The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material respects with the applicable accounting
standards notified under the Companies (Accounting Standards) Rules,
2006 (as amended) and relevant presentational requirements of the
Companies Act, 1956. The financial statements have been prepared on an
accrual basis and under the historical cost convention. Accounting
policies not stated explicitly otherwise are consistent with the
generally accepted accounting principles.
a.Presentation and disclosure of financial statements
During the year ended 31st March 2012, the revised Schedule VI notified
under the Companies Act, 1956, has become applicable to the Company,
for the preparation and presentation of its financial statements. The
Company has also reclassified the previous year figures in accordance
with the requirements applicable in the current year.
b.Tangible fixed assets
Tangible fixed assets are stated at their original cost including
incidental expenses related to acquisition and installation, less
c.Depreciation on tangible fixed assets
Depreciation on all tangible fixed assets has been provided on straight
line method as per the rates prescribed in Schedule XIV to the
Companies Act, 1956. Depreciation on assets acquired and/or sold during
the year is provided on pro-rata basis.
Long term investments are carried at cost and any diminution in value
is not recognized as the same is considered to be temporary in nature.
Inventories of Materials and Printing Consumables are valued at lower
of cost and net realiseable value after providing for obsolescence and
other losses where considered necessary.
Revenue is recognized to the extent that it is probable that the
economic benefits will flow t o the Company and the revenue can be
reliably measured. Revenue from sale of goods are recognized when all
the significant risks and rewards of ownership of the goods have been
passed to the buyer. Revenues from services are recognized when the
services are rendered. The Company collects applicable Sales Tax, Value
Added Tax and Service Tax on behalf of the Government and therefore
these are not economic benefits flowing to the Company and are excluded
from the revenue.
The Company’s employees are covered under the Employees Group
Gratuity Assurance Scheme of Life Insurance Corporation of India. The
Company accounts for Gratuity liability equivalent to the premium
amount payable to Life Insurance Corporation of India every year.
Bonus is accounted on cash basis.
h.Taxes on Income
Current Tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Deferred tax is recognized on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognized for all timing differences. Deferred tax
assets are recognized only if there is virtual certainty that there
will be sufficient future taxable income available to realize such
assets and are reviewed at each Balance Sheet date.