a) The books of accounts are maintained on accrual basis.
b) Dividend Income in the books is accounted when right to receive the
payment is established
c) Fixed Assets are stated at historical cost.
d) Depreciation has been provided on Written down value method at the
rates specified in schedule XIV of the Companies Act, 1956.
e) Long Term Investments are stated at cost. Cost is determined on
f) Stock in Trade quoted (Shares & debentures) are shown at Cost or
Market value whichever is lower.
g) Stock in Trade unquoted (Shares & debentures) are shown at Cost.
i. Income-tax expenses comprise current tax and deferred tax charge or
ii. The deferred tax asset and deferred tax liability is calculated by
applying tax rate and tax loss that have been enacted or substantially
enacted by the Balance Sheet date.
iii. Deferred tax assets arising mainly on account of brought forward
losses and unabsorbed depreciation under tax laws, are recognised, only
if there is a virtual certainly of its realisation, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognised only to the extent there is a reasonable
certainty of its realisation.
iv. At each Balance Sheet date, the carrying amount of deferred tax
assets is reviewed to reassure realisation.