Mar 31, 2015
2.1 Accounting convention
The Financial Statements have been prepared and presented under the
historical cost convention on the accrual basis of accounting in
accordance with Generally Accepted Accounting Principles in India
(GAAP) and comply with the mandatory Accounting Standards as specified
in the Companies (Accounting Standards) Rules 2006 ('Rules'), other
pronouncements of the Institute of Chartered Accountants of India
(ICAI) to the extent applicable, the provisions of Companies Act, 1956,
the provisions of the Companies Act 2013 (to the extent notified) and
guidelines issued by Securities and Exchange Board of India.
2.2 Use of estimates
The Preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure relating
to contingent assets and contingent liabilities as on date of financial
statements and the reported amounts of income and expenses during the
period. Actual results could differ from the estimates. Examples of
such estimates include provision for doubtful debt, future obligation
under employee retirement benefit plan, income taxes, useful life of
fixed assets, etc. Any revision to accounting estimates is recognised
prospectively in current and future periods.
2.3 Cash flows
Cash flows are reported using the indirect method, where by the net
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 and
presented separately.
2.4 Revenue recognition
Revenue from Consultation services consists of revenue earned from
services performed on a time and material basis and time bound fixed -
price engagements. In respect of Time and Material Contracts, revenue
is recognised as and when the services are performed. In respect of
time bound fixed-price engagements, revenue is recognised using the
percentage of completion method of accounting, unless work completed
cannot be reasonably estimated. The cumulative impact of any revision
in estimates of the percentage of work completed is reflected in the
period in which the change becomes known. In respect of Sale of
software products, revenue is recognised on transfer of ownership to
the customers.
2.5 Fixed assets
Fixed assets are stated at cost of acquisition. Cost of acquisition is
inclusive of freight, duties, levies and all incidentals directly or
indirectly attributable to bringing the asset to its working condition
for its intended use. The cost of fixed assets includes cost of initial
warranty/ insurance spares purchased along with the capital asset,
which are grouped as single item under respective assets.
Depreciation is computed based on the useful life of the assets as
prescribed in schedule II of the Companies Act 2013. Depreciation is
calculated using written down value Method. Depreciation is calculated
on a pro-rata basis from the date of installation / capitalization till
the date the assets are sold or disposed.
The company owns Intellectual Propert Right relating to its service
business and the carrying amount thereof is disclosed in the schedule
of Fixed Assets. This would be amortised on a written down value method
over a period of 10 years
2.6 Foreign currency transactions
Foreign currency transactions are initially recorded at the rates of
exchange ruling at the date of transaction.
At the Balance Sheet date, foreign currency monetary items are reported
using the closing/contracted rate. Non monetary items denominated in
foreign currency are reported at the exchange rate ruling at the date
of transaction.
All exchange differences are recognised as income or expense in the
period in which they arise.
2.7 Inventory
Work in Progress is valued at cost or rate assured under a contract
whichever is lower.
2.8 Investments
Long-term investments are stated at cost. A provision for diminution is
made to recognise a decline, other than temporary, in the value of
long-term investments. Current investments are carried at the lower of
cost and fair value. The comparison of cost and fair value is done
separately in respect of each category of investment.
2.9 Earnings per share
Basic earnings per share are computed by dividing the net profit or
loss after tax attributable to equity shareholders for the year by the
weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit
or loss after tax attributable to equity shareholders and the weighted
average number of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares. Dilutive potential
equity shares are deemed converted as of the beginning of the period,
unless they have been issued at a later date. In computing the dilutive
earnings per share, only potential equity shares that are dilutive and
that either reduces the earnings per share or increases loss per share
are included.
2.10 Provisions and contigencies
The Company recognises a provision when there is a present obligation
as a result of past obligating event that probably requires an outflow
of resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Provisions for onerous contracts i.e. contracts where the expected
unavoidable costs of meeting the obligations under the contract exceed
the economic benefits expected to be received under it, are recognized
when it is probable that an outflow of resources embodying economic
benefits will be required to settle a present obligation as a result of
an obligating event, based on a reliable estimate of such obligation.
