Tirupati Tyres

(a) BASIS OF PRESENTATION OF FINANCIAL STATEMENTS:
 
 The financial statements are prepared in accordance with generally
 accepted accounting principles in India under the historical cost
 convention and on accrual basis of accounting. These financial
 statement have been prepared to comply in all material aspects with the
 mandatory and applicable Accounting Standards as prescribed by the
 Companies (Accounting Standards) Rules, 2006, as amended and relevant
 provisions of the Companies Act, 2013(to the extent notified).
 
 All assets and liabilities have been classified as current or non
 current as per the Company''s normal operating cycle and other criteria
 set out in the Revised Schedule III to the Companies Act, 2013. Based
 on the nature of products and the time between the acquisition of
 assets for processing and their realization in cash and cash
 equivalents, the company has ascertained its operating cycle as twelve
 months for the purpose of current non-current classification of assets
 and liabilities.
 
 (b) USE OF ESTIMATES :
 
 The presentation of Financial Statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of financial statements and the reported amount
 of revenue and expenses during the reporting period. Difference between
 the actual results and estimates are recognized in the period in which
 results are known/materialized.
 
 (c) REVENUE RECOGNITION :
 
 The company recognizes sale of products when they are invoiced to
 customers. Revenue in respect of other income is recognized when no
 significant uncertainty as to its determination or realization exists.
 
 (d) FIXED ASSETS :
 
 Fixed assets are stated at cost less accumulated depreciation. Cost for
 this purpose includes purchase price, non refundable taxes or levies
 and other directly attributable costs of bringing the assets to its
 working condition for its intended use.
 
 (e) DEPRECIATION :
 
 Depreciation is provided on Straight Line method at the rates specified
 II to the Companies Act, 2013. Depreciation is provided for on a
 pro-rata basis on the assets acquired, sold or disposed off during the
 year.
 
 (F) TAXES ON INCOME :
 
 (i) Current tax is determined as the amount of tax payable in respect
 of taxable income for the year.
 
 (ii) Deferred tax is provided on all timing differences which are
 recognized during the period.
 
 Deferred Tax Asset is recognized only if there is a reasonable
 certainty on the realisability of the assets.