1.1 Basis of preparation
The financial statements are prepared under the historical cost
convention, on accrual basis, in compliance with all material aspects
of the notified Accounting standards by Companies (Accounting
Standards) Amendment Rules, 2008 and the relevant provisions of the
Companies Act, 1956. The accounting policies have been consistently
applied by the Company and are consistent with those used in the
1.2 Use of estimates
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities, the disclosure of contingent liabilities on the date
of the financial statements and the reported amounts of revenues and
expenses during the period reported. Actual results could differ from
those estimates. Any revision to accounting estimates is recognized in
accordance with the requirements of the respective accounting standard.
1.3 Revenue Recognition
a) Income from interest is accounted for on time proportion basis
taking into account the amount outstanding and the applicable rate of
b) Other Income is recognized to the extent that it is probable that
the economic benefits will flow to the Company and the revenue can be
1.4 Fixed Assets & Depreciation
Fixed assets are stated at cost (or revalued amounts, as the case may
be), less accumulated depreciation and impairment losses. Depreciation
is provided as per Schedule XIV of the Companies Act 1956.
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. Current
investments are carried at lower of cost and market value whichever is
All other investments are classified as noncurrent Investments. Non
Current Investments are carried at cost, less provision for diminution
in value other than temporary.
1.6 Employee benefits
Gratuity provision as required by Accounting Standard 15- Accounting
for Retirement benefits in the financial Statements of Employers''
issued by the Institute of Chartered Accountants of India has not been
made as gratuity Act is not Applicable to Company.
1.7 Borrowing Cost
Borrowing costs which are directly attributable to acquisition,
construction or production of a qualifying asset are capitalized as a
part of the cost of that asset. Other borrowing costs are recognized as
expenses in the period in which they are incurred.
Tax expense comprises of current and deferred. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred tax is not recognized as there is no timing difference,
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
1.9 Earnings Per Share
The Company reports basic and diluted earnings per share in accordance
with AS-20 Earnings per Share. Basic earnings per share are computed
by dividing the net profit or loss for the period by the weighted
average number of Equity Shares outstanding during the period. Diluted
earnings per share is computed by dividing the net profit or loss for
the period by the weighted average number of Equity Shares outstanding
during the period as adjusted for the effects of all dilutive potential
A provision is recognized when an enterprise has a present obligation
as a result of past event it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
1.11 Contingent Liabilities
Contingent Liabilities, if any, are disclosed in the Notes on Accounts.
Provision is made in the accounts in respect of those contingencies
which are likely to materialize into liabilities after the year end
till the approval of the accounts by the Board of Directors and which
have material effect on the position stated in the Balance Sheet.