed as per the proportionate completion
method.
b. All other revenues/incomes and costs/expenditure are generally
accounted on accrual, as they are earned or incurred.
c. Dividend income is recognised in the year in which the right to
receive dividend is established.
4. Employee Benefits:
a. Short term employee benefits are recognised as an expense at the
undiscounted amount in the Profit and Loss Account of the year in which
the related service is rendered;
b. Post employment benefits:
Defined benefit plans:
-Gratuity
The present value of the obligation is determined based on an actuarial
valuation at the close of the year using the Projected Unit Credit
Method. Actuarial gains and losses arising on such valuation are
recognized immediately in the Profit and Loss Account. In the case of
gratuity which is funded with the Life Insurance Corporation of India,
fair value of the Plan Assets , is reduced from the gross obligation
under the Defined Benefit Plans, to recognize the obligation on a net
basis;
-Provident Fund
Monthly contributions are made to a Trust, constituted for the benefit
of the employees. The interest rate payable by the Trust to the
beneficiaries is notified by the Government. The Company has an
obligation to make good the shortfall, if any, between the return on
investments of the Trust and the notified interest rate.
c. Long term compensated absences are provided on the basis of an
actuarial valuation;
d. Termination Benefits are recognised as an expense in the Profit and
Loss Account of the year in which they are incurred.
5. Fixed Assets and Depreciation:
a. Fixed Assets:
Fixed Assets are carried at cost of acquisition less accumulated
depreciation.
b. Depreciation:
i. Depreciation is provided as per the rates and in the manner
prescribed under Schedule XIV to the Companies Act, 1956, on the
Straight Line Method.
ii. Depreciation on additions to assets or on sale/disposal of assets
is calculated pro-rata from the month of such addition or upto the
month of such sale/disposal as the case may be.
6. Investments:
Investments are classified into Long-term and Current Investments. Long
Term Investments are stated at cost of acquisition. Diminution, if any,
in the value of Long Term Investments, other than temporary, is
provided for each investment individually. Current Investments are
stated at lower of cost and fair value.
7. Taxation:
Income-tax expense comprises Current tax and Deferred tax charge or
credit.
a) Provision for current tax is made on the assessable income at the
tax rate applicable to the relevant assessment year.
b) Deferred Tax is recognized on timing difference between taxable
income and accounting income that originated in one period and are
capable of reversal in one or more subsequent period(s). The Deferred
tax Asset and Deferred tax Liability is calculated by applying tax rate
and tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred tax Assets arising on account of brought
forward losses and unabsorbed depreciation under tax laws are
recognised only if there is a virtual certainty of its realisation
supported by convincing evidence. Deferred tax assets on account of
other timing differences are recognised only to the extent there is a
reasonable certainty of its realisation. At each Balance Sheet date the
carrying amount of deferred tax assets are reviewed to reassure
realisation.
8. 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, it is probable that there will be an outflow of resources and
reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are not recognized and are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
Mar 31, 2009
1. Fixed Assets are carried at cost of acquisition less accumulated
depreciation.
2. (a) Depreciation is provided on Straight Line Method at the rates
and in the manner specified from time to time in Schedule XIV to the
Companies Act, 1956.
(b) Depreciation on additions to assets or on sale/discardment of
assets is calculated pro-rata from the month of such addition or upto
the month of such sale, as the case may be.
3. Income from rendering of services is recognised in the year in
which the service is performed as per the proportionate completion
method. All other revenues/incomes and costs/expenditure are generally
accounted on accrual, as they are earned or incurred.
4. The preparation of Financial Statements in conformity with
generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of the financial statements and reported
amounts of revenues and expenses during the reporting period.
Differences between actual results and estimates are recognised in the
period in which the results are known/materialised.
5. Investments are classified into Long Term and Current Investments.
Long Term Investments are stated at cost of acquisition. Diminution, if
any, in the value of Long Term Investments, other than temporary, is
provided for each investment individually. Current Investments are
stated at Cost or Fair Value, whichever is lower.
6. Taxation:
Income-Tax expense comprises current tax; fringe benefits tax (FBT) and
deferred tax charge or credit. Provision for current tax is made on the
assessable income at the tax rate applicable to the relevant assessment
year. Provision for FBT is made on the fringe benefits provided/deemed
to have been provided at the values and rates applicable to the
relevant assessment year. The deferred tax asset and deferred tax
liability is calculated by applying tax rate and tax laws that have
been enacted or substantively enacted by the Balance Sheet date.
Deferred tax assets arising on account of brought forward losses and
unabsorbed depreciation under tax laws, are recognised, only if there
is a virtual certainty of its realisation, supported by convincing
evidence. Deferred tax assets on account of other timing differences
are recognised only to the extent there is a reasonable certainty of
its realisation. At each Balance Sheet date, the carrying amount of
deferred tax assets is reviewed to reassure realisation.
7. Employee Benefits:
A. Short Term Employee Benefits:
All employee benefits payable within twelve months of rendering the
service are recognised in the period in which the employee renders the
related service.
7. Employee Benefits :
A. Short Term Employee Benefits:
All employee benefits payable within twelve months of rendering the
service are recognised in the period in which the employee renders the
related service.
B. Post employment benefits:
Defined Benefit Plans: -Gratuity
The present value of the obligation is determined based on an actuarial
valuation at the close of the year using the Projected Unit Credit
Method. Actuarial gains and losses arising on such valuation are
recognized immediately in the Profit and Loss Account. The fair value
of the Plan Assets of the Trust, constituted for the benefit of the
employees, is reduced from the gross obligation under the Defined
Benefit Plans, to recognize the obligation on a net basis;
-Provident Fund
Monthly contributions are made to a Trust, constituted for the benefit
of the employees. The interest rate payable by the Trust to the
beneficiaries is notified by the Government. The Company has an
obligation to make good the shortfall, if any, between the return on
investments of the Trust and the notified interest rate.
C. Long term compensated absences are provided on the basis of an
actuarial valuation
D. Termination Benefit:
Termination benefits are recognized as and when incurred.
8. 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, it is probable that there will be an outflow of resources and
reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are not recognized and are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
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