Mar 31, 2014
Basis for preparation of Financial Statements
These Financial Statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These Financial Statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended from time to time] and the other
relevant provisions of the Companies Act, 1956.
All Assets and Liabilities have been classified as current or
non-current as the case may be, as per the Company''s normal operative
cycle and other criteria set out in the Schedule VI of the Companies
Act, 1956. Since the Company is in the business of Medical
Transcription, Training, Software Development and consulting services,
the Company has determined its operative cycle as 12 months for the
purpose of current - noncurrent classification of Assets and
Liabilities.
Preparation of the financial statements, in conformity with generally
accepted principles, requires the use of estimates and assumptions that
affect the reported amount of assets and liabilities as at the Balance
Sheet date, reported amounts of revenues and expenses during the year
and disclosure of contingent liabilities as at that date. The estimates
and the assumptions used in these financial statements are purely based
upon the management''s evaluation of relevant facts and circumstances as
of the date of the financial statements.
1.1. Tangible Assets
Tangible Assets are stated at acquisition cost, net of accumulated
depreciation along with accumulated impairment losses. Cost comprises
of the purchase price and other attributable direct & indirect expenses
like inward freight, expenses, taxes and duties etc., and cost of
borrowings till the date of capitalization.
Subsequent expenditures related to an item of fixed asset are added to
its book value only if they increase the future benefits from the
existing asset beyond items previously assessed standard of
performance.
Gains or Losses arising from the retirement or disposal of fixed assets
which are carried at cost are recognized in the statement of Profit and
Loss Account.
Depreciation for the year has been provided on Straight-Line Method as
per the rates prescribed under Schedule XIV of the Companies Act, 1956
and the same is consistent with the method followed by the Company in
the previous years.
1.2. Intangible Assets
Intangible Assets are stated at acquisition cost, net of accumulated
amortization and accumulated impairment losses, if any. Intangible
assets are amortised on straight line basis over their estimated life
on the decision of the management. The amortization period and the
amortization method are reviewed by the management at each financial
year end. If the expected period of usage is significantly different
from the previous estimates, the amortization period is changed
accordingly based on the management decision.
Gains or losses arising from the retirement or disposal of an
intangible asset are determined as the difference between the net
disposal proceeds and the carrying amount of the asset and are
recognized as income or expense as the case may be, in the Statement of
Profit and Loss.
1.3. Borrowing Costs
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, that
necessarily take a substantial period of time to get ready for their
intended use of operation or sale, are added to the cost of the
respective assets. All other borrowing costs are recognized as
financial costs in Statement of Profit and Loss for the period in which
they are incurred.
1.4. Impairment of Assets
Assessment is done at each Balance Sheet date as to whether there is
any indication that an asset (tangible and intangible) may be impaired.
Assets, which are impaired by disuse or obsolescence, are segregated
from the concerned asset category and shown as deletions in the Fixed
Assets (schedule) and appropriate provision, is made for the difference
between the net carrying cost, and the net realizable value in respect
of the dismissed or deleted assets.
1.5. Investments
Investments that are readily reaslisable and are intended to be held
for not more than one year, from the date of such investments, are
classified as current investments. All other investments are classified
as long term investments. Current investments are carried at cost or
fair value, whichever is lower. Long-term investments are carried at
cost. However, suitable provision for diminution in value is made to
recognize the decline, other than temporary, in the value of the
relevant investments, individually.
1.6. Work In Process
Work In process is valued as sum of Direct expenses and other expenses
allocable to the project.
1.7. Sundry Debtors and Advances
Sundry Debtors and Advances are considered at the realizable value.
Specific debts and advances identified as irrecoverable and doubtful
are written off or provided for respectively and the same are suitably
considered in the Statement of Profit & Loss for the year.
1.8. Cash and Cash Equivalents
In the Financial Statements, cash and cash equivalents include cash in
hand, cash at banks and fixed deposits with banks.
1.9. Foreign Currency Translation
Transactions effected during the year in foreign currency are recorded
at the exchange rate prevailing at the time of respective transactions.
Assets and Liabilities related to foreign currency transactions
remaining unsettled at the year-end are translated at contract rates,
which are covered by foreign exchange contracts and at applicable
year-end rate in other cases. Realized gains/losses, particularly in
respect of Commercial Debts realized by way of foreign exchange
transactions other than those relating to fixed assets, are considered
appropriately in the Statement of Profit & Loss. Gain/Loss on
transaction of long-term liabilities incurred to acquire fixed assets
is treated as an adjustment to the carrying cost of the respective
fixed assets.
