Mar 31, 2016
1. CORPORATE INFORMATION
CURA Technologies Limited (CURA'' or ''the Company''), having registered office at #12, Software Units Layout, Cyberabad, Hyderabad, Telangana - 500 081, with its with its presence in 7 geographies of the world is a global enterprise class software application provider for organizations to efficiently manage their Risk , Compliance and Audit framework through an automated process.
2. SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES
2.1 Accounting Conventions:
The financial statements have been prepared under the historical cost conventions in accordance with the generally accepted accounting principles in India including the Accounting Standards notified by the Government of India and issued by the Institute of Chartered Accountants of India, as applicable, and the provisions of the Companies Act as adopted consistently by the Company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.
2.2 Use of Estimates:
The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities ( including contingent liabilities ) as of the date of the financial statements and the reported income and expenses during the reporting period like provision for employee benefits, provision for doubtful debts/advances/contingencies, allowances for slow/non moving inventories, useful lives of fixed assets, provision for taxation, etc. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results may vary from these estimates.
2.3 Inventories:
Inventories have been valued at lower of cost or net realizable value.
2.4 Cash and Cash equivalents (for purposes of Cash Flow Statement):
Cash comprises of cash on hand, amount in current accounts and deposit accounts.
Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
2.5 Depreciation and Amortization:
Depreciation on Fixed Assets including on the additions on account of revaluation has been provided on a straight-line method as per the useful lives specified in the Schedule II to the Companies Act, 2013.
Intangible assets are amortized over the estimated useful life:
The estimated useful life of the intangible assets and the amortization period are reviewed at the end of each financial year and the amortization method is revised to affect the changed pattern.
2.6 Revenue Recognition:
Revenue on services contracts are recognized as the related services are performed and revenue from the end of the last billing to the balance sheet date is recognized as unbilled revenues.
Annual maintenance contracts and revenue from fixed maintenance contracts are recognized over the period in which the services are rendered.
Revenue from sale of user licenses for software applications is recognized on transfer of title in the user license.
2.7 Expenditure:
Expenses are accounted on accrual basis and provision is made for all known losses and liabilities.
2.8 Tangible Fixed Assets:
Fixed Assets are stated at cost of acquisition as reduced by accumulated depreciation. All costs including financial costs up to the date of commissioning and attributable to the fixed assets are capitalized apart from taxes, freight and other incidental expenses related to the acquisition and installation of the respective fixed assets and excludes duties and taxes to the extent recoverable from tax authorities.
Fixed Assets which are revalued are stated at the amounts revalued as reduced by the depreciation.
2.9 Intangible assets:
Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates. Subsequent expenditure on an intangible asset after its purchase / completion is recognized as an expense when incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standards of performance and such expenditure can be measured and attributed to the asset reliably, in which case such expenditure is added to the cost of the asset.
2.10 Foreign Exchange Transactions:
Initial Recognition
Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet date
Foreign currency monetary items (other than derivative contracts) of the Company at the Balance Sheet date are restated at the year-end rates.
Treatment of exchange differences
Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and liabilities of the Company are recognized as income or expense in the Statement of Profit and Loss.
2.11 Investments
Long term Investments are stated at cost. Provision, if any, is made for permanent diminution in the value of investments. Current investments are stated at lower of cost or market value.
2.12 Employee Benefits:
a. Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages and short term compensated absences etc. are recognized in the period in which the employee renders the related service.
b. Long Term Employee Benefits Defined Benefit Plans
The Company accounts its liability for future gratuity benefits based on actuarial valuation, as at the Balance Sheet date, determined every year by actuarial professionals using the Projected Unit Credit method. Actuarial gains / losses are immediately recognized in the Statement of Profit and Loss.
In respect of Provident Fund and Pension Fund, Contributions are made by the Company in accordance with the relevant rules and fully charged off to Statement of Profit and Loss.
The company provides for leave encashment based on valuations, as at the balance sheet date, made by independent actuaries.
2.13 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.
2.14 Taxes on Income
Income tax liability for the year is calculated in accordance with the relevant tax laws and regulations applicable to the Company. Deferred tax is recognized on timing differences; being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
2.15 Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s assets. The recoverable amount of such assets is estimated. Where the carrying amount of the asset exceeds the recoverable amount, the impairment loss is recognized in the Statement of profit and loss.
