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Accounting Policies of E.com Infotech (India) Ltd. Company

Mar 31, 2015

(i).The financial statement have been prepared in accordance with Indianss generally Accepted Accounting Principle (GAAP) under the historical cost convention on the accrual basis except for certain financial instrument which are measured at fair value. GAAP comprise mandatory accounting standards notified under section 133 of the companies act, 2013 read together with Rule 7 of the Companies (Accounts) Rules 2014. the provision of the Companies Act, 2013 and guide line issued by the securities and exchange Board of India, (SEBI). Accounting policies have been consistently apply expects Where a newly issue accounting standards initially adopt or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use or different accounting standard required by statute.

(ii) Use Of Estimate:-

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimate and assumptions to be made. The affects the reported amount of assets and liabilities in the date of the financial statement and the reported amount of revenues and expenses during the reporting period. Differences between the actual result and estimates are recognized in the period in which the results are known/ materialized.

(iii) Fixed Assets:-

Fixed assets are stated at cost less accumulated depreciation. Cost is inclusive of fright, duties (net of tax credits are applicable) levies and any directly attributable cost of bringing the assets to their working condition for their intended use.

(iv) Depreciation & Amortisation:-

Depreciation and fixed assets is provided on straight line method (SLM) on pro-rata basis as per the useful life prescribed in the schedule II of the companies Act,2013.

The carrying amount of the asset as on 01.04.2014 after remaining the residual value, has been charged to statement of Profit and Loss were the remaining useful life of the asset is NIL.

(v) Investments:-

Long term investments are stated at cost. Provision for diminution in value of long term investment is made only if such delaine is other than temporary in the opinion of management. Investments other than Long term investments being current investments are valued at cost or fair value whichever is lower.

(vi) Provision:-

A provision is recognized when an enterprise has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provision are determined based on management estimate require to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

(vii) Treatment Of Contingent Liabilities:-

Contingent liabilities are disclosed by way of notes. Provision is made in the accounts for those liabilities which are likely to materialize after the year end till the finalization of accounts and having effect on the position stated in the balance sheet as at the year end.

(viii) Foreign Exchange Transaction;-

Transactions entered into and concluded during the year in foreign currency are recorded at the actual exchange rates prevailing at the time of conclusion of transactions. In respect of transaction covered by forward exchange contracts, the difference between the forward rate and the exchange rate on the date of transaction is recognized as income or expenses over the life of the contracts. Outstanding assets and liabilities at the year end are converted into Indian rupees as per FEDAI rate of exchange prevalent on the said date. Exchange rate Difference arising out of subsequent settlements is dealt in the Profit & Loss Accounts.

(ix) Taxation:-

Provision for taxation has been made in accordance with the rates of Income Tax Act, 1961 prevailing for the relevant assessment year.

(x) Deferred Taxation:-

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date. Deferred tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

(xi) Revenue Recognition:-

Sales are recognized, net of returns and trade discounts, on dispatch of goods / delivery of service to Customers.

(xii) Impairment of Assets:-

The Company assess whether there is any indication that any assets may be impaired at the balance sheet date. If any indication exists, the company estimates the recoverable amount and an impairment loss is recognized in the accounts, to the extent the carrying amount exceeds the recoverable amount.

GENERAL: The Accounts of Company are prepared under the historical cost convention generally using the accrual method of accounting.

FIXED ASSETS: Fixed assets are stated at cost less depreciation.

The Balance Sheet and Profit &Loss Account are in compliance with the Accounting Standards referred to in Sub-section (3C) of Section 211 of the Companies Act, 1956.

REVENUE RECOGNITION: Sales are recognized at the time of billing.

DEPRECIATION: Depreciation has been provided on straight-line method at the rates and in the manner prescribed in Schedule XI of the Companies Act, 1956.

RETIREMENT BENEFITS: Retirement benefits like gratuity etc. are accounted in cash basis.

INVESTMENTS:

Investments are stated at cost.


Mar 31, 2014

1. GENERAL: The Accounts of Company are prepared under the historical cost convention generally using the accrual method of accounting.

