Mar 31, 2015
A) Basis of accounting and preparation of financial statements
These financial statements have been prepared to comply with the
Accounting Standards referred to in the Companies (Accounting
Standards) Rules, 2006 notified by the Central Government in exercise
of the power conferred under sub-section (1) (a) of section 642 and the
relevant provisions of the Companies Act, 1956 read with the Rule 7 of
Companies (Accounts) Rules, 2014 in respect of section 133 of the
Companies Act, 2013 (the "Act") and Accounting Standard-30 'Financial
Instruments: Recognition and Measurement' issued by the Institute of
Chartered Accountants of India to the extent it does not contradict any
other accounting standard referred to in section 133 of the Act. The
financial statements have been prepared on a going concern basis under
the historical cost convention on accrual basis. The accounting
policies have been consistently applied by the Company unless otherwise
stated.
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. Based
on the nature of products and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current and non-current classification of
assets and liabilities.
B) 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 amount 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 estimated are recognised in the period in which the results
are known / materialised.
C) Fixed assets Tangible Fixed Assets:
Tangible Fixed Assets are stated at cost of acquisition less
accumulated depreciation and impairment losses, if any. Cost includes
all incidental expenses related to acquisition and attributed to cost
of bringing the asset to its working condition for its intended use.
Losses arising from the retirement of, and gains or losses arising from
disposal of fixed assets which are carried at cost are recognised in
the Statement of Profit and Loss.
Intangible Fixed Assets:
Intangible Assets are stated at acquisition cost, net of accumulated
amortisation and accumulated impairment losses, if any.
D) Depreciation and amortisation
Tangible Fixed Assets:
Depreciation on tangible assets is provided on the Straight Line Method
(SLM) unless otherwise mentioned, pro-rata to the period of use of
assets, based on the useful lives as specified in Part C of Schedule II
to the Companies Act, 2013. Depreciation on assets acquired/ sold
during the year is provided on prorata basis.
As per the provisions of Note 7 of Para C of Schedule II of the
Companies Act, 2013, the carrying amount of the existing assets as on
April 1,2014:
- will be depreciated over the remaining useful life of the asset as
per this Schedule;
- in cases where the remaining useful life of an asset is nil, the
residual value has been transferred to the statement of profit and loss
Intangible Fixed Assets:
Intangible assets are amortised over their estimated useful lives on
straight line method over a period of four years. Amortisation on
additions/ deletions to intangible assets is calculated pro-rata from/
up to the date of such additions/ deletions.
E) Revenue recognition
Income from services
Revenues from Web-hosting services are recognised when services are
rendered in accordance with the terms of the agreements and the revenue
is measurable and there is no uncertainty as to ultimate collection.
Sales of Shares
Income from trading in securities are recognised on accrual basis on
the date of sales and purchases and determined based on the FIFO cost
of the securities sold.
F) Other income
Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable. Dividend:
Dividend income is recognised when the right to receive dividend is
established.
Gain/ Loss on Investments in shares and securities are accounted for
when the Investment is sold on the day of settlement of transaction.
G) Cash flow statement
Cash flows are reported using the indirect method, whereby profit/
(loss) before extraordinary items and 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.
H) Cash and Cash Equivalents
In the cash flow statement, cash and cash equivalents includes cash in
hand, demand deposits with banks and other short-term highly liquid
investments with original maturities of three months or less.
I) Investments
Investments that are readily realisable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments. Current investments are carried at
cost or fair value, whichever is lower. Long-term investments are
carried at cost. However, provision for diminution is made to recognise
a decline, other than temporary, in the value of the investments, such
reduction being determined and made for each investment individually.
J) Inventories
Inventories are valued at cost (on FIFO) or net reusable value. Cost
includes all charges in bringing the inventories to the point of sale,
including other levies.
K) 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
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
and for all periods presented is adjusted for events, such as bonus
shares, other than the conversion of potential equity shares that have
changed the number of equity shares outstanding, without a
corresponding change in resources. For the purpose of calculating
diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of
shares outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
L) Accounting for Taxation of Income
Tax expense for the period, comprising current tax and deferred tax,
are included in the determination of the net profit or loss for the
period. Current tax is measured at the amount expected to be paid to
the tax authorities in accordance with the taxation laws prevailing in
the respective jurisdictions.
Deferred tax is recognised for all the timing differences, subject to
the consideration of prudence in respect of deferred tax assets.
