Mar 31, 2013
I) Accounting Convention:
The financial statement has been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles as adopted consistently by the company.
ii) Use of Estimates:
The preparation of financial statements, in conformity with the
generally accepted accounting principles, requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reported year. Differences between
the actual results and estimates are recognized in the year in which
the results are known / materialized.
iii) Fixed Assets :
Fixed Assets are stated at cost less accumulated depreciation.
iv) Depreciation :
Depreciation on Fixed Assets has been provided on Straight Line Method
and Written Off over a period as estimated by the management
Computer and its Accessories including Software 3 Years
Building - freehold 20 Years
Other Fixed Assets 5 Years
Lease hold Land & Building is amortized for the lease period.
v) Impairments:
At each Balance Sheet date, the Company reviews the carrying amount of
its fixed Assets to determine whether there are any indications that
those assets suffered any impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to
determine the extent of impairment loss. The recoverable amount is the
higher of an asset net selling price and value in use. In assessing
value in use, the estimated future cash flow expected from the
continuing use of the assets and from its disposal are discounted to
their present value using a pre-determined rate that reflect the
current market assessment of time value of money and the risks specific
to the assets. Reversal of impairment loss is recognized immediately
as income in the Profit & Loss Account.
vi) Investments:
Long term investments are stated at cost. Provision for diminution in
the value of long-term investment is made only if such a decline is
other than temporary in nature in the opinion of the Management. If the
value of Investment for take over of a going concern is much higher
than estimated cost of Net Assets Value including their intrinsic value
as estimated by management, the additional payment in lieu of takeover
value is considered as Goodwill and if it is reverse the amount will be
transferred to Capital Reserve.
vii) Inventories:
Inventories of trading goods, spare parts and consumable stores are
valued at lower of cost or net realizable value. Outdated and damaged
stocks are written off on technical evaluation. The WIP is valued at
direct cost attributed to projects based on stages of completion as
certified by the management.
viii) Recognition of Revenue: Sales:
The sales are recognized at the point of dispatch of material to the
customers and bills are raised to them. Sales are shown net of goods
return, rebates, rate differences etc. Revenue from maintenance
contracts are recognized pro-rata over the period of the contract.
Revenue from software development is recognized on the basis of
achievement of prescribed milestone as relevant to terms of contract or
proportionate completion method as applicable.
Income & Expenditure:
The Company follows mercantile system of accounting and recognizes
significant items of Income & Expenditure on accrual basis.
ix) Foreign Currencies Transactions :
Foreign currency transactions are accounted for at the prevailing
exchange rate as on the date of execution of the transaction or of the
rate cover under forward contract as applicable. Foreign currency
monetary items not covered under forward exchange contract and due at
the end of the year are converted at the exchange rate prevailing as on
that date. Exchange differences arising on the settlement of the
transactions or on reporting at the year end rates are recognized as
Income or as Expenses in the period in which arise, except in respect
of fixed assets acquired from out side India, where exchange variance
is adjusted to the carrying amount of the respective fixed assets.
x) Employees Benefit:
Short Term Employees Benefits: The undiscounted amount of short term
employee benefit expected to be paid in exchange for the services
rendered by the employees are recognized during the period when the
employees render the service.
Post Employment benefit plans:
a) Defined Contribution Plan: Contribution under defined contribution
plan payable in keeping with the related scheme are recognized as
expenses for the year.
b) Defined benefit plan: The Group gratuity scheme provided by the
company is a defined benefit plan. Benefit under the define benefit
plan are generally based on the years of service rendered and the
employee''s eligible compensation (immediately before retirement). The
scheme covers substantially all regular employees and the company
contributes funds to the Life Insurance Corporation of India, which
administers the scheme on behalf of the company.
