| A. BASIS OF ACCOUNTING POLICIES:
The financial statements have been prepared under the historical cost
convention using accrual method of accounting in accordance with the
generally accepted accounting principles in India and the provisions of
companies Act, 1956 and the accounting standards as specified in
companies(Accounting Standards) Rule, 2006.
B. USE OF ESTIMATES:
The preparation of financial statements requires the management of the
company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expense during the year. Example of such
estimates include provision for doubtful receivables, employee
benefits, provision for income taxes, accounting for contract costs
expected to be incurred, the useful lives of depreciable fixed assets
and provision for impairment.
C. FIXED ASSETS & DEPRECIATION:
The Fixed Assets are stated at their original cost of acquisition
including all expenses attributable to bring the assets to its
intending use.
The depreciation on Fixed Assets has been provided for on written down
value method at the rate and in the manner prescribed in Schedule XIV
of The Companies Act' 1956.
None of the Fixed Assets have been revalued during the year.
D. RECOGNITION OF INCOME & EXPENDITURE :
Revenues /Income and cost/Expenditure are generally accounted on
Accrual basis as they are earned or incurred.
E. FOREIGN CURRENCY TRANSACTIONS:
a. The reporting currency of the company is the Indian rupee.
b. The company has not made any transaction in foreign exchange during
the year.
F. INVESTMENTS:
The investment held by the company is carried at cost.
G. PROVISION FOR CURRENT AND DEFERRED TAX:
Current Income Tax is determined as an amount of taxes payable in
respect of taxable income for the year. Deferred tax liability/assets
in terms of Accounting Standard - 22, issued by The Institute of
Chartered Accountants of India, is recognized, subject to the
consideration of prudence in respect of Deferred Tax liability/assets
arising due to timing differences.
H. IMPAIRMENT OF ASSETS:
At each balance sheet date, the management reviews the carrying amounts
of its assets included in the cash generating unit to determine whether
there is any indication that those assets were impaired. If any such
indication exists, the recoverable amount of the assets is estimated in
order to determine the extent of impairment.
I. EMPLOYEES BENEFITS UNDER THE COMPANIES (ACCOUNTING STANDARDS)
RULES, 2006.
The Company has applied the revised Accounting Standard AS-15 EMPLOYEES
BENEFITS UNDER THE COMPANIES (ACCOUNTING STANDARDS) RULES, 2006
relating to employees benefits notified under the companies (Accounting
Standards) Rules 2006. According to the management there is no present
obligation of any post employment benefits including payment of
gratuity during the year. Therefore no actuarial gains or losses arose
at the end of the year.
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