1- Basis of Preparation
The Financial Statements have been prepared on the historical cost
convention. These statements have been prepared in accordance with the
generally accepted accounting principles and the applicable Mandatory
Accounting Standards and relevant requirements of The Companies Act.
1956 (''the Act1). The accounting policies have been consistently
applied by the Company. The preparation requited adoption of estimates
and assumptions that can affect the reported amounts of revenue and
expenditure and the assets and liabilities as well as the disclosure of
contingent liabilities. Differences between the actual results and
estimates are recognised in the year in which they become known or
During the year, the company has sold'' written off the entire fixed
assets. The management is of the opinion that the accounting assumption
of going concerns impaired. Hence necessary adjustments have been made
to the values of the assets and liabilities of the company as at the
2. Revenue Recognition
Income from consultancy are accounted on accrual basis.
3 Investment Subsidy Investment Subsidy received from Government of
Kerala is treated as Capital Reserve.
Leases where the lesser effectively retains substantially all the risks
and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognised as an expense
in the Profit & Loss account on a straight-line basis over the lease
Tax expense comprises of current and deferred tax. Current income-tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income-tax Act. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
6 Retirement Benefits
a] In respect of gratuity, the company''s contribution to the Group
Insurance Scheme of Life Insurance Corporation of India are charged
against the revenue.
b] Contribution to Provident Fund and other recognised funds is charged
to Profit & Loss account.