Mar 31, 2015
(a) Tangible fixed assets
Fixed assets are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase
price (net of CENVAT Credit), borrowing costs if capitalization
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
(b) Depreciation on tangible fixed assets
Depreciation on fixed assets is provided on Straight Line Method as
per rates computed based on useful life prescribed in schedule II
of the Companies Act, 2013. Depreciation on revalued fixed assets is
directly charged to Revaluation Reserve. No depreciation is being
provided on leasehold land. Effective from 1st April, 2014, the
Company has charged depreciation based on following useful life of the
assets as per the requirement of Schedule II of Companies Act, 2013
read with Guidance note issued by ICAI on Depreciation:-
Due to above, additional amount of depreciation is debited to profit
and loss account by Rs. 15.56 lacs during the year and carrying amount
of assets has accordingly been revised.
(c) Impairment
Fixed assets are reviewed for impairment whenever events or changes in
circumstances indicate that their carrying amount may not be
recoverable.
An impairment loss is recognized in the Statement of Profit and Loss
if the carrying amount of an asset exceeds its recoverable amount.
(d) Use of estimates
The preparation of financial statements is in conformity with Indian
GAAP requires the management to make judgments, estimates and
assumptions that affect the reported amount of revenues, expenses,
assets and liabilities and disclosure of contingent liabilities at the
end of the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
(e) Leases
Where the Company is the lessee
Leases where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased item, are classified as
operating leases. Operating lease payments are recognized as an
expense in the statement of Profit and Loss on a straight-line basis
over the lease term.
(f) Investments
Investments that are readily realizable and intended to be held for
not more than a year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long-term investments are carried at
cost.
(g) Borrowing Cost
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
(h) Inventories
Finished and semi-finished products produced and purchased by the
Company are carried at lower of cost and net realizable value.
Work-in-progress is carried at lower of cost and net realizable value.
Raw materials purchased are carried at cost.
Store and spare parts are carried at cost.
Cost has been determined by using the FIFO method.
(i) Revenue Recognition
(i) Sale of goods: Revenue from sale of goods is recognized net of
rebates and discounts on transfer of significant risks and rewards of
ownership to the buyer. Sale of goods is recognized gross of excise
duty but net of sales tax and value added tax.
(ii) Income from Services: Revenue from services is accounted for in
accordance with the terms of contracts, as and when these services are
rendered.
(iii) Interest: Revenue is recognized on a time proportion basis
taking into account the amount outstanding and the rate applicable.
(iv) Dividend: Dividend Income is recognized when right to receive is
established.
(j) Retirement and other benefits
(i) Retirement benefits in the form of Provident Fund is a defined
contribution scheme and the contributions are charged to the statement
of profit and loss for the year when the contributions to respective
funds are due. There are no other obligations other than the
contribution payable to the fund.
(ii) Gratuity liability is defined benefit obligation and is provided
for on the basis of an actuarial valuation on projected unit credit
(PUC) method made at the end of each financial year.
(k) Income taxes
Tax expense comprises of current and deferred taxes. Current income
tax is measured at the amount expected to be paid to the income tax
authorities in accordance with Income Tax Act, 1961. Deferred income
taxes reflect the impact of current year timing differences between
taxable income and accounting income for the year and reversal of
timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. If the Company
has unabsorbed depreciation or carry forward tax losses, entire
deferred tax assets are recognized only if there is virtual certainty
supported by convincing evidence that such deferred tax assets can be
realized against future taxable profits.
Minimum Alternate Tax (MAT) paid in during a year is charged to the
statement of profit and loss as current tax. MAT credit is recognized
as an asset only when and to the extent there is convincing evidence
that the company will pay normal income tax during the specified
period i.e. for the period for which MAT credit is allowed to be
carried forward.
(l) Earnings per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to 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.
(m) Contingent liability
Contingent liability is not provided for in the accounts and is
recognized by way of notes.
(n) Amortization of Misc. Expenditure
Miscellaneous expenditure is amortized over a period of five years.
Mar 31, 2014
1. Corporate information
National General Industries Ltd. (''The Company'') is engaged in the
production and selling of Steel. The Company has manufacturing
facilities at Ghaziabad, U.P. and Bhiwadi, Rajasthan.
