| A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
1. The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956.
2. Method of Accounting - The Company maintains its accounts on
accrual basis
3. The Accounting Standards recommended by The Institute of Chartered
Accountants of India have been followed wherever applicable to the
Company.
B. FIXED ASSETS, DEPRECIATION & IMPAIRMENT
1. The Fixed Assets are stated at cost of their acquisition less
depreciation.
2. Depreciation provided on fixed assets, on written down value
method, as per the rates specified Scheduled XIV of the Companies Act
1956.
C. VALUATION OF CLOSING STOCK
There are no closing stocks of inventories at the end of the year.
Hence the valuation of the same at the end of the year is not called
for.
D. DEFERRED REVENUE / MISCELLANEOUS EXPENSES
Deferred Revenue Expenses and related expenses incurred for the project
are written off over a period of five years and has been disclosed
under Non - current assets.
E. INVESTMENTS
Investments are classified as long- term and current investments. Long
- term investments are shown at cost , or written down value ( in case
of other than temporary diminution ) and there are no current
investments in the company .
F IMPAIRMENT OF ASSETS
As required AS-28 issued the institute of Chartered Accountants of
India, Provision for impairment loss of assets is not required to be
made as the estimated realizable value of such assets will be more
equal to the carrying amount stated in the Balance Sheet.
G RETIREMENT BENEFITS
Contribution of Provident fund, Gratuity and leave encashment benefits
wherever applicable is being accounted on actual liability basis as
currently the company does not fall within the purview of the
respective acts and not contributions were required to be made either
by company or any its employee's.
H. TAX ON INCOME
a. Tax on income for the current period is determined on the basis of
Taxable Income Computed in accordance with the provisions of the Income
Tax Act 1961.
b. Deferred Tax on timing differences between the accounting income
and taxable income for the year and quantified using the tax rates and
laws enacted or substantively enacted as on the Balance Sheet date as
per the Accounting Standard (AS 22) laid down by the Institute of
Chartered Accountants of India (ICAI).
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