Accounting Policies of Five Core Exim Ltd. Company

Mar 31, 2015

A. Basis of preparation of the Financial Statements

The accompanying Financial Statements are prepared and presented under the Historical Cost Convention, on the accrual basis of accounting and comply with the Generally Accepted Accounting Principles in India including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The Financial Statements are presented in Indian Rupees.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013.

b. Use of Estimates

The preparation of the Financial Statements in conformity with the Generally Accepted Accounting Principles requires the management to make estimates and assumptions that affect the reported amount of Assets, Liabilities (including Contingent Liabilities) as of the date of the Financial Statements and the reported Revenues and Expenses during the reporting period. Actual results could differ from the estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

c. Revenue Recognition

i. Revenue from Consulting business is primarily derived from Resourcing services, Technical Support Service, Licensing of Software and

Business Support Services. Revenues from fixed price and fixed time frame contracts / arrangements are recognised when the services have been rendered in accordance with the contracts / arrangements and there is no uncertainty as to the measurement or collectability of the consideration. Where there is uncertainty as to measurement or collectability, Revenue Recognition is postponed until such uncertainty is resolved.

ii. Interest on Fixed Deposits and Interest on Advances are accounted on accrual basis. In case of Doubtful Loans, the Interest is recognised on actual receipt.

iii. Dividend Income is recognised when the Company's right to receive the dividend is recognised.

iv. Other receipts are accounted when it is received.

d. Expenditure

Expenses are accounted on accrual basis. As a matter of prudence, provisions are made for all known losses and liabilities.

e. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. The cost of the Fixed Assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

f. Intangible Assets

Intangible Assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment, if any.

g. Depreciation and Amortization

Depreciation on fixed assets is provided on Straight-Line basis based on the useful life of the assets prescribed in Schedule II of the Companies Act, 2013.

Intangible asset is amortised over its useful life (5 years) on straight-line basis, commencing from

the date when the asset is put to use by the Company.

h. Investments

Long term investments are carried at cost less diminution, other than any temporary diminution in value, determined separately for each investment. Current investments are carried at lower of cost or Net Realisable value.

i. Foreign Currency Transactions

Foreign Currency Transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognised in the statement of Profit and Loss. Monetary Assets and Liabilities denominated in Foreign Currencies as at the Balance Sheet date are translated at the closing Exchange Rates on that date. The exchange differences, if any, are recognised in the statement of Profit and Loss and related Assets and Liabilities are accordingly restated in the Balance Sheet.

j. Employee Benefits

i. All Short Term Employee Benefits payable including Salaries and other allowances are recognised on accrual basis, in the manner provided in AS - 15.

ii. The Company contributes to a Recognised Provident Fund and Employee State Insurance, which are defined contribution schemes. The contributions are accounted for on an accrual basis and recognised in the statement of Profit and Loss.

iii. No provision has been made for leave encashment benefit for the period as the terms of employment does not provide for such obligation on the Company.

iv. Gratuity liability is ascertained based on actuarial valuation, carried out by an independent actuary as at the balance sheet date using the projected unit credit method and provision is made in the books.

As per the terms of the agreement with the clients, gratuity payable to employees

deployed with the clients would be reimbursed by the clients as and when the gratuity is payable to the employees. In accordance therewith, provision for gratuity in respect of the employees deployed with various clients, has been debited to the account of the respective clients instead of being debited to the statement of Profit and Loss.

Gratuity cost in respect of other employees has been debited to the statement of Profit and Loss. The Company has not made any insurance contribution in respect of its gratuity liability.

k. Taxation

The accounting treatment for Income Tax in respect of Company's income is based on the Accounting Standard 22 on 'Accounting for Taxes on Income'.

Income Tax: Provision for current Income Tax is made on the Taxable Income for the year as is determined in accordance with the provisions of the Income-Tax Act, 1961.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off- setting advance tax paid and income tax provision arising in the same tax jurisdiction and where the Company intends to settle the asset and liability on a net basis.

Deferred Tax : Deferred Tax Assets and Liabilities are recognized at substantively enacted Tax Rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

The company off-sets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

l. Earnings Per Share (EPS)

The Company reports Basic and Diluted Earnings Per Share in accordance with Accounting Standard 20.