2.16 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for (i) Possible obligation which will be confirmed only by future events not wholly within the control of the Company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.
Mar 31, 2015
1.1 Accounting Conventions:
The financial statements have been prepared under the historical cost
conventions in accordance with the generally accepted accounting
principles in India including the Accounting Standards notified by the
Government of India and issued by the Institute of Chartered
Accountants of India, as applicable, and the provisions of the
Companies Actas adopted consistently by the Company. All income and
expenditure having a material bearing on the financial statements are
recognized on accrual basis.
1.2 Use of Estimates:
The preparation of the financial statements requires the Management to
make estimates and assumptions considered in the reported amounts of
assets and liabilities ( including contingent liabilities ) as of the
date of the financial statements and the reported income and expenses
during the reporting period like provision for employee benefits,
provision for doubtful debts/advances/contingencies, allowances for
slow/non moving inventories, useful lives of fixed assets, provision
for taxation, etc. Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.
Future results may vary from these estimates.
1.3 Inventories:
Inventories have been valued at lower of cost or net realizable value.
1.4 Cash and Cash equivalents (for purposes of Cash Flow Statement):
Cash comprises of cash on hand, amount in current accounts and deposit
accounts.
Cash flows are reported using the indirect method, whereby profit /
(loss) before tax is adjusted for the effects of transactions of
non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on the
available information.
1.5 Depreciation and Amortization:
Depreciation on Fixed Assets including on the additions on account of
revaluation has been provided on a straight-line method as per the
useful lives specified in the Schedule II to the Companies Act, 2013.
Intangible assets are amortized over the estimated useful life:
The estimated useful life of the intangible assets and the amortization
period are reviewed at the end of each financial year and the
amortization method is revised to effect the changed pattern.
1.6 Revenue Recognition:
Revenue on services contracts are recognized as the related services
are performed and revenue from the end of the last billing to the
balance sheet date is recognized as unbilled revenues.
Annual maintenance contracts and revenue from fixed maintenance
contracts are recognized over the period in which the services are
rendered.
Revenue from sale of user licenses for software applications is
recognized on transfer of title in the user license.
1.7 Expenditure :
Expenses are accounted on accrual basis and provision is made for all
known losses and liabilities.
1.8 Tangible Fixed Assets:
Fixed Assets are stated at cost of acquisition as reduced by
accumulated depreciation. All costs including financial costs up to the
date of commissioning and attributable to the fixed assets are
capitalized apart from taxes, freight and other incidental expenses
related to the acquisition and installation of the respective fixed
assets and excludes duties and taxes to the extent recoverable from tax
authorities.
Fixed Assets which are revalued are stated at the amounts revalued as
reduced by the depreciation.
1.9 Intangible assets:
Intangible assets are carried at cost less accumulated amortisation and
impairment losses, if any. The cost of an intangible asset comprises
its purchase price, including any import duties and other taxes (other
than those subsequently recoverable from the taxing authorities), and
any directly attributable expenditure on making the asset ready for its
intended use and net of any trade discounts and rebates. Subsequent
expenditure on an intangible asset after its purchase / completion is
recognised as an expense when incurred unless it is probable that such
expenditure will enable the asset to generate future economic benefits
in excess of its originally assessed standards of performance and such
expenditure can be measured and attributed to the asset reliably, in
which case such expenditure is added to the cost of the asset.
1.10 Foreign Exchange Transactions:
Initial Recognition
Transactions in foreign currencies entered into by the Company are
accounted at the exchange rates prevailing on the date of the
transaction or at rates that closely approximate the rate at the date
of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet
date
Foreign currency monetary items (other than derivative contracts) of
the Company at the Balance Sheet date are restated at the year-end
rates.
Treatment of exchange differences
Exchange differences arising on settlement / restatement of short-term
foreign currency monetary assets and liabilities of the Company are
recognized as income or expense in the Statement of Profit and Loss.
1.11 Investments
Long term Investments are stated at cost. Provision, if any, is made
for permanent diminution in the value of investments. Current
investments are stated at lower of cost or market value.
