Mar 31, 2014
1. Basis of preparation
The financial statements have been prepared to comply with the
Accounting Standards Notified by Companies (Accounting Standards)
Rules,2006 (as amended) and the relevant provisions of the Companies
Act, 1956. The financial statements have been prepared under the
historical cost convention on an accrual basis.
The accounting policies have been consistently applied by the Company
and are Consistent with those used in the previous year.
2. Revenue Recognition
Revenue is primarily derived from software development and related
services and from the licensing of software products. Arrangements with
clients for software development and related services are either on a
fixed-price, fixed-timeframe or on a time-and-material basis.
3. Fixed Assets
Fixed assets are stated at cost of acquisition or construction. Cost
comprises of the purchase price and other attributable expenses
including cost of borrowings till the date of capitalization of the
asset acquired / commissioned.
All the expenditure incurred on establishing / setting up of new
projects / substantial expansion of existing facilities / creation of
new assets is capitalized. Such expenditure to be capitalized includes
borrowing / finance costs, direct and indirect expenditure incurred on
such assets up to the time they are completed.
4. Depreciation
Depreciation on fixed assets has been provided on the straight line
method and at the rates and in manner specified in Schedule xiv to the
Companies Act, 1956.
5. Investments
Long term investments are stated at cost. The diminution in the market
value of such investments is not recognized unless it is considered
permanent in nature. Current investments are valued at the cost or
market value whichever is lower.
6. Borrowing
Borrowing costs relating to acquisition of fixed assets which takes
substantial period of time to get ready for its intended use are
included to the extent they relate to the period till such assets are
ready to be put to use. All other borrowing costs are charged to
revenue. Borrowing costs consist of interest and other costs that the
company incurs in connection with borrowing of funds.
7. Accounting for Leases
Rentals in respect of leased premises are charged to profit and loss
account.
8. Taxes on Income
a. Current Tax
Provision for current tax is made for the amount of tax payable in
respect of taxable income for the year computed under the provision of
the income Tax Act.1961.
b. Deferred Tax
Deferred tax is recognized on timing difference being the difference
between taxable income and accounting income that originate in one
period and are capable of being reversed in the subsequent period / s,
subject to the consideration of prudence.
9. Foreign Currency Transactions
Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing at the time of the transaction. Monetary items
denominated in foreign currencies at the yearend are translated at the
year-end rates, the resultant gain or loss will be recognized in the
profit and loss account. Any gain or loss arising on account of
exchange difference on settlement of transaction is recognized in the
profit and loss account.
10. Provisions, Contingent Liabilities and Contingent Assets
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are disclosed when the Company has possible
obligation or a present obligation and it is probable that a cash
outflow will not be required to settle the obligation. Contingent
Assets are neither recognized nor disclosed in the financial
statements.
11. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets,
liabilities, revenues and expenses. The estimates used in preparation
and presentation of financial statements are prudent and in reasonable.
Actual results could differ from estimates. Any revision of accounting
estimates is recognized prospectively in the current and future
periods.
12. Impairment
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal/ external
factors. An impairment loss will be recognized if the carrying amount
of an asset exceeds its estimated recoverable amount. The recoverable
amount is greater of asset''s net selling price and value in use. In
assessing the value in use the estimated future economic benefits are
discounted to the present value at the weighted average cost of
capital.
Mar 31, 2012
A) Basis for preparation of financial statements:
The financial statements have been prepared under the historical cost
convention and in accordance with the applicable Accounting Standards
prescribed in the companies (Accounting Standards) Rules, 2006 and
relevant presentational requirements of the companies Act, 1956 as
adopted consistently by the company.
Accounting policies not specifically referred to otherwise are in
consonance with prudent accounting principles.
b) Revenue Recognition:
All incomes, revenues, expenses, assets and liabilities having material
bearing on the financial statements are recognized on accrual basis,
unless otherwise stated.
The preparation of financial statements in conformity with generally
accepted accounting principles requires that the management of the
company makes estimates and assumptions that effect the reported
amounts of income and expenses of the period, the reported balances of
assets and liabilities as of the date of financial statements.
c) Inventories:
Stock in process is valued at cost of Execution.
d) Fixed Assets:
Fixed assets are stated at cost of acquisition (inclusive of duties,
taxes and incidental expenses related to acquisition) less
depreciation.
e) Depreciation:
Depreciation is charged in respect of all assets on pro-rata basis by
Written Down Value method at the rates specified and in the manner
prescribed under schedule XIV of the Companies Act, 1956. Where the
cost of the Assets does not exceed Rs. 5,000, depreciation is provided
at hundred percent rate in the year of purchase.
f) Retirement Benefits:
a) Retirement benefits will be provided on cash basis .
b) Liability towards Gratuity is not provided. Leave encashment is not
applicable to the company as per the terms and conditions of employment
g) Foreign currency transactions and translation:
All transactions in foreign currencies are recorded on the basis of the
exchange rates prevailing as on the date of the transaction.
Fluctuation Gain or Loss on realization / payment is charged off /
credited to profit and loss account. The amounts receivable in foreign
currencies at the year-end are translated at the rate of exchange
prevailing on that date and the net resultant gain/loss is dealt with
in the profit and loss account.
h) Taxation
Provision for Taxation, the aggregate of Income Tax Liability on the
profits for the year chargeable to tax and Deferred Tax resulting from
timing differences between Book and Tax Profits, if any, is considered
in accordance with the Accounting Standard - 22 (AS-22), Accounting for
Taxes on Income, issued by the Institute of Chartered Accountants of
India.
Mar 31, 2010
1. Basis for preparation of financial statements:
Financial statements are prepared under the historical cost convention
on a going concern basis, with generally accepted accounting principles
and relevant requirements of the Companies Act, 1956.
2. Revenue Recognition:
The revenue in respect of Brand License fee is accounted on execution
of agreement. Revenue for software development is recognized on the
basis of. chargeable time or achievement of prescribed milestone as
relevant to each contract. Revenue from sale of software products and
courseware materials is recognized when sale has been completed with
the passing of title or licenses or raising invoices as the case may
be.
Expenses are accounted on accrual basis except for retirement benefits
such as gratuity and leave encashment and necessary provisions are made
for all known losses and liabilities.
3. Inventories:
There are no inventories during the current financial year
4. Fixed Assets:
Fixed assets are stated at cost of acquisition (inclusive of duties,
taxes and incidental expenses related to acquisition) less
depreciation.
5. Depreciation:
Depreciation is charged in respect of all assets on pro-rata basis by
Written Down Value Method at the rate specified and in the manner
prescribed under schedule XIV of the Companies Act,1956. Where the cost
of the Assets does not exceed Rs.5,000, depreciation is provided at
hundred percent rate in the year of purchase.
6. Retirement Benefits: *
a) Retirement benefits will be provided on cash basis.
b) Liability towards Gratuity is not provided. Leave encashment is not
applicable to the company as per the terms and conditions of employment
7. Foreign currency transactions and translation:
All transactions in foreign currencies are recorded on the basis of the
exchange rates prevailing as on the date of the transaction.
Fluctuation Gain or Loss on realization / payment is charged off /
credited to profit and loss account. The amounts receivable in foreign
currencies at the year-end are translated at the rate of exchange
prevailing on that date and the net resultant gain/loss is dealt with
in the profit and loss account.
8. Taxation:
Provision for Taxation, the aggregate of Income Tax Liability on the
profits for the year chargeable to tax and Deferred Tax resulting from
timing differences between Book and Tax Profits, if any, is considered
in accordance with the Accounting Standard- 22(AS-22), Accounting for
taxes on income, issued by the Institute of Chartered Accountants of
India.