(i) The Accounting Standard-15 Employee benefits, prescribed by the
Central Government, has become applicable to the company in its
entirety as our company is listed on Stock Exchanges.
In formulating the accounting policy regarding employee benefits, we
were motivated by the fact that average number of employees during the
financial year, were 19 i.e. less than 50.
In similar circumstances, unlisted companies have been permitted to
calculate and account for the accrued liability under the head
Gratuity, by some other rational method. Provisions of The Payment of
Gratuity Act, 1972 gives one such method. This is based on the
assumption that such benefits are payable to ''all employees at the end
of the accounting year.
The management still feels that the size of the company does not make
it feasible to provide Gratuity by way of actuarial valuation.Hence.it
decided to continue with the same accounting policy.
(ii) The company has not received any memorandum (as required to be
filed by the Suppliers with the notified authority under the Micro
small and medium Enterprises Development Act, 2006), claiming their
status as Micro, small or medium enterprises. Consequently, the amount
paid / payable to these parties during the year is Nil.
(ii) Provision for Tax is made in accordance with the requirements of
the Income Tax Act, 1961
(ii) The net asset value of the investments in mutual fund as on
31.03.2012 is Rs. 11,55,12,503/- (previous year Rs. 11,42,03,933/-)
(iii) In the opinion of the management diminution of Rs. 56.23 lacs in
the value of investments is a temporary market phenomenon and the
company has adequate general reserve to meet any contingency.
10) DEFERRED TAX ASSETS / (LIABILITIES) (NET) :
(a) Deferred tax is calculated and determined in accordance with the
requirements of Accounting Standard - 22 Accounting for Taxes on
Income and is subject to the concept of prudence, on timing difference
being the difference between taxable income and accounting income that
originate in one period and is capable of reversal in one or more
subsequent periods. Deferred tax assets are reviewed for their carrying
values at each balance sheet date and recognised only if there is
''reasonable certainty'' that they will be realised in future. As at
31.03.2012 the recognised deferred tax liability/asset is as follows:-
(d) Net Deferred Tax Assets / (Liability) Rs. 2,53,365/- (Previous Year
(e) The net deferred tax recognised in the profit and loss account is
Rs.3,69,778/- (Previous Year Rs. 1,24,215/-).
(ii) Balance in some accounts of long term loans and advances is
subject to confirmation.
(ii) Balance in some accounts of trade receivables is subject to
(iii) All trade receivables are outstanding for a period less than six
months from the date they are due for payment. Also, no debts are due
by directors or any other officers of the company either severally or
1) EARNING PER SHARE :
(i) Annualised earning per equity share has been calculated on the net
profit (aftei taxation) of Rs. 1,11,85,883/- (previous year Rs.
1,12,62,015/-) taken as th« numerator divided by number of equity
shares 60,00,000 (previous year 60,00,000] Taken as the denominator.
(ii) There is no diluted earning per share in the company.
2) (a) The company follows the Reserve Bank of India guidelines
applicable to Non Banking Financial Companies regarding assets
classification, provisioning and income recognition on non performing
assets and accounting for investments.
(b) Information required to be disclosed in terms of paragraph 13 of
Non Banking Financial (Non Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions, 2007 is as under:-
1. As defined in Paragraph 2(1)(xii) of the Non-Banking Financial
Companies Acceptance, of Public Deposits (Reserve Bank) Directions,
2. Provisioning norms shall be applicable as prescribed in the
Non-Banking Financial (non deposit accepting or holding) Companies
Prudential Norms (Reserve Bank) Directions, 2007.
3. All Accounting Standards and Guidance Notes issued by ICAI are
applicable including for valuation of investments and other assets as
also assets acquired in satisfaction of debt. However, market value in
respect of quoted investments and break-up/fair value/ NAV in respect
of unquoted investments should be disclosed irrespective of whether
they are classified as long term or current in column (4) above.
3) In the financial year 2011-12, the Company has operated in only one
business segment, hence compliance of AS-17 regarding Segment
Reporting is not necessary.
4) Related party transactions :
There are no related party as described in Clauses (a) to, (e) of
paragraph 3 of the Accounting Standard-18 Related party disclosures
issued by the Institute of Chartered Accountants of India.
5) CONTINGENT LIABILITIES :
CONTINGENT LIABILITY NOT PROVIDED FOR (2011-12) (2010-11)
Claims against the Company not acknowledged
as debt Rs. NIL Rs. NIL
6) The figures have been rounded off to the nearest rupee.
7) Last year''s figures have been regrouped and re-arranged wherever
necessary to conform to the figures of the current year, and in
consonance to the requirements of revised Schedule VI which became
applicable w.e.f. 01 -04-2011.