2. Basis of preparation
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rules, 2006, (as amended)
and the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on an accrual basis and under the
historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
2.1 Summary of significant accounting policies
(a) Tangible fixed assets
Fixed assets, are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase
price (net of CENVAT Credit), borrowing costs if capitalization
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
(b) Depreciation on tangible fixed assets
Depreciation on fixed assets is provided on Straight Line Method as per
rates computed based on estimated useful lives, which are equal to the
corresponding rates prescribed in Schedule XIV to the Companies Act,
1956. Depreciation on revalued fixed assets is charged to Revaluation
Reserve. No depreciation is being provided on leasehold land.
(c) Impairment
Fixed assets are reviewed for impairment whenever events or changes in
circumstances indicate that their carrying amount may not be
recoverable.
An impairment loss is recognized in the Statement of Profit and Loss if
the carrying amount of an asset exceeds its recoverable amount.
(d) Use of estimates
The preparation of financial statements is in conformity with Indian
GAAP requires the management to make judgments, estimates and
assumptions that affect the reported amount of revenues, expenses,
assets and liabilities and disclosure of contingent liabilities at the
end of the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
(e) Leases
Where the Company is the lessee
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating leases. Operating lease payments are recognized as an expense
in the statement of Profit and Loss on a straight-line basis over the
lease term.
(f) Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long-term investments are carried at
cost.
(g) Borrowing Cost
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
(h) Inventories
Finished and semi-finished products produced and purchased by the
Company are carried at lower of cost and net realizable value.
Work-in-progress is carried at lower of cost and net realizable value.
Raw materials purchased are carried at cost.
Store and spare parts are carried at cost.
Cost has been determined by using the FIFO method.
(i) Revenue Recognition
(i) Sale of goods :Revenue from sale of goods is recognized net of
rebates and discounts on transfer of significant risks and rewards of
ownership to the buyer. Sale of goods is recognized gross of excise
duty but net of sales tax and value added tax.
(ii) Income from Services :Revenue from services is accounted for in
accordance with the terms of contracts, as and when these services are
rendered.
(iii) Interest : Revenue is recognized on a time proportion basis
taking into account the amount outstanding and the rate applicable.
(iv) Dividend : Dividend Income is recognized when right to receive is
established.
(j) Retirement and other benefits
(i) Retirement benefits in the form of Provident Fund is a defined
contribution scheme and the contributions are charged to the statement
of profit and loss for the year when the contributions to respective
funds are due. There are no other obligations other than the
contribution payable to the fund.
(ii) Gratuity liability is defined benefit obligation and is provided
for on the basis of an actuarial valuation on projected unit credit
(PUC) method made at the end of each financial year.
(k) Income taxes
Tax Expense comprises of current and deferred taxes. Current income tax
is measured at the amount expected to be paid to the income tax
authorities in accordance with Income Tax Act, 1961. Deferred income
taxes reflect the impact of current year timing differences between
taxable income and accounting income for the year and reversal of
timing differences of earlier years.
Deferred Tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. If the Company
has unabsorbed depreciation or carry forward tax losses, entire
deferred tax assets are recognized only if there is virtual certainty
supported by convincing evidence that such deferred tax assets can be
realized against future taxable profits.
Minimum Alternate Tax (MAT) paid in during a year is charged to the
statement of profit and loss as current tax. MAT credit is recognised
as an asset only when and to the extent there is convincing evidence
that the company will pay normal income tax during the specified period
i.e. for the period for which MAT credit is allowed to be carried
forward.
(l) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to 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.
(m) Contingent liability
Contingent liability is not provided for in the accounts and is
recognized by way of notes.
(n) Amortisation of Misc. Expenditure
Miscellaneous expenditure is amortized over a period of five years.
Mar 31, 2013
(a) Tangible fixed assets
Fixed assets, are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase
price (net of CENVAT Credit), borrowing costs if capitalization
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
(b) Depreciation on tangible fixed assets
Depreciation on fixed assets is provided on Straight Line Method as per
rates computed based on estimated useful lives, which are equal to the
corresponding rates prescribed in Schedule XIV to the Companies Act,
1956. Depreciation on revalued fixed assets is directly charged to
Revaluation Reserve. No depreciation is being provided on leasehold
land.
