1.1 Basis of preparation of financial statements:
a) The financial statements have been prepared under the historical
cost convention on accrual basis, in accordance with the generally
accepted accounting principles and the provisions of the Companies Act,
1956. Accounting Standards (AS) referred to in the notes are as issued
by the Institute of Chartered Accountants of India.
b) Accounting policies not specifically referred to otherwise are
consistent with the generally accepted accounting principles followed
by the Company.
c) The preparation of financial statements requires management to make
estimates and assumptions that effect the reported amounts of assets
and liabilities on the date of 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 results are known / materialised.
1.2 Revenue Recognition:
Income from the operations are accounted for on accrual basis,
comprising of commission.
1.3 Retirement & other employee benefits:
Short term employee benefits are accounted in the period during which
the services have been rendered.
1.4 Tax Expense:
Tax expense comprises both current and deferred taxes. Current Tax is
provided on the taxable income using the applicable tax rates and tax
laws. Deferred tax assets and liabilities arising on account of timing
difference and which are capable of reversal in subsequent periods are
recognised using the tax rates and tax laws that have been enacted or
substantively enacted. Deferred tax assets are recognised only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realised. If the company has carryforward unabsorbed
depreciation and tax losses, deferred Tax assets are recognised only to
the extent there is a virtual certainty supported by convincing
evidence that sufficient taxable income will be available against which
such deferred tax assets can be realised.
1.5 Earnings per share:
The earnings per share has been computed as per Note 15 in accordance
with Accounting Standard (AS-20) on, Earnings Per Share and is also
shown in the Statement of Profit and Loss.
1.6 Provisions and Contingent Liabilities:
The Company recognises a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. Adisclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.