1.12 Employee Benefits:
a) Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages and short term compensated absences etc. are
recognized in the period in which the employee renders the related
service.
b) Long Term Employee Benefits
Defined Benefit Plans
The Company accounts its liability for future gratuity benefits based
on actuarial valuation, as at the Balance Sheet date, determined every
year by actuarial professionals using the Projected Unit Credit method.
Actuarial gains / losses are immediately recognized in the Statement of
Profit and Loss.
In respect of Provident Fund and Pension Fund, Contributions are made
by the Company in accordance with the relevant rules and fully charged
off to Statement of Profit and Loss.
The company provides for leave encashment based on valuations, as at
the balance sheet date, made by independent actuaries.
1.13 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential dilutive equity shares are deemed to
be converted as at the beginning of the period, unless they have been
issued at a later date. The dilutive potential equity shares are
adjusted for the proceed receivable had the shares been actually issued
at fair value (i.e. average market value of the outstanding shares).
Dilutive potential equity shares are determined independently for each
period presented. The number of equity shares and potentially dilutive
equity shares are adjusted for share splits / reverse share splits and
bonus shares, as appropriate.
1.14 Taxes on Income
Income tax liability for the year is calculated in accordance with the
relevant tax laws and regulations applicable to the Company.Deferred
tax is recognized on timing differences, being the differences between
taxable income and accounting income that originate in one period and
are capable of reversal in one or more subsequent periods.
1.15 Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
to determine whether there is any indication of impairment of the
carrying amount of the Company's assets. The recoverable amount of such
assets is estimated. Where the carrying amount of the asset exceeds
the recoverable amount, the impairment loss is recognized in the
Statement of profit and loss.
1.16 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made. Contingent liability is disclosed for (i)
Possible obligation which will be confirmed only by future events not
wholly within the control of the Company or (ii) Present obligations
arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable
estimate of the amount of the obligation cannot be made. Contingent
assets are not recognized in the financial statements since this may
result in the recognition of income that may never be realized.
1.17 The company has the following Contingent liabilities as on :
Particulars 31 March,2015 31 March,2014
i) Bank Guarantee issued to Central 249,991 249,991
Excise department
ii) Claim against the Company not - -
acknowledge as debt
iii) The Commercial Tax Officer, (FAC), Madhapur, vide Assessment order
dated 27.04.2010 raised a demand towards Value Added Tax amounting to
4,176,381 (Details given below) on rent for furniture. The Company
approached the High Court of Andhra Pradesh for stay and in turn the
High Court of Andhra Pradesh has granted interim Stay for further
proceedings with a condition that Company shall pay 12.5% of disputed
tax. The Company paid an amount of 522,047 towards disputed Tax
liability.
Particulars 31 March, 2015 31 March, 2014
2005- 2006 1,058,047 1,058,047
2006- 2007 1,358,171 1,358,171
2007- 2008 1,760,163 1,760,163
Total 4,176,381 4,176,381
1.18 Estimated amount of contracts remaining to be executed on capital
accounts not provided for NIL [Previous year NIL].
A) Names of Related Parties and description of Relationship:
Party Relationship
G.Bala Reddy Key Management Person
G.Venkateswara Rao Key Management Person
Softpro Technologies Private Limited Subsidiary Company
Cura Global GRC Solutions Pte Limited Wholly Owned Subsidiary
Company
ICSA (INDIA) Limited Associate Company
Sahasra Investments Pvt Ltd Associate Company
1.19. Quantitative details requirements regarding software and
technical services are not applicable.
1.20. Balances of Sundry Debtors, Loans & Advances and Sundry Creditors
are subject to confirmation from the concerned parties.
1.21. Figures were regrouped/reclassified wherever necessary. Figures
are rounded off to the nearest rupee.
Mar 31, 2014
1.1 Accounting Conventions:
The financial statements have been prepared under the historical cost
conventions in accordance with the generally accepted accounting
principles in India including the Accounting Standards notified by the
Government of India and issued by the Institute of Chartered
Accountants of India, as applicable, and the provisions of the
Companies Act, 1956 as adopted consistently by the Company. All income
and expenditure having a material bearing on the financial statements
are recognized on accrual basis.
