Accounting Policies of Standard Batteries Ltd. Company

Mar 31, 2024

1. Material Accounting Policies

This note provides a list of the material
accounting policies adopted in preparation of
these financial statement. These policies have
been consistently applied to all the years
presented, unless otherwise stated.

1.1. Basis of Preparation of Financial Statements

These financial statements have been prepared
in accordance with Indian Accounting Standards
(Ind AS) notified under Section 133 of the
Companies Act, 2013 ("the Act") read with Rule
3 of the Companies (Indian Accounting
Standards) Rules, 2015 as amended. The
Financial Statements have also been prepared in
accordance with the relevant presentation
requirements 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 hitherto in use.

These Financial Statements are prepared in
Indian Rupees (INR) which is also the Company''s
functional currency and all the values are
rounded off to the nearest thousands/ lakhs (upto
two decimals) except when otherwise stated.

The Company has prepared the financial
statements on the basis that it will continue to
operate as a going concern.

1.2. Use of Estimates

The preparation of Financial Statements in
conformity with Ind AS requires management to
make judgements, estimates and assumptions
that affect the application of the accounting
policies and the reported amounts of assets and
liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements,
and the reported amounts of revenues and
expenses during the year. Actual results could
differ from those estimates. The estimates and
underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates
are recognised in the period in which the
estimate is revised if the revision affects only that
period; they are recognised in the period of the
revision and future periods if the revision affects
both current and future periods.

1.3. Classification of Current and Non-Current

The Company presents assets and liabilities in
the balance sheet based on current/ non-current
classification specified in Schedule III to the
Companies Act, 2013. An asset is treated as
current when it is:

♦ Expected to be realised or intended to be sold or
consumed in normal operating cycle

♦ Held primarily for the purpose of trading

♦ Expected to be realised within twelve months
after the reporting period, or

♦ Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for at
least twelve months after the reporting period

♦ All other assets are classified as non-current.

♦ A liability is current when:

♦ It is expected to be settled in normal operating
cycle

♦ It is held primarily for the purpose of trading

It is due to be settled within twelve months after
the reporting period or there is no unconditional
right to defer the settlement of the liability for at
least twelve months after the reporting period

The Company classifies all other liabilities as
non-current.

The operating cycle is the time between the
acquisition of assets for processing and their
realisation in cash and cash equivalents. The
company has identified twelve months as its -
operating cycle.

1.4. Historical Cost Convention

The Financial Statements are prepared in
accordance with the historical cost convention,
except for certain items that are measured at fair
values, as explained in the accounting policies.

Fair Value is the price that would be received to
sell an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date, regardless of whether
that price is directly observable or estimated
using another valuation technique. In estimating
the fair value of an asset or a liability, the
Company takes into account the characteristics
of the asset or liability if market participants
would take those characteristics into account
when pricing the asset or liability at the
measurement date.

1.5. Property, Plant and Equipment

Property, Plant and Equipment are stated at cost,
less accumulated depreciation and impairment,
if any. Costs directly attributable to acquisition
are capitalized until the Property, Plant and
Equipment are ready for use as intended by
management.

Depreciation methods, estimated useful lives
and residual value

Depreciation is provided on written down value
basis to allocate the cost of assets, net of their
residual values, over their estimated useful lives.
Depreciation is calculated on a pro-rata basis
from the date of acquisition/installation till the
date the assets are sold or disposed of:

The residual values are not more than 5% of the
original cost of the asset. The residual values,
useful lives and method of depreciation of
property, plant and equipment are reviewed at
each financial year end and adjusted
prospectively, if appropriate. The carrying
amount of an asset is written down immediately
to its recoverable amount if the carrying amount
of the asset is greater than its estimated
recoverable amount. Asset costing Rs. 5,000/- or
less are depreciated fully in the year of
acquisition.

1.6. Impairment of Assets

The carrying amount of assets are reviewed at
each Balance Sheet date to assess if there is any
indication of impairment based on internal/
external factors. An impairment loss on such
assessment will be recognised whenever the
carrying amount of an asset exceeds its
recoverable amount. The recoverable amount of
the assets is net selling price or value in use,
whichever is higher. While assessing value in
use, the estimated future cash flows are
discounted to the present value by using
weighted average cost of capital. A previously
recognised impairment loss is further provided
or reversed depending on changes in the
circumstances and to the extent that carrying
amount of the assets does not exceed the carrying
amount that will be determined if no impairment
loss had previously been recognised.

1.7. Cash and cash Equivalents

Cash and cash equivalents in the balance sheet
comprise cash at banks and on hand and short¬
term deposits with an original maturity of three
months or less, which are subject to an
insignificant risk of changes in value.

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Mar 31, 2015

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles (IGAAP) under the historical cost convention as a going concern and on accrual basis and in accordance with the provisions of the Companies Act, 2013 and the Accounting Standards specified under Section 133 of the Companies Act, 2013 ("the Act") read with rule 7 of the Companies (Accounts) Rules 2014 (as amended).

All assets & liabilities have been classified as current & non - current as per the Company's normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013. Based on the nature of activities undertaken by the Company and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non- current classification of assets & liabilities.

b) USE OF ESTIMATES

The preparation of Financial Statement requires the management to make estimates and assumptions considered in the reported amount of assets and liabilities (including contingent liabilities) as on the date of financial statements and the reported income and expenses during the reporting period. The management believes that the estimates used in the preparation of the financial statement are prudent and reasonable. Any revision to accounting estimates is recognized prospectively in current and future periods.

c) FIXED ASSETS

Fixed assets are stated at historical cost less accumulated depreciation and impairment losses. Cost includes purchase / acquisition cost and incidental cost incurred to bring the assets to their location and working condition.

Carrying amount of cash generating units/assets is reviewed at Balance Sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated at net selling price or value in use whichever is higher. Impairment loss, if any, is recognized whenever the carrying amount exceeds recoverable amount.

d) INVESTMENTS:-

Long-term investments are stated at cost less provision for permanent diminution in value of such investments, if any.

e) REVENUE RECOGNITION:-

i) Sales are recognized on transfer of significant risks and rewards to the customer.

ii) Insurance, sales tax refund and other claims are accrued when there is reasonable certainty of their realization.

iii) Interest income is accounted on accrual basis at the contractual rate.

f) DEPRECIATION:-

Depreciation on computers is provided on straight line basis and for other assets, on the written down value basis in accordance with their useful lives and in the manner prescribed in Schedule II to the Companies Act, 2013. Assets costing Rs. 5,000 or less are depreciated fully in the year of acquisition.

g) RETIREMENT BENEFITS:

Defined contribution plans:

The Company makes superannuation contribution to specific contribution plan for qualifying employees. Under the scheme the Company is required to contribute specific percentage of the payroll costs to fund the benefits.

Defined benefit plans:

The Company makes contribution towards annuity plan at contractually specified percentage of the salary annually.

h) EARNINGS PER SHARE:-

The Company reports basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 on "Earnings Per Share".

Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of Equity Shares outstanding during the year.

i) TAXATION:-

Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes on Income". Tax expense comprises of current tax and deferred tax.

Current tax is measured at the amount expected to be paid to the tax authorities using the applicable tax rates and tax laws. Deferred tax assets and deferred tax liabilities are recognized for future tax consequences attributable to the timing differences between taxable incomes and accounting income that are capable of reversal in one or more subsequent period and are measured using tax rates enacted or substantially enacted as at the Balance Sheet date. Deferred tax Assets arising from timing difference are recognized unless in the management judgment, only to the extent there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. The carrying amount of deferred tax asset is revised at each Balance Sheet date.

j) ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:-

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2014

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

These accounts have been prepared under historical cost convention on accrual basis of accounting and to comply in all the material aspects with (a) applicable accounting principles in India; (b) the Accounting Standards issued by the Institute of Chartered Accountants of India; and (c) relevant provisions of the Companies Act, 1956

All assets & liabilities have been classified as current & non - current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI of the Companies Act, 1956, Based on the nature of activities undertaken by the Company and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non- current classification of assets & liabilities,

b) USE OF ESTIMATES:

The preparation of Financial Statement requires the Management to make estimates and assumptions considered in the reported amount of assets and liabilities (including contingent liabilities) as on the date of financial statements and the reported income and expenses during the reporting period, The Management believes that the estimates used in the preparation of the financial statement are prudent and reasonable, Any revision to accounting estimates is recognized prospectively in current and future periods,

c) FIXED ASSETS:

Fixed assets are stated at historical cost less accumulated depreciation and impairment losses, Cost includes purchase / acquisition cost and incidental cost incurred to bring the assets to their location and working condition,

Carrying amount of cash generating units/assets is reviewed at Balance Sheet date to determine whether there is any indication of impairment, If such indication exists, the recoverable amount is estimated at net selling price or value in use whichever is higher, Impairment loss, if any, is recognized whenever the carrying amount exceeds recoverable amount,

d) INVESTMENTS:

Long-term investments are stated at cost less provision for permanent diminution in value of such investments, if any

e) REVENUE RECOGNITION:

i) Sales are recognized on transfer of significant risks and rewards to the customer,

ii) Insurance, Sales Tax refund and other claims are accrued when there is reasonable certainty of their realization,

iii) Interest income is accounted on accrual basis at the contractual rate,

f) DEPRECIATION:

Depreciation on computers is charged on straight line basis and for other assets, on the written down value basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956, Assets costing Rs, 5,000 or less are depreciated fully in the year of acquisition,

g) RETIREMENT BENEFITS: Defined contribution plans

The Company makes superannuation contribution to specific contribution plan for qualifying employees, Under the Scheme the Company is required to contribute a specified percentage of the payroll costs to fund the benefits,

Defined benefit plans

Company''s liability towards long term compensated absences is determined by the independent actuaries, using projected unit credit method, The Company makes contribution towards annuity plan at contractually specified percentage of the salary annually

h) EARNING PER SHARE:

The Company reports basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share",

Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of Equity Shares outstanding during the year

i) TAXATION:

Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes on Income", Tax expenses comprise of current tax and deferred tax,

Current tax is measured at the amount expected to be paid to the tax authorities using the applicable tax rates and tax laws,

Deferred tax assets and deferred tax liabilities are recognized for future tax consequences attributable to the timing differences between taxable incomes and accounting income that are capable of reversal in one or more subsequent period and are measured using tax rates enacted or substantially enacted as at the Balance Sheet date, Deferred tax Assets arising from timing difference are recognized unless in the management judgment, only to the extent there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized, The carrying amount of deferred tax asset is revised at each Balance Sheet date,

j) ACCOUNTING FOR PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation, A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources, Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made, Contingent Assets are neither recognized nor disclosed in the financial statements,

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Mar 31, 2013

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

These accounts have been prepared under historical cost convention on accrual basis ot accounting and to comply in all the material aspects with (a) applicable accounting principles in India; (b) the Accounting Standards issued by the Institute of Chartered Accountants of India; and (c) relevant provisions of the Companies Act, 1956.

b) USE OF ESTIMATES:

The preparation of Financial Statement reauires the management to make estimates and assumptions considered in the reported amount of assets and liabilities (including Contingent liabilities) as on the date of financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statement are prudent and reasonable. Any revision to accounting estimates is recognized prospectively in current and future periods.

c) FIXED ASSETS:

Fixed assets are stated at historical cost less accumulated depreciation and impairment losses. Cost includes purchase / acquisition cost and incidental cost incurred to bring the assets to their location and working condition.

Carrying amount of cash generating units/assets is reviewed at Balance Sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated at net selling price or value in use whichever is higher. Impairment loss, if any, is recognized whenever the carrying amount exceeas recoverable amount.

d) INVESTMENTS:

Long-term investments are stated at cost less provision for permanent diminution in value of such investments, if any.

e) REVENUE RECOGNITION:

i) Sales are recognized on transfer of significant risks and rewards to the customer.

ii) Insurance, sales tax refuna and other claims are accrued when there is reasonable certainty of then leuiizntion.

f) DEPRECIATION:

Depreciation on computers is charged on straight line basis and for other assets, on the written down value basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Assets costing Rs, 5,000 or less are depreciated fully in the year of acquisition.

g) RETIREMENT BENEFITS: Defined contribution plans:

The Company makes superannuation contribution to specific contribution plan for qualifying employees. Under the scheme the Company is reauired to contribute a specified percentage of the payroll costs to fund the benefits.

Defined benefit plans:

Company''s liability towards long term compensated absences is determined by the independent actuaries, using the projected unit credit method. The Company makes contribution towards annuity plan at the contractually specified percentage of the salary annually. Refer Note No. 1.8.

h) EARNING PER SHARE:

The Company reports basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share".

Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of Equity Shares outstanding during the year.

i) TAXATION:

Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes on Income". Tax expenses comprise of current tax and deferred tax.

Current tax is measured at the amount expected to be paid to the tax authorities using the applicable tax rates and tax laws.

Deferred tax assets and deferred tax liabilities are recognized for future tax consequences attributable to the timing differences between taxable incomes and accounting income that are capable of reversal in one or more subsequent period and are measured using tax rates enacted or substantially enacted as at the Balance Sheet date. Deferred tax Assets arising from timing difference are recognized unless in the management judgment, only to the extent there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax asset is revised at each Balance Sheet date.

j) ACCOUNTING FOR PROVISIONS AND CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2012

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

These accounts have been prepared under historical cost convention on accrual basis of accounting and to comply in all the material aspects with (a) applicable accounting principles in India; (b) the Accounting Standards issued by the Institute of Chartered Accountants of India; and (c) relevant provisions of the Companies Act, 1956.

b) USE OF ESTIMATES:

The preparation of Financial Statement requires the management to make estimates and assumptions considered in the reported amount of assets and liabilities (including Contingent liabilities) as on the date of financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statement are prudent and reasonable. Any revision to accounting estimates is recognized prospectively in current and future periods.

C) FIXED ASSETS:

Fixed assets are stated at historical cost less accumulated depreciation and impairment losses. Cost includes purchase / acquisition cost and incidental cost incurred to bring the assets to their location and working condition.

Carrying amount of cash generating units/assets is reviewed at Balance Sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated at net selling price or value in use whichever is higher. Impairment loss, if any, is recognized whenever the carrying amount exceeds recoverable amount.

d) INVESTMENTS:

Long-term investments are stated at cost less provision for permanent diminution in value of such investments, if any.

e) REVENUE RECOGNITION:

i) Sales are recognized on transfer of significant risks and rewards to the customer.

ii) Insurance, sales tax refund and other claims are accrued when there is reasonable certainty of their realization.

f) DEPRECIATION:

Depreciation on computers is charged on straight line basis and for other assets, on the written down value basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Assets costing Rs. 5,000 or less are depreciated fully in the year of acquisition.

g) RETIREMENT BENEFITS:

Defined contribution plans:

The Company makes superannuation contribution to specific contribution plan for qualifying employees. Under the scheme the Company is required to contribute a specified percentage of the payroll costs to fund the benefits.

Defined benefit plans:

Company's liability towards long term compensated absences is determined by the independent actuaries, using the projected unit credit method. The Company makes contribution towards annuity plan at the contractually specified percentage of the salary annually. Refer Note No.l .9.

h) EARNING PER SHARE:

The Company reports basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share".

Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of Equity Shares outstanding during the year.

i) TAXATION:

Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes on Income". Tax expenses comprise of current tax and deferred tax.

Current tax is measured at the amount expected to be paid to the tax authorities using the applicable tax rates and tax laws.

Deferred tax assets and deferred tax liabilities are recognized for future tax consequences attributable to the timing differences between taxable incomes and accounting income that are capable of reversal in one or more subsequent period and are measured using tax rates enacted or substantially enacted as at the Balance Sheet date. Deferred tax Assets arising from timing difference are recognized unless in the management judgment, only to the extent there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax asset is revised at each Balance Sheet date. '

j) ACCOUNTING FOR PROVISIONS AND CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2011

A) Accounting Convention:

These accounts have been prepared under historical cost convention on accrual basis of accounting and to comply in all the material aspects with (a) applicable accounting principles in India; (b) the Accounting Standards issued by the Institute of Chartered Accountants of India; and (c) relevant provisions of the Companies Act, 1956.

b) Use of Estimates:

The preparation of Financial statement requires the management to make estimates and assumptions considered in the reported amount of assets and liabilities (including Contingent liabilities) as on the date of financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statement are prudent and reasonable. Any revision to accounting estimates is recognized prospectively in current and future periods.

c) Fixed Assets:

Fixed assets are stated at historical cost less accumulated depreciation and impairment losses. Cost includes purchase / acquisition cost and incidental cost incurred to bring the assets to their location and working condition.

