| 1. Basis for preparation of Accounts:
The accounts have been prepared under the historical cost convention in
accordance with the generally accepted accounting principles in India,
the Accounting Standards issued by the Institute of Chartered
Accountants of India (ICAI) and the relevant provisions of the
Companies Act, 1956.
2. Use of Estimates:
The preparation of financial statements, in conformity with the
generally accepted accounting principles, requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of financial statements and the reported
amounts of revenues and expenses during the reported period.
Differences between the actual results and estimates are recognized in
the period in which the results are known/materialized.
3. Revenue Recognition:
In appropriate circumstances, revenue (income) is recognized when no
significant uncertainty as to determination or realization exists.
4. Taxation
The Provision for current taxation is based on assessable profits and
fringe benefits of the Company as determined under the provisions of
the income tax act 1961. Deferred tax resulting from "timing
differences" between taxable and accounting income is accounted for
using the tax rates and laws that are enacted or substantively enacted
as on the balance sheet date. The deferred tax asset is recognized and
carried forward only to the extent that there is a virtual certainty
that the asset will be realised in future.
5. Investments
Investments in shares being long term are stated at cost.
6. Retirement Benefits
No Provisions has been made for payment of gratuity since it is not yet
applicable. Leave encashment benefits have been charged to profit &
loss account.
7. Miscellaneous Expenditure
Miscellaneous expenditure has been written off in five years
8. Contingent Liabilities
Contingent liabilities, if material are disclosed by way of notes
9. Event occurring after the balance sheet
Material events occurring after the date of balance sheet have been
taken cognizance Liabilities which are material and whose future
outcome can't be ascertained with reasonable certainty have been
treated as contingent liability and are disclosed by way of notes to
accounts.
10. Other Accounting policies
These are consistent with generally accepted accounting practices.
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