1.2 Use of Estimates:
The preparation of the financial statements requires the Management to
make estimates and assumptions considered in the reported amounts of
assets and liabilities (including contingent liabilities) as of the
date of the financial statements and the reported income and expenses
during the reporting period like provision for employee benefits,
provision for doubtful debts/advances/contingencies, allowances for
slow/non moving inventories, useful lives of fixed assets, provision
for taxation, etc. Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.
Future results may vary from these estimates.
1.3 Inventories:
Inventories have been valued at lower of cost or net realizable value.
1.4 Cash and Cash equivalents (for purposes of Cash Flow Statement):
Cash comprises of cash on hand, amount in current accounts and deposit
accounts.
Cash flows are reported using the indirect method, whereby profit /
(loss) before tax is adjusted for the effects of transactions of
non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on the
available information.
1.5 Depreciation and Amortization:
Depreciation on Fixed Assets including on the additions on account of
revaluation has been provided on a straight-line method at the rates
specified in the Schedule XIV to the Companies Act, 1956.
Intangible assets are amortized over the estimated useful life:
The estimated useful life of the intangible assets and the amortization
period are reviewed at the end of each financial year and the
amortization method is revised to effect the changed pattern.
1.6 Revenue Recognition:
Revenue on services contracts are recognized as the related services
are performed and revenue from the end of the last billing to the
balance sheet date is recognized as unbilled revenues.
Annual maintenance contracts and revenue from fixed maintenance
contracts are recognized over the period in which the services are
rendered.
Revenue from sale of user licenses for software applications is
recognized on transfer of title in the user license.
1.7 Expenditure:
Expenses are accounted on accrual basis and provision is made for all
known losses and liabilities.
1.8 Tangible Fixed Assets:
Fixed Assets are stated at cost of acquisition as reduced by
accumulated depreciation. All costs including financial costs up to the
date of commissioning and attributable to the fixed assets are
capitalized apart from taxes, freight and other incidental expenses
related to the acquisition and installation of the respective fixed
assets and excludes duties and taxes to the extent recoverable from tax
authorities.
Fixed Assets which are revalued are stated at the amounts revalued as
reduced by the depreciation.
1.9 Intangible assets:
Intangible assets are carried at cost less accumulated amortisation and
impairment losses, if any. The cost of an intangible asset comprises
its purchase price, including any import duties and other taxes (other
than those subsequently recoverable from the taxing authorities), and
any directly attributable expenditure on making the asset ready for its
intended use and net of any trade discounts and rebates. Subsequent
expenditure on an intangible asset after its purchase / completion is
recognised as an expense when incurred unless it is probable that such
expenditure will enable the asset to generate future economic benefits
in excess of its originally assessed standards of performance and such
expenditure can be measured and attributed to the asset reliably, in
which case such expenditure is added to the cost of the asset.
1.10 Foreign Exchange Transactions:
Initial Recognition
Transactions in foreign currencies entered into by the Company are
accounted at the exchange rates prevailing on the date of the
transaction or at rates that closely approximate the rate at the date
of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet
date
Foreign currency monetary items (other than derivative contracts) of
the Company at the Balance Sheet date are restated at the year-end
rates.
Treatment of exchange differences
Exchange differences arising on settlement / restatement of short-term
foreign currency monetary assets and liabilities of the Company are
recognized as income or expense in the Statement of Profit and Loss.
1.11 Investments
Long term Investments are stated at cost. Provision, if any, is made
for permanent diminution in the value of investments. Current
investments are stated at lower of cost or market value.
1.12 Employee Benefits:
a) Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages and short term compensated absences etc. are
recognized in the period in which the employee renders the related
service.
b) Long Term Employee Benefits
Defined Benefit Plans
The Company accounts its liability for future gratuity benefits based
on actuarial valuation, as at the Balance Sheet date, determined every
year by actuarial professionals using the Projected Unit Credit method.
Actuarial gains / losses are immediately recognized in the Statement of
Profit and Loss.
In respect of Provident Fund and Pension Fund, Contributions are made
by the Company in accordance with the relevant rules and fully charged
off to Statement of Profit and Loss.
The company provides for leave encashment based on valuations, as at
the balance sheet date, made by independent actuaries.
