(a) Fixed assets
(i) Fixed assets are stated at cost of acquisition inclusive of the
cost of installation/erection and interest on borrowings for qualifying
fixed assets, upto the date the asset is put to use, as applicable.
(ii) Depreciation is provided on straight line method in accordance
with Schedule XIV of the Companies Act 1956.
(iii) Depreciation is provided on pro-rata basis from the day on which
the assets have been put to use and up to the day on which assets have
been disposed off.
Inventories consisting of Land and Building are valued at lower of cost
and net realizable value. Cost is arrived at weighted average cost.
(c) Revenue Recognition
Financial statements are prepared under the historical cost convention.
Revenue is recognized on accrual basis with provision made for known
losses and expenses.
Services - Agency commission is recognized on accrual basis. Rental
income from properties is recognised on accrual basis as per the
agreements entered. Interest income is recognized on time proportion
method and dividend income is recognized when the right to receive is
Investments meant to be held for long term are accounted at cost.
Diminution in value, if any, is recognized in the Statement of Profit &
(e) Retirement Benefits
(i) Contribution to Provident Fund is as per Rules of the own funds.
(ii) Provision for gratuity is based on the calculations made as per
the provisions of Payment of Gratuity Act,1972 and not funded. The
company estimates its liability on actuarial valuation basis as of each
year-end balance sheet date carried out, and is charged to Statement of
Profit and Loss Account in accordance with AS-15 (revised).
(iii) Leave encashment benefits is provided on accrual basis and is not
(f) Segment reporting
The company operates under a single segment viz., services & related
(g) Lease Rentals
Lease rental in respect of operating lease arrangements are charged to
expense on a straight line basis over the term of the related lease
(h) Foreign Currency Transaction
There are no foreign currency transactions.
(i) Borrowing Costs
Borrowing costs attributable to the acquisition, construction or
production of qualifying assets are capitalized as a part of the cost
of such assets up-to the date when such assets are ready for intended
use. Other borrowing costs are charged as an expense in the year in
which they are incurred.
(j) Cash Flow Statement
The Cash Flow statement is prepared under the indirect method as per
Accounting Standard 3 Cash Flow Statements.
(k) Earnings Per Share
The company reports basic and diluted earnings per share in accordance
with the Accounting Standard -20-Earnings Per Share.
(l) Provision for Taxation
Provision for Current Income Tax is made in accordance with the
provisions of Income Tax Act, 1961. Deferred tax assets and liabilities
are measured using substantially enacted tax rates as on the Balance
Sheet date. The effect of deferred tax assets and liabilities of a
change in tax rates is recognized in the income statement.
(m) Impairment of Assets
All assets other than inventories and deferred tax asset, are reviewed
for impairment, wherever events or changes in circumstances indicate
that the carrying amount may not be recoverable. Assets whose carrying
value exceeds their recoverable amount are written down to the
(n) Provision and Contingencies
The company creates a provision when there is 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 obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation
cannot be made.