Other Long Term employment benefit (unfunded): The cost of providing
other long term employee benefit is generally recognised on cash basis.
xi) Segment Reporting:
The geographical segments have been identified as primary segment on
the basis of location of the major customers of the Company. These
segments represent a strategic business unit that offers different
places of unit having different risk and returns. Inter-segment sales
and transfers if any are accounted for, as if the sales or transfers
were to third parties at current market prices. Income & expenditure
and Assets & Liabilities not allocable to any specific geographical
segment, are classified as unallocated. The company''s secondary segment
is business segment and it operates only in one business segment namely
Trading/dealing with computer hardware and software. Therefore no
separate secondary segment is identifiable as required by Accounting
Standard 17 issued by ICAI.
xii) Borrowing Costs :
Borrowing costs attributable to qualifying assets are capitalized up to
the date when such assets are ready for their intend use, other
borrowing cost are recognized as expenses in the period in which they
are incurred.
xiii) Earning per Share:
Basic earning per share are calculated by dividing the net profit or
loss for the period attributable to equity share holders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period. The weighted average number of
equity shares outstanding during the period is adjusted for events of
bonus issue, bonus element in a rights issue to existing shareholders,
share split and reverse shares split (consolidation of shares).
For the purpose of calculating diluted earning per share, the net
profit or loss after tax for the period attributable to equity share
holders and the weighted average number of shares outstanding during
the period are adjusted for the effects for all dilutive potential
equity shares.
xiv) Tax on Income:
Current Tax represents the amount that would be payable based on the
computation of tax as per prevailing taxation laws under IT Act 1961.
Deferred tax is recognized subject to consideration of prudence, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax is calculated
using the tax rates and tax laws that has been enacted and/or
substantially enacted as at the Balance Sheet date. Deferred tax assets
are not recognized unless there is virtual cer tainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
xv) Contingent Liabilities & Assets:
Provisions involving 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.
Contingent Liabilities are not recognized but are disclosed in the
Notes to the Financial Statements. Contingent Assets are neither
recognized nor disclosed in the financial statements.
xvi) Cash and cash equivalents:
The Company considers all highly liquid financial instruments, which
are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.
Mar 31, 2012
I) Accounting Convention:
The financial statement has been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles as adopted consistently by the company.
ii) Use of Estimates:
The preparation of financial statements, in conformity with the
generally accepted accounting principles, requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reported year. Differences between
the actual results and estimates are recognized in the year in which
the results are known / materialized.
iii) Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation.
iv) Depreciation:
Depreciation on Fixed Assets has been provided on Straight Line Method
and written off over a period as estimated by the management
Computer and its Accessories including Software 3 Years
Building - freehold 20 Years
Other Fixed Assets 5 Years
Lease hold Land & Building is amortized for the lease period.
v) Impairments:
At each Balance Sheet date, the Company reviews the carrying amount of
its fixed Assets to determine whether there are any indications that
those assets suffered any impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to
determine the extent of impairment loss. The recoverable amount is the
higher of an asset net selling price and value in use. In assessing
value in use , the estimated future cash flow expected from the
continuing use of the assets and from its disposal are discounted to
their present value using a pre-determined rate that reflect the
current market assessment of time value of money and the risks specific
to the assets . Reversal of impairment loss is recognized immediately
as income in the Profit & Loss Account.
vi) Investments:
Long term investments are stated at cost. Provision for diminution in
the value of long-term investment is made only if such a decline is
other than temporary in nature in the opinion of the Management. If the
value of Investment for take over of a going concern is much higher
than estimated cost of Net Assets Value including their intrinsic value
as estimated by management, the additional payment in lieu of takeover
value is considered as Goodwill and if it is reverse the amount will be
transferred to Capital Reserve.
vii) Inventories:
Inventories of trading goods, spare parts and consumable stores are
valued at lower of cost or net realizable value. Outdated and damaged
stocks are written off on technical evaluation. The WIP is valued at
direct cost attributed to projects based on stages of completion as
certified by the management.
viii) Recognition of Revenue: Sales:
The sales are recognized at the point of dispatch of material to the
customers and bills are raised to them.Sales are shown net of goods
return, rebates, rate differences etc. Revenue from maintenance
contracts are recognized pro-rata over the period of the contract.
