Home  »  Company  »  Cybermt Infotek  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Cybermate Infotek Ltd. Company

Mar 31, 2015

1. Basis of preparation of financial statements:

These financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (IGAAP) under the historical cost convention on accrual basis with the exception to insurance claims, export incentives, interest on calls in arrears and interest on overdue receivables which are accounted for on cash basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act 2013(the Act) read with rules 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act to the extent notified and applicable and guidelines issued by the Securities and Exchange Board of India (SEBI).

2. Use of estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Practices requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures relating to contingent liabilities as at the date of the Financial Statements and reported amounts of Income and Expenses during the period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods

Cybermate Infotek Limited

3. Revenue recognition

Revenue from the software development on time and material contracts is recognized based on the software developed and billed in accordance with the terms and specific contracts. Revenue from a fixed price contract is recognized on the basis of milestones achieved in the performance of the contracts on a percentage completion basis.

Revenue from sale of user licenses for software applications/products is recognized on transfer of title in the user license.

Revenue from resale of network and security products and related third party maintenance contracts are recognized upon dispatch. Revenues from other services are recognized as per the terms of the contract.

Other Income

(i) Profit on sale of investments is recorded on transfer of title from the company and is determined as the difference between the sale price and the then carrying amount of the investment.

(ii) Dividend income is recognized when the Company's right to receive dividend is established.

(iii) Interest income on time deposits is recognized using the time proportion basis taking into account the amount outstanding and applicable interest rates.

4. Tangible Fixed Assets

Tangible Assets are stated at acquisition cost less depreciation. Cost of tangible assets comprises purchase price, duties , levies and other directly attributable costs of bringing the asset to its working condition less CENVAT credit.

Capital Work in progress includes the cost of fixed assets that are not ready for their intended use at the balance sheet date. Depreciation on Tangible Assets has been provided on the Straight Line Method over their useful lives at the rates prescribed in Schedule II to Companies Act 2013 as per the table below

5. Intangible Assets

An intangible asset is recognized, when it is probable that the future economic benefits attributable to the assets will flow to the enterprise and where its cost can be reliably measured. The company frequently expends resources, and incurs liabilities, on the acquisition, development, maintenance and enhancement of intangible resources such as scientific or technical knowledge, design and implementation of new process or systems, license, intellectual property, market knowledge and trademarks in order to make software's and brands. Intangible assets are recorded as per AS26 of IGAAP.

Intangible assets are amortized as per AS 26 of IAS. The useful life of all the intangible assets was taken accordingly.

6. Investments

Current Investments are carried in the financial Statements at lower of cost or fair value determined on an individual investment basis. Long Term Investments are stated at cost. However provision for dimunition in value is made to recongise a decline other than temporary in the value of investments.

7. Inventories

Software Products/ Projects in process are stated at cost.

8. Employee benefits

Contribution to Provident and other funds accruing during the accounting period are charged to the statement of Profit and Loss. Provision for Liabilities in respect of gratuity are accrued and provided at the end of each accounting period.

Gratuity liability towards existing eligible employees will be met by the contribution made to the fund administered by LIC.

9. Foreign currency transactions Initial Recognition Transactions denominated in foreign currencies at the year end are recorded at the exchange rate prevailing at the time of the transaction. Monetary items denominated in foreign currencies at the year-end are restated at year end rates.

In case of items which are covered by forward exchange contracts the difference and the premium paid on forward contracts is recognized over the life of the contract.

Non Monetary foreign currency items are carried at cost.

Any income or expense on account of exchange difference either on settlement or on transaction is recognized in the Profit and Loss Account.

10. Taxes on Income

Provision for Income Tax, comprising current tax and deferred tax, is made on the basis of the results of the year.

The provision for current tax is based on the assessable profits determined under the income tax act 1961.

Deferred tax is accounted for by computing tax effect of timing differences which arose during the year and is reversed in subsequent period.

11. Earnings per share

Basic earnings per share are computed 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 year.

12. Impairment of Assets

The company assesses at each balance sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account.

13. Provisions, Contingent Liabilities and Contingent Assets The company recognizes a provision when there is a present obligation as a result of a past 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 the resources is remote, no provision or disclosure is made.




Mar 31, 2014

1. Basis of Preparation:

The financial statements are prepared in accordance with generally accepted principles under the historical cost convention on the accrual basis with exception to insurance claims, export incentives, interest on calls in arrears and interest on overdue receivables which are accounted for on cash basis ,and applicable accounting standards notified under Section 211(3C), Companies (Accounting Standards) Rules 2006, as amended, and other relevant provisions of the Companies Act 1956.

All the assets and liabilities have been classified as Current or Non Current as per the company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act 1956.

2. Use of Estimates:

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

3. Revenue Recognition:

Revenue from software development and allied services compromises of revenues earned from time and material and fixed price contracts. Revenue from time and material contracts is recognized as the related services are performed. Revenue from fixed price contracts are recognized using the proportionate completion method of accounting.

Revenue from the sale of user licenses for software applications is recognized on transfer of title in the user license.

Revenue from resale of network and security products and related third party maintenance contracts are recognized upon despatch..

