Mar 31, 2016
1. Basis of preparation of financial statements
The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention, on the basis of a going concern basis, while revenue, expenses, assets and Liabilities accounted/recognized on accrual basis. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI), the provisions of the Companies Act, 2013. Accounting policies are consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
Management evaluates all recently issued or revised accounting standards on an ongoing basis. The financial statements are prepared under the historical cost convention. Recognition of income and expenses, accrual basis of accounting is followed.
2. Use of Estimates
The preparation of financial statements in conformity with GAAP requires Management to make estimates and assumptions that effect the reported balances of 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. Examples of such estimates include provisions for doubtful debts, future obligations under retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed assets and intangible assets.
Management periodically assessed using external and internal sources whether there is an indication that an asset may be impaired. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated. Actual results could differ from those estimates.
3. Revenue Recognition
Revenue from IT services are recognized as services are performed when arrangements are on a time and material basis Revenue from fixed-price contracts is recognized in accordance with the âPercentage of Completionâ method.
4. Expenditure
Expenses are accounted on accrual basis and provisions are made for all known losses and Liabilities.
5. Fixed Assets, intangible assets
Fixed Assets are stated at cost, less accumulated depreciation. All direct costs are capitalized until fixed assets are ready for use including taxes, duties, freight and other incidental expenses relating to acquisition and installation. Intangible assets are recorded at the consideration paid for acquisition.
6. Depreciation and amortization
Depreciation on fixed assets is applied on straight-line method, pro-rata for the period of usage, in accordance with the rates prescribed under schedule II of the Companies Act, 2013.
7. Income tax
Income taxes are computed using the tax effect accounting method, in accordance with the Accounting Standard (AS 22) âAccounting for Taxes on Incomeâ which includes current taxes and deferred taxes. Deferred income taxes reflect the impact if current year timing differences between taxable income and accounting income for the year and the relevant of timing difference of earlier years. Deferred tax asset and liabilities are measured at the tax rates that are expected to apply to the period when the asset / liability is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred Tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
Mar 31, 2015
A) Basis of preparation of financial statements
The accompanying financial statements are prepared in accordance with
Indian Generally Accepted Accounting Principles (GAAP) under the
historical cost convention, on the basis of a going concern basis,
while revenue, expenses, assets and Liabilities accounted/recognized on
accrual basis. GAAP comprises mandatory accounting standards issued by
the Institute of Chartered Accountants of India (ICAI), the provisions
of the Companies Act, 2013. Accounting policies are consistently
applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a
change in the accounting policy hitherto in use.
Management evaluates all recently issued or revised accounting
standards on an ongoing basis. The financial statements are prepared
under the historical cost convention. Recognition of income and
expenses, accrual basis of accounting is followed.
b) Use of Estimates
The preparation of financial statements in conformity with GAAP
requires Management to make estimates and assumptions that effect the
reported balances of 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. Examples of such estimates include provisions for doubtful
debts, future obligations under retirement benefit plans, income taxes,
post-sales customer support and the useful lives of fixed assets and
intangible assets.
Management periodically assessed using external and internal sources
whether there is an indication that an asset may be impaired.
Contingencies are recorded when it is probable that a liability will be
incurred, and the amount can be reasonably estimated. Actual results
could differ from those estimates.
c) Revenue Recognition
Revenue from IT services are recognized as services are performed when
arrangements are on a time and material basis Revenue from fixed-price
contracts is recognized in accordance with the "Percentage of
Completion" method.
d) Expenditure
Expenses are accounted on accrual basis and provisions are made for all
known losses and Liabilities.
e) Fixed Assets, intangible assets
Fixed Assets are stated at cost, less accumulated depreciation. All
direct costs are capitalized until fixed assets are ready for use
including taxes, duties, freight and other incidental expenses relating
to acquisition and installation. Intangible assets are recorded at the
consideration paid for acquisition.
