a) Method of Accounting
The financial statements are prepared on an accrual basis under the
historical cost convention in accordance with Generally Accepted
Accounting Principles (GAPP) and in compliance with the applicable
Accounting Standards issued by the Institute of Chartered Accountants
of India and relevant provisions of the Companies Act, 1956.
Investments being long term are stated at cost Provision against
diminution in the value of investments is made in case diminution is
considered as other than temporary, as per criteria laid down by the
Board of Directors after considering that such investments are
strategic in nature.
Current investments are stated at lower or cost of fair value.
c) Revenue Recognition
Interest is accounted for on an accrual basis, dividend is accounted
when right to receive payment is established.
d) Taxes on Income
i. Current Tax: Provision for Income Tax is determined in accordance
with the provisions of Income Tax Act. 1961.
ii. Deferred Tax Provision: Deferred tax is recognised on timing
differences between the accounting income and the taxable income for
the year, and quantified using the tax rates and laws enacted or
substantively enacted on the Balance Sheet date.
Deferred tax assets are recognized and carried forward to the extent
that there is a reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be