Revenue from software development is recognized on the basis of
achievement of prescribed milestone as relevant to terms of contract or
proportionate completion method as applicable.
Income & Expenditure:
The Company follows mercantile system of accounting and recognizes
significant items of Income & Expenditure on accrual basis.
ix) Deferred Revenue Expenditure:
Deferred revenue expenditure is amortized over a period of five years.
x) Foreign Currencies Transactions:
Foreign currency transactions are accounted for at the prevailing
exchange rate as on the date of execution of the transaction or of the
rate cover under forward contract as applicable. Foreign currency
monetary items not covered under forward exchange contract and due at
the end of the year are converted at the exchange rate prevailing as on
that date. Exchange differences arising on the settlement of the
transactions or on reporting at the year end rates are recognized as
Income or as Expenses in the period in which arise, except in respect
of fixed assets acquired from out side India, where exchange variance
is adjusted to the carrying amount of the respective fixed assets.
xi) Employees Benefit:
Short Term Employees Benefits: The undiscounted amount of short term
employee benefit expected to be paid in exchange for the services
rendered by the employees are recognized during the period when the
employees render the service
Post Employment benefit plans:
a) Defined Contribution Plan: Contribution under defined contribution
plan payable in keeping with the related scheme are recognized as
expenses for the year.
b) Defined benefit plan: The Group gratuity scheme provided by the
company is a defined benefit plan. Benefit under the define benefit
plan are generally based on the years of service rendered and the
employee's eligible compensation (immediately before retirement).
The scheme covers substantially all regular employees and the company
contributes funds to the Life Insurance Corporation of India, which
administers the scheme on behalf of the company.
Other Long Term employment benefit (unfunded): The cost of providing
other long term employee benefit is generally recognised on cash basis
xii) Segment Reporting:
The geographical segments have been identified as primary segment on
the basis of location of the major customers of the Company. These
segments represent a strategic business unit that offers different
places of unit having different risk and returns. Inter-segment sales
and transfers if any are accounted for, as if the sales or transfers
were to third parties at current market prices. Income & expenditure
and Assets & Liabilities not allocable to any specific geographical
segment, are classified as unallocated. The company's secondary segment
is business segment and it operates only in one business segment namely
Trading/dealing with computer hardware and software. Therefore no
separate secondary segment is identifiable as required by Accounting
Standard 17 issued by ICAI.
xiii) Borrowing Costs:
Borrowing costs attributable to qualifying assets are capitalized up to
the date when such assets are ready for their intend use,other
borrowing cost are recognized as expenses in the period in which they
are incurred.
xiv) Earning per Share:
Basic earning per share are calculated by dividing the net profit or
loss for the period attributable to equity share holders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period. The weighted average number of
equity shares outstanding during the period is adjusted for events of
bonus issue, bonus element in a rights issue to existing shareholders,
share split and reverse shares split (consolidation of shares).
For the purpose of calculating diluted earning per share, the net
profit or loss after tax for the period attributable to equity share
holders and the weighted average number of shares outstanding during
the period are adjusted for the effects for all dilutive potential
equity shares.
xv) Tax on Income:
Current Tax represents the amount that would be payable based on the
computation of tax as per prevailing taxation laws under IT Act 1961.
Deferred tax is recognized subject to consideration of prudence, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax is calculated
using the tax rates and tax laws that has been enacted and/or
substantially enacted as at the Balance Sheet date. Deferred tax assets
are not recognized unless there is virtual certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
xvi) Contingent Liabilities & Assets:
Provisions involving 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.
Contingent Liabilities are not recognized but are disclosed in the
Notes to the Financial Statements. Contingent Assets are neither
recognized nor disclosed in the financial statements.
xvii) Cash and cash equivalents:
The Company considers all highly liquid financial instruments, which
are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.