f) Depreciation and amortization
Depreciation on fixed assets is applied on straight-line method,
pro-rata for the period of usage, in accordance with the rates
prescribed under schedule II of the Companies Act, 2013.
g) Income tax
Income taxes are computed using the tax effect accounting method, in
accordance with the Accounting Standard (AS 22) "Accounting for Taxes
on Income" which includes current taxes and deferred taxes. Deferred
income taxes reflect the impact if current year timing differences
between taxable income and accounting income for the year and the
relevant of timing difference of earlier years. Deferred tax asset and
liabilities are measured at the tax rates that are expected to apply to
the period when the asset / liability is realized, based on tax rates
(and tax laws) that have been enacted or substantively enacted at the
balance sheet date. Deferred Tax assets are recognized and carried
forward only to the extent that there is a reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
Mar 31, 2014
1. Basis of preparation of financial statements
The accompanying financial statements are prepared in accordance with
Indian Generally Accepted Accounting Principles (GAAP) under the
historical cost convention, on the basis of a going concern basis,
while revenue, expenses, assets and Liabilities accounted/recognized on
accrual basis. GAAP comprises mandatory accounting standards issued by
the Institute of Chartered Accountants of India (ICAI), the provisions
of the Companies Act, 1956. Accounting policies are consistently
applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a
change in the accounting policy hitherto in use.
Management evaluates all recently issued or revised accounting
standards on an ongoing basis. The financial statements are prepared
under the historical cost convention. Recognition of income and
expenses, accrual basis of accounting is followed.
2. Use of Estimates
The preparation of financial statements in conformity with GAAP
requires Management to make estimates and assumptions that effect the
reported balances of 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. Examples of such estimates include provisions for doubtful
debts, future obligations under retirement benefit plans, income taxes,
post-sales customer support and the useful lives of fixed assets and
intangible assets.
Management periodically assessed using external and internal sources
whether there is an indication that an asset may be impaired.
Contingencies are recorded when it is probable that a liability will be
incurred, and the amount can be reasonably estimated. Actual results
could differ from those estimates.
3. Revenue Recognition
Revenue from IT services are recognized as services are performed when
arrangements are on a time and material basis Revenue from fixed-price
contracts is recognized in accordance with the "Percentage of
Completion" method.
4. Expenditure
Expenses are accounted on accrual basis and provisions are made for all
known losses and Liabilities.
5. Fixed Assets, intangible assets
Fixed Assets are stated at cost, less accumulated depreciation. All
direct costs are capitalized until fixed assets are ready for use
including taxes, duties, freight and other incidental expenses relating
to acquisition and installation. Intangible assets are recorded at the
consideration paid for acquisition.
6. Depreciation and amortization
Depreciation on fixed assets is applied on straight-line method, pro-
rata for the period of usage, in accordance with the rates prescribed
under schedule XIV of the Companies Act, 1956.
7. Income tax
Income taxes are computed using the tax effect accounting method, in
accordance with the Accounting Standard (AS 22) "Accounting for Taxes on
Income" which includes current taxes and deferred taxes. Deferred income
taxes reflect the impact if current year timing differences between
taxable income and accounting income for the year and the relevant of
timing difference of earlier years. Deferred tax asset and liabilities
are measured at the tax rates that are expected to apply to the period
when the asset / liability is realized, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the balance
sheet date. Deferred Tax assets are recognized and carried forward only
to the extent that there is a reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
Mar 31, 2012
A. Basis of presentation
The financial statements are prepared under the historical cost
convention, on the accrual basis of accounting, in conformity with
accounting principles generally accepted in India and complying in all
material respects with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India and referred to in Section
211(3C) of the Companies Act, 1956 ('the Act'). The accounting
policies applied by the Company are consistent with those used in the
previous years. The financial statements are presented in the format
specified in Schedule VI to the Act.
The significant accounting policies adopted by the Company, in respect
of the financial statements are set out as below:
b. 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 the
financial statements and the results of operations during the reporting
year end. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates.
c. Fixed assets, depreciation and amortization
Fixed assets are accounted at cost less accumulated depreciation. The
Company capitalizes all direct costs relating to the acquisition and
installation of fixed assets.
