(a) Basis of preparation
The financial statements have been prepared on historical cost
convention and on accrual basis. The financial statements have been
prepared in accordance with the Accounting Standards notified by
Companies (Accounting Standards) Rules, 2006 and referred to in Section
211 (3C) of the Companies Act, 1956.
(b) Fixed Assets
Fixed assets are stated at cost less depreciation. Cost comprises the
cost of acquisition and any attributable costs of bringing the asset to
the condition for its intended use.
Depreciation is provided on the written down value method prescribed in
Schedule XIV of the Companies Act, 1956.
(i) Investments have been categorised as Long Term or Current by the
Board of Directors.
(ii) Long Term Investments are stated at cost plus brokerage and other
relevant charges. A Provision for diminution is made to recognise a
decline, other than temporary, if any.
(iii) Current Investments are valued at lower of Cost or Market value.
(e) Revenue Recognition
Dividend Income from Investment is recognised when right to receive the
payment is established.
(f) Retirement Benefits
The Company does not have any Retirement Benefits specifically laid
(g) Taxes on Income:
(i) Current Tax
Provision for Income Tax is determined in accordance with the
provisions the Income Tax Act, 1961.
(ii) Deferred Tax
Deferred tax is recognised on timing differences being the differences
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent period(s).
(h) Provisions and Contingent Liabilities:
(i) A provision is recognised when there is present obligation as a
result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. These are reviewed at each Balance Sheet
date and adjusted to reflect the current best estimate.
(ii) A disclosure for a contingent liability is made when there is a
possible or present obligation that may, but probably will not require
an outflow of resources. When there is a possible obligation in respect
of which the likelihood of out flow of resources is remote, no
provision or disclosure is made.
Source : Dion Global Solutions Limited
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