(A) Basis of Accounting : The financial statements are prepared on
accrual basis and are in accordance with the historical cost
(B) Revenue Recognition : Sales are accounted for on dispatch of goods
to the customers and arc net of sahRs.s and returns. Other income is
accounted for on Accrual Basis.
(C) Fixed Assets : Fixed Assets are tarried at cost less depreciation.
The cost of assets includes original cost plus other incidental
expenses incurred up to the date of installation / acquisition,
(D) Depreciation : Depreciation, is provided under Straight line
inethod at the rates specified under schedule- XIV to the Companies
Act-l9b6 Dn single shift basis working as certified by Director,
Depreciation on additions / deletions tD / from fixed assets made
during the year is provided on pro-rata basis From/upta the date of
such addition / deletion as the case may be.
(E) Inventories : The Company does not hoLd any physical inventory as
on 31* March, 2012.
(F) Treatment of Miscellaneous Expenditure : Preliminary Expenses are
being written off over a period of 5 Years.
(G) Taxation : The current Income tax charged is determined in
accordance with the relevant tax regulations applicable to the Company.
Deterred tax charged or credit are recognized for the future tax
consequences attributable to timing difference that result between the
profit offered For Income taxes and the profit as per financial
statements. The deferred tax charged or credit and tie co:respcnding
deferred tax liabilities or assets are recognized using the tax rates
thai have been enacted ot substantively enacted by the Balance Sheet
date. Defened tax assets are recogni7ed only to the extent there is
reasonable certainty that the assets can be realized in the future;
however when there is a brought Forward Loss or unabsorbed depreciation
under taxation iaws, deferred tax assets are recognized only if theie
is virtual icrtainty of realization of such asset. Deferred tax asset
are reviewed as at each Balance Sheet date and written down or written
up Lo reflect the amount that is reasonably/ virtu ally certain to be
The Company off-sets, on a year to year basis, the current tax assets
and Liabilities, where it has legally enforceable right and where it
intends to settle such assets and liabilities Dn a net basis.
(II) Employees'' Benefit
Gratuity: Gratuity is a defined benefit scheme and is accrued based on
actuarial valuation at the Balance Sheet date :arried out by
independent actuary, [he Company has an employee gratuity fund. Actual
gains and losses are charged to Profit and Loss account.
Provident Fund: As the Strength ol the employees doesn''t exceed the
prescribed limit under the Provident fund, company has not deducted and
paid any provident fund amount.
Leave Encashment: The Company is not having any policy for payment of
Leave Encashment so no provision for the same has been made.
(I) Investment : Long term Investments are valued at cost of
acquisition and related expenses. Provision is made for diminution, if
any, in the vaLue oF such investment.
(J) Earning Per Share : In determining earning per share, the company
considers the net profit after tax and includes the post - tax effect
of any extra -ordinary items, the number Df equity shares used in
computing hasis earnings per share is the weighted average number of
equity shares outstanding during the year, ihe number of equity shares
used in computing diluted earnings per share comprises weighted average
number of equity share considered for deriving basic earning per share
and also weighted average number of equity shares which could have been
issued on the conversion of all dilutive potential equity share.
(K) Lease : Asset which is subject to operating lease is shown under
fixed assets in the balance sheet. Lease income from operating leases
is recognized in the statement of profit and loss on a straight Line
basis over lease term. Costs including depreciation, incurred in
earning the lease income are recognized as expense. Initial direct
costs incurred specifically to earn revenues from an operating leave
are expensed during the period- ic
L) Other Accounting Policies : These are consistent with generally
accepted accounting practices.