BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared in accordance with the
Accounting Standards specified by the Institute of Chartered
Accountants of India.
ACCOUNTING CONVENTION REVENUE RECOGNITION
The financial statements have been prepared in accordance with
historical cost convention. Both for income and expenditure having
material bearing on the financial Statements are recognized on accrual
Fixed Assets are stated at cost or acquisition inclusive of taxes,
duties, freight and other incidental expenses related to
Depreciation on fixed assets is provided on Written Down Value Method
at the rates, which are in conformity with the requirements of Schedule
XIV of the Companies Act, 1956.
Long-term Investments are stated at cost unless there is any permanent
diminution in value.
(i) Provision for Gratuity is accounted for on accrual basis based on
management estimation and not on actuarial valuation.
(ii) The monetary value of unutilized leave for employees in each year
is recognized as liability and accordingly credited to their accounts.
(iii) Contribution to Provident Fund is accounted for on accrual basis
and payments there against are made to concerned authority.
TAXES ON INCOME
Current tax is determined on the amount of tax payable in respect of
taxable income for the year.
The deferred tax charge or credit is recognized using current tax
rates. Where there are unabsorbed depreciation or carry forward
losses, deferred tax assets are recognized only if there is virtual
certainty of realization of such assets. Other deferred tax assets are
recognized only to the extent there is reasonable certainty of
realization in future. Deferred tax assets/liabilities are reviewed as
at each balance sheet date based on developments during the year and
available case laws, to reassess realization/liabilities. FOREIGN
Sales made in foreign currency are converted at the prevailing
applicable exchange rate. Gain/Loss arising out of fluctuation in
exchange rate is accounted for on cash basis. Payments made in foreign
currency are converted at the applicable rate prevailing on the date of
remittance. Liability/ Receivables on account of foreign currency are
converted at the exchange rate prevailing at the end of the year.
PRIOR PERIOD ADJUSTMENTS, EXTRA ORDINARY ITEMS AND CHANGES INACCOUTING
Prior period adjustments, extra ordinary items and changes in
accounting policies having material impact on the financial affairs of
the Company are disclosed.
Full disclosure is made in the accounts in connection with any
contingent liability but the provision for the same is made when such