| 1.1 Corporate Information
Rajasthan Petro Synthetics Limited is a public company domiciled in
India and incorporated under the provisions of the Companies Act, 1956.
Its shares are listed on BSE, Ahmedabad, Kolkata and National Stock
Exchanges. However, trading of shares is permitted on BSE Ltd. only.
Trading of shares on other stock Exchange is suspended due to non-
payment of Listing Fees. The Company is presently engaged in Office
Management Services.
1.2 Basis of Preparation and Presentation of Financial Statements
i. These accounts are prepared on historical cost basis and on the
Accounting principles of going concern. Accounting policies not
specifically referred to otherwise are consistent with generally
accepted accounting principles.
ii. The Company follows mercantile system of accounting and recognizes
income and expenditure on accrual basis except to the extent stated
otherwise.
iii. The expenses are shown net of recovery wherever there is any
recovery against respective expenses.
iv. All assets and liabilities have been classified as current and
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. Based
on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current and non-current classification of
assets and liabilities.
1.3 Fixed Assets and Depreciation & Amortization
i. Fixed assets are stated at cost of acquisition including freight,
taxes, duties and other incidental expenses related to acquisition and
installation.
ii. Depreciation on Fixed Assets has been provided on the basis of
useful life specified in Part "C" of Schedule II of the Companies Act,
2013.
1.4 Revenue Recognition
The Company has revenue from Office Management Services and are
recognized as income when the services are rendered.
1.5 Investments
Long term investments are stated at cost, unless the loss is other than
temporary in nature.
1.6 Current Tax
Current tax expense is based on the provisions of Income Tax Act, 1961
and judicial interpretations thereof as at the Balance Sheet date and
takes into consideration various deductions and exemptions to which the
Company is entitled to as well as the reliance placed by the Company on
the legal advices received by it. Current tax assets and current tax
liabilities are offset when there is a legally enforceable right to set
off the recognized amounts and there is an intention to settle the
asset and the liability on a net basis.
1.7 Retirement benefits
Gratuity and leave encashment are accounted for on cash basis as the
numbers of employees are very few.
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