1.13 Basic earnings per share is computed by dividing the profit /
(loss) after tax (including the post tax effect of extraordinary items,
if any) by the weighted average number of equity shares outstanding
during the year. Diluted earnings per share is computed by dividing the
profit / (loss) after tax (including the post tax effect of
extraordinary items, if any) as adjusted for dividend, interest and
other charges to expense or income relating to the dilutive potential
equity shares, by the weighted average number of equity shares
considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on the
conversion of all dilutive potential equity shares. Potential dilutive
equity shares are deemed to be converted as at the beginning of the
period, unless they have been issued at a later date. The dilutive
potential equity shares are adjusted for the proceeds receivable had
the shares been actually issued at fair value (i.e. average market
value of the outstanding shares). Dilutive potential equity shares are
determined independently for each period presented. The number of
equity shares and potentially dilutive equity shares are adjusted for
share splits / reverse share splits and bonus shares, as appropriate.
1.14 Taxes on Income
Income tax liability for the year is calculated in accordance with the
relevant tax laws and regulations applicable to the Company. Deferred
tax is recognized on timing differences, being the differences between
taxable income and accounting income that originate in one period and
are capable of reversal in one or more subsequent periods.
1.15 Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
to determine whether there is any indication of impairment of the
carrying amount of the Company''s assets. The recoverable amount of such
assets is estimated. Where the carrying amount of the asset exceeds
the recoverable amount, the impairment loss is recognized in the
Statement of profit and loss.
1.16 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made. Contingent liability is disclosed for (i)
Possible obligation which will be confirmed only by future events not
wholly within the control of the Company or (ii) Present obligations
arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable
estimate of the amount of the obligation cannot be made. Contingent
assets are not recognized in the financial statements since this may
result in the recognition of income that may never be realized.
Mar 31, 2012
1.1. Accounting Conventions :
The financial statements have been prepared under the historical cost
conventions in accordance with the generally accepted accounting
principles in India including the Accounting Standards notified by the
Government of India and issued by the Institute of Chartered
Accountants of India, as applicable, and the provisions of the
Companies Act, 1956 as adopted consistently by the Company. All income
and expenditure having a material bearing on the financial statements
are recognized on accrual basis.
1.2 Use of Estimates:
The preparation of the financial statements requires the Management to
make estimates and assumptions considered in the reported amounts of
assets and liabilities ( including contingent liabilities ) as of the
date of the financial statements and the reported income and expenses
during the reporting period like provision for employee benefits,
provision for doubtful debts/advances/contingencies, allowances for
slow/non moving inventories, useful lives of fixed assets, provision
for taxation, etc. Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.
Future results may vary from these estimates.
1.3) Inventories:
Inventories have been valued at lower of cost or net realizable value.
1.4) Cash and Cash equivalents (for purposes of Cash Flow Statement):
Cash comprises of cash on hand, amount in current accounts and deposit
accounts.
Cash flows are reported using the indirect method, whereby profit /
(loss) before tax is adjusted for the effects of transactions of
non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on the
available information.
1.5) Depreciation and Amortization:
Depreciation on Fixed Assets including on the additions on account of
revaluation has been provided on a straight-line method at the rates
specified in the Schedule XIV to the Companies Act, 1956.
Intangible assets are amortized over the estimated useful life of the
Assest.
The estimated useful life of the intangible assets and the amortization
period are reviewed at the end of each financial year and the
amortization method is revised to effect the changed pattern.
1.6) Revenue Recognition:
Revenue on services contracts are recognized as the related services
are performed and revenue from the end of the last billing to the
balance sheet date is recognized as unbilled revenues.
Annual maintenance contracts and revenue from fixed maintenance
contracts are recognized over the period in which the services are
rendered.
Revenue from sale of user licenses for software applications is
recognized on transfer of title in the user license.
1.7) Expenditure:
Expenses are accounted on accrual basis and provision is made for all
known losses and liabilities.
1.8) Tangible Fixed Assets:
Fixed Assets are stated at cost of acquisition as reduced by
accumulated depreciation. All costs including financial costs up to the
date of commissioning and attributable to the fixed assets are
capitalized apart from taxes, freight and other incidental expenses
related to the acquisition and installation of the respective fixed
assets and excludes duties and taxes to the extent recoverable from tax
authorities.
