a. Basis of Preparation of Financial Statements
The financial statements have been prepared to comply in all material
respects with the accounting standards notified by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared under the historical cost convention on an accrual basis.
The accountings policies have been consistently applied by the Company
and are consistent with those used in the previous period.
b. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
year end. Although these estimates are based upon management''s best
knowledge of current events and actions, belief that these estimates
are reasonable and prudent, actual results may differ from estimates.
c. Revenue Recognition
Incomes/Expenses/Revenues are accounted for on accrual basis in
accordance with the Accounting Standard (AS-9) issued by the Institute
of Chartered Accountants of India except for dividend and interest on
income-tax. Revenue is recognised to the extent that it is probable
that the economic benefit will flow to the company and the revenue can
be reliably measured. Sale of shares is accounted whon the contract
for sale is entered into.
Stock of equity shares held as stock-in-trade by the company is valued
at lower of cost or market value. Cost is determined on first in first
e. Fixed Assets
Fixed Assets are stated at cost including all incidental expenses
incurred for bringing the asset to its current position, less
depreciation at rates prescribed in Schedule XIV to the Companies Act,
1956, subject to provisions .of Accounting Standard 26 Intangible
Assets'' issued by Institute of Chartered Accountants of India.
Depreciation has been provided on Straight Line Method in accordance
with section 205(2) of the Companies Act, 1956 at the rates specified
in schedule XIV to the Companies Act, 1956, on pro-rata basis with
reference to the period of use of such assets. Assets costing less
than'' 5.000/- per item are depreciated at 100% in the year of purchase.
g. Retirement Benefits
A short-term employee benefits are recognised at their undiscounted
amount in the accounting period in which they are incurred. Retirement
Benefits in the form of gratuity and leave salary is accounted on
payment basis in the year of payment.
h. Income Tax Provision for current tax is made for the tax
liability.payable on taxable income after considering the allowances,
deductions and exemptions and disallowances if any determined in
accordance with the prevailing tax laws.
The differences between the taxable income and the net profit or loss
before tax for the period as per the financial statements are
identified and the tax effect on the timing differences is recognised
as deferred tax asset or deferred tax liability. Deferred Tax Assets on
timing differences are recognised only if there is a reasonable
certainty that sufficient future taxable income will the available
against which such deferred tax assets can be realised. However,
deferred tax assets when unabsorbed depreciation and losses carried
forward exist, are recognised only to the extent that there is virtual
certainty that sufficient taxable income will be available to''realise
i. Provisions, Contingent Liabilities & Contingent Assets
The Company creates a provision when there is a present obligation as a
result of an obligating event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non-occurrence of one or more uncertain future events not
within the control of the company.
Contingent Assets are neither recognised nor disclosed in the Financial
Statements as. a matter of prudence.