a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The Financial Statements have been prepared under the historical cost
convention method on the accrual basis of accounting and in accordance
with generally accepted Accounting principles in India and comply with
the Accounting Standards notified under the Companies (Accounting
Standards) Rules, 2006 (as amended) and the relevant provisions of the
Companies Act, 1956.
b) PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS
During the year ended 31st March, 2012, the revised Schedule VI
notified under the Companies Act, 1956 has become applicable to the
Company for preparation and presentation of its financial statements.
The adoption of revised Schedule VI does not impact recognition and
measurement policies followed for preparation of financial statements.
However, it has significant impact on presentation and disclosure made
in the financial statements. The Company has also reclassified its
previous years figures in accordance with the requirements applicable
in the current year.
c) USE OF ESTIMATES
The preparation of the financial statements in conformity with the
Indian GAAP requires the management to make judgements, estimates and
assumptions that affect the reported amount of revenues, expenses,
assets and liabilities and the disclosure of contingent liabilities, at
the end of reporting period. Although these estimates are based on
management''s best knowledge of current events and actions,
uncertainty about these assumption and estimates could result in the
outcomes requiring a material adjustment to the carrying amount of
assets or liabilities in future periods.
Management believes that the estimates used in the presentation of
financial statements are prudent and reasonable. Actual result could
differ from these estimates.
d) RECONGNITION OF INCOME AND EXPENDITURE
Items of income and expenditure are recognised on accrual and prudent
basis with due compliance of the Guidelines of the Reserve Bank of
India on Prudential Norms for income recognition and provisioning for
e) FIXED ASSETS AND DEPRECITION
i) All the Fixed Assets have been stated at cost of acquisition with
the resultant write-up due to revaluation, as there may be.
ii) Depreciation on all fixed assets have been provided on written down
value method at the rates and in the manner specified in Schedule XIV
to the Companies Act, 1956.
Investments have been classified into long-term investments and current
investments in accordance with the Accounting Standard 13 issued by the
Institute of Chartered Accountants of India. Long Term Investments are
stated at cost. Current investments are valued at lower of cost and
market/ fair value determined by category of investments. Provisions in
respect of diminution other than temporary, in the value of long term
quoted investments are recognized on a prudent basis. Gains/losses on
disposal of investments are recognized as income/expenditure. Dividends
are accounted for when the right to receive the payment is established.
g) RETIREMENT BENEFITS
The Company contributes to Provident Fund and Superannuation Fund which
are administered by duly constituted and approved independent
Trust/Government and such defined contributions are charged against
revenues every year.
Accrued liability in respect of retirement gratuities are actuarially
ascertained at the year end. The Company has created a Gratuity Fund
under Group Gratuity Scheme under which yearly premium is being paid to
take care of current as well as past liability. The annual premium for
the year is charged to the financial statement.
Accrued liability in respect of leave encashment benefits on retirement
is actuarially ascertained at the year end and provided for in the
Impairment loss is recognized wherever the carrying amount of the Fixed
Assets exceeds the recoverable amount i.e. the higher of the assets net
selling price and value in use.
i) ACCOUNTING FOR TAXES ON INCOME
Tax expense comprises current and deferred Tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act.
Deferred tax is recognized on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Deferred tax assets are recognized only if there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets will be realised. Such assets
are reviewed as at each Balance Sheet date to reassess realisability
j) EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
k) PROVISIONS, CONTIGENT LIABILITIES CONTIGENT ASSETS
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognised
because it is not probable that an outflow of resources will be
required to settle the obligation. The company does not recognise a
contingent liability but discloses its existence in the financial
statements by way of Notes.
Contingent assets are neither recognised nor disclosed in financial