Deferred tax assets are recognised and carried forward only to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realised. Deferred tax assets and liabilities are measured using
the tax rates and tax laws that have been enacted or substantively
enacted by the Balance Sheet date. At each Balance Sheet date, the
group reassesses unrecognised deferred tax assets, if any.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognised amounts and there
is an intention to settle the asset and the liability on a net basis.
Deferred tax assets and deferred tax liabilities are offset when there
is a legally enforceable right to set off assets against liabilities
representing current tax and where the deferred tax assets and the
deferred tax liabilities relate to taxes on income levied by the same
governing taxation laws.
M) Provision and Contingent Liabilities
Provisions: Provisions are recognised when there is a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non occurrence of one
or more uncertain future events not wholly within the control of the
company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made.
N) Impairment
Assessment is done at each Balance Sheet date as to whether there is
any indication that an asset (tangible and intangible) may be impaired.
For the purpose of assessing impairment, the smallest identifiable
group of assets that generates cash inflows from continuing use that
are largely independent of the cash inflows from other assets or groups
of assets, is considered as a cash generating unit. If any such
indication exists, an estimate of the recoverable amount of the
asset/cash generating unit is made. Assets whose carrying value
exceeds their recoverable amount are written down to the recoverable
amount. Recoverable amount is higher of an asset's or cash generating
unit's net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the
continuing use of an asset and from its disposal at the end of its
useful life. Assessment is also done at each Balance Sheet date as to
whether there is any indication that an impairment loss recognised for
an asset in prior accounting periods may no longer exist or may have
decreased.
Mar 31, 2014
A) Basis of accounting and preparation of financial statements
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956.
Based on the nature of products and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current and non-current classification of
assets and liabilities.
B) 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 amount 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 estimated are recognised in the period in which the results
are known / materialised.
C) Fixed assets
Tangible Fixed Assets:
Tangible Fixed Assets are stated at cost of acquisition less
accumulated depreciation and impairment losses, if any. Cost includes
all incidental expenses related to acquisition and attributed to cost
of bringing the asset to its working condition for its intended use.
Losses arising from the retirement of, and gains or losses arising from
disposal of fixed assets which are carried at cost are recognised in
the Statement of Profit and Loss.
Intangible Fixed Assets:
Intangible Assets are stated at acquisition cost, net of accumulated
amortisation and accumulated impairment losses, if any
D) Depreciation and amortisation
Depreciation on Tangible assets has been provided on the straight-line
method as per the rates prescribed in Schedule XIV to the Companies
Act, 1956. Depreciation on assets acquired/sold during the year is
provided on prorata basis. Assets individually costing Rs. 5,000 or
less are fully depreciated in the year of purchase.
Intangible assets are amortised over their estimated useful lives on
straight line method over a period of four years. Amortisation on
additions/ deletions to intangible assets is calculated pro-rata from/
up to the date of such additions/ deletions.
E) Revenue recognition
Income from services
Revenues from Web-hosting services are recognised when services are
rendered in accordance with the terms of the agreements and the revenue
is measurable and there is no uncertainty as to ultimate collection.
F) Other income
Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable. Dividend:
Dividend income is recognised when the right to receive dividend is
established.
G) Cash flow statement
Cash flows are reported using the indirect method, whereby profit/
(loss) before extraordinary items and 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.
H) Cash and Cash Equivalents
In the cash flow statement, cash and cash equivalents includes cash in
hand, demand deposits with banks and other short-term highly liquid
investments with original maturities of three months or less.
I) Investments
Investments that are readily realisable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments. Current investments are carried at
cost or fair value, whichever is lower. Long-term investments are
carried at cost. However, provision for diminution is made to recognise
a decline, other than temporary, in the value of the investments, such
reduction being determined and made for each investment individually.
J) 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
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
and for all periods presented is adjusted for events, such as bonus
shares, other than the conversion of potential equity shares that have
changed the number of equity shares outstanding, without a
corresponding change in resources. For the purpose of calculating
diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of
shares outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
K) Accounting for Taxation of Income
Tax expense for the period, comprising current tax and deferred tax,
are included in the determination of the net profit or loss for the
period. Current tax is measured at the amount expected to be paid to
the tax authorities in accordance with the taxation laws prevailing in
the respective jurisdictions.
Deferred tax is recognised for all the timing differences, subject to
the consideration of prudence in respect of deferred tax assets.
Deferred tax assets are recognised and carried forward only to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realised. Deferred tax assets and liabilities are measured using
the tax rates and tax laws that have been enacted or substantively
enacted by the Balance Sheet date. At each Balance Sheet date, the
group reassesses unrecognised deferred tax assets, if any.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognised amounts and there
is an intention to settle the asset and the liability on a net basis.