Basic Earnings per Share is computed by dividing the Net Profit After Tax by the weighted average number of Equity Shares outstanding during the year. The Company does not have any outstanding securities convertible into Equity Shares of the Company and hence there is no dilution in the Earnings per Share.

m. Provisions and Contingencies

The Company creates a provision when there is present or legal constructive obligations as a result of past events, 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.

When there is a possible obligation or a present obligati on in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognised in the Financial Statements since this may result in the recognition of income that may never be realised.

n. Cash Flows

Cash Flows are reported using the indirect method, whereby Profit Before Tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash Flows from regular revenue generating, financing and investing activities of the Company are segregated.

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Mar 31, 2014

A. Basis of preparation of the Financial Statements

The accompanying Financial Statements are prepared and presented under the Historical Cost Convention, on the accrual basis of accounting and comply with the Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable. The Financial Statements are presented in Indian Rupees.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956.

b. Use of Estimates

The preparation of the Financial Statements in conformity with the Generally Accepted Accounting Principles requires the management to make estimates and assumptions that affect the reported amount of Assets, Liabilities (including Contingent Liabilities) as of the date of the Financial Statements and the reported Revenues and Expenses during the reporting period. Actual results could differ from the estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

c. Revenue Recognition

i. Revenue from Consulting business is primarily

derived from Resourcing services, Technical Support Service, Licensing of Software and Business Support Services. Revenues from fixed price and fixed time frame contracts / arrangements are recognised when the services have been rendered in accordance with the contracts / arrangements and there is no uncertainty as to the measurement or collectability of the consideration. Where there is uncertainty as to measurement or collectability, Revenue Recognition is postponed until such uncertainty is resolved.

ii. Interest on Fixed Deposits and Interest on Advances are accounted on accrual basis. In case of Doubtful Loans, the Interest is recognised on actual receipt.

iii. Dividend Income is recognised when the Company''s right to receive the dividend is recognised.

iv. Other receipts are accounted when it is received.

d. Expenditure

Expenses are accounted on accrual basis. As a matter of prudence, provisions are made for all known losses and liabilities.

e. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. The cost of the Fixed Assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

f. Intangible Assets

Intangible Assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment, if any.

g. Depreciation and Amortization

Depreciation on fixed assets is provided on Straight-Line basis from the date the assets have been installed and put to use. In respect of Assets sold, depreciation is provided upto the date of disposal. Depreciation is charged at the rates prescribed in Schedule XIV to the Companies Act, 1956.

All Fixed Assets individually costing less than Rs. 5,000 are fully depreciated in the year of purchase.

Intangible asset is amortised over its useful life (5 years) on straight-line basis, commencing from the date when the asset is put to use by the Company.

h. Investments

Long term investments are carried at cost less diminution, other than any temporary diminution in value, determined separately for each investment. Current investments are carried at lower of cost or Net Realisable value.

i. Foreign Currency Transactions

Foreign Currency Transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognised in the statement of Profit and Loss. Monetary Assets and Liabilities denominated in Foreign Currencies as at the Balance Sheet date are translated at the closing Exchange Rates on that date. The exchange differences, if any, are recognised in the statement of Profit and Loss and related Assets and Liabilities are accordingly restated in the Balance Sheet.

j. Employee Benefits

i. All Short Term Employee Benefits payable including Salaries and other allowances are recognised on accrual basis, in the manner provided in AS - 15.

ii. The Company contributes to a Recognised Provident Fund and Employee State Insurance, which are defined contribution schemes. The contributions are accounted for on an accrual basis and recognised in the statement of Profit and Loss.

iii. No provision has been made for leave encashment benefit for the period as the terms of employment does not provide for such obligation on the Company.

iv. Gratuity liability is ascertained based on actuarial valuation, carried out by an independent actuary as at the balance sheet date using the projected unit credit method and provision is made in the books.

As per the terms of the agreement with the clients, gratuity payable to employees deployed with the clients would be reimbursed by the clients as and when the gratuity is payable to the employees. In accordance therewith, provision for gratuity in respect of the employees deployed with various clients, has been debited to the account of the respective clients instead of being debited to the statement of Profit and Loss.

