| (a) ACCOUNTING CONVENTION: The Financial statements have been prepared
in accordance with the historical cost convention and generally
accepted accounting principles. A summary of the important accounting
policies, which have been followed consistently, is set out below.
(b) FIXED ASSETS: Fixed Assets are stated at cost of acquisition
inclusive of freight & incidental expenses less depreciation thereof.
(c) DEPRECIATION: Depreciation on owned Assets has been charged on
straight line method as per rates and in the manner prescribed in
Schedule-XIV of the Companies Act 1956. No Depreciation has been
charged on additions of Rs. 22.12 lacs, on account of revaluation of
the office premises during the year 1993-94.
(d) INVESTMENTS: Investments are valued at cost.
(e) REVENUE RECOGNITION:
(i) Income from consultancy and advisory services is accounted for on
accrual basis.
(ii) In respect of other heads of income except dividends, the company
follows the practice of accounting such income on accrual basis.
(iii)Sales and Purchase of the company consists of the sale and
purchase of shares in the secondary market and has been accounted for
on accrual basis.
(iv) All the expenses have been accounted for on mercantile basis.
(f) PROVISION FOR TAXATION: Provision for taxation is computed as per
total income returnable under the Income Tax Act, 1961.
(g) DEFERRED TAX: Deferred Tax Liability is provided pursuant to
Accounting Standard [AS-22]. Deferred Tax Asset and Deferred Tax
Liability are calculated by applying tax rates and tax laws that have
been enacted or substantively enacted by the Balance Sheet date.
Deferred Tax Assets arising mainly on account of brought forward losses
and unabsorbed depreciation under tax laws are recognized, only if
there is virtual certainty of its realization, supported by convincing
evidence. Deferred Tax Assets on account of other timing differences
are recognized only to the extent there is reasonable certainty of its
realization.
(h) OTHER ACCOUNTING POLICIES: These are consistent with the generally
accepted accounting policies.
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