Basis of Accounting :
The accounts have been prepared under the historical cost convention.
The Company follows the mercantile system of accounting and recognises
income and expenditure on accrual basis.
Fixed Assets :
Fixed Assets are stated at cost less accumulated depreciation.
Depreciation on all assets is provided on Written Down Value manner and
at the rates prescribed in Schedule XIV to the Companies Act, 1956.
Stocks are valued at cost or market value, whichever is lower. However,
the Company was holding no stock at the year end.
Revenue Recognition :
All revenues are generally recognised on accrual basis.
Retirement Benefits :
No provisions for the retirement benefits have been made by the Comany.
Taxes on Income :
Current tax is determined as the amount of tax payable in respect of
taxable income for the period.
Deferred tax is recognised on timing difference, being the difference
between taxable income and accounting income that originate between in
one period and are capable of being reversed in one or more subsequent
Deferred tax assets are recognized on unabsorbed depreciation and carry
forward losses unless there is virtual uncertainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realised.
Deferred tax assets and deferred tax liabilities are recognized only if
either of them are in excess of Rs. 1.00 Lakh.
Prior Period, Extra Ordinary Items & Changes in Accounting Policies.
The item relating to Prior period or extra ordinary in nature has not
been shown since not being material.
Contingencies and events occurring after Balance Sheet Date :
There are not contingencies and events occurring after the Balance Sheet
date affecting the financial position of the Company.