| 1.1. ACCOUNTING CONCEPTS:
The Company maintains its accounts on accrual basis following the
historical cost Convention in accordance with generally accepted
accounting principles ("GAAP"), and in compliance with the Accounting
Standards referred to in section 211 (3C) and other requirements of the
Companies Act, 1956. The preparation of financial statements in
conformity with Indian GAAP requires that the Management of the Company
makes estimates and assumptions that affect the Reported amounts of
income and expenses of the period, the reported balances of assets and
liabilities and the disclosures relating to contingent liabilities as
of the date of the financial statements. Examples of such estimates
include the useful live of fixed assets etc. Actual results could
differ from these estimates.
1.2. FIXED ASSETS:
Fixed Assets are stated at cost of acquisition less depreciation. The
cost comprises of the purchase price and other attributable costs.
1.3. DEPRECIATION:
The Company follows the written down value method of providing
depreciation at the rates prescribed in Schedule XIV to the Companies
(Amendment) Act 1988 read with Section 205(2) (b) of the said Act on
pro-rata basis uniformly in respect of all Assets.
1.4. INVESTMENTS:
Long Term Investments are carried at cost less provision for diminution
other than Temporary, if any, in value of such investments. .
1.5. INVENTORIES:
Inventories are valued at cost or Net realizable value, whichever is
lower.
1.6. EMPLOYEE BENEFITS:
Provident fund has been paid regularly in time by the company. Gratuity
& Leave Encashment is accounted for in cash basis as and when paid.
1.7 Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes as a
substantial period of time to get ready for its intended use or sale.
All other borrowing costs are charged to revenue.
1.8 AS-22 ACCOUNTING FOR TAXES ON INCOME:
Tax on income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provision of the Income Tax Act, 1961, and based on expected outcome of
assessment / appeals.
Deferred tax is recognised on timing differences between the accounting
income and the taxable income for the year, and quantified using the
tax rates and laws enacted or substantively enacted as on the Balance
Sheet date.
Deferred tax assets are recognised and carried forward to the extent
that there is a reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realised.
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