Mar 31, 2014
1.1 Accounting convention
The Financial Statements have been prepared and presented under the
historical cost convention on the accrual basis of accounting in
accordance with Generally Accepted Accounting Principles in India
(GAAP) and comply with the mandatory Accounting Standards as specified
in the Companies (Accounting Standards) Rules 2006 (''Rules''), other
pronouncements of the Institute of Chartered Accountants of India
(ICAI) to the extent applicable, the provisions of Companies Act, 1956
and guidelines issued by Securities and Exchange Board of India.
2.2 Use of estimates
The Preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure relating
to contingent assets and contingent liabilities as on date of financial
statements and the reported amounts of income and expenses during the
period. Actual results could differ from the estimates. Examples of
such estimates include provision for doubtful debt, future obligation
under employee retirement benefit plan, income taxes, useful life of
fixed assets, etc. Any revision to accounting estimates is recognised
prospectively in current and future periods.
2.3 Cash flows
Cash flows are reported using the indirect method, where by the net
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 and
presented separately.
2.4 Revenue recognition
Revenue from Consultation services consists of revenue earned from
services performed on a time and material basis and time bound fixed -
price engagements. In respect of Time and Material Contracts, revenue
is recognised as and when the services are performed. In respect of
time bound fixed-price engagements, revenue is recognised using the
percentage of completion method of accounting, unless work completed
cannot be reasonably estimated. The cumulative impact of any revision
in estimates of the percentage of work completed is reflected in the
period in which the change becomes known. In respect of Sale of
software products, revenue is recognised on transfer of ownership to
the customers.
Interest income is recognised on time proportion basis taking into
account the amount outstanding and at the rate applicable.
2.5 Fixed assets
Fixed assets are stated at cost of acquisition. Cost of acquisition is
inclusive of freight, duties, levies and all incidentals directly or
indirectly attributable to bringing the asset to Its working condition
for its intended use. The cost of fixed assets includes cost of initial
warranty/ insurance spares purchased along with the capital asset,
which are grouped as single item under respective assets.
Depreciation has been provided on Written down value Method at the
rates and in the manner specified in Schedule XIV of the Companies Act,
1956 except for assets costing up to Rs. 5,000/-, which are fully
depreciated in the year of capitalization. Depreciation is calculated
on a pro-rata basis from the date of installation till the date the
assets are sold or disposed.
Depreciation on initial/ warranty spares are provided on the same rates
applicable for that Asset group, irrespective of its actual usage.
The company owns Intellectual Propert Right relating to its service
business and the carrying amount thereof is disclosed in the schedule
of Fixed Assets. This would be amortised on a written down value method
@ 20 % per annum.
2.6 Foreign currency transactions
Foreign currency transactions are initially recorded at the rates of
exchange ruling at the date of transaction.
At the Balance Sheet date, foreign currency monetary items are reported
using the closing/contracted rate. Non monetary items denominated in
foreign currency are reported at the exchange rate ruling at the date
of transaction.
All exchange differences are recognised as income or expense in the
period in which they arise.
2.7 Inventory
Work in Progress is valued at cost or rate assured under a contract
whichever is lower.
2.8 Investments
Long-term investments are stated at cost. A provision for diminution is
made to recognise a decline, other than temporary, in the value of
long-term investments. Current investments are carried at the lower of
cost and fair value. The comparison of cost and fair value is done
separately in respect of each category of investment.
2.9 Earnings per share
Basic earnings per share are computed by dividing the net profit or
loss after tax attributable to equity shareholders for the year by the
weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit
or loss after tax attributable to equity shareholders and the weighted
average number of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares. Dilutive potential
equity shares are deemed converted as of the beginning of the period,
unless they have been issued at a later date. In computing the dilutive
earnings per share, only potential equity shares that are dilutive and
that either reduces the earnings per share or increases loss per share
are included.