1.10. Revenue Recognition
Revenue from software development on fixed-price and fixed -time frame
contract, where there is no uncertainty as to measurement or
collectability , revenue consideration is recognized as per the
percentage of completion method.
2.11. Employee Benefits
Gratuity & Leave Encashment: Liability in respect of gratuity and leave
encashment benefit on retirement is accounted for as and when paid.
Hence no provision has been made.
1.12. Current and Deferred Tax
1.12.1 Current Tax: Tax expense for the period, comprising of current
tax and deferred tax, are included in the determination of the net
profit or loss for the year. Provision for Current tax is made for the
amount expected to be paid in respect of the taxable income for the
year in accordance with the taxation laws.
1.12.2 Deferred Tax: Deferred Tax is recognized on timing differences;
being the difference between taxable income and accounting income that
originate in one period and is capable of reversal in subsequent
periods, subject to consideration of prudence.
2.12.3 Minimum Alternative Tax: MAT credit is recognized as an asset
only to the extent that there is possible evidence that the company
will pay normal income tax during the specified period. Such asset is
reviewed at each Balance Sheet date and the carrying amount of the MAT
credit asset is written down to the extent there is no longer possible
evidence to the effect that the Company will pay normal income tax
during the specified year.
1.13. Provisions and Contingent Liabilities
1.13.1. provisions: provisions are recognized when there is a present
obligation as a result of a past event and it is probable that an
outflow of resources embodying economic benefits will be required to
settle the obligation and there is a reliable estimate of the amount of
the obligation. provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
Sheet date and are not discounted to its present value.
1.13.2. Contingent Liabilities: Contingent liabilities are disclosed
when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non
occurrence of one or more uncertain future events not wholly within the
control of the company or a present obligation that arises from past
events where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot
be made, is termed as a contingent liability.
1.14. Leases
Leases in which a significant portion of the risks and rewards of
ownership are retained by the lessor are classified as operative
leases. The company''s significant leasing arrangements are in respect
of operating leases of office premises. The leasing arrangements are
for a period ranging between one year to three years generally and are
either renewable or cancelable by mutual consent and on agreed terms.
payments made under operating leases are charged in the Statement of
Profit and Loss Account.
1.15. Segment Reporting
The accounting policies adopted for segment reporting are in conformity
with the accounting policies adopted for the Company. Revenue and
expenses have been identified to segments on the basis of their
relationship to the operating activities of the segment.
1.16. Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company''s earnings per share is the net
profit for the period after applicable taxes for the period. The
weighted average value of equity shares considered for EPS is Rs.10/-
per equity share.
Mar 31, 2013
Basis for preparation of Financial Statements
These Financial Statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These Financial Statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended from time to time] and the other
relevant provisions of the Companies Act, 1956.
All Assets and Liabilities have been classified as current or
non-current as the case may be, as per the CompanyÂs normal operative
cycle and other criteria set out in the Schedule VI of the Companies
Act, 1956. Since the Company is in the business of Medical
Transcription, Training, Software Development and consulting services,
the Company has determined its operative cycle as 12 months for the
purpose of current - noncurrent classification of Assets and
Liabilities.
The Preparation of the financial statements, in conformity with
generally accepted principles, requires the use of estimates and
assumptions that affect the reported amount of assets and liabilities
as at the Balance Sheet date, reported amounts of revenues and expenses
during the year and disclosure of contingent liabilities as at that
date. The estimates and the assumptions used in these financial
statements are purely based upon the managementÂs evaluation of
relevant facts and circumstances as of the date of the financial
statements.
1.1. Tangible Assets
Tangible Assets are stated at acquisition cost, net of accumulated
depreciation along with accumulated impairment losses. Cost comprises
of the purchase price and other attributable direct & indirect expenses
like inward freight, expenses, taxes and duties etc., and cost of
borrowings till the date of capitalization.
Subsequent expenditures related to an item of fixed asset are added to
its book value only if they increase the future benefits from the
existing asset beyond items previously assessed standard of
performance.
Gains or Losses arising from the retirement or disposal of fixed assets
which are carried at cost are recognized in the statement of Profit and
Loss Account.
Depreciation for the year has been provided on Straight-Line Method as
per the rates prescribed under Schedule XIV of the Companies Act, 1956
and the same is consistent with the method followed by the Company in
the previous years.
1.2. Intangible Assets
Intangible Assets are stated at acquisition cost, net of accumulated
amortization and accumulated impairment losses, if any. Intangible
assets are amortised on straight line basis over their estimated life
on the decision of the management. The amortization period and the
amortization method are reviewed by the management at each financial
year end. If the expected period of usage is significantly different
from the previous estimates, the amortization period is changed
accordingly based on the management decision.