Gratuity cost in respect of other employees has been debited to the statement of Profit and Loss. The Company has not made any insurance contribution in respect of its gratuity liability.

k. Taxation

The accounting treatment for Income Tax in respect of Company''s income is based on the Accounting Standard 22 on ''Accounting for Taxes on Income''.

Income Tax: Provision for current Income Tax is made on the Taxable Income for the year as is determined in accordance with the provisions of the Income-Tax Act, 1961.

Advance taxes and provisions for current income taxes are presented in the balance sheet after offsetting advance tax paid and income tax provision arising in the same tax jurisdiction and where the Company intends to settle the asset and liability on a net basis.

Deferred Tax : Deferred Tax Assets and Liabilities are recognized at substantively enacted Tax Rates, subject to the considerate on of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

The company off-sets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

l. Earnings Per Share (EPS)

The Company reports Basic and Diluted Earnings Per Share in accordance with Accounting Standard 20 - Earnings Per Share prescribed by the Companies (Accounting Standards) Rules, 2006. Basic Earnings per Share is computed by dividing the Net Profit After Tax by the weighted average number of Equity Shares outstanding during the year. The Company does not have any outstanding securities convertible into Equity Shares of the Company and hence there is no dilution in the Earnings per Share.

m. Provisions and Contingencies

The Company creates a provision when there is present or legal constructive obligations as a result of past events, 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 obligati on or a present obligati on that may, but probably will not, require an outflow of resources.

When there is a possible obligati on or a present obligati on in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognised in the Financial Statements since this may result in the recognition of income that may never be realised.

n. Cash Flows

Cash Flows are reported using the indirect method, whereby Profit Before Tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash Flows from regular revenue generating, financing and investing activities of the Company are segregated.

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Mar 31, 2013

A. Basis of preparation of the Financial Statements

The accompanying Financial Statements are prepared and presented under the Historical Cost Convention, on the accrual basis of accounting and comply with the Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable. The Financial Statements are presented in Indian Rupees.

All assets and liabilities have been classifi ed as current or non-current as per the Company''s normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956.

b. Use of Estimates

The preparation of the Financial Statements in conformity with the Generally Accepted Accounting Principles requires the management to make estimates and assumptions that aff ect the reported amount of Assets, Liabilities (including Contingent Liabilities) as of the date of the Financial Statements and the reported Revenues and Expenses during the reporting period. Actual results could diff er from the estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

c. Revenue Recognition

i. Revenue from Consulting business is primarily derived from Resourcing services, Technical Support Service, Licensing of Software and Business Support Services. Revenues from fi xed price and fi xed time frame contracts / arrangements are recognised when the services have been rendered in accordance with the contracts / arrangements and there is no uncertainty as to the measurement or collectability of the consideration. Where there is uncertainty as to measurement or collectability, Revenue Recognition is postponed until such uncertainty is resolved.

ii. Interest on Fixed Deposits and Interest on Advances are accounted on accrual basis. In case of Doubtful Loans, the Interest is recognised on actual receipt.

iii. Dividend Income is recognised when the Company''s right to receive the dividend is recognised.

iv. Other receipts are accounted when it is received.

d. Expenditure

Expenses are accounted on accrual basis. As a matter of prudence, provisions are made for all known losses and liabilities.

e. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. The cost of the Fixed Assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

f. Intangible Assets

Intangible Assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment, if any.

g. Depreciation and Amortization

Depreciation on fi xed assets is provided on Straight-Line basis from the date the assets have been installed and put to use. In respect of Assets sold, depreciation is provided upto the date of disposal. Depreciation is charged at the rates prescribed in Schedule XIV to the Companies Act, 1956.

All Fixed Assets individually costing less than Rs. 5,000 are fully depreciated in the year of purchase.

