(1) a) System of Accounting:
All income and expenses are accounted for on accrual basis.
b) Fixed Assets:
Fixed Assets are stated at cost of acquisition inclusive of expenses
incidental to their acquisition as reduced by accumulated depreciation
Depreciation on Fixed Assets has been provided on the written down
value method at the rates specified in Schedule XIV of the Companies
Investments are valued at cost. Expenses relating to transfer are
charged to revenue. Provision for diminution in value is not considered
unless such diminution is permanent in nature. Gains / Losses on
disposal of the investments are recognized as Income / Expenditure.
e) Inventories are valued at cost or market value whichever is lower.
f) Accounting for Taxes on Income:
Deferred tax is recognised on timing differences; being the difference
between taxable incomes and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Deferred tax assets are recognised only if there is virtual certainty
that sufficient future taxable income will be available against which
such deferred tax assets will be realized. Such assets are reviewed as
at each Balance Sheet date to reassess reliability thereof.