Gains or losses arising from the retirement or disposal of an
intangible asset are determined as the difference between the net
disposal proceeds and the carrying amount of the asset and are
recognized as income or expense as the case may be, in the Statement of
Profit and Loss.
1.3. Borrowing Costs
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, that
necessarily take a substantial period of time to get ready for their
intended use of operation or sale, are added to the cost of the
respective assets. All other borrowing costs are recognized as
financial costs in Statement of Profit and Loss for the period in which
they are incurred.
1.4. Impairment of Assets
Assessment is done at each Balance Sheet date as to whether there is
any indication that an asset (tangible and intangible) may be impaired.
Assets, which are impaired by disuse or obsolescence, are segregated
from the concerned asset category and shown as deletions in the Fixed
Assets (schedule) and appropriate provision, is made for the difference
between the net carrying cost, and the net realizable value in respect
of the dismissed or deleted assets.
1.5. Investments
Investments that are readily reaslisable and are intended to be held
for not more than one year, from the date of such investments, are
classified as current investments. All other investments are classified
as long term investments. Current investments are carried at cost or
fair value, whichever is lower. Long-term investments are carried at
cost. However, suitable provision for diminution in value is made to
recognize the decline, other than temporary, in the value of the
relevant investments, individually.
1.6. Work In Process
Work In Process is valued as sum of Direct expenses and other expenses
allocable to the project.
1.7. Sundry Debtors and Advances
Sundry Debtors and Advances are considered at the realizable value.
Specific debts and advances identified as irrecoverable and doubtful
are written off or provided for respectively and the same are suitably
considered in the Statement of Profit & Loss for the year.
1.8. Cash and Cash Equivalents
In the Financial Statements, cash and cash equivalents include cash in
hand, cash at banks and fixed deposits with banks.
1.9. Foreign Currency Translation
Transactions effected during the year in foreign currency are recorded
at the exchange rate prevailing at the time of respective transactions.
Assets and Liabilities related to foreign currency transactions
remaining unsettled at the year-end are translated at contract rates,
which are covered by foreign exchange contracts and at applicable
year-end rate in other cases. Realized gains/losses, particularly in
respect of Commercial Debts realized by way of foreign exchange
transactions other than those relating to fixed assets, are considered
appropriately in the Statement of Profit & Loss. Gain/Loss on
transaction of long-term liabilities incurred to acquire fixed assets
is treated as an adjustment to the carrying cost of the respective
fixed assets.
1.10. Revenue Recognition
Revenue from software development on fixed-price and fixed -time frame
contract, where there is no uncertainty as to measurement or
collectability , revenue consideration is recognized as per the
percentage of completion method.
1.11. Employee Benefits
Gratuity & Leave Encashment: Liability in respect of gratuity and leave
encashment benefit on retirement is accounted for as and when paid.
Hence no provision has been made.
1.12. Current and Deferred Tax
1.12.1 Current Tax:
Tax expense for the period, comprising of current tax and deferred tax,
are included in the determination of the net profit or loss for the
year. Provision for Current tax is made for the amount expected to be
paid in respect of the taxable income for the year in accordance with
the taxation laws.
1.12.2 Deferred Tax:
Deferred Tax is recognized on timing differences; being the difference
between taxable income and accounting income that originate in one
period and is capable of reversal in subsequent periods, subject to
consideration of prudence.
1.12.3 Minimum Alternative Tax:
MAT credit is recognized as an asset only to the extent that there is
possible evidence that the company will pay normal income tax during
the specified period. Such asset is reviewed at each Balance Sheet
date and the carrying amount of the MAT credit asset is written down to
the extent there is no longer possible evidence to the effect that the
Company will pay normal income tax during the specified year.
1.13. Provisions and Contingent Liabilities
1.13.1. Provisions:
Provisions are recognized when there is a present obligation as a
result of a past event and it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and there is a reliable estimate of the amount of the obligation.
Provisions are measured at the best estimate of the expenditure
required to settle the present obligation at the Balance Sheet date and
are not discounted to its present value.
1.13.2. Contingent Liabilities:
Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non occurrence of one or more
uncertain future events not wholly within the control of the company or
a present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made, is termed as a
contingent liability.
1.14. Leases
Leases in which a significant portion of the risks and rewards of
ownership are retained by the lessor are classified as operative
leases. The companyÂs significant leasing arrangements are in respect
of operating leases of office premises. The leasing arrangements are
for a period ranging between one year to three years generally and are
either renewable or cancelable by mutual consent and on agreed terms.
