| BASIS OF ACCOUNTING
The accounts are prepared on accrual basis under the historical cost
convention and in accordance with the applicable Accounting Standards
in India and the provisions of the Companies Act, 1956 except otherwise
stated.
REVENUE RECOGNITION
Revenue is recognized on accrual basis when there is no significant
uncertainty of its realisation.
INVESTMENTS
Investments are stated at cost. In case of permanent diminution in the
value of the investments, provisions for diminution are made to
recognize decline on individual investment basis.
FIXED ASSETS
Fixed Assets are stated at cost of acquisition less accumulated
depreciation.
DEPRECIATION
Depreciation on fixed assets is provided on "Straight Line Method" at
the rates and in the manner specified in Schedule XIV of the Companies
Act, 1956.
IMPAIRMENT
Fixed Assets are reviewed at each balance sheet date and impairment
loss is recognized if and when the Companys value of fixed assets
exceeds its recoverable amount (i.e., net selling price or value in
use, whichever is higher).
TAXES ON INCOME
Tax on income for the current year is determined on the basis of the
taxable income and current tax rate in accordance with the provisions
of Income Tax Act, 1961.
Fringe Benefit Tax (FBT) is accounted for, based on the estimated
fringe benefits for the period as per the related provisions of Income
Tax Act, 1961. Provision for FBT is netted off against the advance tax
paid for FBT and excess provision over advance tax paid, if any, is
shown as liability in the Balance Sheet.
Deferred tax assets and liabilities are recognised for the future tax
consequences of temporary differences subject to managements judgement
that there is a reasonable certainty that sufficient taxable income
will be available against which such deferred tax assets can be
realised.
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