(a) Basis of Preparation of Financial Statements
The financial statements have been prepared with the Generally Accepted
Accounting Principles in India (Indian GAAP) to comply in all material
respects with the accounting standards notified by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956. The financial statements have
been prepared under the historical cost convention on an accrual basis.
The accountings policies have been consistently applied by the Company
and are consistent with those used in the previous period.
(b) Gse of Estimates
The preparation of the financial statements requires the management to
take reasonable estimates and assumption that affect the reported
amount of assets, liabilities and disclosure of contingent liabilities
as at the date of the financial statements. Management believes that
these estimates are reasonable and prudent. However, actual results may
differ from estimates.
(c) Cash Row Statements
Cash flow statement of the company reports cash flows during the period
classified by operating, investing and financial activities.
(d) Revenue Recognition
Incomes/Expenses/Revenues are accounted for on accrual basis. Revenue
is recognised to the extent that it is probable that the economic
benefit will flow to the company and the revenue can be reliably
(e) Fixed Assets
Fixed Assets are stated at cost including all incidental expenses
incurred for bringing the asset to its current position, less
depreciation at rates prescribed in Schedule XIV to the Companies Act,
1956, subject to provisions of Accounting Standard 26 Intangible
Depreciation has been provided on Straight Line Method in accordance
with section 205(2) of the Companies Act, 1956 at the rates specified
in schedule XIV to the Companies Act, 1956, on pro-rata basis with
reference to the period of use of such assets. Assets costing less than
Rs. 5,000/- per item are depreciated at 100% in the year of purchase.
(g) Impairment of Assets
The carrying amounts of Cash Generating Assets are reviewed at each
Balance Sheet date to determine whether there is any indication of
impairment. If any such indication exists, the recoverable amount is
estimated at the higher of net realisable value and value in use.
Impairment loss is recognised wherever carrying amount exceeds the
(h) Retirement Benefits
All short-term and long term employee benefits are recognised at their
undiscounted amount in the accounting period in which they are
(i) Income Tax
Provision for current tax is made for the tax liability payable on
taxable income after considering the allowances, deductions and
exemptions and disallowances if any determined in accordance with the
prevailing tax laws.The differences between the taxable income and the
net profit or loss before tax for the period as per the financial
statements are identified and the tax effect on the timing
differences is recognised as deferred tax asset or deferred tax
liability. The tax effect is calculated on the accumulated timing
differences at the end of the accounting period based on the tax rates
and laws, enacted or substantively enacted as of the balance sheet
(j) Provisions, Contingent Liabilities & Contingent Assets
The Company creates a provision when there is a present obligation as a
result of an obligating event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non-occurrence of one or more uncertain future events not
within the control of the company.
Contingent Assets are neither recognized nor disclosed in the Financial
Statements as a matter of prudence.