Basis of Preparation of Financial Statements
The accounts have been prepared on a going concern basis according to
the historical cost convention according to the accrual system of
accounting materially comply with the mandatory accounting statements
and standards issued by the Institute of Chartered Accountants of India
and the relevant presentational requirements of the Companies Act,
1956. The significant accounting policies followed by the company are
a Use of Estimates
The preparation of financial statements 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. Difference
between the actual results and estimates are recognised in the period
in which the result are known / materialised.
b Revenue Recognition
Income is being accounted for on accrual basis
c Fixed Assets and Depreciation
i) Fixed Assets are stated at cost, including freight, installation,
duties and taxes, finance charges and other incidental expenses
incurred during construction or installation to bring the assets to
their state of intended use.
ii) Depreciation is provided on the Straight Line Method at the rates
prescribed by Schedule XIV of the Companies Act, 1956.
iii) In respect of revalued assets, the Depreciation attributable to
the amount added on revaluation, is adjusted against the Revaluation
d Valuation of Investment
Investments are valued at acquisition cost Provision is made for
diminution in the value of investment which is perceived to be of
e Valuation of Stock
Stocks of quoted shares / debentures and other securities are valued at
cost or market price whichever is less, by comparing each scrip with
its market price. Market price of each scrip is determined on the basis
of the closing price of the scrip prevailing at the principal stock
exchange where the same is traded.Stock of Unquoted shares & debentures
are valued at cost.
f Method of Accounting
Mercantile method of accounting is employed.
Provision for Income Tax for the current period is made if applicable
on the basis of estimated tax liability as per the applicable
provisions of the Income Tax Act, 1961.
h Gratuity is being provided on cash basis.