1.1 The Company maintains its accounts on accrual basis following the
historical cost convention in accordance with generally accepted
accounting principles (GAAP), and in compliance with the Accounting
Standards referred to in section 211 (3C) and other requirements of the
Companies Act, 1956
The preparation of financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of the
financial statements. Examples of such estimates include the useful
lives of fixed assets etc. Actual results could differ from these
1.2 FIXED ASSETS
Fixed Assets are stated at cost of acquisition less depreciation. The
cost comprises of the purchase price and other attributable costs.
The Company follows the straight line method of providing depreciation
at the rates prescribed in Schedule XIV to the Companies (Amendment)
Act 1988 read with Section 205(2) (b) of the said Act on pro-rata basis
uniformly in respect of all assets.
Long Term Investments are carried at cost less provision for diminution
other than Temporary, if any, in value of such investments.
Inventories are valued at cost or Net realizable value, whichever is
1.6 EMPLOYEE BENEFIT:
a) Provident fund has been paid regularly in time by the company
b) Gratuity & Leave Encashment is accounted for in cash basis as and
1.7 Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes as a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are charged.
1.8 AS-22 Accounting for taxes on Income:
Tax on income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provision of the Income Tax Act, 1961, and based on expected outcome of
assessment / appeals.
Deferred tax is recognised on timing differences between the accounting
income and the taxable income for the year, and quantified using the
tax rates and laws enacted or substantively enacted as on the Balance
Deferred tax assets are recognised and carried forward to the extent
that there is a reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be