i Basis of preparation of Accounts
The financial statements have been prepared under the historical cost
convention in accordance with the accounting standards issued by the
Institute of Chartered Accountants of India and the provisions of the
Companies Act, 1956, as adopted consistently by the Company. All income
and expenditure having the material bearing on the financial statements
are recognized on accrual basis.
ii Use of Estimates
The preparation of financial statements in confirmiry with generally
accepted accounting principles requires estimates and assumptions to be
made that affect, the reported amount of assets and Iibilities on the
date of financial statements and a reported amount of revenues and
expenses during the reporting period. Difference between the actual
expenses and estimates is recognised in the period in which the results
iii Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation. Cost
comprises the purchase price, including duties, legal fees, other
non-refundable taxes or levies directly attributable cost of bringing
the assets to its working condition.
iv Depreciation and Amortisation
Depreciation has been provided on Written down value method'' as per
rates specified in schedule XTV to the Companies Act, 1956. On revalued
assets, depreciation has been provided as per rates specified in
schedule XTV to the Companies Act, 1956 from the date oi revaluation
and depreciation to the extent of revaluation debited to revaluation
v Impairment of Assets
An assets is treated as unpaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an assets is idetified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
Investments are classified into Current and Long-term Investments.
Current Investments are stated at lower of cost and fair value.
Long-term Investments are stated at cost Provision for diminution in
the value of long-term Investments is made only if such a decline is
other than temporary.
vii Revenue Recognition
a) Revenue/Incomes and Cost/Expenditure are generally accounted on
accrual, as they are earned or incurred.
b) Dividend income is recognised on receipt basis.
viii Borrowing costs
Interest and other borrowing costs attributable to qualifying assets
are capitalised. Other interest and borrowing costs are charged to
revenue in the year they are incurred,
ix 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
Deferred tax is recognised, on the 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 assets in respect of unabsorbed depreciation and
carry forward of losses are recognised if there is virtual certainty
that there will be sufficient future taxable income available to
realize such losses.
x Earnings per Share
Basic earnings per share is computed by dividing the net profit after
tax by the average number of equity shares outstanding during the
xi Provisions, Contingent Liabilities and Contingent Assets
Provisions and Contingent Liability: The Company recognises a provision
when there is a present obligation as a result of a past event that
probably requires an outflow of resources and a reliable estimate can
be made of the amount of the obligation. A disclosure for a contingent
liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require outflow of
resources. Where there is a possible obligation or a present obligation
and the likelihood of outflow of resources is remote, no provision or
disclosure is made. Continegent Assets are neither recognized nor
disclosed in the financial statements.
xii Retirement Benefits
The laws relating to payment of Provident Fund, E.S.l.C. and Gratuity
to employees are not applicable to the Company.The Company does not
have any scheme for retirement benefits for its employees.Other
benefits such as leave encashment etc are provided in accordance with
the service rule of the company.
xiii Segmental Reporting
Considering the activity of the company during year and with the
objective of the Accounting Standards 17, the company is not having any
products and services except Computer hiring, and therefore there is no
other reportable primary business segment information. There is no
reportable secondary geographical segment information since the
Company''s operations are only in India.
xiv The Company has not received any intimation from the suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence the disclosures relating to amount
unpaid as at end of the year together with interest payable as required
under the said act has not been furnished and provision for interest,
if any, on delayed payment is not ascertainable at this stage. No
interest payment is made during the year,