2.10 Provisions and contigencies
The Company recognises a provision when there is a present obligation
as a result of past obligating event that probably requires an outflow
of resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Provisions for onerous contracts i.e. contracts where the expected
unavoidable costs of meeting the obligations under the contract exceed
the economic benefits expected to be received under it, are recognized
when it is probable that an outflow of resources embodying economic
benefits will be required to settle a present obligation as a result of
an obligating event, based on a reliable estimate of such obligation.
Mar 31, 2013
1.1 Accounting convention
The Financial Statements have been prepared and presented under the
historical cost convention on the accrual basis of accounting in
accordance with Generally Accepted Accounting Principles in India
(GAAP) and comply with the mandatory Accounting Standards as specified
in the Companies (Accounting Standards) Rules 2006 (''Rules''), other
pronouncements of the Institute of Chartered Accountants of India
(ICAI) to the extent applicable, the provisions of Companies Act, 1 956
and guidelines issued by Securities and Exchange Board of India.
1.2 Use of estimates
The Preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure relating
to contingent assets and contingent liabilities as on date of financial
statements and the reported amounts of income and expenses during the
period. Actual results could differ from the estimates. Examples of
such estimates include provision for doubtful debt, future obligation
under employee retirement benefit plan, income taxes, useful life of
fixed assets, etc. Any revision to accounting estimates is recognised
prospectively in current and future periods.
1.3 Cash flows
Cash flows are reported using the indirect method, where by the net
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 and
presented separately.
1.4 Revenue recognition
Revenue from Consultation services consists of revenue earned from
services performed on a time and material basis and time bound fixed -
price engagements. In respect of Time and Material Contracts, revenue
is recognised as and when the services are performed. In respect of
time bound fixed- price engagements, revenue is recognised using the
percentage of completion method of accounting, unless work completed
cannot be reasonably estimated. The cumulative impact of any revision
in estimates of the percentage of work completed is reflected in the
period in which the change becomes known. In respect of Sale of
software products, revenue is recognised on transfer of ownership to
the customers.
Interest income is recognised on time proportion basis taking into
account the amount outstanding and at the rate applicable.
1.5 Fixed assets
Fixed assets are stated at cost of acquisition. Cost of acquisition is
inclusive of freight, duties, levies and all incidentals directly or
indirectly attributable to bringing the asset to its working condition
for its intended use. The cost of fixed assets includes cost of initial
warranty/ insurance spares purchased along with the capital asset,
which are grouped as single item under respective assets.
Depreciation has been provided on Written down value Method at the
rates and in the manner specified in Schedule XIV of the Companies Act,
1956 except for assets costing up to Rs. 5,000/-, which are fully
depreciated in the year of capitalization. Depreciation is calculated
on a pro-rata basis from the date of installation till the date the
assets are sold or disposed.
Depreciation on initial/ warranty spares are provided on the same rates
applicable for that Asset group, irrespective of its actual usage.
The company owns Intellectual Propert Right relating to its service
business and the carrying amount thereof is disclosed in the schedule
of Fixed Assets. This wouid be amortised on a written down value
method @ 20 % per annum.
1.6 Foreign currency transactions
Foreign currency transactions are initially recorded at the rates of
exchange ruling at the date of transaction.
At the Balance Sheet date, foreign currency monetary items are reported
using the closing/contracted rate. Non monetary items denominated in
foreign currency are reported at the exchange rate ruling at the date
of transaction.
All exchange differences are recognised as income or expense in the
period in which they arise.
1.7 Inventory Work in Progress is valued at cost or rate assured under
a contract whichever is lower.
1.8 Investments
Long-term investments are stated at cost. A provision for diminution is
made to recognise a decline, other than temporary, in the value of
long-term investments. Current investments are carried at the lower of
cost and fair vaiue. The comparison of cost and fair value is done
separately in respect of each category of investment.
