Mar 31, 2012
1. SYSTEM OF ACCOUNTING
(a) The company generally, except under uncertain circumstances,
follows mercantile method of accounting and recognizes income and
expenditure on accrual basis.
(b) Financial statements are based on historical cost.
(c) Accounting Policies not specifically referred to otherwise, are
consistent and in consonance with generally accepted accounting
principles followed by the company.
(d) 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 Revised Schedule VI to the Companies Act, 1956.
(e) In view of nature of business, the Company has ascertained, its
operating cycle as 12 months for the purpose of current/non-current
classification of assets and liabilities, on item to item basis.
2. FIXED ASSETS
All fixed assets are stated at cost of acquisition less accumulated
depreciation.
3. INVESTMENTS
(a) Long term investments are being valued at cost of acquisition.
Provision is made to recognize a decline, other than temporary, in the
carrying amount of long term investments.
(b) Short term investments are being valued at cost or market values
whichever is lower.
4. EXPENDITURE FOR BENEFIT OF ENDURING NATURE
Miscellaneous expenditure, such as preliminary expenditure is amortized
over a period of 5 years from the financial year in which it is
incurred.
5. INCOME FROM INVESTMENTS
Income from investments, where appropriate, is taken into revenue in
full on declaration or receipt and tax deducted at source thereon is
treated as advance tax.
6. TREATMENT OF CONTINGENT LIABILITIES
Contingent liabilities are disclosed by way of note to the accounts.
Disputed demands in respect of income tax, sales tax etc. are disclosed
as contingent liabilities. Payments in respect of such demands, if any,
are shown as advances till the final disposal of the matter.
7. TAXATION
Income tax expense comprises of current tax and deferred tax charge or
credit. Provision for current tax is made on the assessable income at
the rate applicable for the relevant assessment year. The deferred tax
assets and deferred tax liabilities are calculated by applying tax rate
and tax laws that have been enacted or substantively enacted by the
balance sheet date. Deferred tax assets, arising mainly on account of
unabsorbed depreciation and losses under tax laws, are recognized, only
if there is a virtual certainty of its realization, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognized, only to the extent there is a reasonable
certainty of its realization. At each balance sheet date the carrying
amount of deferred tax assets are reviewed to reassure realization.
8. IMPAIRMENT LOSSES
Impairment loss is provided to the extent the carrying amount(s) of
assets exceed their recoverable amounts(s). Recoverable amount is the
higher of an assets net selling price and its value in use. Value in
use is the present value of estimated future cash flow expected to
arise from the continuing use of the asset ancfTrsm its disposal at the
end of its useful life. Net selling price is the amount obtainable from
sale of the asset in^an arm length transaction between knowledgeable,
willing parties, less the cost of disposal.
Mar 31, 2010
1. SYSTEM OF ACCOUNTING
(a) The Company generally, except under uncertain circumstances,
follows mercantile method of accounting and recognizes income and
expenditure on accrual basis.
(b) Financial statements are based on historical cost.
(c) Accounting Policies not specifically referred to otherwise, are
consistent and in consonance with generally accepted accounting
principles followed by the Company.
2. FIXED ASSETS
All fixed assets are stated at cost of acquisition less accumulated
depreciation.
3. INVESTMENTS
(a) Long term investments are being valued at cost of acquisition.
Provision is made to recognize a decline, other than temporary, in the
carrying amount of long term investments.
(b) Short term investments are being valued at cost or market values
whichever is lower.
4. EXPENDITURE FOR BENEFIT OF ENDURING NATURE
Miscellaneous expenditure, such as preliminary expenditure and share
issue expenditure is amortized over a period of 5 years from the
financial year in which it is incurred.
5. INCOME FROM INVESTMENTS
Income from investments, where appropriate, is taken into revenue in
full on declaration or receipt and tax deducted at source thereon is
treated as advance tax.
6. TREATMENT OF CONTINGENT LIABILITIES
Contingent liabilities are disclosed by way of note to the accounts.
Disputed demands in respect of income tax, sales tax etc. are disclosed
as contingent liabilities. Payments in respect of such demands, if any,
are shown as advances till the final disposal of the matter.
7. TAXATION
Income tax expense comprises of current tax and deferred tax charge or
credit. Provision for current tax is made on the assessable income at
the rate applicable for the relevant assessment year. The deferred tax
assets and deferred tax liabilities are calculated by applying tax rate
and tax laws that have been enacted or substantively enacted by the
balance sheet date. Deferred tax assets, arising mainly on account of
unabsorbed depreciation and losses under tax laws, are recognized, only
if there is a virtual certainty of its realization, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognized, only to the extent there is a reasonable
certainty of its/feSfcJization. At each balance sheet date the
carrying amount of deferred tax-i assets are reviewed to reassure
realization.
8. IMPAIRMENT LOSSES
Impairment loss is provided to the extent the carrying amount(s) of
assets exceed their recoverable amounts(s). Recoverable amount is the
higher of an assets net selling price and its value in use. Value in
use is the present value of estimated future cash flow expected to
arise from the continuing use of the asset and from its disposal at the
end of its useful life. Net selling price is the amount obtainable from
sale of the asset in an arm length transaction between knowledgeable,
willing parties, less the cost of disposal.