Basis of Accounting :
The financial statements are prepared under historical cost convention, on an accrual basis
and in accordance with relevant presentational requirements of the Companies Act, 2013
and the applicable mandatory Accounting Standards as prescribed under section 133 of
Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014.
Investment :
In accordance with Accounting Standard (AS13) on " Accounting for Investments" and the
guidelines issued by Reserve Bank of India, Investments are either classified as current or
long term based on management's intention at the time of purchase. Investments that are
readily realizable and intended to be held for not more than a year are classified as current
investments. All other investments are classified as Non Current / Long term Investments.
Current investments are stated at lower cost and market rate on an individual investment
basis, unless there is decline other than temporary in the value, in which case adequate
provision is made.
Earnings per share:
> Earnings per share are calculated by dividing the net profit or loss for the year
attributable to equity shareholders, by the weighted average number of equity shares
outstanding during the year.
> For the purpose of calculating diluted earnings per share, the net profit or loss for the
year attributable to equity shareholders and weighted average number of shares
outstanding during the year is adjusted for the effects of all dilutive potential equity
shares.
Provision and Deferred Tax:
The Provision for current tax is made after taking into consideration benefits admissible
under the provisions of the Income Tax Act, 1961.
Deferred Tax resulting from "timings difference" between book and taxable profit is
accounted for using the tax rates and laws that have been enacted or substantially enacted
as on the Balance Sheet date. The Deferred Tax Asset are recognized only to the extent that
there is a reasonable certainty that sufficient future taxable income will be available against
which deferred tax assets can be realized . deferred tax assets are recognized and carry
forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such
deferred tax assets can be realized against future taxable profit. .
Contingencies:
These are disclosed by way of notes on the Balance sheet. Provisions is made in the
accounts in respect of those contingencies which are likely to materialize into liabilities after
the year end , till the finalization of accounts and material effect on the position stated in the
Balance Sheet .
|