1.9 Earnings per share
Basic earnings per share are computed by dividing the net profit or
loss after tax attributable to equity sharehoiders for the year by the
weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit
or loss after tax attributable to equity shareholders and the weighted
average number of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares. Dilutive potential
equity shares are deemed converted as of the beginning of the period,
unless they have been issued at a later date. In computing the dilutive
earnings per share, only potential equity shares that are dilutive and
that either reduces the earnings per share or increases loss per share
are included.
1.10 Provisions and contigencies
The Company recognises a provision when there is a present obligation
as a result of past obligating event that probably requires an outflow
of resources and a reliable estimate can be made of the amount of the
obligation, A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Provisions for onerous contracts i.e. contracts where the expected
unavoidable costs of meeting the obligations under the contract exceed
the economic benefits expected to be received under it, are recognized
when it is probable that an outflow of resources embodying economic
benefits will be required to settle a present obligation as a result of
an obligating event, based on a reliable estimate of such obligation.
Mar 31, 2012
I. The Company has purchased Motor Car on Hire Purchase basis from
Kotak Mahindra in the year 2008. The same has been secured against the
hypothecat and personal guarantee of the directors
II. The Company has received Rs. 12,92,636/- (equivalent to Euros
20,000) during the financial year 2009-10 towards advance for the sale
of 80% shareholding in its wholly owned subsidiary B2B Technologies
Kassel Gmbh. The shares have not been transferred pending approval from
RBI. The company has made a provision of Rs. 39,37,554 towards loss on
sale of investment and a provision for Rs. 13,07,549 for dimunition in
the value of investment.
III. The Wholly Owned Subsidiaries of the company at Malaysia, B2B
Infotech SDN BHD and at Singapore, B2B Infotech Pte Ltd are under
liquidation/The Company has made a provision for dimunition in the
value of investment to the extent of 100% of the carrying amount.
IV. The Company is primarly engaged in Information Technology and
related services. There are no other reportable segments in terms of
Accounting Standard 17 on Segment Reporting issued by the The Institute
of Chartered Accountants of India
V. Consolidated financial Statements - Accounting Standard 21
Consolidated financial statements of the company and its wholly owned
subsidiary viz., B2B Softech inc, USA are enclosed
VI. Interim Financial Reporting - Accounting Standard 25
Quarterly financial result are published in accordance with the
requirement of the listing agreement with Stock Exchange. The
reorganisation and measurement principle as laid down in the standard
have been followed in the preparation of these results.
VII. Intangible Assets - Accounting Standard 26
The company owns Intellectual Property Right relating to its service
business and the carrying amount thereof is disclosed in the schedule
of Fixed Assets. This would be amortised on a written down value method
@ 20 % per annum.
VIII. Basis Of Presentation
The financial statements of the Company are prepared under the
historical cost convention in accordance with the Generally Accepted
Accounting Principles (GAAP) applicable in India and the relevant
provisions of the Companies Act, 1956. The preparation of the financial
statements in conformity with the GAAP requires that the management
makes estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent liabilities as at the
date of the financial statements, and the reported amounts of revenue
and expenses during the reporting period.
IX. Revenue Recognition
Revenue from professional services consists of revenue earned from
services performed on a time and material basis and time bound fixed -
price engagements. In respect of Time and Material Contracts, revenue
is recognised as and when the services are performed. In respect of
time bound fixed- price engagements, revenue is recognised using the
percentage of completion method of accounting, unless work completed
cannot be reasonably estimated. The cumulative impact of any revision
in estimates of the percentage of work completed is reflected in the
period in which the change becomes known. In respect of trading
activities, revenue is recognised on transfer of ownership to the
customers.
X. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. The cost
capitalised includes material cost, freight, installation cost, duties
and taxes, finance charges and other incidental expenses incurred
during the constructions/installation stage. Depreciation on fixed
assets is computed on the written down value method at the rates
prescribed under Schedule XIV of the Companies Act, 1956. Individual
assets costing less than Rs. 5,000 are depreciated in full in the year
of purchase. Costs of application software for internal use are
generally charged to revenue as incurred due to its estimated useful
lives being relatively short. Capital work in progress includes all
direct expenditure incurred in connection with the acquisition of fixed
assets and also the advances paid therefore.