Mar 31, 2011
I) Accounting Convention:
The financial statement has been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles as adopted consistently by the company.
ii) Use of Estimates:
The preparation of financial statements, in conformity with the
generally accepted accounting principles, requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reported year. Differences between
the actual results and estimates are recognized in the year in which
the results are known / materialized.
iii) Fixed Assets :
Fixed Assets are stated at cost less accumulated depreciation
iv) Depreciation :
Depreciation on Fixed Assets has been provided on Straight Line Method
and written off over a period as estimated by the management
Computer and its Accessories including Software 3 Years
Building - freehold 20 Years
Other Fixed Assets 5 Years
Lease hold Land & Building is amortized for the lease period.
v) Impairments:
At each Balance Sheet date, the Company reviews the carrying amount of
its fixed Assets to determine whether there are any indications that
those assets suffered any impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to
determine the extent of impairment loss. The recoverable amount is the
higher of an asset net selling price and value in use. In assessing
value in use , the estimated future cash flow expected from the
continuing use of the assets and from its disposal are discounted to
their present value using a pre-determined rate that reflect the
current market assessment of time value of money and the risks specific
to the assets . Reversal of impairment loss is recognized immediately
as income in the Profit & Loss Account.
vi) Investments:
Long term investments are stated at cost. Provision for diminution in
the value of long-term investment is made only if such a decline is
other than temporary in nature in the opinion of the Management. If
the value of Investment for take over of a going concern is much higher
than estimated cost of Net Assets Value including their intrinsic value
as estimated by management, the additional payment in lieu of takeover
value is considered as Goodwill and if it is reverse the amount will be
transferred to Capital Reserve.
vii) Inventories:
Inventories of trading goods, spare parts and consumable stores are
valued at lower of cost or net realizable value. Outdated and damaged
stocks are written off on technical evaluation. The WIP is valued at
direct cost attributed to projects based on stages of completion as
certified by the management.
viii) Recognition of Revenue:
Sales:
The sales are recognized at the point of dispatch of material to the
customers and bills are raised to them. Sales are shown net of goods
return, rebates, rate differences etc. Income from maintenance
contracts are accounted for in the relevant accounting year upon
entering into the contract. Revenue from software development is
recognized on the basis of achievement of prescribed milestone as
relevant to terms of contract as proportionate completion method as
applicable.
Income & Expenditure:
The Company follows mercantile system of accounting and recognizes
significant items of Income & Expenditure on accrual basis.
ix) Deferred Revenue Expenditure:
Deferred revenue expenditure is amortized over a period of five years.
x) Foreign Currency Transactions :
Foreign currency transactions are accounted for at the prevailing
exchange rate as on the date of execution of the transaction or of the
rate cover under forward contract as applicable. Foreign currency
monetary items not covered under forward exchange contract and due at
the end of the year are converted at the exchange rate prevailing as on
that date. Exchange differences arising on the settlement of the
transactions or on reporting at the year end rates are recognized as
Income or as expenses in the period in which arise, except in respect
of fixed assets acquired from out side India, where exchange variance
is adjusted to the carrying amount of the respective fixed assets.
xi) Employees Benefit:
Short Term Employees Benefits: The undiscounted amount of shortterm
employee benefit expected to be paid in exchange for the services
rendered by the employees are recognized during the period when the
employees render the service.
Post Employment benefit plans:
a) Defined Contribution Plan: Contribution under defined contribution
plan payable in keeping with the related scheme are recognized as
expenses for the year.
b) Defined benefit plan: The Group gratuity scheme provided by the
company is a defined benefit plan. Benefit under the defined benefit
plan are generally based on the years of service rendered and the
employee's eligible compensation (immediately before retirement). The
scheme covers substantially all regular employees and the company
contributes funds to the Life Insurance Corporation of India, which
administers the scheme on behalf of the company.
