1.1 Basis of Accounting :
The accounts of the company have been prepared on historical cost
convention using the accrual basis of accounting on consistent basis.
Long term investments are stated at cost. Incidental expenses incurred
in acquiring the investments are added to the cost. Decline in carrying
amount of investments, if any, other than of temporary nature is
provided for in the Statement of Profit and Loss .
1.3 Revenue Recognition :
Income from Consultancy & Advisory Services is recognised as per the
terms of agreement.
Income interest is recognised on time accrual basis.
The provision for current tax, if any, is computed in accordance with
the relevant tax regulations. Deferred Tax is recognised on timing
difference between accounting and taxable income for the year by
applying applicable tax rates as per Accounting Standard-22 on
Accounting for Taxes on Income. Deferred Tax Assets is recognised
wherever there is reasonable certainty that future taxable income will
be available against which such Deferred Tax Assets can be realised.
1.5 Provisions and Contingent Liabilities:
Provisions are recognised in the accounts for present probable
obligations arising out of past events that require outflow of
resources, the amount of which can be reliably estimated.
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
wholly within the control of the company, unless likelihood of an
outflow of resources is remote. Contingent assets are not recognised in
the accounts, unless there is virtual certainty as to its realisation.