| 1.1 Basis of Preparation of Financial Statements
The Financial Statements have been prepared under the historical cost
convention and in accordance with the provisions of the Companies act,
1956 Accounting policies not referred to otherwise are consistent and
are in consonance with the generally accepted accounting principles in
India.
1.2 Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
mace that affect the reported amount of assets and liabilities on the
date of the financial statements and the reported amount of revenues
and expenses during the reporting period. Difference between the actual
results and estimates are recognised in the period In which the results
are known / materialized.
1.3 Fixed Assets & Depreciation
(i) Fixed assets stated at cost of acquisition and subsequent
improvements thereto; less accumulated depreciation, and impairment
loss if any.
(ii) Depreciation is provide on written down value method at the rates
and in the manner prescribed in Schedule XIV to the Companies Act. 1956
1.4 impairment of Assets
The carrying amounts of the assets are reviewed at each balance sheet
date. An asset is treated as impaired when the carrying cost of the
asset exceeds is recoverable value. An impairment loss is charged when
the asset is identified as Impaired,
1.5 investments
Long-term investments are carried at acquisition cost. Investments
intended to be held for less than one year are classified as 'Current
Investments and darried at lower of cost and net realizable value.
Provision for diminution in value is made if the decline in value is
other than temporay nature in the opinion of the management,
1.6 Inventories
inventories of shares and securities are valued at lower of cost and
net realizable value.
1.7 Emplayee Retirement Benefits
(i) Short term employee benefits are charged off at the undiscounted
amount in the period in which the related service is rendered.
(ii) Post employment ant other long term employee benefits are charged
off in the period in which the employee has rendered services the
amount charged off is recognized at the present value of the amounts
payable determined using actuarial valuation techniques Actuarial gains
and losses in respect of post employment and other long term benefits
are charged to the Statement of Profit and Less.
1.8 Taxes on income
Provision for income Tax made on the basis of estimated taxable income
for the period at current rates. Tax expense comprises both Current Tax
and Deferred Tax at the applicable enacted or substantively enacted
rates. Current Tax represents the amount of Income Tax payable/
Recoverable in respect of taxable income/ loss for the reporting
period- Deferred Tax represents the effect of timing difference between
taxable income and accounting income for the reporting period that
originates in one year and are capable of reversal in one or more
subsequent years.
1.9 Provisions, Contingent liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed In the
Notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
|