Depreciation and amortization are computed using straight-line method,
at the rates specified in Schedule XIV to the Act or based on the
estimated useful life of assets, whichever is higher.
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the assets net selling price and value in use. After
impairment, depreciation is provided on the revised carrying amount of
the asset over its remaining useful life.
d. Investments
Investments are stated at lower of cost and fair value determined on an
individual investment basis.
d. Current assets
Current assets are accounted at lower of cost and market price
determined on an individual basis.
e. Foreign currency transactions
The Company is exposed to currency fluctuations on foreign currency
transactions. Foreign currency transactions are accounted in the books
of account at the average rate for the month.
Transaction:
The difference between the rate at which foreign currency transactions
are accounted and the rate at which they are realized is recognized in
the Profit and Loss Account.
Translation:
Monetary foreign currency assets and liabilities at period-end are
translated at the closing rate. The difference arising from the
translation is recognized in the Profit and Loss Account.
The Accounting Standard (AS 11) on "The Effects of Changes on Foreign
Exchange Rates", amended with effect from April 1, 2004 provides
guidance on accounting for forward contracts. In respect of forward
contracts entered into to hedge foreign exchange risk of highly
probable forecasted transaction, the ICAI has clarified that AS 11 is
currently not applicable to exchange differences arising from such
forward contracts. The premium or discount of such contracts is
amortized over the life of the contract in accordance with AS 11
(revised).
No forward exchange contracts have been entered into by the Company to
hedge the foreign currency risk.
f. Revenue recognition Services:
Revenue from IT services are recognized as services are performed when
arrangements are on a time and material basis Revenue from fixed-price
contracts is recognized in accordance with the "Percentage of
Completion" method.
Proportionate completion is measured based upon the efforts incurred to
date in relation to the total estimated efforts to complete the
contract. If the proportionate completion efforts are higher than the
related requiring customer acceptance, revenue is recognized only to
the extent customer approval has been received.
Revenues from BPO services are derived from both time-based and
unit-priced contracts. Revenue is recognized as the related services
are performed, in accordance with the specific terms of the contract
with the customers
Revenue from support and other services is recognized as the related
services are performed in accordance with the specific terms of the
contract with the customers.
Provision for estimated losses, if any, on incomplete contracts are
recorded in the period in which such losses become probable based on
the current contract estimates.
Others:
Profit on sale of investments is recorded upon transfer of title by the
Company. It is determined as the difference between the sales price and
the then carrying amount of the investment.
Interest is recognized using the time-proportion method, based on rates
implicit in the transaction.
Dividend income is recognized where the Company's right to receive
dividend is established.
Export incentives are accounted on accrual basis and include estimated
realizable values/benefits from special import licenses and advance
licenses.
Other income is recognized on accrual basis. Other income includes
unrealized losses on short-term investments.
g. Income-tax
Tax expense comprises of current income tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act. The Company enjoys exemption
under Section 10A of Income Tax Act, 1961 .no provision was
necessitated for deferred tax.
h. Earnings per share
The earnings considered in ascertaining the Company's earnings per
share comprise the net profit after tax. The number of shares used in
computing basic earnings per share is the number of shares outstanding
during the year. The company has not diluted its shares as on March 31,
2012.
i. Provision and contingencies
A provision is recognized when an enterprise has a present obligation
as a result of past event 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.
Mar 31, 2011
A. Basis of presentation
The financial statements are prepared under the historical cost
convention, on the accrual basis of accounting, in conformity with
accounting principles generally accepted in India and complying in all
material respects with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India and referred to in Section
211(3C) of the Companies Act, 1956 ('the Act'). The accounting policies
applied by the Company are consistent with those used in the previous
years. The financial statements are presented in the format specified
in Schedule VI to the Act.