Intangible asset is amortised over its useful life (5 years) on straight-line basis, commencing from the date when the asset is put to use by the Company.

h. Investments

Long term investments are carried at cost less diminution, other than any temporary diminution in value, determined separately for each investment. Current investments are carried at lower of cost or Net Realisable value.

i. Foreign Currency Transactions

Foreign Currency Transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognised in the Statement of Profit and Loss. Monetary Assets and Liabilities denominated in Foreign Currencies as at the Balance Sheet date are translated at the closing Exchange Rates on that date. The exchange differences, if any, are recognised in the Statement of Profit and Loss and related Assets and Liabilities are accordingly restated in the Balance Sheet.

j. Employee Benefi ts

i. All Short Term Employee Benefi ts payable including Salaries and other allowances are recognised on accrual basis, in the manner provided in AS - 15.

ii. The Company contributes to a Recognised Provident Fund and Employee State Insurance, which are defi ned contribution schemes. The contributions are accounted for on an accrual basis and recognised in the Statement of Profi t and Loss.

iii. No provision has been made for leave encashment benefi t for the period as the terms of employment does not provide for such obligation on the Company.

iv. Gratuity liability is ascertained based on actuarial valuation, carried out by an independent actuary as at the balance sheet date using the projected unit credit method and provision is made in the books.

As per the terms of the agreement with the clients, gratuity payable to employees deployed with the clients would be reimbursed by the clients as and when the gratuity is payable to the employees. In accordance therewith, provision for gratuity in respect of the employees deployed with various clients, has been debited to the account of the respective clients instead of being debited to the Statement of Profi t and Loss.

Gratuity cost in respect of other employees has been debited to the Statement of Profi t and Loss. The Company has not made any insurance contribution in respect of its gratuity liability.

k. Taxation

The accounting treatment for Income Tax in respect of Company''s income is based on the Accounting Standard 22 on ''Accounting for Taxes on Income''.

Income Tax : Provision for current Income Tax is made on the Taxable Income for the year as is determined in accordance with the provisions of the Income-Tax Act, 1961.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off - setting advance tax paid and income tax provision arising in the same tax jurisdiction and where the Company intends to settle the asset and liability on a net basis.

Deferred Tax : Deferred Tax Assets and Liabilities are recognized at substantively enacted Tax Rates, subject to the consideration of prudence, on timing diff erence, being the diff erence between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

The company off -sets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

l. Earnings Per Share (EPS)

The Company reports Basic and Diluted Earnings Per Share in accordance with Accounting Standard 20 - Earnings Per Share prescribed by the Companies (Accounting Standards) Rules, 2006. Basic Earnings per Share is computed by dividing the Net Profi t After Tax by the weighted average number of Equity Shares outstanding during the year. The Company does not have any outstanding securities convertible into Equity Shares of the Company and hence there is no dilution in the Earnings per Share.

m. Provisions and Contingencies

The Company creates a provision when there is present or legal constructive obligations as a result of past events, 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.

When 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.

Provisions are reviewed at each Balance Sheet date and adjusted to refl ect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognised in the Financial Statements since this may result in the recognition of income that may never be realised.

n. Cash Flows

Cash Flows are reported using the indirect method, whereby Profi t Before Tax is adjusted for the eff ects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash Flows from regular revenue generating, fi nancing and investing activities of the Company are segregated.

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Mar 31, 2012

A. Basis of preparation of the Financial Statements

The accompanying Financial Statements are prepared and presented under the Historical Cost Convention, on the accrual basis of accounting and comply with the Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable. The Financial Statements are presented in Indian Rupees.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Schedule VI to the Companies Act, 1956.

b. Use of Estimates

The preparation of the Financial Statements in conformity with the Generally Accepted Accounting Principles requires the management to make estimates and assumptions that affect the reported amount of Assets, Liabilities (including Contingent Liabilities) as of the date of the Financial Statements and the reported Revenues and Expenses during the reporting period. Actual results could differ from the estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

c. Revenue Recognition

i. Revenue from Consulting business is primarily derived from Resourcing services, Technical Support Service, Licensing of Software and Business Support Services. Revenues from fixed price and fixed time frame contracts / arrangements are recognized when the services have been rendered in accordance with the contracts / arrangements and there is no uncertainty as to the measurement or collectability of the consideration. Where there is uncertainty as to measurement or collectability, Revenue Recognition is postponed until such uncertainty is resolved.

ii. Interest on Fixed Deposits and Interest on Advances are accounted on accrual basis. In case of Doubtful Loans, the Interest is recognized on actual receipt.

iii. Dividend Income is recognized when the Company's right to receive the dividend is recognized.

iv. Other receipts are accounted when it is received.

d. Expenditure

Expenses are accounted on accrual basis. As a matter of prudence, provisions are made for all known losses and liabilities.

e. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. The cost of the Fixed Assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

f. Intangible Assets

Intangible Assets are recorded at the Consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment, if any.

g. Depreciation and Amortization

Depreciation on fixed assets is provided on Straight-Line basis from the date the assets have been installed and put to use. In respect of Assets sold, depreciation is provided upto the date of disposal. Depreciation is charged at the rates prescribed in Schedule XIV to the Companies Act, 1956.