Other Long Term employment benefit (unfunded): The cost of providing
long term employee benefit is generally recognised on cash basis.
xii) Segment Reporting:
The geographical segments have been identified as primary segment on
the basis of location of the major customers of the Company. These
segments represent a strategic business unit that offers different
places of unit having different risk and returns. Inter- segment sales
and transfers if any are accounted for, as if the sales or transfers
were to third parties at current market prices. Income & expenditure
and Assets & Liabilities not allocable to any specific geographical
segment, are classified as unallocated. The company's secondary segment
is business segment and it operates only in one business segment namely
Trading/dealing with computer hardware and software. Therefore no
separate secondary segment is identifiable as required by Accounting
standard 17 issued by ICAI.
xiii) Borrowing Costs :
Borrowing costs attributable to qualifying assets are capitalized up to
the date when such assets are ready for their intend use ,other
borrowing cost are recognized as expenses in the period in which they
are incurred.
xiv) Earning per Share:
Basic earning per share are calculated by dividing the net profit or
loss for the period attributable to equity share holders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period. The weighted average number of
equity shares outstanding during the period is adjusted for events of
bonus issue, bonus element in a rights issue to existing shareholders,
share split and reverse shares split (consolidation of shares).
For the purpose of calculating diluted earning per share, the net
profit or loss after tax for the period attributable to equity share
holders and the weighted average number of shares outstanding during
the period are adjusted for the effects for all dilutive potential
equity shares.
xv) Tax on Income:
Current Tax represents the amount that would be payable based on the
computation of tax as per prevailing taxation laws under IT Act 1961.
Deferred tax is recognized subject to consideration of prudence, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax is calculated
using the tax rates and tax laws that has been enacted and/or
substantially enacted as at the Balance Sheet date. Deferred tax assets
are not recognized unless there is virtual certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
xvi) Contingent Liabilities & Assets:
Provisions involving 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.
Contingent Liabilities are not recognized but are disclosed in the
Notes to the accounts. Contingent Assets are neither recognized nor
disclosed in the financial statements.
Mar 31, 2010
I) Accounting Convention:
The financial statement has been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles as adopted consistently by the company.
ii) Use of Estimates:
The preparation of financial statements, in conformity with the
generally accepted accounting principles, requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reported year. Differences between
the actual results and estimates are recognized in the year in which
the results are known / materialized.
iii) Fixed Assets :
Fixed Assets are stated at cost less accumulated depreciation
iv) Depreciation :
Depreciation on Fixed Assets has been provided on Straight Line Method
and written off over a period as estimated by the management
Computer and its Accessories including Software 3 Years
Building - freehold 20 Years
Other Fixed Assets 5 Years
Lease hold Land & Building is amortized for the lease period.
v) Impairments:
At each Balance Sheet date, the Company reviews the carrying amount of
its fixed Assets to determine whether there is any indications that
those assets suffered any impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to
determine the extent of impairment loss. The recoverable amount is the
higher of an asset net selling price and value in use. In assessing
value in use , the estimated future cash flow expected from the
continuing use of the assets and from its disposal are discounted to
their present value using a pre-determined rate that reflect the
current market assessment of time value of money and the risks specific
to the assets . Reversal of impairment loss is recognized immediately
as income in the Profit & Loss Account.
vi) Investments:
Long term investments are stated at cost. Provision for diminution in
the value of long-term investment is made only if such a
decline is other than temporary in nature in the opinion of the
Management. If the value of Investment for take over of a going concern
is much higher than estimated cost of Net Assets Value including their
intrinsic value as estimated by management, the additional payment in
lieu of takeover value is considered as Goodwill and if it is reverse
the amount will be transferred to Capital Reserve.
vii) Inventories:
Inventories of trading goods, spare parts and consumable stores are
valued at lower of cost or net realizable value. Outdated and damaged
stocks are written off on technical evaluation. The WIP is valued at
direct cost attributed to projects based on stages of completion as
certified by the management.
viii) Recognition of Revenue:
Sales:
The sales are recognized at the point of dispatch of material to the
customers and bills are raised to them. Sales are shown net of goods
return, rebates, rate differences etc. Income from maintenance
contracts are accounted for in the relevant accounting year upon
entering into the contract. Revenue from software development is
recognized on the basis of achievement of prescribed milestone as
relevant to terms of contract as proportionate completion method as
applicable.