(c) Impairment
Fixed assets are reviewed for impairment whenever events or changes in
circumstances indicate that their carrying amount may not be
recoverable.
An impairment loss is recognized in the Statement of Profit and Loss if
the carrying amount of an asset exceeds its recoverable amount.
(d) Use of estimates
The preparation of financial statements is in conformity with Indian
GAAP requires the management to make judgments, estimates and
assumptions that affect the reported amount of revenues, expenses,
assets and liabilities and disclosure of contingent liabilities at the
end of the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
(e) Leases
Where the Company is the lessee
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating leases. Operating lease payments are recognized as an expense
in the statement of Profit and Loss on a straight?line basis over the
lease term.
(f) Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long?term investments. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long?term investments are carried at
cost.
(g) Borrowing Cost
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
(h) Inventories
Finished and semi?finished products produced and purchased by the
Company are carried at lower of cost and net realizable value.
Work?in?progress is carried at lower of cost and net realizable value.
Raw materials purchased are carried at cost. Store and spare parts are
carried at cost.
Cost has been determined by using the FIFO method.
(i) Revenue Recognition
(i) Sale of goods : Revenue from sale of goods is recognized net of
rebates and discounts on transfer of significant risks and rewards of
ownership to the buyer. Sale of goods is recognized gross of excise
duty but net of sales tax and value added tax.
(ii) Income from Services : Revenue from services is accounted for in
accordance with the terms of contracts, as and when these services are
rendered.
(iii) Interest : Revenue is recognized on a time proportion basis
taking into account the amount outstanding and the rate applicable.
(iv) Dividend : Dividend Income is recognized when right to receive is
established.
(j) Retirement and other benefits
(i) Retirement benefits in the form of Provident Fund is a defined
contribution scheme and the contributions are charged to the statement
of profit and loss for the year when the contributions to respective
funds are due. There are no other obligations other than the
contribution payable to the fund.
(ii) Gratuity liability is defined benefit obligation and is provided
for on the basis of an actuarial valuation on projected unit credit
(PUC) method made at the end of each financial year.
(k) Income taxes
Tax expense comprises of current and deferred taxes. Current income tax
is measured at the amount expected to be paid to the income tax
authorities in accordance with Income Tax Act, 1961. Deferred income
taxes reflect the impact of current year timing differences between
taxable income and accounting income for the year and reversal of
timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. If the Company
has unabsorbed depreciation or carry forward tax losses, entire
deferred tax assets are recognized only if there is virtual certainty
supported by convincing evidence that such deferred tax assets can be
realized against future taxable profits.
Minimum Alternate Tax (MAT) paid in during a year is charged to the
statement of profit and loss as current tax. MAT credit is recognised
as an asset only when and to the extent there is convincing evidence
that the company will pay normal income tax during the specified period
i.e. for the period for which MAT credit is allowed to be carried
forward.
(l) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to 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.
(m) Contingent liability
Contingent liability is not provided for in the accounts and is
recognized by way of notes.
(n) Amortisation of Misc. Expenditure
Miscellaneous expenditure is amortized over a period of five years.
*Working Capital loans from banks are secured by first charge on all
current assets of company, both present & future, including stocks of
raw materials, finished and semi-finished goods and book debts of the
Company. These facilities are further secured by collateral security of
land of the company situated at 9th Milestone, Ghaziabad. The managing
director and director has also given a personnel guarantee to the bank
for this facility. The working capital loans are repayable on demand
and carry interest @ 12.50 % p.a.
Mar 31, 2012
1.1 ACCOUNTING CONVENTION:
The Company follows the Mercantile System of accounting and recognizes
Income & Expenditure on accrual basis unless specifically stated. The
accounts are prepared on historical cost convention basis and follows
the concept of going concern. Accounting policies not referred to
otherwise are consistent with generally accepted accounting principles.
1.2 FIXED ASSETS:
Fixed Assets are stated at cost net of CENVAT less accumulated
depreciation. Capital work in progress is shown at cost. Cost includes
all cost of construction, acquisition, installation, erection etc., and
preoperative expenses directly related to the fixed assets, not yet
commissioned.
1.3 DEPRECIATION:
Depreciation has been provided on original cost of the Assets including
the amount of revaluation on the straight-line method basis at the
rates prescribed by Sch.-XIV of the Companies Act, 1956 on daily
pro-rata basis.
