1.1 Basis of Accounting:
The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under historical cost
convention on an accrual basis and are in accordance with the
requirements of the Companies Act, 1956 and guidelines issued by the
securities and Exchange Board of India (SEBI). Accounting policies have
been consistently applied.
Investments are at cost or market price which ever is lower.
1.3 Fixed Assets:
All fixed assets are recorded at cost of acquisition inclusive of all
direct and allocated expenses incurred for the same or construction.
The are stated at historical cost.
Depreciation of fixed assets is provided on straight line method at
the rates and in the manner prescribed in schedule XIV of the Companies
1.5 Income Taxes:
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the company. Deferred tax is
recognized, subject to consideration of prudence, in respect of
deferred tax assets or liabilities, on timing differences being the
difference between taxable incomes and accounting income that originate
in one period and is reversible in one or more subsequent periods.
1.6 Cash flow statement:
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, and deferrals or accruals of past of future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.
1.7 Earnings per share:
Basis earnings per share are computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during