a. Change in accounting policy Presentation and disclosure of
During the year ended March 31, 2012, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the company, for
preparation and presentation of its financial statements. The adoption
of revised Schedule VI doesnot impact recognition and measurement
principles followed for preparation of financial statements. However,
it has significant impact on presentation and disclosures made in the
b. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period.
Although these estimates are based on the management''s best knowledge
of current events and actions, uncertainity about these assumptions and
estimates could result in the outcomes requiring a material adjustment
to the carrying amounts of assets or liabilities in future period.
c. Tangible fixed assets
Fixed assets are stated at cos0-evalued amount where applicable, less
depreciation. The cost comprises '' purchase price and directly
attributable cost of bringing asset to its working condition for the
intended use. Any trade discounts and rebates are deducted in arriving
at the purchase price.
d. Depreciation on tangible fixed assets
Depreciation is provided on straight-line method in accordance with the
provisions of the Companies Act, 1956.
(i) In respect of assets acquired prior to 2nd May, 1987 in accordance
with the provisions of section 205 (2) (b) of the Companies Act, 1956,
and the Circular No. 1/36- CLV No. 15 (50) 84-CL, VI dated 21.5.1986
issued by the Department of Company Affairs.
(ii) In respect of assets acquired after 1st May, 1987, in accordance
with the rates prescribed in Schedule XIV to the Companies Act, 1956.
Current Investments are carried at lower of cost or fair value
f. Retirement Benefits
The Company has the scheme for Provident, Gratuity and Superannuation
funds which are recognised under the Income Tax laws. Contributions to
these funds are provided according to the respective rules of the funds
and debited to profit and loss account
g. Provision For Bad And Doubtful Debts/Advances
Provision is made in the accounts for bad and doubtful debts /advances
which in the opinion of the Management are considered irrecoverable.
h. Income Taxes
Deferred tax assets as per Accounting Standard 22 has not been
recognized and carried forward in view of absence of reasonable
certainty about the sufficient future taxable income.
i. Earning per share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For die purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period
adjusted for the effects of all dilutive potential equity shares.
j. Contingent Liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or non
occurrence of one or more uncertain future events beyond the control of
the company or a present obligation that is not recognised because it
is not probable that an outflow of resources will be required to setde
the obligation. A contingent liability also arises in extremely rare
cases where there is a liability that cannot be recognised because it
cannot be measured reliably. The company does not recognise a
contingent liability but discloses its existence in the financial
k. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand.