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Accounting Policies of ABM Knowledgeware Ltd. Company

Mar 31, 2015

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

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. The financial statements are prepared on accrual basis under the historical cost convention.

B. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires that the management make judgements, estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialized.

C. Inventory

Items of inventory are measured at lower of cost and net realizable value. Cost of inventory comprises of cost of purchases and other cost if any incurred in bringing them to their present location and condition.

D. Tangible Fixed assets

Fixed Assets are carried at historical cost less accumulated depreciation and impairment losses, if any. The cost of the fixed assets includes interest on borrowings attributable to acquisition of qualifying assets up to the date the asset is ready for its intended use and other incidental expenses incurred upto that date.

Exchange differences arising on restatement or settlement of Long term foreign currency borrowings relating to capitalization of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such assets beyond the previously assessed standards of performance.

Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress

E. Intangible Assets:

Intangible Assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those which are subsequently recoverable from the taxing authorities) and any directly attributable expenditure in making the assets ready for its intended use and net of any trade discounts and rebates and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.

Subsequent expenditure on an intangible asset after its purchase/ completion is recognized as an expense when incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its original assessed standards of performance and such expenditure can be measured and attributed to the asset reliably, in which case such expenditure is added to the cost of the asset.

F. Depreciation and amortization

Tangible Assets:

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed under Part C of Schedule II to the Companies Act, 2013;.

The estimated useful life of the intangible assets and the amortization period are reviewed at the end of each financial year and the amortization method is revised to reflect the changed pattern.

G. Impairment of Assets

The company assesses at each balance sheet date whether there is any indication that a asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying cost of asset, the carrying cost is reduced to its recoverable amount. The reduction is treated as impairment loss and is charged to the Profit and Loss Statement. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

H. Revenue recognition

The Company derives revenue primarily from software development, sale and maintenance of software / hardware and related services, business process services, sale of IT and other products.

Services:

The Company recognizes revenue when the significant terms of the arrangement are enforceable, services have been delivered and the collectability is reasonably assured. The method of recognizing the revenues and costs depends on the nature of the services rendered:

A. Time and material contracts

Revenues and costs relating to time and material contracts are recognized as the related services are rendered.

B. Fixed-price contracts

Revenues from fixed-price contracts, including systems development and integration contracts are recognized using the percentage-of-completion method. Percentage of completion is determined based on project costs incurred to date as a percentage of total estimated project costs required to complete the project. The cost expended (or input) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. If the Company does not have a sufficient basis to measure the progress of completion or to estimate the total contract revenues and costs, revenue is recognized only to the extent of contract cost incurred for which recoverability is probable. When total cost estimates exceed revenues in an arrangement, the estimated losses are recognized in the statement of profit and loss in the period in which such losses become probable based on the current contract estimates.

"Unbilled revenues" represent cost and earnings in excess of billings as at the end of the reporting period. "Unearned revenues" if earned any represent billing in excess of revenue recognized. Advance payments received from customers for which no services have been rendered are presented as "Advance from customers"

C. Maintenance Contracts

Revenue from maintenance contracts is recognized ratably over the period of the contract using the percentage of completion method. When services are performed through an indefinite number of repetitive acts over a specified period of time, revenue is recognized on a straight-line basis over the specified period unless some other method better represents the stage of completion.

In certain projects, a fixed quantum of service or output units is agreed at a fixed price for a fixed term. In such contracts, revenue is recognized with respect to the actual output achieved till date as a percentage of total contractual output. Any residual service unutilized by the customer is recognized as revenue on completion of the term.

Products:

Revenue from sale of products is recognised when the significant risks and rewards of ownership has been transferred in accordance with the sales contract. Revenue from product sales is shown net of excise duty and net of sales tax separately charged and applicable discounts.

Other Income:

Interest income is recognized on accrual basis. Dividend income is recognized when the right to receive it is established.

I. Foreign CurrencyTransaction

a. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

b. Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

c. Non-monetary foreign currency items are carried at cost.

d. In respect of integral foreign operations, all transactions are translated at rates prevailing on the date of transaction or that approximates the actual rate at the date of transaction. Monetary assets and liabilities are restated at the year end rates.

Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss Statement, except in case of long term liabilities, where they relate to acquisition of Fixed Assets, in which case they are adjusted to the carrying cost of such assets.

J. Investments

Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Non -Current investments are stated at cost. Provision for diminution in the value of Non Current investments is made only if such a decline is other than temporary.

K. Employee Benefits:

Employee Benefits such as salaries, allowances, non-monetary benefits and employee benefits under defined contribution plans such as provident and other funds, which fall due for payment within a period of twelve months after rendering service, are charged as expense to the profit and loss account in the period in which the service is rendered.

The Company has a defined benefit retirement plan (the "Gratuity Plan") with LIC of India covering eligible employees. In accordance with the Payment of Gratuities Act, 1972, The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the Balance Sheet date, and necessary provision is made in the books of accounts accordingly.

The Company has a Gratuity Trust for its Employees. Gratuity is provided for, on the basis of actuarial valuation done by an independent actuary as at the year end, using the Projected Unit Credit Method in accordance with Accounting Standards (AS)-15 (revised) on Employee Benefit as issued by The Institute of Chartered Accountants of India (ICAI).

L. Borrowing Cost:

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit and Loss Statement in the period for which they are incurred.

M. Provision for Current and Deferred tax:

Income tax is accounted for in accordance with Accounting Standard 22 on Accounting for Taxes on Income. Taxes comprise both current and deferred tax.

Current tax is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the applicable tax rates and tax laws.

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax asset or deferred tax liability. They are measured using the substantively enacted tax rates and tax regulations. The carrying amount of deferred tax assets at each balance sheet date is reduced to the extent that it is no longer reasonably certain that sufficient future taxable income will be available against which the deferred tax asset can be realized.

Minimum Alternate Tax (MAT) paid in the year is charged to the statement of Profit and Loss as current tax. The Company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during that specified period i.e. the period for which MAT credit is allowed to be carried forward. In the year in which Company recognizes MAT credit as an asset in accordance with the guidance note on accounting for credit available in respect of Minimum Alternate Tax under Income Tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement". The Company reviews the "MAT Credit Entitlement" asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.

Tax on distributed profits payable in accordance with the provisions of Section 115O of the Income-tax Act, 1961, is, in accordance with the Guidance Note on Accounting for Corporate Dividend Tax, regarded as a tax on distribution of profits and is not considered in determination of the profits for the year.

N. Earning Per Share

The Company reports Earnings Per Share (EPS) in accordance with Accounting Standard 20 on Earnings Per Share. Basic EPS is computed by dividing the net profit for the year by the weighted average number of Equity shares outstanding during the year. Diluted 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 as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

O. Cash and cash equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks and corporations. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

P. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

Q. Leases

Leases under which Company assumes substantially all the risks and rewards of the ownership are classified as Finance Leases. Such assets acquired are capitalized at fair value of the asset or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases are recognized as an expense on a straight line basis in statement of Profit and Loss over the lease term.

R. Segmental Reporting:

The Company's business activity comprises of single business segment i.e. Software and services and a single geographical segment i.e. India.

S. Prior Period Items and Extraordinary and Exceptional Items:

Income or expenses that arise due to error of omission to record them in the period of incurrence are classified as prior period items. A separate disclosure along with the nature and amount is made in the financial statement. Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such.

On certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company, is such that its disclosure improves an understanding of the performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts.

T. Provision, Contingent Liabilities and Contingent Assets :

- Provisions

Provisions, where measurement requires a substantial degree of estimation, are recognized in the books, only in the event of a present obligation arising from past events, the settlement of which is expected to result in an outflow of resources, embodying economic benefits.

- Contingent Liabilities

Contingent Liabilities, where existence will be confirmed either by the occurrence or the non-occurrence of one or more uncertain future events, are not recognized in the books of the Company, but are disclosed by way of a note to the Balance Sheet. Contingent Liabilities are periodically assessed by the management, and provision is made in the books where it becomes probable that an outflow of Future Economic Benefits will be required for an item previously dealt with, as a contingent liability, in the period in which there is a change in probability.

- Contingent Assets

Contingent Assets are neither recognized in the books of accounts nor disclosed in any manner in the financial statements.

Note 1(iii) The Company has not allotted Equity shares, bonus shares and buy back of shares during 5 years immediately preceding 31st March, 2015.

The Company has no information regarding amount outstanding to Micro, Small and Medium Enterprises.

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortised carrying value is being depreciated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted after considering residual value @ 5%, in the opening balance of the retained earnings as specified in the provisions of act, amounting to Rs. 7,95,482/-


Mar 31, 2014

A. Basis of accounting :

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the accounting Standards notified under the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant Provisions of the Companies Act, 1956.

The financial statements are prepared on accrual basis in accordance with the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956

B. Use of Estimates :

The preparation of financial statements in conformity with the Indian GAAP requires the management to make estimates and assumptions considered in the reported amounts of Assets and Liabilities (including contingent Liabilities) and the reported income and expenses during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between the actual results and the estimates are recognized in the period in which the results are known or materialized.

C. Inventories :

Items of inventories are measured at lower of cost and net realizable value. Cost of inventories comprises of cost of purchase and other cost if any incurred in bringing them to their present condition.

D. Tangible Fixed assets :

Fixed Assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of the fixed assets includes interest on borrowings attributable to acquisition of qualifying assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date.

Exchange differences arising on restatement or settlement of Long term foreign currency borrowings relating to capitalization of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such assets beyond the previously assessed standards of performance.

E. Intangible Assets :

Intangible Assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those which are subsequently recoverable from the taxing authorities) and any directly attributable expenditure in making the assets ready for its intended use and net of any trade discounts and rebates. Subsequent expenditure on an intangible asset after its purchase/ completion is recognized as an expense when incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its original assessed standards of performance and such expenditure can be measured and attributed to the asset reliably, in which case such expenditure is added to the cost of the asset.

F. Depreciation and Amortization :

Depreciation on fixed assets other than Rights and Software has been provided on straight line basis at the rates and in the manner prescribed under schedule XIV to the Companies Act 1956.

Rights and Software Products meant for sale is amortized over the period the benefit out of them is expected to accrue, in any case, not exceeding five years.

The estimated useful life of the Intangible assets and the amortization period are reviewed at the end of each financial year and the amortization method is revised to reflect the changed pattern.

G. Impairment of Assets :

An asset is treated as impaired when the carrying cost of the asset exceeds the recoverable value. An impairment loss if material is charged to the statement of profit and loss in the year in which the asset is impaired. The impairment loss is recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

H. Revenue recognition :

a) Sale of IT Products are recognized when the products are supplied and are recorded net off trade discounts and rebates exclusive of Value Added Tax where applicable.

b) Revenue from services is recognized either on time and material basis or fixed price basis or based on certain measurable criteria as per relevant agreements and it is reasonable to expect ultimate collection. Even in case of additional efforts incurred on contracts, revenue on time and material contracts is recognized as and when services are performed,

c) Revenue on fixed-price contracts is recognized on the percentage of completion method, with contract cost determining the degree of completion.

d) Revenue from other service contracts is recognized based on transactions processed, manpower deployed and terms of contract. Escalation claims are recognized if there is certainty of realization.

e) Income from deputation of personnel is recognized based on terms of agreement and arrangement with the concerned parties, on accrual basis.

I. Foreign Currency Transaction and translations : Initial recognition:

Transactions in foreign currency entered into by the company and its integral foreign operations are accounted at the rate of exchange prevailing on the date of transaction or at the rates that are closely approximate the rate on the date of transaction.

Measurement of Foreign currency monetary items at the Balance Sheet:

Foreign currency monetary items (other than derivatives contract) of the company and its net investment in non-integral foreign operation outstanding on the date of Balance sheet are restated at the year-end rates.

In the case of integral operations, assets and liabilities (other than non-monetary items) are translated at the exchange rate prevalent on the Balance Sheet date. Non-monetary are carried at historical cost. Revenue and expenses are translated at the average exchange rates prevailing during the year. Exchange differences arising out of these translations are charges to the statement of prof it and loss.

Treatment of Exchange differences:

Exchange differences arising on settlement/restatement of short term foreign currency monetary assets and liabilities of the company and its integral foreign operations are recognized as income or expense in the statement of profit or loss. The exchange difference on restatement / resettlement of loans to non-integral foreign operations that are considered as net investment in such operations are accumulated in the Foreign currency translation Reserve until disposal or recovery of the net investment.

Exchange differences arising on settlement/restatement of long term foreign currency monetary items are capitalized as part of the depreciable fixed assets to which the monetary item relates and depreciated over the remaining useful life of such assets or amortised on settlement or over the maturity period of such items if such items do not relate to acquisition of depreciable fixed assets. The unamortised balance is carried in the balance sheet as "Foreign Currency monetary item translation difference account" net of the tax effect thereon.

J. Investments:

Long term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value.

Cost of investments includes acquisition and other charges such as brokerage, fees and duties.

Investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are classified and depreciated (where applicable) in accordance with the policy stated for Tangible fixed assets. Impairment of investment properties is determined in accordance with the policy stated for impairment of assets.

K. Employee Benefits :

Employee benefits include provident fund, gratuity fund.

Defined contribution plans :

The company''s contribution to provident fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Defined Benefit plans :

For defined benefit plans in the form of Gratuity fund, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in the statement of profit and loss in period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested and otherwise is amortised on straight line basis over the average period until the benefits become vested. The retirement benefit obligation recognized in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost as reduced by the fair value of the scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reduction in the future contributions to the scheme.

L. Other Income :

Interest income is recognized on accrual basis. Dividend income is recognized when the right to receive it is established.

M. Segmental Reporting :

The company''s business activity comprises of single business segment i.e. Software and services and geographical segment i.e. India.

N. Borrowing Cost :

The borrowing cost attributable to the acquisition or construction of qualifying assets is capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing cost is charged to the Statement of profit and loss.

O. Provision for Current and Deferred tax :

Provision for Current tax is made taking into consideration benefits admissible under the provisions of the Income tax Act, 1961. Deferred tax resulting from the timing difference between taxable and accounting income is accounted using the tax rates and the laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future.

P. Provision, Contingent Liabilities and Contingent Assets :

Provisions involving Substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2013

A. Basis of accounting :

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the accounting Standards notified under the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant Provisions of the Companies Act, 1956.

The financial statements are prepared on accrual basis in accordance with the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the companies Act, 1956

B. Use of Estimates :

The preparation of financial statements in conformity with the Indian GAAP requires the management to make estimates and assumptions considered in the reported amounts of Assets and liabilities (including contingent Liabilities) and the reported income and expenses during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between the actual results and the estimates are recognized in the period in which the results are known or materialized.

C. Inventories :

Items of inventories are measured at lower of cost and net realizable value. Cost of inventories comprises of cost of purchase and other cost if any incurred in bringing them to their present condition.

D. Tangible Fixed assets :

Fixed Assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of the fixed assets includes interest on borrowings attributable to acquisition of qualifying assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date.

Exchange differences arising on restatement or settlement of Long term foreign currency borrowings relating to capitalization of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such assets beyond the previously assessed standards of performance.

E. Intangible Assets :

Intangible Assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those which are subsequently recoverable from the taxing authorities) and any directly attributable expenditure in making the assets ready for its intended use and net of any trade discounts and rebates. Subsequent expenditure on an intangible asset after its purchase/ completion is recognized as an expense when incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its original assessed standards of performance and such expenditure can be measured and attributed to the asset reliably, in which case such expenditure is added to the cost of the asset.

F. Depreciation and amortization :

Depreciation on fixed assets other than Rights and Software has been provided on straight line basis at the rates and in the manner prescribed under schedule XIV to the Companies Act 1956.

Rights and Software Products meant for sale is amortized over the period the benefit out of them is expected to accrue, in any case, not exceeding five years.

The estimated useful life of the Intangible assets and the amortization period are reviewed at the end of each financial year and the amortization method is revised to reflect the changed pattern.

G. Impairment of Assets :

An asset is treated as impaired when the carrying cost of the asset exceeds the recoverable value. An impairment loss if material is charged to the statement of profit and loss in the year in which the asset is impaired. The impairment loss is recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

H. Revenue recognition :

a) Sale of IT Products are recognized when the products are supplied and are recorded net off trade discounts and rebates exclusive of Value Added Tax where applicable.

b) Revenue from services is recognized either on time and material basis or fixed price basis or based on certain measurable criteria as per relevant agreements and it is reasonable to expect ultimate collection. Revenue on time and material contracts is recognized as and when services are performed.

c) Revenue on fixed-price contracts is recognized on the percentage of completion method, with contract cost determining the degree of completion.

d) Revenue from other service contracts is recognized based on transactions processed, manpower deployed and terms of contract. Escalation claim are recognized only if there is certainty of realisation.

e) Income from deputation of personnel is recognized based on terms of agreement and arrangement with the concerned parties, on accrual basis.

I. Foreign Currency Transaction and translations :

Initial recognition :

Transactions in foreign currency entered into by the company and its integral foreign operations are accounted at the rate of exchange prevailing on the date of transaction or at the rates that are closely approximate the rate on the date of transaction.

Measurement of Foreign currency monetary items at the Balance Sheet :

Foreign currency monetary items (other than derivatives contract) of the company and its net investment in non-integral foreign operation outstanding on the date of Balance sheet are restated at the year-end rates.

In the case of integral operations, assets and liabilities (other than non-monetary items) are translated at the exchange rate prevalent on the date Balance Sheet date. Non-monetary are carried at historical cost. Revenue and expenses are translated at the average exchange rates prevailing during the year. Exchange differences arising out of these translations are charges to the statement of profit and loss.

Treatment of Exchange differences :

Exchange differences arising on settlement/restatement of short term foreign currency monetary assets and liabilities of the company and its integral foreign operations are recognized as income or expense in the statement of profit or loss. The exchange difference on restatement / resettlement of loans to non-integral foreign operations that are considered as net investment in such operations are accumulated in the Foreign currency translation Reserve until disposal or recovery of the net investment.

Exchange differences arising on settlement/restatement of long term foreign currency monetary items are capitalized as part of the depreciable fixed assets to which the monetary item relates and depreciated over the remaining useful life of such assets or amortised on settlement or over the maturity period of such items if such items do not relate to acquisition of depreciable fixed assets. The unamortised balance is carried in the balance sheet as "Foreign Currency monetary item translation difference account" net of the tax effect thereon.

J. Investments :

Long term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value.

Cost of investments includes acquisition and other charges such as brokerage, fees and duties.

Investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are classified and depreciated (where applicable) in accordance with the policy stated for Tangible fixed assets. Impairment of investment properties is determined in accordance with the policy stated for impairment of assets.

K. Employee Benefits :

Employee benefits include provident fund, gratuity fund, compensated absences.

Defined contribution plans :

The company''s contribution to provident fund are considered as defined contribution plans and are charges as an expense as they fall due based on the amount of contribution required to be made.

Defined Benefit plans :

For defined benefit plans in the form of Gratuity fund, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in the statement of profit and loss in period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested and otherwise is amortised on straight line basis over the average period until the benefits become vested. The retirement benefit obligation recognized in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost as reduced by the fair value of the scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reduction in the future contributions to the scheme.

Short term employee benefits :

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the services. These benefits include compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the services; the cost of such compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when the employees render the services that increase their entitlement of future compensated absences

(b) in case of non-accumulated compensated absences, when the absences occur

Long term employee benefits :

Compensated absences which are not expected to occur within twelve months after the end of the period in which he employee renders the related services are recognized as a liability at the present value of the defined benefit obligation as at the balance sheet date.

L. Other Income :

Interest income is recognized on accrual basis. Dividend income is recognized when the right to receive it is established.

M. Segmental Reporting :

The company''s business activity comprises of single business segment i.e. Software and services and geographical segment i.e. India.

N. Borrowing Cost :

The borrowing cost attributable to the acquisition or construction of qualifying assets is capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing cost is charged to the Statement of profit and loss.

O. Provision for Current and Deferred tax:

Provision for Current tax is made taking into consideration benefits admissible under the provisions of the Income tax Act, 1961. Deferred tax resulting from the timing difference between taxable and accounting income is accounted using the tax rates and the laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future.

P. Provision, Contingent Liabilities and Contingent Assets :

Provisions involving Substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

A. Basis of accounting

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the accounting Standards notified under the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant Provisions of the Companies Act, 1956.

The financial statements are prepared on accrual basis in accordance with the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the companies Act, 1956

B. Use of Estimates

The preparation of financial statements in conformity with the Indian GAAP requires the management to make estimates and assumptions considered in the reported amounts of Assets and liabilities (including contingent Liabilities) and the reported income and expenses during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between the actual results and the estimates are recognized in the period in which the results are known or materialized.

C. Cash and Cash Equivalents:

Cash comprises of cash on hand and demand deposits with banks. Cash equivalents are short term (with an original maturity of three months or less from the date of acquisition) , highly liquid investments that are readily convertible in to know amounts of Cash and which are subject to insignificant risk of changes in Value.

D. Tangible Fixed assets

Fixed Assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of the fixed assets includes interest on borrowings attributable to acquisition of qualifying assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date.

Exchange differences arising on restatement or settlement of Long term foreign currency borrowings relating to capitalization of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such assets beyond the previously assessed standards of performance.

E. Intangible Assets:

Intangible Assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those which are subsequently recoverable from the taxing authorities) and any directly attributable expenditure in making the assets ready for its intended use and net of any trade discounts and rebates. Subsequent expenditure on an intangible asset after its purchase/ completion is recognized as an expense when incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its original assessed standards of performance and such expenditure can be measured and attributed to the asset reliably, in which case such expenditure is added to the cost of the asset.

F. Depreciation and amortization

Depreciation on fixed assets other than Rights and Software has been provided on straight line basis at the rates and in the manner prescribed under schedule XIV to the Companies Act 1956.

Rights and Software Products meant for sale is amortized over the period the benefit out of them is expected to accrue, in any case, not exceeding five years.

The estimated useful life of the Intangible assets and the amortization period are reviewed at the end of each financial year and the amortization method is revised to reflect the changed pattern.

G. Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds the recoverable value. An impairment loss if material is charged to the statement of profit and loss in the year in which the asset is impaired. The impairment loss is recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

H. Revenue recognition

a) Sale of IT Products are recognized when the products are supplied and are recorded net off trade Discounts and rebates exclusive of Value Added Tax where applicable.

b) Revenue from services is recognized either on time and material basis or fixed price basis or based on certain measurable criteria as per relevant agreements. Revenue on time and material contracts is recognized as and when services are performed.

c) Revenue on fixed-price contracts is recognized on the percentage of completion method, with contract cost determining the degree of completion

d) Revenue from other service contracts is recognized based on transactions processed, manpower deployed and terms of contract. Escalation claim are recognized only if there is certainty of realisation.

e) Income from deputation of personnel is recognized based on terms of agreement and arrangement with the concerned parties, on accrual basis.

I. Foreign Currency Transaction and translations:

Initial recognition:

Transactions in foreign currency entered into by the company and its integral foreign operations are accounted at the rate of exchange prevailing on the date of transaction or at the rates that are closely approximate the rate on the date of transaction.

Measurement of Foreign currency monetary items at the Balance Sheet:

Foreign currency monetary items (other than derivatives contract) of the company and its net investment in non-integral foreign operation outstanding on the date of Balance sheet are restated at the year-end rates.

In the case of integral operations, assets and liabilities (other than non-monetary items) are translated at the exchange rate prevalent on the date Balance Sheet date. Non-monetary are carried at historical cost. Revenue and expenses are translated at the average exchange rates prevailing during the year. Exchange differences arising out of these translations are charges to the statement of profit and loss.

Treatment of Exchange differences:

Exchange differences arising on settlement/restatement of short term foreign currency monetary assets and liabilities of the company and its integral foreign operations are recognized as income or expense in the statement of profit or loss. The exchange difference on restatement / resettlement of loans to non-integral foreign operations that are considered as net investment in such operations are accumulated in the Foreign currency translation Reserve until disposal or recovery of the net investment.

Exchange differences arising on settlement/restatement of long term foreign currency monetary items are capitalized as part of the depreciable fixed assets to which the monetary item relates and depreciated over the remaining useful life of such assets or amortised on settlement or over the maturity period of such items if such items do not relate to acquisition of depreciable fixed assets. The unamortised balance is carried in the balance sheet as "Foreign Currency monetary item translation difference account" net of the tax effect thereon.

J. Investments

Long term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value.

Cost of investments includes acquisition and other charges such as brokerage, fees and duties.

Investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are classified and depreciated (where applicable) in accordance with the policy stated for Tangible fixed assets. Impairment of investment properties is determined in accordance with the policy stated for impairment of assets.

K. Employee Benefits :

Employee benefits include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment benefits.

Defined contribution plans:

The company's contribution to provident fund are considered as defined contribution plans and arte charges as an expense as they fall due based on the amount of contribution required to be made.

Defined Benefit plans:

For defined benefit plans in the form of Gratuity fund, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognized in the statement of profit and loss in period in which they occur. Past service cost is recognized immediately to the extent that the benefits are already vested and otherwise is amortised on straight line basis over the average period until the benefits become vested. The retirement benefit obligation recognized in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost as reduced by the fair value of the scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reduction in the future contributions to the scheme.

Short term employee benefits:

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the services. These benefits include compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the services; the cost of such compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when the employees render the services that increase their entitlement of future compensated absences

(b) in case of non-accumulated compensated absences, when the absences occur

Long term employee benefits:

Compensated absences which are not expected to occur within twelve months after the end of the period in which he employee renders the related services are recognized as a liability at the present value of the defined benefit obligation as at the balance sheet date.

L. Other Income:

Interest income is recognized on accrual basis. Dividend income is recognized when the right to receive it is established.

M. Segmental Reporting:

The company's business activity comprises of single business segment i.e. Software and services and geographical segment i.e. India.

N. Borrowing Cost:

The borrowing cost attributable to the acquisition or construction of qualifying assets is capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing cost is charged to the Statement of profit and loss.

O. Provision for Current and Deferred tax:

Provision for Current tax is made taking into consideration benefits admissible under the provisions of the Income tax Act, 1961. Deferred tax resulting from the timing difference between taxable and accounting income is accounted using the tax rates and the laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future.

P. Provision, Contingent Liabilities and Contingent Assets

Provisions involving Substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2011

The financial statements have been prepared in accordance with applicable accounting standards. A summary of the important accounting principles that have been applied consistently is set out below:

1. Basis of accounting

The financial statements are prepared on accrual basis in accordance with the historical cost convention.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

3. Fixed assets

Tangible: Fixed assets are recorded at cost. Cost is purchase cost together with all incidental expenses of acquisition and other related costs.

Intangible: Costs that are directly associated with identifiable and unique software products controlled by the Company, whether developed in-house or acquired, and have probable economic benefits exceeding the cost beyond one year are recognized as software products.

4. Depreciation

Depreciation on fixed assets other than Rights and Software has been provided on straight line basis at the rates and in the manner prescribed under schedule XIV to the Companies Act 1956.Rights and Software Products meant for sale is amortized over the period the benefit out of them is expected to accrue, in any case, not exceeding five years.

5. Revenue recognition

a) Sale of IT Products are recognized when the products are supplied and are recorded net off trade discounts and rebates exclusive of Value Added Tax where applicable.

b) Revenue from services is recognized either on time and material basis or fixed price basis or based on certain measurable criteria as per relevant agreements. Revenue on time and material contracts is recognized as and when services are performed.

c) Revenue on fixed-price contracts is recognized on the percentage of completion method, with contract cost determining the degree of completion.

d) Revenue from other service contracts is recognized based on transactions processed, manpower deployed and terms of contract. Escalation claim are recognized only if there is certainty of realisation.

e) Income from deputation of personnel is recognized based on terms of agreement & arrangement with the concerned parties, on accrual basis.

f) Interest / dividend income is recognized on accrual basis.

g) Transactions in foreign currency are normally accounted for at the rate prevailing on the date of transactions. Monetory assets and liabilities denominated in foreign currency are translated at the exchange rate prevalent at the date of Balance sheet. The exchange differences on settlement/conversion are adjusted to Profit & Loss Account.

6. Sundry Debtors and Loans and Advances are stated after making adequate provisions for doubtful recovery or write offs as considered necessary by the management.

7. Employee Benefits:

Employee benefits are provided in the books as per AS -15(revised ) in the following manner:

a) Provident Fund and Pension Contribution as a percentage of Salary / wages in a defined contribution scheme are charged to Profit & Loss Account.

b) Gratuity is a defined benefit obligation . The liability is provided for on the basis of actuarial valuation made at the end of each Financial year. The actuarial valuation is made on projected unit credit method.

c) Long term compensated absences are provided for on actuarial valuation basis. The actuarial valuation is made on projected unit credit method.

d) Actuarial gains or losses in respect of such benefits are charged to Profit & Loss Account.

8. Provision for tax is made for Current and Deferred Tax. Current taxes are provided on the estimated taxable income using the applicable current tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing difference and which are capable of reversal in subsequent periods, are recognized using the current tax rates and tax laws that have been enacted.

9. Investments

Current investments are stated at lower of fair value or cost. Long Term investments are stated at cost. Cost includes incidental expenses incurred in acquisition. The decline in value of long term investments if any other than of temporary nature is provided in profit & loss ale.

10. Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss, if material, is charged for when the 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.

11. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2010

The financial statements have been prepared in accordance with applicable accounting standards. A summary of the important accounting principles that have been applied consistently is set out below:

1. Basis of accounting

The financial statements are prepared on accrual basis in accordance with the historical cost convention.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

3. Fixed assets

Tangible: Fixed assets are recorded at cost. Cost is purchase cost together with all incidental expenses of acquisition and other related costs.

Intangible: Costs that are directly associated with identifiable and unique software products controlled by the Company, whether developed in-house or acquired, and have probable economic benefits exceeding the cost beyond one year are recognized as software products.

4. Depreciation

Depreciation on fixed assets other than Rights and Software has been provided on straight line basis at the rates and in the manner prescribed under schedule XIV to the Companies Act 1956.Rights and Software Products meant for sale is amortized over the period the benefit out of them is expected to accrue, in any case, not exceeding five years.

5. Revenue recognition

a) Sale of IT Products are recognized when the products are supplied and are recorded net off trade discounts and rebates exclusive of Value Added Tax where applicable.

b) Revenue from services is recognized either on time and material basis or fixed price basis or based on certain measurable criteria as per relevant agreements. Revenue on time and material contracts is recognized as and when services are performed. Revenue on fixed-price contracts is recognized on the percentage of completion method, with contract cost determining the degree of completion. Revenue from other service contracts is recognized based on transactions processed, manpower deployed and terms of contract. Escalation claim are recognized only if there is certainty of realisation.

c) Income from deputation of personnel is recognized based on terms of agreement & arrangement with the concerned parties, on accrual basis.

d) Interest / dividend income is recognized on accrual basis.

e) Transactions in foreign currency are normally accounted for at the rate prevailing on the date of transactions. Monetory assets and liabilities denominated in foreign currency are translated at the exchange rate prevalent at the date of Balance sheet. The exchange differences on settlement/conversion are adjusted to Profit & Loss Account.

6. Sundry Debtors and Loans and Advances are stated after making adequate provisions for doubtful recovery or write offs as considered necessary by the management.

7. Employee Benefits:

Employee benefits are provided in the books as per AS -15(revised ) in the following manner:

a) Provident Fund and Pension Contribution as a percentage of Salary / wages in a defined contribution scheme are charged to Profit & Loss Account.

b) Gratuity is a defined benefit obligation . The liability is provided for on the basis of actuarial valuation made at the end of each Financial year. The actuarial valuation is made on projected unit credit method.

c) Long term compensated absences are provided for on actuarial valuation basis. The actuarial valuation is made on projected unit credit method.

d) Actuarial gains or losses in respect of such benefits are charged to Profit & Loss Account.

8. Provision for tax is made for Current and Deferred Tax. Current taxes are provided on the estimated taxable income using the applicable current tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing difference and which are capable of reversal in subsequent periods, are recognized using the current tax rates and tax laws that have been enacted.

9. Investments

Current investments are stated at lower of fair value or cost. Long Term investments are stated at cost. Cost includes incidental expenses incurred in acquisition. The decline in value of long term investments if any other than of temporary nature is provided in profit & loss a/c.

10. Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss, if material, is charged for when the 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.

11. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2003

Principal accounting policies:

The financial statements have been prepared in accordance with applicable accounting standards. A summary of the important accounting principles which have applied consistently is set out below :

1. Basis of accounting

The financial statements are prepared on accrual basis in accordance with the historical cost convention.

2. Fixed assets

Fixed assets are recorded at cost. Cost is purchase cost together with all incidental expenses of acquisition and other related costs.

3. Depreciation

Own assets

Depreciation on fixed assets except on office premises has been provided on straight line bases at the rates and in the manner prescribed under schedule XIV to the Companies Act 1956. Office premises have been depreciated on written down value basis on applicable rate under the said Act.

