1. Basis of Preparation of financial statements
a) The accompanying financial statements have been prepared under the
historical cost convention in accordance with Generally Accepted
Accounting Principles (GAAP) and the provisions of the Companies Act,
1956 as adopted consistently by the company.
b) Accounting Policies not specifically referred to otherwise are
consistent and in consonance with the GAAP followed by the company
a) Long term Investments are stated at cost of acquisition. Provision
for diminution in the value of long- term investments is made only if
such decline is other than temporary in the opinion of the management.
b) Dividends are accounted for as and when received
3. Preliminary Expenses
Preliminary expenses are written off over a period of ten years and
charged to Profit & Loss Account.
4. Share issue Expenses
Share Issue expenses are written off over a period often years and
charged to Profit & Loss Account.
5. Accounting for taxes on Income
Deferred tax is recognized, subject to the consideration of prudence,
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. The same is accounted for,
using the tax rates as on Balance Sheet date. Deferred Tax assets are
recognized only when there is virtual certainty of their realisation
6. Earning per Share
a) Earning per Equity Share is calculated by using weighted average
number of Equity Shares outstanding during the period
b) Diluted Earning per share comprises the weighted average number of
Equity Shares considered for deriving Basic Earnings per Equity Share
and weighted average number of Equity Shares that could have been
issued on the conversion of all dilutive potential Equity Shares at
last issue price of each share. Dilutive potential shares are deemed
converted as of the beginning of the period, unless they have been
issued at a later date
c) In case of any Bonus issue or any other corporate action during the
year affecting number of outstanding
shares, the number of equity shaves outstanding before the event is
adjusted for the proportionate change in the number of equity shares
outstanding as if the event had occurred at the beginning of the
earliest period reported.
7. Revenue recognition
a) Income is recognized when the services are rendered to customers.
b) All expenses are accounted for on accrual basis unless otherwise
8. Provision. Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as 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
9. Related Party Transaction
Parties are considered to be related if at any time during the year,
one party has the ability to control the other party or to exercise
significant influence over the other party in making financial and / or
10. Use of Estimates
In preparing Companys financial statements in conformity with
accounting principles generally accepted in India, management is
required to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent
liabilities at the date of the financial statements and reported
amounts of revenue and expenses during the reporting period actual
results could differ from those estimates.