a) Financial Statements are prepared on historical cost basis and in
consonance with the generally accepted accounting principles.
b) All revenues and expenses are accounted on accrual basis except to
the extent stated otherwise.
2. Fixed Assets and Depreciation :
a) Fixed Assets
Fixed Assets are stated at cost of acquisition and other direct cost
incurred up to the date the assets is put to use.
Depreciation on fixed assets is provided on written down value method
at the rates specified in Schedule ''XIV of the Companies Act, 1956.
Investments are stated at cost.
4. ,Sundry Debtors and Receivables :
Sundry Debtors and Loans and Advances are stated at me value if
realized in the ordinary course of business. Irrecoverable amounts, if
any are accounted and/or provided for as per management''s judgment or
only upon final settlement of accounts with the parties.
5. IMPAIRMENT OF ASSETS:
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. Where there is an indication that an
asset is impaired, the recoverable amount, if any, is estimated and
impairment loss is recognized to the extent of carrying amount exceeds
6. PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
7. Borrowing Cost:
Borrowing costs directly attributable to the acquisition or
construction of fixed assets are capitalized as part of the cost of the
assets, upto the date the assets is put to use. Other borrowing costs
are charged to the Profit and Loss Account in the year in which they
a) Provision for Income Tax is made on the basis of the estimated
taxable Income for the current year in accordance with the provisions
of the Income Tax Act, 1961.
b) Deferred Tax resulting from timing differences between book and tax
profits is accounted for under the liability method, at the current
rate of tax, to the extent that the timing differences are expected to
crystallize. Deferred Tax Asset, if any, is recognized and carried
forward only to the extent that there is a reasonable certainty that
the asset will be realized in future.