1.1 Basis of Accounting:
The financial statements are prepared on an accrual basis of accounting
in accordance with generally accepted accounting principles in India
and provisions of Companies Act, 1956 .
1.2 Use of Estimates:
The preparation of financial statement requires estimates and
assumptions to be made and that affect the reported amount of assets
and liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognised in
the period in which the results are known/materialised.
1.3 Fixed Assets and Deprecation:
a) Fixed Assets are stated at cost of acquisition or installation and
includes erection and construction expenses.
b) Depreciation has been provided on the basis of straight line method
at the rates and in the manner specified in Schedule XIV of the
Companies Act, 1956.
Investment are stated at cost.
1.5 Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognised nor disclosed in the
1.6 Reteriment Benefits
Retirement benefits are accounted for on accrual basis as per Revised
Accounting Standard -15 on the basis of actuarial valuation.
1.7 Foreign Currency Transactions:
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transaction. Exchange Difference arising on
foreign currency transactions other than fixed assets are recognized as
income or expense in the Statement of Profit and Loss. Exchange
Differences on unpaid liability arising on foreign currency
transactions for fixed assets are adjusted to the Cost of fixed assets.
Income tax expense comprises current tax, deferred tax charge or
credit. The deferred tax charge or credit and the corresponding
deferred tax liability and assets are recognized using the tax rates
that have been enacted or substantially enacted on the Balance Sheet
Deferred Tax assets arising from unabsorbed depreciation or carry
forward losses are recognized only if there is virtual certainty of
realization of such amounts. Other deferred tax assets are recognized
only to the extent there is reasonable certainty of realization in
future. Deferred tax assets are reviewed at each Balance Sheet date to
reassess their reliability.
1.9 Impairment of Assets
The carrying amount of assets are reviewed at each Balance Sheet date
to assess whether there is any indication of impairment of the carrying
amount of such assets of the company. An impairment loss is recognized
wherever the carrying amount of an asset exceeds its recoverable