Fixed Assets which are revalued are stated at the amounts revalued as
reduced by the depreciation.
1.9) Intangible assets:
Intangible assets are carried at cost less accumulated amortisation and
impairment losses, if any. The cost of an intangible asset comprises
its purchase price, including any import duties and other taxes (other
than those subsequently recoverable from the taxing authorities), and
any directly attributable expenditure on making the asset ready for its
intended use and net of any trade discounts and rebates. Subsequent
expenditure on an intangible asset after its purchase / completion is
recognised as an expense when incurred unless it is probable that such
expenditure will enable the asset to generate future economic benefits
in excess of its originally assessed standards of performance and such
expenditure can be measured and attributed to the asset reliably, in
which case such expenditure is added to the cost of the asset.
1.10) Foreign Exchange Transactions:
Initial Recognition
Transactions in foreign currencies entered into by the Company are
accounted at the exchange rates prevailing on the date of the
transaction or at rates that closely approximate the rate at the date
of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet
date
Foreign currency monetary items (other than derivative contracts) of
the Company at the Balance Sheet date are restated at the year-end
rates.
Treatment of exchange differences
Exchange differences arising on settlement / restatement of short-term
foreign currency monetary assets and liabilities of the Company are
recognised as income or expense in the Statement of Profit and Loss.
1.11) Investments
Long term Investments are stated at cost. Provision, if any, is made
for permanent diminution in the value of investments. Current
investments are stated at lower of cost or market value.
1.12) Employee Benefits:
a) Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages and short term compensated absences etc. are
recognized in the period in which the employee renders the related
service.
b) Long Term Employee Benefits Defined Contribution Plan
The Company makes contribution in respect of selected employees to a
Superannuation Fund administered by trustees and managed by Life
Insurance Corporation of India. The Company has no liability for future
Superannuation Fund benefits other than its annual contribution and
recognizes such contributions as an expense in the year incurred.
Defined Benefit Plans
The Company makes annual contribution to a Gratuity Fund administered
by trustees and managed by LIC. The Company accounts its liability for
future gratuity benefits based on actuarial valuation, as at the
Balance Sheet date, determined every year by LIC using the Projected
Unit Credit method. Actuarial gains / losses are immediately recognized
in the Statement of Profit and Loss.
In respect of Provident Fund and Pension Fund, Contributions are made
by the Company in accordance with the relevant rules and fully charged
off to Statement of Profit and Loss .
The company provides for leave encashment based on valuations, as at
the balance sheet date, made by independent actuaries.
1.13) Basic earnings per share is computed by dividing the profit /
(loss) after tax (including the post tax effect of extraordinary items,
if any) by the weighted average number of equity shares outstanding
during the year. Diluted earnings per share is computed by dividing the
profit / (loss) after tax (including the post tax effect of
extraordinary items, if any) as adjusted for dividend, interest and
other charges to expense or income relating to the dilutive potential
equity shares, by the weighted average number of equity shares
considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on the
conversion of all dilutive potential equity shares. Potential dilutive
equity shares are deemed to be converted as at the beginning of the
period, unless they have been issued at a later date. The dilutive
potential equity shares are adjusted for the proceeds receivable had
the shares been actually issued at fair value (i.e. average market
value of the outstanding shares). Dilutive potential equity shares are
determined independently for each period presented. The number of
equity shares and potentially dilutive equity shares are adjusted for
share splits / reverse share splits and bonus shares, as appropriate.
1.14) Taxes on Income
Income tax liability for the year is calculated in accordance with the
relevant tax laws and regulations applicable to the Company. Deferred
tax is recognized on timing differences, being the differences between
taxable income and accounting income that originate in one period and
are capable of reversal in one or more subsequent periods.
1.15) Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
to determine whether there is any indication of impairment of the
carrying amount of the Company's assets. The recoverable amount of such
assets is estimated. Where the carrying amount of the asset exceeds the
recoverable amount, the impairment loss is recognized in the Statement
of profit and loss.