All Fixed Assets individually costing less than Rs. 5,000 are fully depreciated in the year of purchase.

Intangible asset is amortized over its useful life (5 years) on straight-line basis, commencing from the date when the asset is put to use by the Company.

h. Investments

Long term investments are carried at cost less diminution, other than any temporary diminution in value, determined separately for each investment. Current investments are carried at lower of cost or Net Realizable value.

i. Foreign Currency Transactions

Foreign Currency Transactions are recorded at the rates of exchange prevailing on the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognized in the Profit and Loss Account. Monetary Assets and Liabilities denominated in Foreign Currencies as at the Balance Sheet date are translated at the closing Exchange Rates on that date. The exchange differences, if any, are recognized in the Profit and Loss Account and related Assets and Liabilities are accordingly restated in the Balance Sheet.

j. Employee Benefits

i. All Short Term Employee Benefits payable including Salaries and other allowances are recognized on accrual basis, in the manner provided in AS - 15.

ii. The Company contributes to a Recognized Provident Fund and Employee State Insurance, which are defined contribution schemes. The contributions are accounted for on an accrual basis and recognised in the Profit and Loss Account.

iii. No provision has been made for leave encashment benefit for the period as the terms of employment does not provide for such obligation on the Company.

iv. Gratuity cost is accrued based on actuarial valuation, carried out by an independent actuary as at the balance sheet date using the projected unit credit method and provision is made in the books. The Company has not made any insurance contribution in respect of its gratuity liability.

k. Taxation

The accounting treatment for Income Tax in respect of Company's income is based on the Accounting Standard 22 on 'Accounting for Taxes on Income' issued by the Institute of Chartered Accountants of India.

Income Tax : Provision for current Income Tax is made on the Taxable Income for the year as is determined in accordance with the provisions of the Income Tax Act, 1961.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction and where the Company intends to settle the asset and liability on a net basis.

Deferred Tax : Deferred Tax Assets and Liabilities are recognized at substantively enacted Tax Rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

The company off-sets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

l. Earnings Per Share (EPS)

The Company reports Basic and Diluted Earnings Per Share in accordance with Accounting Standard 20 - Earnings Per Share prescribed by the Companies (Accounting Standards) Rules, 2006. Basic Earnings per Share is computed by dividing the Net Profit After Tax by the weighted average number of Equity Shares outstanding during the year. The Company does not have any outstanding securities convertible into Equity Shares of the Company and hence there is no dilution in the Earnings per Share.

m. Provisions and Contingencies

The Company creates a provision when there is present or legal constructive obligations as a result of past events, 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.

When 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.

Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognized in the Financial Statements since this may result in the recognition of income that may never be realized.

n. Cash Flows

Cash Flows are reported using the indirect method, whereby Profit Before Tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash Flows from regular revenue generating, financing and investing activities of the Company are segregated.

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Mar 31, 2010

A) Basis of preparaton of the Financial Statements

The accompanying Financial Statements are prepared and presented under the Historical Cost Conventon, on the accrual basis of accounting and comply with the Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable. The Financial Statements are presented in Indian Rupees.

B) Use of Estmates

The preparaton of the Financial Statements in conformity with the Generally Accepted Accounting Principles requires the management to make estmates and assumptons that afect the reported amount of Assets, Liabilites (including Contngent Liabilites) as of the date of the Financial Statements and the reported Revenues and Expenses during the reporting period. Actual results could difer from the estmates. Any revision to accounting estmates is recognised prospectvely in current and future periods.