4. Tangible Fixed Assets:

Tangible assets are stated at acquisition cost less depreciation. Cost of tangible assets comprises purchase price, duties, levies and other directly attributable costs of bringing the asset to its working condition less CENVAT credit.

Capital Work-in-Progress includes the costs of Fixed Assets that are not ready for their intended use at the Balance Sheet Date.

Depreciation on Fixed Assets is provided on the Straight Line Method over their useful lifes at rates prescribed in Schedule XIV of the Companies Act, 1956.

5. Intangible Assets:

An intangible asset is recognized when it is probable that future economic benefits attributable to the assets will flow to the enterprise and where its costs can be reliably measured.

The estimated useful life and rates of deprecation for various fixed assets are as flows:

Class of Asset Useful Life Depreciation

Intangible Assets 10 years 10%

Web Development 4 years 25%

6. Investments:

Current investments are carried in the financial statements at lower of cost or fair value determined on an individual investment basis. Long – term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

7. Inventories:

Software products / projects in process are stated at cost.

8. Employee Benefits:

Contribution to provident and other funds accruing during the accounting period are charged to the Statement of Profit and Loss. Provision for liabilities in respect of gratuity are accrued and provided at the end of each accounting period.

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 restarted at year-end rates. In case of items which are covered by Forward Exchange contracts the difference and the premium paid on forward contracts is recognized over the life of the contract.

Non Monetary foreign currency items are carried at cost.

Any income or expense on account of exchange difference either on settlement or on transaction is recognized in the profit and loss account.

10. Taxes on Income:

The provision for taxation is based on the assessable profits determined under the Income Tax Act, 1961. Deferred tax is accounted for by computing tax effect of timing differences, which arose during the year and is reversed in subsequent periods.

11. Earnings per Share:

Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

12. Impairment of Assets:

The company assesses at each balance sheet date whether there is any indication that any asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account.

13. Provisions, Contingent Liabilities and Contingent Assets:

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 the resources is remote, no provision or disclosure is made.


Mar 31, 2013

1. Basis of preparation of financial statements:

The financial statements have been prepared to comply in all material respects in with the Indian Generally Accepted Accounting Principles (IGAAP) in India under the historical cost basis. IGAAP comprises mandatory accounting standards as specified in Companies Accounting Standards notified under Companies (Accounting Standards ) Rules, 2006, (as amended), and relevant provisions of Companies Act, 1956. The financial statements are prepared under the historical cost convention and accrual basis as a going concern i.e with revenues and expenses recognized on accrual basis with the exception of insurance claims, export incentives, interest on calls in arrears and interest on overdue receivables which are accounted for on cash basis.

2. Use of estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Practices requires Management to make estimates and assumptions that affect the reported Assets and Liabilities and disclosures relating to contingent assets and liabilities as at the date of the Financial Statements and reported amounts of Income and Expenses during the period. Although these est imates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

3. Revenue recognition

Revenue from the software development on time and material contracts is recognized based on the software developed and billed in accordance with the terms and specific contracts. Revenue from a fixed price contract is recognized on the basis of milestones achieved in the performance of the contracts on a percentage completion basis.

4. Fixed Assets and Depreciation

Fixed Assets are stated at cost less depreciation. Cost includes freight, installation costs, duties and taxes and other incidental expenses incurred during the construction / installation.

Depreciation on Fixed Assets has been provided on the Straight Line Method and at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 on a single-shift working basis. Depreciation is charged on a pro rata basis.

An intangible asset is recognized, when it is probable that the future economic benefits attributable to the assets will flow to the enterprise and where its cost can be reliably measured. The company frequently expends resources, and incurs liabilities, on the acquisition, development, maintenance and enhancement of intangible resources such as scientific or technical knowledge, design and implementation of new process or systems, license, intellectual property, market knowledge and trademarks in order to make software''s and brands. Intangible assets are recorded as per AS26 of IGAAP.

Intangible assets are amortized as per AS 26 of IAS. The useful life of all the intangible assets was taken accordingly as follows:

For Intangible Fixed Assets the useful life is taken as 10 years and which is within the limit mentioned in the AS - 26.

For the Web Development the useful life is taken as 4 years and which is within the limit mentioned in the AS 26.

5. Expenditure

The cost of software user licenses purchased for software development and the rendering of IT services is charged to revenue in the year the software is acquired at the time of acquisition. Provisions are made for all known losses and liabilities, future unforeseeable circumstances that may affect the profit on fixed-price software development contracts and also towards likely expenses for providing post-sales client support.

6. Investments

Long term investments are stated at cost. However, provision for diminution is made to recognise any decline, other than temporary, in the value of long term investments. Current Investments are stated at the lower of cost and fair value.

7. Inventories.

Software Products/ Projects in process are stated at cost. Development Costs of products are amortized over a period of five years or earlier on the basis of Management''s evaluation.

8. Retirement benefits.

Gratuity liability towards existing eligible employees will be met by the contribution made to the fund administered by LIC, The company has settled the employees dues from its resources who left the services of the company. Hence, during the year no contributions were made in the current year.