1.16) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made. Contingent liability is disclosed for (i)
Possible obligation which will be confirmed only by future events not
wholly within the control of the Company or (ii) Present obligations
arising from past events where it is not probable that an outflow of
resources will be required to settle the obligation or a reliable
estimate of the amount of the obligation cannot be made. Contingent
assets are not recognized in the financial statements since this may
result in the recognition of income that may never be realized.
iii) The Commercial Tax Officer, (FAC), Madhapur, vide Assessment order
dated 27.04.2010 raised a demand towards Value Added Tax amounting to Rs.
4,176,381 (Details given below) on rent for furniture. The Company
approached the High Court of Andhra Pradesh for stay and in turn the
High Court of Andhra Pradesh has granted interim Stay for further
proceedings with a condition that Company shall pay 12.5% of disputed
tax. The Company paid an amount oft 522,047 towards disputed Tax
liability.
iv) The Company provided Corporate Guarantee of (Rs.) 341,333,000 to
Andhra Bank for a counter guarantee provided by Andhra Bank to Bank of
India for sanctioning a term loan of US $ 14.24 million to Cura Global
GRC Solutions Pte. Ltd, Singapore ( "CURA Singapore "), a
Subsidiary of the Company. This Corporate Guarantee is also secured by
first Pari-pasu mortgage of its Land & Buildings.
Mar 31, 2011
1. Accounting Conventions:
Financial Statements have been prepared under historical cost
conventions in accordance with generally accepted accounting principles
in India and provisions of the Companies Act, 1956 as adopted
consistently by the Company. All income and expenditure having a
material bearing on financial statements are recognized on accrual
basis.
2. Revenue Recognition:
a) Revenue from Services is recognized as and when Services are
rendered. Expenditure on software purchase, developed and/or customized
during the year is treated as revenue expenditure. Company follows
completed method of accounting for services rendered in respect of
Software projects and significant products under development.
b) Interest income is recognized on accrual basis.
3. Expenditure:
Expenses are accounted on accrual basis and provision is made for all
known losses and liabilities.
4. Fixed Assets
Fixed assets are stated at cost of acquisition as reduced by
accumulated depreciation. All costs including financial costs up to the
date of commissioning and attributable to fixed assets are capitalized
apart from taxes, freight and other incidental expenses related to
acquisition and installation of respective fixed assets.
5. Depreciation:
Depreciation on Fixed assets including additions has been provided on
straight-line method at the rates specified in the Schedule XIV to the
Companies Act, 1956.
6. Investments:
Long term Investments are stated at cost. Provision, if any, is made
for permanent diminution in the value of Invest- ments. Current
investments are stated at lower of cost or Market value.
7. Inventories:
Inventories are valued at lower of cost or net realizable value.
8. Foreign Exchange Transactions:-
All foreign exchange transactions entered into during the current
period are accounted at exchange rate prevailing on the date of
contract/documentation. Foreign exchange fluctuations on transactions
entered into during the period and received/paid during the period are
accounted in current financial year. Outstanding accounts in foreign
currency are restated at the end of period at foreign currency rate
prevailing on that date and any fluctuation on the same is recognized
in profit and loss account.
9. Employee Benefits:-
a) In respect of employee's stock options, excess of fair price on the
date of grant over the exercise price is recog- nized as deferred
compensation cost amortized over the vesting period.
b) Company's contribution towards provident fund and pension fund are
charged to Profit and Loss account. Company provides for retirement
benefits in the form of gratuity based on valuations, as at the balance
sheet date, made by Independent actuaries.
10. Miscellaneous Expenditure:
Preliminary and issue expenses, deferred revenue expenditure have been
written off over a period of 5 years. Product development expenses have
been written off over a period of three years.
11. Income Taxes:
Income Tax liability for the year is calculated in accordance with
relevant tax laws and regulations as applicable to the Company.
Deferred tax resulting from timing difference between accounting income
and taxable income is accounted for using tax rates and laws that are
enacted or subsequently enacted as on the balance sheet date. Deferred
tax asset is recognized and carried forward only to the extent there is
a virtual certainty that the asset will be realized in future.
12. Earnings per share:
Basic earnings per share are calculated by dividing net profit or loss
for the period attributable to equity share holders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, net profit
attributable to equity share holders and the weighted average number of
shares outstanding during the period are adjusted for effects of all
dilutive potential equity shares, if any.
