| a Method of accounting
These financial statements have been prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis except where specified otherwise.
GAAP comprises accounting standards notified by the Central Government
of India u/s 211(3C) of Companies Act, 1956 and the relevant provisions
of the Companies Act, 1956 to the extent applicable. Accounting
policies not specifically referred to otherwise, are consistent and in
consonance with generally accepted accounting principles.
The Company has prepared these financial statements as per the format
prescribed by Revised Schedule VI to Companies Act, 1956 (the Schedule)
issued by Ministry of Corporate Affairs.
b Revenue recognition -
The Company recognizes its revenue and expenses on accrual basis.
c Income taxes
Income tax expenses comprises of current tax computed in accordance
with the relevant provisions of the Income Tax Act, 1961 and deferred
tax charge or credit.
Current tax provision is made based on the tax liability computed after
considering tax allowances and exemptions, in accordance with the
Income Tax Act, 1961.
Deferred tax charge or credit and the corresponding deferred tax
liability or asset is recognized for timing differences between the
profits/losses offered for income taxes and the profits/losses as per
the financial statements. Deferred tax assets and liabilities are
measure using tax rates and tax laws that have been enacted or
subsequently enacted at the balance sheet date
Deferred tax assets are recognized only if there is reasonable
certainty of realization of such assets in future. However, where there
is unabsorbed depreciation or carry forward loss under taxation laws,
deferred tax assets are recognized only if there is virtual certainty
of realization of such assets. Deferred tax assets/liabilities are
reviewed as at each Balance sheet
date and written down/up to reflect the amount that is
reasonably/virtually certain (as the case may be) to be realized.
d Earning per share:
Basic earnings per share is calculated by dividing the net profit for
the year attributable to the equity shareholders by the weighted
average of the number of equity shares outstanding during the year.
e Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are 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, if any, are not recognized but disclosed by way
of notes to accounts. Contingent assets are neither recognized nor
disclosed in the financial statements.
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