| i) Basis of Accounting:
The accounts have been prepared under historical cost convention and in
accordance with applicable accounting standards and relevant disclosure
requirements of the Companies Act, 2013.
Recognition of Income & Expenditure:
Income & Expenditure is recognized on accrual basis.
ii) Fixed Assets and Depreciation:
Fixed assets are stated at cost, less accumulated
depreciation/amortisation. Costs include all expenses incurred to
bring the assets to its present location and condition. Fixed assets
exclude computers and other assets individually costing 5000 or less
which are not capitalised except when they are part of a larger capital
investment programme. All Fixed Assets are stated at Historical Cost
Less Depreciation.
Depreciation / Amortization In respect of fixed assets (other than
freehold land and capital work-in-progress) acquired during the period,
depreciation/ amortization is charged on a straight line basis so as to
write off the cost of the assets over the useful lives and for the
assets acquired prior to April 1, 2014, the carrying amount as on April
1, 2014 is depreciated over the remaining useful life as per the
requirements of Schedule - II of the Companies Act 2013.
Type of asset Period
Computer equipment 3 years
Office equipment 5 years
Furniture and fixtures 10 years
iii) Investments:
Long-term Investments are stated at cost. Provision for diminution is
made only if; in the opinion of the management such decline is other
than temporary.
iv) Inventories:
Stock in trade is valued scrip wise at cost based on FIFO method or
estimated realizable value whichever is lower.
v) Revenue Recognition:
All the items of cost/ expenditure and revenue/ income have been
accounted for on accrual basis.Dividend income is recognised when the
right to receive payment is established.
vi) Taxes on Income:
a) Current tax is determined as the amount of tax payable in respect of
taxable income for the period.
b) Deferred tax is recognized, subject to the consideration of prudence,
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 not
recognized on carry forward of losses unless there is virtual certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
vii) Provision involving substantial degree of estimation in
measurement is recognized when there is a present obligation as a
result of past events and it is probable that there will be an outflow
of resources. Contingent Liabilities are not recognized but are
disclosed in notes. Contingent assets are neither recognized nor
disclosed in the financial statements.
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