The significant accounting policies adopted by the Company, in respect
of the financial statements are set out as below:
b. 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 the
financial statements and the results of operations during the reporting
year end. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates.
c. Fixed assets, depreciation and amortization
Fixed assets are accounted at cost less accumulated depreciation. The
Company capitalizes all direct costs relating to the acquisition and
installation of fixed assets.
Depreciation and amortization are computed using straight-line method,
at the rates specified in Schedule XIV to the Act or based on the
estimated useful life of assets, whichever is higher.
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the assets net selling price and value in use. After
impairment, depreciation is provided on the revised carrying amount of
the asset over its remaining useful life.
d. Investments
Investments are stated at lower of cost and fair value determined on an
individual investment basis.
d. Current assets
Current assets are accounted at lower of cost and market price
determined on an individual basis.
e. Foreign currency transactions
The Company is exposed to currency fluctuations on foreign currency
transactions. Foreign currency transactions are accounted in the books
of account at the average rate for the month.
Transaction:
The difference between the rate at which foreign currency transactions
are accounted and the rate at which they are realized is recognized in
the Profit and Loss Account.
Translation:
Monetary foreign currency assets and liabilities at period-end are
translated at the closing rate. The difference arising from the
translation is recognized in the Profit and Loss Account.
The Accounting Standard (AS 11) on "The Effects of Changes on Foreign
Exchange Rates", amended with effect from April 1, 2004 provides
guidance on accounting for forward contracts. In respect of forward
contracts entered into to hedge foreign exchange risk of highly
probable forecasted transaction, the ICAI has clarified that AS 11 is
currently not applicable to exchange differences arising from such
forward contracts. The premium or discount of such contracts is
amortized over the life of the contract in accordance with AS 11
(revised).
No forward exchange contracts have been entered into by the Company to
hedge the foreign currency risk.
f. Revenue recognition
Services:
Revenue from IT services are recognized as services are performed when
arrangements are on a time and material basis Revenue from fixed-price
contracts is recognized in accordance with the "Percentage of
Completion" method.
Proportionate completion is measured based upon the efforts incurred to
date in relation to the total estimated efforts to complete the
contract. If the proportionate completion efforts are higher than the
related requiring customer acceptance, revenue is recognized only to
the extent customer approval has been received.
Revenues from BPO services are derived from both time-based and
unit-priced contracts. Revenue is recognized as the related services
are performed, in accordance with the specific terms of the contract
with the customers
Revenue from support and other services is recognized as the related
services are performed in accordance with the specific terms of the
contract with the customers.
Provision for estimated losses, if any, on incomplete contracts are
recorded in the period in which such losses become probable based on
the current contract estimates.
Others:
Profit on sale of investments is recorded upon transfer of title by the
Company. It is determined as the difference between the sales price and
the then carrying amount of the investment.
Interest is recognized using the time-proportion method, based on rates
implicit in the transaction.
Dividend income is recognized where the Company's right to receive
dividend is established.
Export incentives are accounted on accrual basis and include estimated
realizable values/benefits from special import licenses and advance
licenses.
Other income is recognized on accrual basis. Other income includes
unrealized losses on short-term investments.
g. Income-tax
Tax expense comprises of current income tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act. The Company enjoys exemption
under Section 10A of Income Tax Act, 1961.no provision was necessitated
for deferred tax.
h. Earnings per share
The earnings considered in ascertaining the Company's earnings per
share comprise the net profit after tax. The number of shares used in
computing basic earnings per share is the number of shares outstanding
during the year. The company has not diluted its shares as on March 31,
2011.
i. Provision and contingencies
A provision is recognized when an enterprise has a present obligation
as a result of past event 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.
Mar 31, 2010
A. Basis of presentation
The financial statements are prepared under the historical cost
convention, on the accrual basis of accounting, in conformity with
accounting principles generally accepted in India and complying in all
material respects with the mandatory accounting standards issued by the
Institute of Chartered Accountants of India and referred to in Section
211(3C) of the Companies Act, 1956 (the Act). The accounting policies
applied by the Company are consistent with those used in the previous
years. The financial statements are presented in the format specified
in Schedule VI to the Act.