1.4 INVENTORIES :
(a) Raw Material & Stores and spares are valued at cost or market value
whichever is lower.
(b) Cost has been determined by using the FIFO method.
(c) Finished Goods & Scrap is valued at net realizable value.
1.5 INVESTMENTS:
Investments that are readily realizable and intended to be held for not
more than a year are classified as Current Investments. All other
investments are classified as Long Term Investment. All Investments are
carried at cost. However, provision for diminution in value is made to
recognize any decline, other than temporary in the value of the
investments.
1.6 RETIREMENT BENEFITS:
The Company provides for gratuity covering all the eligible employees
in accordance of the payment of Gratuity Act, 1972. In addition,
employee''s benefits from provident fund, which is a defined
contribution plan, both the employer and the employee make monthly
contributions to this provident fund account which is recognized in the
Profit and Loss Account after considering actuarial gain and losses and
benefits paid during the year.
1.7 TAXATION:
Income Tax expenses comprise current tax, deferred tax, securities
transaction tax. The deferred tax assets or liabilities resulting from
"timing difference" between the book profit and taxable profit is
recognized using current tax rates and laws that have been enacted or
substantively enacted as on the balance sheet date. Deferred tax assets
are recognized only to the extent there is reasonable certainty of
realization in future. Such assets are reviewed as at each balance
sheet date to reassess realization.
1.8 LEASE RENTAL PAYMENTS:
The Company has operating lease for the Registered Office premises that
is renewable on a periodic basis. Operating lease payment is recognized
as expense in the Profit & Loss Account on a straight-line basis over
the lease term.
1.9 IMPAIRMENT OF ASSETS:
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value. All fixed assets as at the date of
Balance Sheet are not more than its recoverable value; hence no
provision is required to be made for impairment losses.
1.10 CONTINGENT LIABILITIES:
Contingent Liabilities are not provided for and are disclosed by way of
notes.
1.11 AMORTIZATION OF MISCELLANEOUS EXPENDITURE:
Miscellaneous Expenditure is amortized over a period of 5 years.
1.12 REVENUE RECOGNITION
a) Dividend Income is recognized when right to receive is established.
Interest income is recognized on time proportion basis taking into
account the amount outstanding and rate applicable.
b) Sales is recognized when goods are dispatched from the factory and
are stated at net of Cash Discounts, Shortages, Claims Settled, Rate
Difference, Rebate Allowed to Customers, Textiles Committee Cess and
fee but is inclusive Excise Duty.
1.13 BORROWING COSTS:
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to Profit and Loss account.
1.14 CASH FLOW :
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for effects of transactions of a noncash nature,
any deferrals or accruals of past or future operating cash receipts of
payments and item of income or expenses associated with investing or
financing cash flows. The cash flows from operating, investing and
financing activities of the company are segregated.
Mar 31, 2010
1. ACCOUNTING CONVENTION: The Company follows the Mercantile System of
Accounting and recognizes Income & Expenditure on Accrual basis unless
specifically stated. The Accounts are prepared on historical cost basis
and follows the concept of going concern. Accounting Policies not
referred to otherwise are consistent with generally accepted Accounting
Principles.
2. FIXED ASSETS: Fixed Assets are stated at cost net of CENVAT less
accumulated depreciation.
3. DEPRECIATION: Depreciation has been provided on original cost of
the Assets including the amount of revaluation on the straight-line
method basis at the rates prescribed by Sch.-XIV of the Companies Act,
1956 on daily pro-rata basis.
4. INVENTORIES:
a) Raw Material & Stores and spares are valued at cost or market value
whichever is lower
b) Cost has been determined by using the FIFO method.
c) Finished Goods & Scrap is valued at net realizable value.
5. INVESTMENTS: Investments that are readily realizable and intended
to be held for not more than a year are classified as Current
Investments. All other investments are classified as Long Term
Investment. All Investments are carried at cost. However, provision for
diminution in value is made to recognize any decline, other than
temporary in the value of the investments.
6. RETIREMENT BENEFITS: The Company provides for gratuity covering all
the eligible employees in accordance of the payment of Gratuity Act,
1972. In addition, employees benefits from provident fund, which is a
defined contribution plan, both the employer and the employee make
monthly contributions to this provident fund account.