Deferred tax assets and deferred tax liabilities are offset when there
is a legally enforceable right to set off assets against liabilities
representing current tax and where the deferred tax assets and the
deferred tax liabilities relate to taxes on income levied by the same
governing taxation laws.
L) Provision and Contingent Liabilities
Provisions: Provisions are recognised when there is a present
obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non occurrence of one
or more uncertain future events not wholly within the control of the
company or a present obligation that arises from past events where it
is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made.
M) Impairment
Assessment is done at each Balance Sheet date as to whether there is
any indication that an asset (tangible and intangible) may be impaired.
For the purpose of assessing impairment, the smallest identifiable
group of assets that generates cash inflows from continuing use that
are largely independent of the cash inflows from other assets or groups
of assets, is considered as a cash generating unit. If any such
indication exists, an estimate of the recoverable amount of the
asset/cash generating unit is made. Assets whose carrying value
exceeds their recoverable amount are written down to the recoverable
amount. Recoverable amount is higher of an asset''s or cash generating
unit''s net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the
continuing use of an asset and from its disposal at the end of its
useful life. Assessment is also done at each Balance Sheet date as to
whether there is any indication that an impairment loss recognised for
an asset in prior accounting periods may no longer exist or may have
decreased.
Mar 31, 2013
1.1 Basis of accounting and preparation of financial statements
The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting and in
accordance with the provisions of the Companies Act, 1956 (''the Act''),
and the accounting principles generally accepted in India and comply
with the accounting standards prescribed in the Companies (Accounting
Standards) Rules, 2006 issued by the Central Government, in
consultation with the National Advisory Committee on Accounting
Standards, to the extent applicable.
The Revised Schedule VI has become effective from 1 April, 2011 for the
preparation of financial statements. This has significantly impacted
the disclosure and presentation made in the financial statements.
Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
These financial statements are presented in Indian rupees and rounded
off to nearest thousands unless otherwise stated.
1.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
1.3 Inventories
Inventories are valued at the lower of cost (on FIFO basis) and the net
realisable value after providing for obsolescence and other losses,
where considered necessary. Cost includes all charges in bringing the
goods to the point of sale, including octroi and other levies, transit
insurance and receiving charges.
1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value. Cash and cash
equivalents includes fixed deposits which are freely remissible but
excludes interest accrued on fixed deposits.
1.5 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and 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.
1.6 Depreciation and amortisation
Depreciation has been provided on the straight-line method as per the
rates prescribed in Schedule XIV to the Companies Act, 1956.
Depreciation on assets acquired/sold during the year is provided on
prorata basis
The estimated useful life of the intangible assets and the amortisation
period are reviewed at the end of each financial year and the
amortisation method is revised to reflect the changed pattern.
1.7 Revenue recognition
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
exclude value added tax.
Income from services
Revenues from services rendered are recognised when services are
rendered and when the revenue is measurable and there is no uncertainty
as to ultimate collection
Other Income
Interest income is accounted on accrual basis. Dividend income is
accounted for when the right to receive it is established.
1.8 Fixed assets
Tangible assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of fixed assets includes interest
on borrowings attributable to acquisition of qualifying fixed assets up
to the date the asset is ready for its intended use and other
incidental expenses incurred up to that date. Exchange differences
arising on restatement / settlement of long-term foreign currency
borrowings in any in near future relating to acquisition of depreciable
fixed assets will be adjusted to the cost of the respective assets and
depreciated over the remaining useful life of such assets in that
respective financial year. Subsequent expenditure relating to fixed
assets is capitalised only if such expenditure results in an increase
in the future benefits from such asset beyond its previously assessed
standard of performance.
Fixed assets retired from active use and held for sale are stated at
the lower of their net book value and net realisable value and are
disclosed separately in the Balance Sheet.
Intangible assets
Intangible assets are carried at cost less accumulated amortisation and
impairment losses, if any. The cost of an intangible asset comprises
its purchase price, including any import duties and other taxes (other
than those subsequently recoverable from the taxing authorities), and
any directly attributable expenditure on making the asset ready for its
intended use and net of any trade discounts and rebates. Subsequent
expenditure on an intangible asset after its purchase / completion is
recognised as an expense when incurred unless it is probable that such
expenditure will enable the asset to generate future economic benefits
in excess of its originally assessed standards of performance and such
expenditure can be measured and attributed to the asset reliably, in
which case such expenditure is added to the cost of the asset.
