A. SYSTEM OF ACCOUNTING:
The company follows the mercantile system of accounting and recognises
income and expenditure on the accrual basis.
B. SALES & PURCHANSES:
Sales & Purchases are recognised at net of returns.
C. FIXED ASSETS:
Fixed assets are carried at original cost including other incidental
Depreciation on Fixed Assets has been calculated on written down value
method at the rates and in the manner prescribed in schedule XIV to the
i) Long Term investments of the company are stated at their cost of
acquisition, However long term investments acquired upto 31st March,
1996 were revalued at the estimated realisable value as on 31st March,
1996 and are stated at the same value on the Balance Sheet date. The
difference on account of such revaluation had been taken to capital
Reserve account. Necessary adjustments are made in the capital Reserve
account whenever any of the revalued investments are sold.
ii) Provision for diminution in the value of long term investments is
made in case such a decline is other than temporary in the opinion of
i) Current tax has been determined and provided as the amount of tax
payable in respect of taxable income for the year.
ii) Deferred tax has been recognised, subject to the consideration of
prudence, on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.