C) Revenue Recogniton

i) Revenue from IT Solutons and Consulting business is primarily derived from Sofware Development, Support services and Licensing of Sofware. All Customer contracts / arrangements are on fxed price basis. Accordingly, the Revenue from the Sale of the Sofware and the licensing fee is recognised when there is no uncertainty as to the measurement or collectability of the consideraton. Where there is uncertainty as to measurement or collectability, Revenue Recogniton is postponed untl such uncertainty is resolved.

ii) Interest on Fixed Deposits and Interest on Advances are accounted on accrual basis. In case of Doubtul Loans, the Interest is recognised on actual receipt.

iii) Dividend Income is recognised when the Company’s right to receive the dividend is recognised.

iv) Other receipts are accounted when it is received.

D) Expenditure

Expenses are accounted on accrual basis. As a mater of prudence, provisions are made for all known losses and liabilites. Bad debts are writen-of when there is no expectaton of recovery.

E) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciaton. The cost of the Fixed Assets comprises purchase price and any atributable cost of bringing the asset to its working conditon for its intended use.

F) Intangible Assets

Intangible Assets are recorded at the Consideraton paid for acquisiton of such assets and are carried at cost less accumulated amortzaton and impairment.

H) Investments

Investments are classifed into long term investments and current investments. Investments which are intended to be held for one year or more are classifed as long term investments and investments which are intended to be held for less than one year are classifed as current investments. Long term investments are carried at cost less diminuton, other than any temporary diminuton in value, determined separately for each investment. Current investments are carried at lower of cost or Net Realisable value.

I) Foreign Currency Transactons

Foreign Currency Transactons are recorded at the rates of exchange prevailing on the date of the transacton. Exchange diferences, if any, arising out of transactons setled during the year are recognised in the Proft and Loss Account. Monetary Assets and Liabilites denominated in Foreign Currencies as at the Balance Sheet date are translated at the closing Exchange Rates on that date. The exchange diferences, if any, are recognised in the Proft and Loss Account and related Assets and Liabilites are accordingly restated in the Balance Sheet.

J) Employee Benefts

i) All Short Term Employee Benefts payable including Salaries and other allowances are recognised on accrual basis, in the manner provided in AS - 15.

ii) The Company contributes to a Recognised Provident Fund which is a defned contributon scheme. The contributons are accounted for on an accrual basis and recognised in the Proft and Loss Account.

iii) No provision has been made for leave encashment beneft for the period as the terms of employment does not provide for such obligaton on the Company.

iv) Gratuity cost is accrued based on actuarial valuaton, carried out by an independent actuary as at the balance sheet date using the projected unit credit method and provision is made in the books. The Company has not made any insurance contributon in respect of its gratuity liability.

K) Taxaton

The accounting treatment for Income-Tax in respect of Company’s income is based on the Accounting Standard 22 on ‘Accounting for Taxes on Income’ issued by the Insttute of Chartered Accountants of India. Income Tax: Provision for current Income-Tax is made on the Taxable Income for the year as is determined in accordance with the provisions of the Income-Tax Act, 1961.

Deferred Tax : Deferred Tax Assets and Liabilites are recognized at substantvely enacted Tax Rates, subject to the consideraton of prudence, on tming diference, being the diference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

L) Earnings Per Share (EPS)

The Company reports Basic and Diluted Earnings Per Share in accordance with Accounting Standard 20 - Earnings Per Share prescribed by the Companies (Accounting Standards) Rules, 2006. Basic Earnings per Share is computed by dividing the Net Proft Afer Tax by the weighted average number of Equity Shares outstanding during the year. The Company does not have any outstanding securites convertble into Equity Shares of the Company and hence there is no diluton in the Earnings per Share.

M) Provisions and Contingencies

The Company creates a provision when there is present or legal constructve obligatons as a result of a past events, that probably requires an outlow of resources and a reliable estmate can be made of the amount of the obligaton. A disclosure for a contngent liability is made when there is a possible obligaton or a present obligaton that may, but probably will not, require an outlow of resources.

When there is a possible obligaton or a present obligaton in respect of which the likelihood of outlow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each Balance Sheet date and adjusted to refect the current best estmate. If it is no longer probable that the outlow of resources would be required to setle the obligaton, the provision is reversed.

Contngent assets are not recognised in the Financial Statements since this may result in the recogniton of income that may never be realised.

N) Cash Flows

Cash Flows are reported using the indirect method, whereby Proft Before Tax is adjusted for the efects of transactons of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash Flows from regular revenue generating, fnancing and investing actvites of the Company are segregated.