1.1 Basis of Accounting: The Financial Statements have been prepared in
accordance with Generally Accepted Accounting Principles (GAAP) in
India, the Accounting Standards prescribed under the Companies
(Accounting Standards) Rules 2006 and the relevant provisions of the
Companies Act, 1956 and are based on the historical cost convention on
1.2 Use of Estimates: The preparation of financial statements in
conformity with GAAP requires the management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of
financial statements and the reported amount of revenues and expenses
during the reporting period. Actual results could differ from these
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
Long term investments are stated at cost. Provision, if any, is made
for permanent diminution in the value of investments.
Current investments are stated at lower of cost or market value.
Dividend/interest are accounted for as and when right to receive the
same is established.
1.4 Taxation: Provision are made for current tax based on tax liability
computed in accordance with relevant tax rates and tax laws.
1.5 Earning per Share: Basic earning per Share is computed by dividing
the net profit attributable to equity shareholders for the year by
weighted average number of equity shares outstanding during the year.