(a) Basis of Preparation of financial statements: -
The financial statements of the Company have been prepared in
accordance with generally accepted ac- counting principles in India
(Indian GAAP) The Company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rules, 2006, (as amended)
and the relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on an accrual basis and under the
historical cost convention.
(b) Use of Estimates:-
The preparation of financial statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amount of assets and liabilities on the
date of the financial statements and the reported amount of revenues
and expenses during the reporting period. Although these estimates are
based upon management''s best knowledge of current events and action,
actual results could differ from these estimates.
(c) Accounting of Income/ Expenditure
All Income/ Expenditure items having a material bearing on the
financial statements are recognized on accrual basis, unless
(d) All the assets and liabilities have been classified as current or
non- current as per the Company''s normal operating cycle and other
criteria set out in the schedule VI to the Companies Act, 1956. Based
on the nature of business operations, the Company has ascertained its
operating cycle as 12 months for the purpose of current or non-current
classification of assets and liabilities.
(e) Fixed Assets
Fixed Assets have been carried at historical cost.
Depreciation on Fixed Assets is provided on straight line method in
accordance with Section 205(2)(b) of the Companies Act, 1956, as per
rates specified in Schedule XIV to the Companies Act, 1956.
Long Term Investments have been shown at cost price.
(h) Stock in Trade
Stock in trade is valued at cost or Market value whichever is lower.