Income & Expenditure:
The Company follows mercantile system of accounting and recognizes
significant items of Income & Expenditure on accrual basis.
ix) Deferred Revenue Expenditure:
Deferred revenue expenditure is amortized over a period of five years.
x) Foreign Currencies Transactions :
Foreign currency transactions are accounted for at the prevailing
exchange rate as on the date of execution of the transaction or of the
rate cover under forward contract as applicable. Foreign currency
monetary items not cover under forward exchange contract and due at the
end of the year are converted at the exchange rate prevailing as on
that date. Exchange differences arising on the settlement of the
transactions or on reporting at the year end rates are recognized as
Income or as expenses in the period in which arise, except in respect
of fixed assets acquired from out side India, where exchange variance
is adjusted to the carrying amount of the respective fixed assets.
xi) Employees Benefit:
Short Term Employees Benefits: The undiscounted amount of short term
employee benefit expected to be paid in exchange for the services
rendered by the employees are recognized during the period when the
employees render the service
Post Employment benefits plans:
a) Defined Contribution Plan: Contribution under defined contribution
plan payable in keeping with the related scheme are recognized as
expenses for the year.
b) Defined benefit plan: The Group gratuity scheme provided by the
company is a defined benefit plan. Benefit under the define benefit
plan are generally based on the years of service rendered and the
employeeÃs eligible compensation (immediately before retirement). The
scheme covers substantially all regular employees and the company
contributes funds to the Life Insurance corporation of India, which
administers the scheme on behalf of the company.
Other Long Term employment benefit (unfunded): The cost of providing
long term employee benefit is generally recognised on cash basis.
xii) Segment Reporting:
The geographical segments have been identified as primary segment on
the basis of location of the major customers of the Company. These
segments represent a strategic business unit that offers different
places of unit having different risk and returns. Inter-segment sales
and transfers if any are accounted for, as if the sales or transfers
were to third parties at current market prices. Income & expenditure
and Assets & Liabilities not allocable to any specific geographical
segment, are classified as unallocated. The companyÃs secondary segment
is business segment and it operates only in one business segment namely
Trading/dealing with computer hardware and software. Therefore no
separate secondary segment is identifiable as required by Accounting
standard 17 issued by ICAI.
xiii) Borrowing Costs :
Borrowing costs attributable to qualifying assets are capitalized up to
the date when such assets are ready for their intend use, other
borrowing cost are recognized as expenses in the period in which they
are incurred.
xiv) Earnings per Share:
Basic earning per share are calculated by dividing the net profit or
loss for the period attributable to equity share holders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period. The weighted average number of
equity shares outstanding during the period is adjusted for events of
bonus issue, bonus element in a rights issue to existing shareholders,
share split and reverse shares split (consolidation of shares).
For the purpose of calculating diluted earnings per shares, the net
profit or loss after tax for the period attributable to equity share
holders and the weighted average number of shares outstanding during
the period are adjusted for the effects for all dilutive potential
equity shares.
xv) Tax on Income:
Current Tax represents the amount that would be payable best on the
computation of tax as per prevailing taxation laws under IT Act 1961.
Deferred tax is recognized subject to consideration of prudence, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax is calculated
using the tax rates and tax laws that has been enacted and/or
substantially enacted as at the Balance Sheet date. Deferred tax assets
are not recognized unless there is virtual certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
xvi) Contingent Liabilities & Assets:
Provisions involving 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.
Contingent Liabilities are not recognized but are disclosed in the
Notes to the accounts. Contingent Assets are neither recognized nor
disclosed in the financial statements.