2. FIXED ASSETS: Fixed assets are stated at cost less depreciation.

3. The Balance Sheet and Profit &Loss Account are in compliance with the Accounting Standards referred to in Suh-section (3C) of Section 211 of the Companies Act, 1956.

4. REVENUE RECOGNITION: Sales are recognized at the time of billing.

5. DEPRECIATION: Depreciation has been provided on straight-line method at the rates and in the manner prescribed in Schedule XI of the Companies Act, 1956.

6. RETIREMENT BENEFITS: Retirement benefits like gratuity etc. are accounted in cash basis.

7. INVESTMENTS: Investments are stated at cost.

8 FOREIGN CURRENCY TRANSACTIONS: Transactions in foreign currency are recorded at the rates of exchange prevailing at the date of transaction.


Mar 31, 2013

A Basis of Accounting:

The Financial Statements have been prepared under (he historical cost convention, on an accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards prescribed by the Companies (Accounting Standard) Rules 2006 to the extent applicable and in accordance with the relevant provisions of the Companies Act 1956.

B Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period.

C Revenue Recognition

i) Sales is recognized as and when the significant risk & rewards in respect of goods is transferred to the buyer.

ii) Interest income is recognized on time proportion basis.

F Investments:

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investment and are carried at cost less any provision for permanent diminution in value. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

G Foreign Currency Transactions :

i) The transactions in foreign currencies are stated at the rate of exchange prevailing on the date of transactions.

ii) The difference on account of fluctuation in the rate of exchange prevailing on the date of transaction and the date of realization is charged to the Profit and Loss Account.

iii) Differences on translations of Current Assets and Current Liabilities remaining unsettled at the year-end are recognized in Die Profit and Loss Account.

iv) The premium in respect of forward exchange contract is amortised over the life of the contract. The net gain or loss on account of any exchange difference, cancellation or renewal of such forward exchange contracts is recognised in the Profit & Loss Account

H Acco u nti ng fo i Ta xes ot Inco me: - Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income- tax Act 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions

Deferred Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date Deferred tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

I Provisions and Contingent Liabilities:

i) Provisions are recognized in terms of Accounting Standard 29- ''Provisions, Contingent Liabilities and Contingent Assets issued by The Institute of Chartered Accountants of India (ICAI): when there is a present legal or statutory obligation as a result of past events where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of ihe amount of the obligation can be made.

ii) Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or where reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for

iii) Contingent Liabilities are disclosed by way of notes.

J Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

K Capital Work-in-Progress:

Capital work-in-progress includes outstanding advances paid to acquire fixed assets and cost of fixed assets that are not yet ready for their intended use at the year end.

L Change in accounting policy :

During the year ended 31i! March. 2012. the revised schedule VI of the Companies Act, 1958. has become applicable to the Company, for preparation & presentation of its financial statements. Except accounting for dividend on investments in subsidiary companies, the adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements applicable in the current year.


Mar 31, 2010

1. GENERAL : The Accounts of Company-are prepared under the historical cost convention generally using the accrual method of accounting.

2. FIXED ASSETS: Fixed assets are stated at cost less depreciation.

3. The Balance Sheet and Profit &Loss Account are in compliance with the Accounting Standards referred to in Sub-section (3C) of Section 211 of the Companies Act, 1956.

4. REVENUE RECOGNITION: Sales are recognized at the time of billing.

5. DEPRECIATION: Depreciation has been provided on straight-line method at the rates and in the manner prescribed in Schedule XI of the Companies Act, 1956.

6. RETIREMENT BENEFITS: Retirement benefits like gratuity etc. are accounted in cash basis.

7. INVESTMENTS:

Investment in subsidiary company: Investment in Subsidiary Company are valued at cost inclusive of all expenses incidental to their acquisition or formation.

Other investments: Investments are stated at cost.

8 FOREIGN CURRENCY TRANSACTIONS: Transactions in foreign currency are recorded at the rates of exchange prevailing at the date, of transaction.

 
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