1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The accompanying financial statement have been prepared under the
historical cost convention, going concern and on the accrual basis of
accounting in accordance with the provisions of the Companies Act, 1956
& comply with the accounting standards issued by the Institute of
Chartered Accountants of India to the extent applicable.
1.2 ACCOUNTING ESTIMATES
The preparation of the financial statements in accordance with
generally accepted accounting principles often requires that Company
officials makes estimates & assumption that affect the reported amount
of Assets & Liabilities and disclosure of contingent Assets and
liabilities as on the date of financial statement & the reported
amounts of revenue & expenses. During the reported period Company
officials believes that the estimates used in the preparation of the
financial statement are prudent & reasonable, actual results could
differ from these estimates.
1.3 FIXED ASSETS
Fixed assets are stated at cost
1.4 DEPRECIATION
The Company has not charged Depreciation on its fixed assets.
1.5 REVENUE RECOGNITION
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection.. Interest Income is
recognized on time proportion basis taking into account the amount
outstanding and rate applicable.
1.6 TAXES ON INCOME
Tax expenses comprises of Current tax and deferred tax. Current Tax
Provision, if any, has been made on the basis of reliefs and deduction
available under the Income- Tax Act, 1961. Deferred tax resulting from
"timing difference" between taxable and accounting income is accounted
for using the tax rates and laws that are enacted or substantively
enacted as on the Balance Sheet date. The deferred tax assets is
recognised and carried forward only to the extent that there is a
reasonable certainty that the assets can be realised in future.
However, where there is unabsorbed depreciation or carry forward losses
under taxation laws, deferred tax assets are recognized only if there
is virtual certainty of realisation of such assets. Deferred tax assets
are reviewed as at each Balance Sheet date.
1.7. CONSISTENCY :
These Financial statements have been prepared on basis consistent with
previous years and accounting policies not specifically referred hereto
are consistent with generally accepted accounting principles.
1.8. IMPAIRMENT OF ASSETS:
In accordance with the Accounting Standard (As-28 ) in " Impairment of
Assets " issued by The Institute of Chartered accountants of India ,
during the year the company has reassessed its fixed assets and is of
the view that no further impairment / reversal is considered to be
necessary in view of its expected realizable .
1.9. SEGMENTAL REPORTING:
Being the company having only one line of operation and working in a
single geographical area and in accordance with the provisions of AS
-17. Hence segmental report is not furnished.
1.10. INVESTMENTS
Investments that are intended to be held for more than a year, from the
date of acquisition, are classified as long term investments and are
carried at cost. Provision for diminution in the value of long term
investments is made only if such a decline is other than temporary.
1.11 CONTINGENT LIABILITIES
Contingent liability that may arise due to delayed / non-compliance of
certain fiscal statutes amount unascertainable.
|