a) Basis of preparation of financial statements
The accompanying financial statements are prepared and presented under
the historical cost convention on the accrual basis of accounting, and
comply with the Accounting Standards prescribed by the Companies
(Accounting Standards) Rules, 2006 (''the Rules'') and the requirements
of the Companies Act, 1956 (''the Act''), to the extent applicable to the
Company. The financial statements are presented in Indian Rupees.
b) Use of Estimate
The preparation of the financial statements in conformity with
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amount of
assets, liabilities, revenues and expenses and the disclosure of
contingent liabilities on the date of the financial statement. Actual
results could differ from the estimates. Any revision to accounting
estimates is recognized prospectively in current and future periods.
Depreciation on fixed assets has been provided on WDV method at the
rates prescribed in schedule XIV of the Companies Act, 1956 on a pro
rata basis from the date the asset is ready to use till the date of
d) Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
e) Foreign Currency Transactions
Transaction in foreign currency is recorded at the exchange rates
prevailing at the time of the transaction. Transaction gains or losses
realized upon settlement of foreign currency transactions are included
in the determining net profit for the period in which the transaction
is settled. Monetary items denominated in the foreign currencies at the
year end are restated at year end rates.
All the Investments have been valued at cost less any provisions for
permanent diminution in value.
Inventories are valued at lower of cost or net realisable value after
providing for obsolescence, if any.
As at the end of reported year company did not hold any inventory and
hence valuation process has not been carried out.
h) Revenue recognition
Items of revenue have been recognised in accordance with the Accounting
Standard (AS-9). Accordingly wherever there are uncertainties in the
ascertainment/realisation of income, the same is not accounted for.
Income is accounted for on accrual basis.
i) Employee Benefits
i. The company''s contribution to provident fund in accordance with the
Employee''s Provident and Misc.
Provision Act 1952 is not applicable.
ii. The liability for gratuity to be provided in according to the
provisions of the Payment of Gratuity Act 1972 is not applicable.
j) Provision for Current and Deferred Tax
Provision for current tax is made on the basis of estimated taxable
income for the current accounting period in accordance with the
provisions of Income tax Act, 1961.
Deferred tax resulting from timing difference between book and taxable
profit for the year is accounted for using the tax rates and laws that
have been enacted or substantially enacted as on the balance sheet
date. The deferred tax asset is recognised and carried forward only to
the extent there is a reasonable certainty that the deferred tax assets
will be adjusted in future.
k) Provisions and Contingencies
A provision is recognised when there is a present obligation as a
result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are determined based on best
estimate of the amount required to settle the obligation at the Balance
Sheet date. Contingent liabilities, if any are not recognised and are
disclosed in the Notes on Accounts.
I) Segment Reporting
As per Accounting Standard (AS) 17 on Segment Reporting, segment
information has been provided under the Notes to Consolidated Financial