XI. Investments
Investments are classified into current investments and long-term
investments. Current investments are carried at the lower of cost or
fair value. Any reduction in carrying amount and any reversals of such
reductions are charged or credited to the Profit and Loss account.
Long-term investments are carried at cost less provision made to
recognise any decline, other than temporary, in the value of such
investments.
XII. Foreign Currency Transactions
In foreign currency are translated at the rates of exchange at the
balance sheet date and resultant gain or loss is recognized in the
profit and loss account.
XIII. Retirement Benefits
Contributions to defined schemes such as provident Fund, Employees
State Insurance scheme are charged as incurred on accrual basis.
Provision for gratuity is made on the basis actuarial valuation.
XIV. Inventories
Work in progress is valued at cost or rate assured under a contract
whichever is lower.
XV. During the year under March 31st 2012, the revised schedule VI
notified under the Companies Act, 1956, has become applicable to the
company, for preparation and presentation of its financial statements.
The adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosure made in the financial statements. The company has also
reclassified/regrouped the previous years figures in accordance with
the requirements applicable in the current year.
Mar 31, 2010
Basis of Presentation:
The financial statements of the Company are prepared under .the
historical cost convention in accordance with the Generally Accepted
Accounting Principles (GAAP) applicable in India and the relavent
provisions of the Companies Act, 1956.
The preparation of the financial statements in conformity with the GAAP
requires that the management makes estimates and assumptions that
affect the reported amounts of assets and liabilities, disclosure of
contingent liabilities as at the date of the financial statements, and
the reported amounts of revenue and expenses during the reporting
period.
REVENUE RECOGNITION:
Revenue from professional services consists of revenue earned from
services performed on a time and material basis and time bound fixed -
price engagements. In respect of Time and Material Contracts, revenue
is recognised as and when the services are performed. In respect of
time bound fixed-price engagements, revenue is recognised using the
percentage of completion method of accounting, unless work completed
cannot be reasonably estimated. The cumulative impact of any revision
in estimates of the percentage of work completed is reflected in the
period in which the change becomes known. In respect of trading
activities, revenue is recognised on transfer of ownership to the
customers.
Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. The cost
capitalised includes material cost, freight, installation cost, duties
and taxes, finance charges and other incidental expenses incurred
during the constructions/installation stage. Depreciation on fixed
assets is computed on the written down value method at the rates
prescribed under Schedule XIV of the Companies Act, 1956. Individual
assets costing less than Rs.5,000 are depreciated in full in the year
of purchase. Costs of application software for internal use are
generally charged to revenue as incurred due to its estimated useful
lives being relatively short.
Capital work in progress includes all direct expenditure incurred in
connection with the acquisition of fixed assets and also the advances
paid therefore.
Investments
Investments are classified into current investments and long-term
investments. Current investments are carried at the lower of cost or
fair value. Any reduction in carrying amount and any reversals of such
reductions are charged or credited to the Profit and Loss account.
Long-term investments are carried at cost less provision made to
recognise any decline, other than temporary, inthevalueofsuch
investments.
Foreign Currency Transactions
Transactions in foreign currency are recorded for at the exchange rate
prevailing on the date of transaction. Monetary assets and liabilities
denominated in foreign currency are translated at the rates of exchange
at the balance sheet date and resultant gain or loss is recognized in
the profit and loss account.
Retirement Benefits
Contributions to defined schemes such as Provident Fund, Employees
State Insurance scheme are charged as incurred on accrual basis.
Provision forgratuity is made on the basis auctorial valuation.
Note :
1. The above cash flow statement has been prepared using the Indirect
method as set out in Accounting Standard-3 on Cash Flow Statement
issued by the Institute of Chartered Accountants of India.