Payments made under operating leases are charged in the Statement of
Profit and Loss Account.
1.15. Segment Reporting
The accounting policies adopted for segment reporting are in conformity
with the accounting policies adopted for the Company. Revenue and
expenses have been identified to segments on the basis of their
relationship to the operating activities of the segment.
1.16. Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Earnings
considered in ascertaining the CompanyÂs earnings per share is the
net profit for the period after applicable taxes for the period. The
weighted average value of equity shares considered for EPS is Rs.10/-
per equity share.
Mar 31, 2012
Basis for preparation of Financial Statements
These Financial Statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These Financial Statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended from time to time] and the other
relevant provisions of the Companies Act, 1956.
All Assets and Liabilities have been classified as current or
non-current as the case may be, as per the Company''s normal operative
cycle and other criteria set out in the Schedule VI of the Companies
Act, 1956. Since the Company is in the business of Medical
Transcription, Training, Software Development and consulting services,
the Company has determined its operative cycle as 12 months for the
purpose of current - noncurrent classification of Assets and
Liabilities.
The preparation of the financial statements, in conformity with
generally accepted principles, requires the use of estimates and
assumptions that affect the reported amount of assets and liabilities
as at the Balance Sheet date, reported amounts of revenues and expenses
during the year and disclosure of contingent liabilities as at that
date. The estimates and the assumptions used in these financial
statements are purely based upon the management''s evaluation of
relevant facts and circumstances as of the date of the financial
statements.
1.1. Tangible Assets
Tangible Assets are stated at acquisition cost, net of accumulated
depreciation along with accumulated impairment losses. Cost comprises
of the purchase price and other attributable indirect expenses
including cost of borrowings till the date of capitalization. In the
case of assets involving material investment and substantial lead time
for their set up, those assets are valued at cost including inward
freight, expenses, taxes and duties etc, as applicable.
Subsequent expenditures related to an item of fixed asset are added to
its book value only if they increase the future benefits from the
existing asset beyond items previously assessed standard of
performance.
Gains or Losses arising from the retirement or disposal of fixed assets
which are carried at cost are recognized in the statement of Profit and
Loss Account.
Depreciation for the year has been provided on Straight-Line Method as
per the rates prescribed under Schedule XIV of the Companies Act, 1956
and the same is consistent with the method followed by the Company in
the previous years.
1.2. Intangible Assets
Intangible Assets are stated at acquisition cost, net of accumulated
amortization and accumulated impairment losses, if any. Intangible
assets are amortised on a straight line basis over their estimated
period based on the decision of the management. The amortization period
and the amortization method are reviewed by the management at each
financial year end. If the expected period of usage is significantly
different from the previous estimates, the amortization period is
changed accordingly based on the management decision.
Gains or losses arising from the retirement or disposal of an
intangible asset are determined as the difference between the net
disposal proceeds and the carrying amount of the asset and are
recognized as income or expense as the case may be, in the Statement of
Profit and Loss.
1.3. Borrowing Costs
General and specific borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, that
necessarily take a substantial period of time to get ready for their
intended use of operation or sale, are added to the cost of the
respective assets. All other borrowing costs are recognized as
financial costs in Statement of Profit and Loss for the period in which
they are incurred.
1.4. Impairment of Assets
Assessment is done at each Balance Sheet date as to whether there is
any indication that an asset (tangible and intangible) may be impaired.
Assets, which are impaired by disuse or obsolescence, are segregated
from the concerned asset category and shown as deletions in the Fixed
Assets (schedule) and appropriate provision, is made for the difference
between the net carrying cost, and the net realizable value in respect
of the dismissed or deleted assets.
1.5. Investments
Investments that are readily reaslisable and are intended to be held
for not more than one year, from the date of such investments, are
classified as current investments. All other investments are classified
as long term investments. Current investments are carried at cost or
fair value, whichever is lower. Long-term investments are carried at
cost. However, suitable provision for diminution in value is made to
recognize the decline, other than temporary, in the value of the
relevant investments, individually.
1.6. Work In Process
Work In Process is valued as sum of Direct expenses and other expenses
allocable to the project.
1.7. Sundry Debtors and Advances
Sundry Debtors and Advances are considered at the realizable value.
Specific debts and advances identified as irrecoverable and doubtful
are written off or provided for respectively and the same are suitably
considered in the Statement of Profit and Loss Account for the year.
