1. METHOD OF
ACCOUNTING :
The Company follows Mercantile System of accounting and recognizes income
and expenditure on an accrual basis. The accounts are prepared on historical
cost basis.
2. PROPERTY, PLANT AND
EQUIPMENT:
Property, Plant and Equipments are accounted for on historical cost basis less
accumulated depreciation. Cost comprises of purchase price and all expenses
directly attributable to bringing the asset to its present working condition.
3. DEPRECIATION :
Depreciation is provided on the Straight Line Method basis as per the useful and
in the manner specified in Schedule II of the Companies Act, 2013.
4. INVESTMENTS:
Long Term:
Investments are stated at cost le ss provis ion for permanent diminution in value.
Short Term:
Short term investments are stated at cost or market value which ever is lower.
5 PRIOR PERIOD
ADJUSTMENTS:
Income and expenditure pertaining to prior periods are accounted under
respective heads of profit and loss account. However, net effect of such amount,
where material, is disclosed separately.
6 RECOGNITION OF
INCOME
Rental Income is recognised on accrual basis.
7 TAXES ON INCOME:
a) Current Tax:
Tax on Income for the Current Period is determined on the basis of taxable
income and tax credits computed in accordance with the provisions of the
Income Tax Act 1961, and based on expected out come of assessments /
appeals, if any.
b) Deferred Tax:
Deferred Tax for timing differences between taxable income and accounting
income are considered by using the tax rates that are substantively enacted by
the Balance Sheet date. Deferred Tax assets are recognized only to the extent
where there is reasonable certainty that they shall be realized.
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