| I BASIS OF ACCOUNTING
These financial statements have been prepared to comply with the
Generally Accepted Accounting Principles in India (Indian GAAP),
including the Accounting Standards notified under the relevant
provisions of the Companies Act, 2013. Accounting policies have been
consistently applied except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting standard
requires a change in the accounting policy there to in use.
II USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period end. Although estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates.
III FIXED ASSETS
Fixed assets are recorded at cost of acquisition or at revalued
figures. Cost includes purchase cost together with all incidental
charges and other related costs.
IV DEPRECIATION ON TANGIBLE FIXED ASSETS
Depreciation on fixed assets is calculated on a straight-line basis
over the useful life of the assets as prescribed under Part C of
Schedule II of the Companies Act 2013. The useful lives for the fixed
assets are as follows:
Assets Life
Computers 3 years
Furniture & Fixtures 10 years
Office Equipments 5 years
Air Conditioners 5 years
V INCOME TAX
"Tax expense comprises both current and deferred tax at the applicable
enacted/ substantively enacted rates. Current tax represents the amount
of income tax payable/ recoverable in respect of the taxable income/
loss for the reporting period. Provision for current tax is made on the
basis of estimated taxable income for the current accounting period in
accordance with the provisions of The Income Tax Act, 1961. Deferred
tax represents the effect of "timing differences" between taxable
income and accounting income for the reporting period that originate in
one period and capable of reversal in one or more subsequent periods.
Deferred Tax Assets on unabsorbed Depreciation and brought forward
losses are recognised only on Virtual Certainty.
VI EARNINGS PER SHARE
"Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. For the
purpose of calculating diluted earning per share, the net profit or
loss for the period attributable to equity shareholders and the
weighted average number of equity shares outstanding during the period
are adjusted for the effects of all dilutive potential equity shares.
VII CASH AND CASH EQUIVALENT
Cash and Cash equivalents in the cash flow statement comprise cash at
bank and in hand and short-term investments with an original maturity
of three months or less.
VIII REVENUE RECOGNITION
Revenue (income) is recognized to the extent that it is probable that
the economic benefits will flow to the Company and the revenue can be
reliably measured. The following specific recognition criteria must
also be met before revenue is recognized:
Interest Revenue is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
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