4. Revenue recognition

a) Sale of I T Products are recognised when the products are supplied and are recorded net off trade discounts and rebates but inclusive of sales tax where applicable. Sale of I T Products and Material Cost of I T Products includes Turnover executed on behalf of principals where the invoicing is done directly by the principals and the sale proceeds are received by the company from the customers.

b) Income from software related services, consultancy and advisory services rendered are booked based on agreements and arrangements with the concerned parties under percentage on completion method.

c) Income from deputation personnel is recognised based on terms of agreement & arrangement with the concerned parties, on accrual basis.

d) Interest income is recognised on accrual basis.

e) Transaction in foreign currency are accounted for at the rate prevailing on the date of transactions. The exchange difference on settlement/conversion are adjusted to Profit & Loss Account in the case of revenue items.

5. Miscellaneous expenses including Public Issue expenditure is being written off during a period of 10 years. Expenses, which have been identified or accrued subsequently if any are charged off fully to Profit and Loss account.

6. Goodwill arising in accordance of accounting principles relating to Amalgamation is amortized within a period of 10 years from the date of completion of merger formalities.

7. Sundry Debtors and Loans and Advances are stated after making adequate provisions for doubtful recovery.

8. Stock in trade is valued at the lower of cost or net realisable value whichever is lower. Contract work in progress is valued at cost.

9. Provision is made in respect of Leave Encashment liability for employees. Contribution to defined contribution schemes such as Provident Fund and Family Pension Fund are charged to the profit and loss account as incurred. The Company has opted for Gratuity Policy from LIC and the contribution made towards the same is charged to the Profit and Loss Account.

10. Provision for tax is made for both current and deferred taxes. Current taxes are provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account of timing difference and which are capable of reversal in subsequent periods, are recognised using the tax rates and tax laws that have been enacted.


Mar 31, 2001

Principal accounting policies :

The financial statements have been prepared in accordance with applicable accounting standards. A summary of the important accounting principles which have applied consistently is set out below :

1. Basis of accounting

The financial statements are prepared on accrual basis in accordance with the historical cost convention.

2. Fixed assets

Fixed assets are recorded at cost. Cost is purchase cost together with all incidental expenses of acquisition and other related costs.

3. Depreciation

Own assets

Depreciation on fixed assets except on office premises has been provided on straight line basis at the rate and in the manner prescribed under schedule XIV to the Companies Act 1956. Office premises have been depreciated on written down value basis on applicable rate under the said Act.

Leased assets :

For Leased Assets the Company charges depreciation in accordance with the guidelines issued by the Institute of Chartered Accountants of India. The differential depreciation between the amount chargeable as per Companies Act under Schedule XIV and the amounts as per said guidelines is being reflected under the Lease Adjustment Account under Fixed Assets (Net Block). A matching annual charge representing capital recovery of leased asset is made to the Profit & Loss Account as Lease Equalisation.

4. Investments :

Investments are recorded at cost. Incidental expenses incurred while purchasing investments are added to the cost of investments. Wherever investments are made on cum dividend basis, dividend receipts are reduced from the cost of the investment.

5. Revenue recognition :

a) Sale of I T Products are recognised when the products are supplied and are recorded net of trade discounts and rebates but inclusive of sales tax where applicable.

b) Income from software related services, consultancy and advisory services rendered are booked based on agreements and arrangements with the concerned parties under percentage on completion method except in respect of one contract taken over from amalgamating company, which will be recognised under completed contract method.

c) Income from deputation of personnel is recognised based on terms of agreement & arrangement with the concerned parties, on accrual basis.

d) Dividend income on investments is accounted on declaration.

e) In respect of lease rentals, the income is accrued as per the terms of the agreement entered into with the lessee.

f) Interest income and other investment income are recognised on accrual basis, subject to prudential norms issued by The Reserve Bank of India from time to time, as applicable to this company being a non-banking financial company.

g) Transaction in foreign currency are accounted for at the rate prevaling on the date of transactions. The exchange differnce on settlement/conversion are adjusted to Profit & Loss Account in the case of revenue items.

6. Miscellaneous expenses including Public Issue expenditure is being written off during a period of 10 years. Expenses, which have been identified or accrued subsequently if any are charged off fully to Profit and Loss account.

7. Goodwill arising in accordance of accounting principles relating to Amalgamation is amortized with in a period of 10 years from the date of completion of merger formalities.

8. Sundry Debtors and Loans and Advances are stated after making adequate provisions for doubtful recovery.

9. Stock in trade are valued at the lower of cost or net realisable value whichever is lower. Contract work in progress is valued at cost.

10. Provision is made in respect of Leave Encashment liability for employees. Contribution to defined contribution schemes such as Provident Fund and Family Pension Fund are charged to the profit and loss account as incurred

 
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