1.8. Cash and Cash Equivalents
In the Financial Statements, cash and cash equivalents include cash in
hand, cash at banks and fixed deposits with banks.
1.9. Foreign Currency Translation
Transactions effected during the year in foreign currency are recorded
at the exchange rate prevailing at the time of respective transactions.
Assets and Liabilities related to foreign currency transactions
remaining unsettled at the year-end are translated at contract rates,
which are covered by foreign exchange contracts and at applicable
year-end rate in other cases. Realized gains/losses, particularly in
respect of Commercial Debts realized by way of foreign exchange
transactions other than those relating to fixed assets, are considered
appropriately in the Statement of Profit and Loss Account. Gain/Loss on
transaction of long-term liabilities incurred to acquire fixed assets
is treated as an adjustment to the carrying cost of the respective
fixed assets.
1.10. Revenue Recognition
Revenue from software development on fixed-price and fixed -time frame
contract, where there is no uncertainty as to measurement or
collectability , revenue consideration is recognized as per the
percentage of completion method.
1.11. Employee Benefits
Gratuity & Leave Encashment: Liability in respect of gratuity and leave
encashment benefit on retirement is accounted for as and when paid.
Hence no provision has been made.
1.12. Current and Deferred Tax
1.12.1 Current Tax: Tax expense for the period, comprising of current
tax and deferred tax, are included in the determination of the net
profit or loss for the year. Provision for Current tax is made for the
amount expected to be paid in respect of the taxable income for the
year in accordance with the taxation laws.
1.12.2 Deferred Tax: Deferred Tax is recognized on timing differences;
being the difference between taxable income and accounting income that
originate in one period and is capable of reversal in subsequent
periods, subject to consideration of prudence.
1.12.3 Minimum Alternative Tax: MAT credit is recognized as an asset
only to the extent that there is possible evidence that the company
will pay normal income tax during the specified period. Such asset is
reviewed at each Balance Sheet date and the carrying amount of the MAT
credit asset is written down to the extent there is no longer possible
evidence to the effect that the Company will pay normal income tax
during the specified year.
1.13. Provisions and Contingent Liabilities
1.13.1. Provisions: Provisions are recognized when there is a present
obligation as a result of a past event and it is probable that an
outflow of resources embodying economic benefits will be required to
settle the obligation and there is a reliable estimate of the amount of
the obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation at the Balance
Sheet date and are not discounted to its present value.
1.13.2. Contingent Liabilities: Contingent liabilities are disclosed
when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non
occurrence of one or more uncertain future events not wholly within the
control of the company or a present obligation that arises from past
events where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot
be made, is termed as a contingent liability.
1.14. Leases
Leases in which a significant portion of the risks and rewards of
ownership are retained by the lessor are classified as operative
leases. The company''s significant leasing arrangements are in respect
of operating leases of office premises. The leasing arrangements are
for a period ranging between one year to three years generally and are
either renewable or cancelable by mutual consent and on agreed terms.
Payments made under operating leases are charged in the Statement of
Profit and Loss Account.
1.15. Segment Reporting
The accounting policies adopted for segment reporting are in conformity
with the accounting policies adopted for the Company. Revenue and
expenses have been identified to segments on the basis of their
relationship to the operating activities of the segment.
1.16. Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company''s earnings per share is the
net profit for the period after applicable taxes for the period. The
weighted average value of equity shares considered for EPS is Rs.10/-
per equity share.
Mar 31, 2010
1. GENERAL
a) The accounts have been prepared on historical cost basis ignoring
changes, if any, in the purchasing power of money and on accounting
principles of going concern.
b) All revenues and expenses are accounted on accrual basis, except to
the extent stated other wise.
c) Accounting policies not specifically referred to otherwise are
consistent and in consonanc with generally accepted accounting
principles.
2. FIXED ASSETS
a) Fixed Assets are stated at cost of acquisition as reduced by
accumulated depreciation.
b) The Cost of assets includes direct/indirect and incidental cost
incurred to bring them into their present location and condition.
3. DEPRECIATION
a) Depreciation on fixed assets except intangible asset (Software) has
been provided on Straight Line Method on prorata basis at the rates and
in the manner specified in Schedule XIV of the Companies Act, 1956
except assets not put to use.
b) Depreciation on intangible asset (Software) is charged at the rate
of 33.33% by taking the useful life as three years.
4. GOODWILL
The Purchased goodwill has to be written off over a period of 5 years.
5. PRELIMINARY AND PUBLIC ISSUE EXPENSES
Preliminary Expenditure and Public issue expenses are written off over
a period of ten years.