Carrying amount of cash generating units/assets is reviewed at Balance Sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated at net selling price or value in use whichever is higher. Impairment loss, if any, is recognized whenever the carrying amount exceeds recoverable amount.

d) Investments:

Long-term investments are stated at cost less provision for permanent diminution in value of such investments, if any.

e) Revenue Recognition:

i) Sales are recognized on transfer of significant risks and rewards to the customer.

ii) Insurance, sales tax refund and other claims are accrued when there is reasonable certainty of their realization.

f) Depreciation:

Depreciation on computers is charged on straight line basis and for other assets, on the written down value basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956, Assets costing Rs, 5,000 or less are depreciated fully in the year of acquisition.

g) Retirement Benefits:

Defined contribution plans:

The Company makes superannuation contribution to specific contribution plan for qualifying employees. Under the scheme the Company is required to contribute a specified percentage of the payroll costs to fund the benefits.

Defined benefit plans:

Company's liability towards long term compensated absences is determined by the independent actuaries, using the projected unit credit method.

h) Earning Per Share:

The Company reports basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share".

Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of Equity Shares outstanding during the year.

i) Taxation:

Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes'on Income". Tax expenses comprise of current tax deferred tax and fringe benefit tax.

Current tax is measured at the amount expected to be paid to the tax authorities using the applicable tax rates and tax laws.

Deferred tax assets and deferred tax liabilities are recognized for future tax consequences attributable to the timing differences between taxable incomes and accounting income that are capable of reversal in one or more subsequent period and are measured using tax rates enacted or substantially enacted as at the Balance Sheet date. Deferred tax Assets arising from timing difference are recognized unless in the management judgement, only to the extent there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax asset is revised at each Balance Sheet date.

j) Accounting for Provisions and Contingent Liabilities and Contingent Assets:

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made, Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2010

A) ACCOUNTING CONVENTION:

These accounts have been prepared under historical cost convention on accrual basis of accounting and to comply in all the material aspects with (a) applicable accounting principles in India; (b) the Accounting Standards issued by the Institute of Chartered Accountants of India; and (c) relevant provisions of the Companies Act, 1956.

b) USE OF ESTIMATES:

The preparation of Financial statement requires the management to make estimates and assumptions considered in the reported amount of assets and liabilities (including Contingent liabilities) as on the date of financial statements and the reported income and expenses during the reporting period, Management believes that the estimates used in the preparation of the financial statement are prudent and reasonable. Any revision to accounting estimates is recognized prospectively in current and future periods,

C) FIXED ASSETS:

Fixed assets are stated at historical cost less accumulated depreciation and impairment losses. Cost includes purchase / acquisition cost and incidental cost incurred to bring the assets to their location and working condition.

Carrying amount of cash generating units/assets is reviewed at Balance Sheet date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount is estimated at net selling price or value in use whichever is higher, Impairment loss, if any, is recognized whenever the carrying amount exceeds recoverable amount.

d) INVESTMENTS:

Long-term investments are stated at cost less provision for permanent diminution in value of such investments, if any,

e) REVENUE RECOGNITION:

i) Sales are recognized on transfer of significant risks and rewards to the customer.

ii) Insurance, sales tax refund and other claims are accrued when there is reasonable certainty of their realization.

f) DEPRECIATION:

Depreciation on computers is charged on straight line basis and for other assets, on the written down value basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956, Assets costing Rs. 5,000 or less are depreciated fully in the year of acquisition.

g) RETIREMENT BENEFITS:

Defined contribution plans:

The Company makes superannuation contribution to specific contribution plan for qualifying employees. Under the scheme the Company is required to contribute a specified percentage of the payroll costs to fund the benefits.

Defined benefit plans:

Companys liability towards long term compensated absences is determined by the independent actuaries, using the projected unit credit method.

h) EARNING PER SHARE:

The Company reports basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share".

Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of Equity Shares outstanding during the year,

i) TAXATION:

Income taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes on Income". Tax expenses comprise of current tax deferred tax and fringe benefit tax.

Current tax is measured at the amount expected to be paid to the tax authorities using the applicable tax rates and tax laws.

Deferred tax assets and deferred tax liabilities are recognized for future tax consequences attributable to the timing differences between taxable incomes and accounting income that are capable of reversal in one or more subsequent period and are measured using tax rates enacted or substantially enacted as at the Balance Sheet date, Deferred tax Assets arising from timing difference are recognized unless in the management judgment, only to the extent there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized, The carrying amount of deferred tax asset is revised at each Balance Sheet date,

j) ACCOUNTING FOR PROVISIONS AND CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources, Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed in the financial statements.