1. The Financial Statements are prepared on mercantile basis under the
historical cost convention in accordance with the generally accepted
accounting principles in India, Accounting Standards notified under
section 211(3C) of the Companies Act 1956, read with the Companies
(Accounting Standard) Rules, 2006 and the other relevant provisions of
the Companies Act, 1956.
2. All revenue and expenses are accounted on accrual basis. Fixed
3. All Fixed Assets are stated at cost. Costs include purchase price
and all other attributable costs of bringing the assets to working
condition for intended use.
4. Turnover is stated after adjusting rebates and discounts and
excluding Sales tax Depreciation
5. Depreciation on all assets is charged proportionately from the date
of acquisition/installation on straight line method at rates prescribed
in Schedule XIV of the Companies Act, 1956. Assets costing less than Rs.
5000/- individually have been fully depreciated in the year of
6. Investments are valued at cost. Retirement Benefit
7. None of the Employee has completed the service period to become
eligible for payment of gratuity. Income Tax
8. Provision for taxes comprising of current tax is measured in
accordance with Accounting Standard 22- Accounting For Taxes On
Income issued by the Institute of Chartered Accountants of India :
9. Tax expenses comprises of current and deferred tax.
10. Provision for current income tax and fringe benefit tax is made on
the basis of relevant provisions of Income Tax Act, 1961 as applicable
to the financial year.
11. Deferred Tax is recognized subject to the 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.