| 1. BASIS OF ACCOUNTING:- The Accounts have been prepared on historical
cost basis and accrual system of accounting unless otherwise stated.
2. INCOME RECOGNITION: -
2.1 Interest on investments is accounted for on accrual basis.
2.2 Dividend income is accounted for on receipt basis.
2.3 Profit or loss on sale of investments is accounted for as and when
the transactions are entered in to.
3. EXPENSES: -The Company provides for all expenses on accrual basis.
4. FIXED ASSETS: Fixed Assets are valued at cost less depreciation. The
depreciation has been provided as per rate prescribed in the Income Tax
Act 1961.
5. INVENTORY: Inventory is valued at cost.
6. SALES are accounted for on accrual basis
7. GRATUITY: No provision for retirement benefits for employees has
been made since the Gratuity Act and Provident Fund Act are not
applicable to the Company and the company has adopted PAY-AS-YOU-GO
method for the payment of other retirement benefits, if any payable to
the Employees.
8. TAXATION
(i) Provision for current tax is made in the accounts on the basis of
estimated tax liability as per the applicable provisions of the Income
Tax Act, 1961.
(ii) Deferred tax for timing differences between tax profits and book
profits is accounted for using the tax rates and laws that have been
enacted or substantially enacted as of the Balance Sheet date.
9. INVESTMENTS: Long term investments are stated at cost. Provision for
diminution in the value of long term investment is made only if such
decline is other than temporary in the opinion of the management.
10. CONTINGENT LIABLITY: All known liabilities are provided for in the
books of account except liabilities of contingent nature which have
been adequately disclosed by way of "Notes to the Account"
|