1.9 Foreign currency transactions and translations
Foreign currency transactions will be accounted at the exchange rates
ruling on the date of the transactions. At the year end all monetary
assets and liabilities denominated in foreign currency will be restated
at the closing exchange rates.
Treatment of exchange differences arising out of actual payment /
realisations and from the year end restatement referred to above will
be adjused to profit and loss account, subject to transaction.
1.10 Investments
Long-term investments (excluding investment properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and
duties.
1.11 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a later date. The
dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e.
average market value of the outstanding shares). Dilutive potential
equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are
adjusted for share splits / reverse share splits and bonus shares, as
appropriate.
1.12 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961 .Minimum Alternate Tax (MAT) paid in accordance with the tax
laws, which gives future economic benefits in the form of adjustment to
future income tax liability, is considered as an asset if there is
convincing evidence that the Company will pay normal income tax.
Accordingly, MAT is recognised as an asset in the Balance Sheet when it
is probable that future economic benefit associated with it will flow
to the Company. Deferred tax is recognised on timing differences, being
the differences between the taxable income and the accounting income
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax is measured using the tax rates and
the tax laws enacted or substantially enacted as at the reporting date.
Deferred tax liabilities are recognised for all timing differences.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward of losses are recognised only if there is virtual certainty
that there will be sufficient future taxable income available to
realise such assets. Deferred tax assets are recognised for timing
differences of other items only to the extent that reasonable certainty
exists that sufficient future taxable income will be available against
which these can be realised. Deferred tax assets and liabilities are
offset if such items relate to taxes on income levied by the same
governing tax laws and the Company has a legally enforceable right for
such set off. Deferred tax assets are reviewed at each Balance Sheet
date for their realisability.
1.13 Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if tbe carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
1.14 Provision and Contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates.
Mar 31, 2010
A. Basis of Accounting
The financial statements are prepared under the historical cost
convention, on a going concern concept and in compliance with the
Accounting Standards notified by the Companies (Accounting Standard)
Rules, 2006 and the relevant provisions of the Companies Act 1956. The
Company follows mercantile system of accounting and recognizes Income &
Expenditure on accrual basis to the extent measurable and where there
is certainty of ultimate realization in respect of incomes. Accounting
policies not specifically referred to otherwise, are consistent and in
consonance with the generally accepted accounting principles.
B. Recognition of Income & Expenditure
The Company follows the accrual basis of accounting except in the
following cases, where the same are recorded on cash basis on
ascertainment of right and obligation.
i) Payment of Bonus
ii) Gratuity Liability, if any.
C. Fixed Assets
All fixed Assets are stated at cost of acquisition less accumulated
depreciation. Cost includes all incidental expenses related to
acquisition.
D. Impairment of Fixed Assets:
At the end of each year, the Company determines whether a provision
should be made for impairment loss on fixed assets by considering the
indication that an impairment loss may have occurred in accordance with
Accounting Standard 28 on "Impairment of Assets". Where the recoverable
amount of any fixed assets is lower than its carrying amount, a
provision for impairment loss on fixed assets is made.
E. Depreciation
i) Depreciation on Fixed Assets has been provided on Straight Line
Method as per the rates specified in Scheduled XIV of the Companies
Act, 1956.
ii) Depreciation on acquired/sold during the year is provided on
prorata basis.
F. Investment
Investments are valued at cost.
G. Miscellaneous Expenditure
I Preliminary expenditures are amortised in the year in which incurred.
H. Treatment of Contingent Liabilities
Contingent liabilities are disclosed by way of notes to accounts.
Disputed demands in respect of income tax and other proceeding are
disclosed as contingent liabilities. Payments in respect of such
demands, if any are shown as advances.
L. Accounting for Taxation of Income:
Current taxes
Provision for current income-tax is recognized in accordance with the
provisions of Indian Income- tax Act, 1961 and is made annually based
on the tax liability after taking credit for tax allowances and
exemptions.
Deferred taxes
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to timing differences that result between the
profits offered for income taxes and the profits as per the financial
statements. Deferred tax assets and liabilities are measured using the
tax rates and the tax laws that have been enacted or substantially
enacted at the balance sheet date. The effect of a change in tax rates
on deferred tax and assets or liabilities are recognized in the period
that includes the enactment date. Deferred tax Assets are recognized
only to the extent there is reasonable certainty that the assets can be
realized in the future. Deferred Tax Assets are reviewed as at each
Balance Sheet date.