9. Foreign currency transactions Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Non- monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non- monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange Differences

Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial expenses in the year in which they arise.

Exchange Contracts not intended for trading or speculation purposes

The premium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year.

10. Income Tax

Provision for Income Tax, comprising current tax and deferred tax, is made on the basis of the results of the year.

In Accordance with Accounting Standard 22 Accounting for Taxes on Income, issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and the tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.

Deferred tax assets arising from temporary timing differences are recognized to the extent there is a reasonable certainty that the assets can be realized in the future.

11. Earnings per share

Basic earnings per share are 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 year.

12. Cash flow statement

Cash flows are reported taking the indirect method, wherein net profit before tax is adjusted for the transactions of non-cash nature and others or other accruals of past or future receipts and / or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.


Mar 31, 2012

1. Basis of preparation of financial statements:

The financial statements have been prepared to comply in all material respects in with the Indian Generally Accepted Accounting Principles (IGAAP) in India under the historical cost basis. IGAAP comprises mandatory accounting standards as specified in Companies Accounting Standards notified under Companies (Accounting Standards ) Rules, 2006, (as amended), and relevant provisions of Companies Act, 1956. The financial statements are prepared under the historical cost convention and accrual basis as a going concern i.e with revenues and expenses recognized on accrual basis with the exception of insurance claims, export incentives, interest on calls in arrears and interest on overdue receivables which are accounted for on cash basis.

2. Use of estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Practices requires Management to make estimates and assumptions that affect the reported Assets and Liabilities and disclosures relating to contingent assets and liabilities as at the date of the Financial Statements and reported amounts of Income and Expenses during the period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

3. Revenue recognition

Revenue from the software development on time and material contracts is recognized based on the software developed and billed in accordance with the terms and specific contracts. Revenue from a fixed price contract is recognized on the basis of milestones achieved in the performance of the contracts on a percentage completion basis.

4. Fixed Assets and Depreciation

Fixed Assets are stated at cost less depreciation. Cost includes freight, installation costs, duties and taxes and other incidental expenses incurred during the construction / installation.

Depreciation on Fixed Assets has been provided on the Straight Line Method and at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956 on a single-shift working basis. Depreciation is charged on a pro rata basis.

An intangible asset is recognized, when it is probable that the future economic benefits attributable to the assets will flow to the enterprise and where its cost can be reliably measured. The company frequently expends resources, and incurs liabilities, on the acquisition, development, maintenance and enhancement of intangible resources such as scientific or technical knowledge, design and implementation of new process or systems, license, intellectual property, market knowledge and trademarks in order to make software's and brands. Intangible assets are recorded as per AS26 of IGAAP.


Mar 31, 2010

I. Accounting Convention

Financial statements are prepared under the historical cost convention on the basis of a going concern with revenues and expenses recognized on accrual basis-with the exception of insurance claims, export incentives, interest on calk in arrears and interest on over due receivables which are accounted for on cash basis.

ii. Revenue Recognition.

Revenue from software development on time and material contracts is recognized based on software developed and billed in accordance with the terms of specific contracts. Revenue from a fixed price contract is recognized on the basis of milestones achieved in the performance of the contracts on a percentage completion basis.

iii. Fixed Assets and Depreciation

Fixed Assets are stated at cost less depreciation. Cost includes freight, installation costs, duties and taxes and other incidental expenses incurred during the construction / installation.

Depreciation on Fixed Assets has been provided on the Straight Line Method and at the rates and in the manner specified in Schedule XIV. to the Companies Act, 1956 on a single-shift working basis. Depreciation is charged on a prorata basis.

iv. Expenditure

The cost of software user licenses purchased for software development and the rendering of IT services is charged to revenue in the year the software is acquired at the time of acquisition. Provisions are made for all known losses and liabilities, future unforeseeable circumstances that may affect the profit on fixed-price software development contracts and also towards likely expenses for providing post-sales client support.

v. Investments

Long Term Investments are stated at cost.

vi. Inventories.

Software Products/ Projects in process are stated at cost Development Costs of products are amortised over a period of five years or earlier on the basis of Managements evaluation.

vii.. Retirement benefits.

Gratuity liability towards existing eligible empbyees will be met by the contribution made to the fund administered by LIC, since, the. company has settled the empbyees dues from its resources who left the services of the company. Hence, during the year no contributions were made

viii. Foreign currency transactions

Foreign Exchange transactions are recorded at the spot rate prevailing at the beginning of the concerned month. Year-end balances of foreign currency assets and liabilities are restated at the cbsing rate/forward contract rate as applicable. Gains/Losses arising out of fluctuations in the exchange rates are recognized in Profit & Loss A/c.

ix. Deferred Tax liability

The Company is a 100% EOU engaged in export of computer software and is claiming exemption of its business income under Section 10B. Hence, Accounting Standard on Deferred Tax liability is not applicable in so far as it relates to the business income of the company. However, with respect to other income, there is no timing or permanent deference and hence provision for tax is recognized in the year in which it arises.

x. Miscellaneous Expenditure

Expenses in connection with public issue of shares and preliminary expenses are being Written off over a period of 10 years.

 
Subscribe now to get personal finance updates in your inbox!