The significant accounting policies adopted by the Company, in respect
of the financial statements are set out as below:
b. 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 the
financial statements and the results of operations during the reporting
year end. Although these estimates are based upon managements best
knowledge of current events and actions, actual results could differ
from these estimates.
c. Fixed assets, depreciation and amortization
Fixed assets are accounted at cost less accumulated depreciation. The
Company capitalizes all direct costs relating to the acquisition and
installation of fixed assets.
Depreciation and amortization are computed using straight-line method,
at the rates specified in Schedule XIV to the Act or based on the
estimated useful life of assets, whichever is higher.
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the assets net selling price and value in use. After
impairment, depreciation is provided on the revised carrying amount of
the asset over its remaining useful life.
d. Investments
Investments are stated at lower of cost and fair value determined on an
individual investment basis.
d. Current assets
Current assets are accounted at lower of cost and market price
determined on an individual basis.
e. Foreign currency transactions
The Company is exposed to currency fluctuations on foreign currency
transactions. Foreign currency transactions are accounted in the books
of account at the average rate for the month.
The difference between the rate at which foreign currency transactions
are accounted and the rate at which they are realized is recognized in
the Profit and Loss Account.
Translation:
Monetary foreign currency assets and liabilities at period-end are
translated at the closing rate. The difference arising from the
translation is recognized in the Profit and Loss Account.
The Accounting Standard (AS 11) on "The Effects of Changes on Foreign
Exchange Rates", amended with effect from April 1, 2004 provides
guidance on accounting for forward contracts. In respect of forward
contracts entered into to hedge foreign exchange risk of highly
probable forecasted transaction, the ICAI has clarified that AS 11 is
currently not applicable to exchange differences arising from such
forward contracts. The premium or discount of such contracts is
amortized over the life of the contract in accordance with AS 11
(revised).
No forward exchange contracts have been entered into by the Company to
hedge the foreign currency risk.
f. Revenue recognition
Services:
Revenue from IT services are recognized as services are performed when
arrangements are on a time and material basis Revenue from fixed-price
contracts is recognized in accordance with the "Percentage of
Completion" method.
Proportionate completion is measured based upon the efforts incurred to
date in relation to the total estimated efforts to complete the
contract. If the proportionate completion efforts are higher than the
related requiring customer acceptance, revenue is recognized only to
the extent customer approval has been received.
Revenues from BPO services are derived from both time-based and
unit-priced contracts. Revenue is recognized as the related services
are performed, in accordance with the specific terms of the contract
with the customers
Revenue from support and other services is recognized as the related
services are performed in accordance with the specific terms of the
contract with the customers.
Provision for estimated losses, if any, on incomplete contracts are
recorded in the period in which such losses become probable based on
the current contract estimates.
Others:
Profit on sale of investments is recorded upon transfer of title by the
Company. It is determined as the difference between the sales price and
the then carrying amount of the investment.
Interest is recognized using the time-proportion method, based on rates
implicit in the transaction.
Dividend income is recognized where the Companys right to receive
dividend is established.
Export incentives are accounted on accrual basis and include estimated
realizable values/benefits from special import licenses and advance
licenses.
Other income is recognized on accrual basis. Other income includes
unrealized losses on short-term investments.
Tax expense comprises of current and fringe benefit tax. Current income
tax and fringe benefit tax is measured at the amount expected to be
paid to the tax authorities in accordance with the Indian Income Tax
Act. The Company enjoys exemption under Section 10A of Income Tax Act,
1961.no provision was necessitated for deferred tax.
h. Earnings per share
The earnings considered in ascertaining the Companys earnings per
share comprise the net profit after tax. The number of shares used in
computing basic earnings per share is the number of shares outstanding
during the year. The company has not diluted its shares as on March 31,
2010.
i. Provision and contingencies
A provision is recognized when an enterprise has a present obligation
as a result of past event 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.
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