Mar 31, 2013
I. Basis of Preparation of Financial Statements
The accompanying financial statements are prepared in accordance with generally accepted accounting principles under the historical cost convention on accruals basis. Generally Accepted Accounting Principles comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956. These accounting principles have been consistently applied except where a newly issued accounting standard is initially adopted by the company.
ii. Revenue Recognition
I. Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis, including provisions/adjustments for committed obligations and amounts determined as payable or receivable during the year.
II. Revenue in respect of the projects of long-term duration in implementation is recognized on the basis of stage wise completion of the respective project.
iii. Fixed Assets and Capital work-in-progress
Fixed assets are stated at cost, less accumulated depreciation. Direct costs and indirect costs are capitalized under respective fixed assets. Direct costs include freight, duties, taxes, insurance and any attributable cost of bringing the asset to its working condition for its intended use. Indirect costs includes pre operative expenses, pre construction interest (net of revenue) etc.
Depreciation on fixed assets is provided under the Written Down Value Method, at the rates and in the manner as prescribed under Schedule XIV of the Companies Act, 1956, except as stated hereunder:
a) All individual cost of assets acquired for less than Rs.5,000 are entirely depreciated in the year of acquisition.
b) Depreciation on assets added or disposed off during the year is provided on pro- rata basis from the date of addition or up to the date of disposal, as applicable
v. Deferred Tax
The differences that result between the profit offered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered.
The deferred tax is not recognized in the books of accounts since there is no virtual certainty.
vi. Earnings Per Share
Earnings per share is calculated by dividing the net loss after tax for the year attributable to equity shareholders by the number of equity shares outstanding on the balance sheet date.
vii. Segment Reporting
The Company is in the business of software development, hence total business of the company is treated as one single segment.
Commitments and Contingent Liabilities:
The Company has not provided any type of guarantee on behalf of any party to Bank or Financial Institution.
- The following amounts were considered as bad and irrecoverable by the Company and hence are written off during the period under review.
Particulars Amount in Rs.
Advances written off 1,95,31,199
Trade Receivables written off 2,37,57,799
- The Cash Flow Statement is also given separate Annexure
- Sundry Creditors, Sundry Debtors, Advances and Deposits are subject to confirmation from parties concerned and reconciliation thereof.
- There are no out standings due to Small Scale Industries.
- Figures have been rounded off to the nearest rupee.
Mar 31, 2012
1. Basis of accounting
The financial statements are prepared under the historical cost convention, on accrual basis.
Accounting Policies not referred to otherwise are consistent and in consonance with generally accepted accounting policies.
2. Fixed Assets and Depreciation
Fixed Assets are stated at the original cost less depreciation.
Depreciation has been provided on the basis of WDV as per the Schedule XIV to the Companies Act, 1956.
3. Valuation of Inventories
Inventories are valued on FIFO basis and are represented in accounts at cost or net realizable value whichever is lower.
4. Revenue Recognition
Sales are accounted inclusive of service tax and on delivery of goods.
5. Sundry Debtors, Loans & Advances
Sundry Debtors, Loans & Advances if identified as irrecoverable or doubtful, are written or provided for.
6. Employee Retirement Benefits
Provident fund, Gratuity and Leave Encashment benefits are being provided as when applicable to the company.
7. Foreign Currency Transactions
The foreign currency transactions, if any, are recorded at the exchange rate prevailing on the date of transaction and exchange difference are dealt with in Profit and Loss Account on realization.
8. In the opinion of the company, the Current Assets, Loans and Advances are approximately of the value stated, if realised in the ordinary course of business. The provision for all the known liabilities is adequate and not in excess of the amount reasonably necessary.