| BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
METHOD OF ACCOUNTING:
a) The Financial statement are prepared under the historical cost
convention on an accrual basis and comply with all mandatory
Accounting Standards issued by the Institute of Chartered of India and
the relevant provisions of the Companies Act, 2013.
b) The preparation of the financial statements require the Management
to make estimates and assumptions*considered in the reported amounts
of assets and liabilities (including the contingent liabilities) and
the reported income and expenses during the reporting period. The
Management believes that the estimates used in the preparation of the
financial statements are prudent and reasonable. The difference
between the actual results and the estimates are recognized in the
period in which the results are known/ materialized.
c) The rights and liabilities pertaining to prior period operations
but arising in the current year, if material, are shown under 'prior
period adjustments' in the Profit & Loss Account.
FIXED ASSETS:
Tangible Fixed Assets
The "Gross Block" of fixed assets is shown at the cost of acquisition,
which includes taxes, duties and other identifiable direct expenses.
DEPRECIATION:
The company has changed method of providing for depreciation from
W.D.V. method to S.L.M. method and depreciation has been worked out as
per the Schedule II of the Companies Act, 2013.
IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of asset
exceeds its recoverable value. An impairment loss is charged to the
statement of Profit & Loss in the year in which an asset is identified
as impaired. The impairment loss recognized in prior accounting period
is reversed if there has been a change in the estimate of recoverable
amount.
INVESTMENTS:
Investments held by the company are of Non Current in nature, and are
shown at cost.
Provision for diminution in the value of Non Current Investments is
made only if such a decline is other than temporary in the opinion of
the management.
Current investments, if any, are stated at the lower of cost and fair
value, considered category wise.
On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
Statement of Profit & Loss on sale of investments and is determined on
a Weighted Average Cost basis.
REVENUE RECOGNITION:
All income and expenditures are accounted on accrual basis. Dividend
income on investments are accounted for when the right to receive the
payment is established.
PROVISION FOR TAXATION;
a) Tax expenses comprise of current and deferred tax.
b) Provision for current income tax is made on the basis of relevant
provisions of the Income tax act, 1961 as applicable to the financial
year.
c) Deferred tax charge or credit and correspondingly deferred tax
asset or liability is recognized using tax rates that have been
enacted or substantively enacted at the Balance Sheet date.
d) Deferred tax is recognized, subject to the consideration of
prudence, on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
PROPOSED DIVIDEND;
Dividends proposed by the Board of Directors are provided for in the
accounts pending approval at the Annual General Meeting.
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