| a] ACCOUNTING CONVENTION :
The Financial statements are prepared under the Historical Cost
convention, on Accrual Basis, in accordance with generally accepted
Accounting principles in India, The Accounting Standards issued by the
Institute of Chartered Accountants of India and the Provisions of
Companies Act, 1956.
b] DEPRECIATION:
The depreciation on the fixed assets in the books are provided for on
pro-rate basis on straight line method (SLM) at the rates specified in
Schedule XIV to the companies Act, 1956.
c] PRELIMINARY & PRE OPERATIVE EXPENSES
Miscellaneous Expenditure is written off at the amount admissible
under the Income Tax Act, 1961.
d] FIXED ASSETS
Fixed assets are recorded at the cost, which includes all expenses up
to commission/putting the assets into use.
e] TAXATION
Provision for taxation is made in accordance with provisions
prevailing of the Income Tax Act, 1961 for the relevant assessment
year.
f] INVESTMENT
Investments are valued at cost inclusive of all expenses incidental to
their acquisition.
g] RECOGNITION OF INCOME AND EXPENDITURE
Revenue is recognized and expenditure is accounted for on their
accrual.
h] SALES TAX
Sales Tax (VAT) paid and collected by the company is not forming part
of the expenditure/income of the company.
i] MISCELLANEOUS EXPENDITURE:
The Miscellaneous expenses are amortized 1 /5th every year over a
period of Five years and it is fully Amortised.
j] CONTINGENT LIABILITIES/ASSETS
All known liabilities are provided for in the accounts. Liabilities of
contingent nature, if any, are generally not provided in the accounts
but are shown separately as a Note to the accounts.
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