7. TAXATION: Income Tax expenses comprise current tax, deferred tax,
securities transaction tax and fringe benefit tax. The deferred tax
assets or liabilities resulting from "timing difference" between the
book profit and taxable profit is recognized using current tax rates
and laws that have been enacted or substantively enacted as on the
balance sheet date. Deferred tax assets are recognized only to the
extent there is reasonable certainty of realization in future. Such
assets are reviewed as at each balance sheet date to reassess
realization.
8. LEASE RENTAL PAYMENTS: The Company has operating lease for the
Registered Office premises that is renewable on a periodic basis.
Operating lease payment is recognized as expense in the Profit & Loss
Account on a straight-line basis over the lease term.
9. IMPAIRMENT OF ASSETS: An assets is treated as impaired when the
carrying cost of assets exceeds its recoverable value. All fixed assets
as at the date of Balance Sheet are not more than its recoverable
value; hence no provision is required to be made for impairment losses.
10. CONTINGENT LIABILITIES: Contingent Liabilities are not provided
for and are disclosed by way of notes.
11. AMORTIZATION OF MISCELLANEOUS EXPENDITURE: Miscellaneous
Expenditure is amortized over a period of 5 years.
12. BORROWING COSTS: Borrowing Costs that are attributable to the
acquisition or construction of qualifying assets are capitalized as
part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its
intended use. All other borrowing costs are charged to Profit and Loss
account.
Mar 31, 2009
1. ACCOUNTING CONVENTION: The Company follows the Mercantile System of
Accounting and recognizes Income & Expenditure on Accrual basis unless
specifically stated. The Accounts are prepared on historical cost basis
and follows the concept of going concern. Accounting Policies not
referred to otherwise are consistent with generally accepted Accounting
Principles.
2. FIXED ASSETS: Fixed Assets are stated at cost net of CENVAT less
accumulated depreciation.
3. DEPRECIATION: Depreciation has been provided on original cost of
the Assets including the amount of revaluation on the straight-line
method basis at the rates prescribed by Sch.-XIV of the Companies Act,
1956 on daily pro-rata basis. Depreciation aggregating to Rs. 440529/-
on revalued amount of Fixed Assets has been directly charged to
Revaluation Reserve.
4. INVENTORIES :
a) Raw Material & Stores and spares are valued at cost or market value
whichever is lower
b) Cost has been determined by using the FIFO method.
c) Finished Goods & Scrap is valued at net realizable value.
5. INVESTMENT: Investments that are readily realizable and intended to
be held for not more than a year are classified as Current Investments.
All other investments are classified as Long Term Investment. All
Investments are carried at cost. However, provision for diminution in
value is made to recognize any decline, other than temporary in the
value of the investments.
6. RETIREMENT BENEFITS: The Company provides for gratuity covering all
the eligible employees in accordance of the payment of Gratuity Act,
1972. In addition, employeeÃs benefits from provident fund, which is a
defined contribution plan, both the employer and the employee make
monthly contributions to this provident fund account.
7. TAXATION: Income Tax expenses comprise current tax, deferred tax,
securities transaction tax and fringe benefit tax. The deferred tax
assets or liabilities resulting from Ãtiming differenceà between the
book profit and taxable profit is recognized using current tax rates
and laws that have been enacted or substantively enacted as on the
balance sheet date. Deferred tax assets are recognized only to the
extent there is reasonable certainty of realization in future. Such
assets are reviewed as at each balance sheet date to reassess
realization.
8. LEASE RENTAL PAYMENTS: The Company has operating lease for the
Registered Office premises that is renewable on a periodic basis.
Operating lease payment is recognized as expense in the Profit & Loss
Account on a straight-line basis over the lease term.
9. IMPAIRMENT OF ASSETS: An assets is treated as impaired when the
carrying cost of assets exceeds its recoverable value. All fixed assets
as at the date of Balance Sheet are not more than its recoverable
value; hence no provision is required to be made for impairment losses.
10. CONTINGENT LIABILITIES: Contingent Liabilities are not provided for
and are disclosed by way of notes.
11. AMORTIZATION OF MISCELLANEOUS EXPENDITURE: Miscellaneous
Expenditure is amortized over a period of 5 years.
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