13. Provisions:
A provision is recognized when the Company has present obligation as a
result of past event and it is probable than an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made.
14. Cash and cash equivalents:
Cash and cash equivalents in the cash flow statement comprise cash at
bank, cash in hand, fixed deposits and un- claimed dividend account.
15. Use of estimates:
Preparation of financial statements is in conformity with generally
accepted accounting principles requires manage- ment to make estimates
and assumptions that affect the reported amounts of assets, liabilities
and disclosure of contin- gent liabilities at the date of financial
statements and results of operation during the reporting period.
Although these estimates are based upon management's best knowledge of
current events and actions, actual results could differ from these
estimates.
Mar 31, 2010
1. Accounting Conventions:-
The Financial Statements have been prepared under the historical cost
conventions in accordance with the generally accepted accounting
principles in India and the provisions of the Companies Act, 1956 as
adopted consistently by the company. All income and expenditure having
a material bearing on the financial statements are recognized on
accrual basis.
2. Revenue Recognition
a). Revenue from Services is recognized as and when the Services are
rendered. Expenditure on software purchase, developed and/or customized
during the year is treated as revenue expenditure. The Company follows
completed method of accounting for services rendered in respect of
Software projects and significant products under development.
b). Interest Income: Interest income is recognized on accrual basis.
3. Expenditure:-
Expenses are accounted on accrual basis and provision is made for all
known losses and liabilities.
4. Fixed Assets
Fixed assets are stated at cost of acquisition as reduced by
accumulated depreciation. All costs including financial costs up to the
date of commissioning and attributable to the fixed assets are
capitalized apart from taxes, freight and other incidental expenses
related to the acquisition and installation of the respective fixed
assets.
5. Depreciation:
Depreciation on Fixed assets including additions has been provided on
straight-line method at the rates specified in the Schedule XIV of the
Companies Act, 1956.
6. Investments :-
Long term Investments are stated at cost. Provision, if any, is made
for permanent diminution in the value of Investments. Current
investments are stated at lower cost or Market value.
7. Inventories:-
Inventories are valued at cost or net realizable value which ever is
less.
8. Employee Benefits:-
Companys contribution towards provident fund and pension fund are
charged to Profit and Loss account.
The company provides for retirement benefits in the form of gratuity
and leave encashment based on valuations, as at the balance sheet date,
made by Independent actuaries.
In respect of employees stock options, in excess of fair price on the
date of grant over the exercise price is recognized as deferred
compensation cost amortized over the vesting period.
9. Foreign Exchange Transactions:-
All foreign exchange transactions entered into during the current
period are accounted at the exchange rate prevailing on the date of
contract/documentation. Foreign exchange fluctuations on transactions
entered into during the period and received/paid during the period are
accounted in the current financial year. The outstanding accounts in
foreign currency are restated at the end of the period at the foreign
currency rate prevailing on that and any fluctuation on the same is
recognized in profit and loss account.
10. Miscellaneous Expenditure: -
Preliminary and issue expenses, deferred revenue expenditure and R&D
expenditure have been written off over a period of 10 years.
11. Income Taxes:-
Income Tax liability for the year is calculated in accordance with the
relevant tax laws and regulations applicable to the company. Deferred
tax resulting from timing difference between accounting income and
taxable income is accounted for using the tax rates and laws that are
enacted or subsequently enacted as on the balance sheet date. Deferred
tax asset is recognized and carried forward only to the extent that
there is a virtual certainty that the asset will be realized in future.
12. Earnings per share:-
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity share holders by the
weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earning per share, the net
profit attributable to equity share holders and the weighted average
number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares, if any.
13. Provisions:-
A provision is recognized when the company has present obligation as a
result of past event and it is probable than an out flow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made.
14. Cash and cash equivalents:-
Cash and cash equivalents in the cash flow statement comprise cash at
bank, Cash in hand, fixed deposits and unclaimed dividend a/c
15- Use of estimates:-
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of
financial statements and the results of operation during the reporting
period. Although these estimates based upon management best knowledge
of current events and actions, actual results could differ from these
estimates.