Mar 31, 2014
1. Accounting Convention
1.1 Financial statements are prepared in accordance with generally accepted accounting principles including accounting standards in India under historical cost convention except so far as they relate to revaluation of certain land and buildings.
1.2 All 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 Revised Schedule VI to the companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the company has determined its operating cycle as twelve months for the purpose of current-non current classification of assets and liabilities.
1.3 Use of estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements, disclosure of contingent liabilities and reported amounts of revenues and expenses for the year. Estimates are based on historical experience, where applicable and other assumptions that management believes are reasonable under the circumstances, Actual result could vary from estimates and any such differences are dealt with in the period in which the result are known/m aterialize.
2. Fixed Assets
There is no Fixed Assets.
Expenses are accounted on accrual basis and provision is made for all known losses and liabilities.
4. Segment Reporting
The Company has only one segment of activity of relating to IT services during the period, hence segment wise reporting as defined in Accounting Standard-17 is not applicable.
5. In the opinion of board of directors, current assets, loans and advances, have at least the value as stated in the balance sheet, if realized in the ordinary course of business.
6. Based on the information available with the company regarding status of suppliers as defined under "The Micro, Small and Medium Enterprises Development Act.2006."There is no amount payable to the micro, small and medium enterprises company.
7. Revenue recognition
7.1 Revenue from IT Services is stated net off discounts and any applicable duties and taxes on rendering and completion of services in accordance with terms of services.
7.2 Other operating revenues comprise of income from ancillary activities incidental to the operation of the company and is recognized when the right to receive the income is established as per the terms.
8. Research and Development
Expenses incurred on research and developments are charges to revenue in the same year. Fixed assets purchased for research and development purpose are capitalized and depreciated as per Company''s policy.
9. Employee''s Benefits
Short Term Employee''s Benefits
All employees'' benefits payable within twelve months of rendering services are recognized in the period in which the employees render the related services.
Post Employment/Retirements Benefits
Contribution to defined Contribution plans such as Provident Fund etc. are charged to the Statement of Profit and Loss as incurred.
As per AS-15 (Revised) 2005 of ICAI read with Accounting Standard Board Guidance, The Provision for Gratuity Liability is not made since none of the employees have completed 5 years of service for period under review.
Provision for Income tax is made on the basis of relevant provisions of the Income Tax Act, 1961.as applicable to the financial year.
Deferred income taxes are recognized for the future tax consequences attributable to timing differences between the financial statement determination of income and their recognition for tax purposes.
11. Provisions and Contingent Liabilities
The Company recognizes a provision when there is a present obligation as a result of 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 contingent liabilities made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure as specified in Accounting Standard 29-''Provisions, Contingent Liabilities and Contingent Assets'' is made.
Contingent assets or liabilities neither recognized nor disclosed in the financial statements.
12. Earnings Per Share(EPS):
The earnings considered in ascertaining the Company''s EPS are computed as per Accounting Standard 20 on "Earning per Share", issue by the Institute of Chartered Accountants of India. The number of shares used in computing basic EPS is the weighted average number of shares during the period. The diluted EPS is the weighted average number of shares outstanding during the period. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive equity shares is anti-dilutive.
13. Cash Flow Statement
Cash Flow Statement has been prepared in accordance with the Accounting standard Issued by Institute of Chartered Accounts of India on indirect method.
14. Foreign Currency Transaction
Expenses and income are recorded at the exchange rate prevailing on the date of the transaction. Assets and liabilities at the Balance Sheet date are restated at the exchange rate prevailing on the Balance Sheet date. Exchange difference arising on settlement of the transaction and on account of restatement of assets and liabilities are dealt with in the Profit and Loss Account.
Mar 31, 2011
1. Accounting Convention :
a. The financial statements are prepared under the historical cost convention in accordance with mandatory accounting Standards and relevant requirement of the Companies Act, 1956.
b. The company adopts accruals system of accounting.
2. Investment :
The Quoted and Unquoted Investments are stated at cost.
3. Fixed assets and Depreciation :
a. Fixed Assets are stated at cost less depreciation.
b. Depreciation of Fixed Assets is provided on the straight line method at the rates and manner laid down in schedule to the Company Act, 1956.
4. Miscellaneous Expenses :
a. Preliminary expenses are amortized over a period of 10 years as permissible in the Act.
b. Share issue expenses are spread over a period of 10 years from the date of commencement of business i.e. 01.07.1999 to 31.03.2010 and are charged to profit and loss Account.
5. Taxes on Income:
Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets, on Timing differences, being the difference between taxable incomes and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.
6. Related party disclosures under accounting standard 18 issued by ICAI is not applicable. There is no related party transaction.
Mar 31, 2009
A) ACCOUNTING CONVENTION:
1) The Financial Statements are prepared under the Historical cost convention in accordance with mandatory accounting standard and relevant requirement of the Companies Act, 1956.
2) The Company adopts accruals system of accounting.
The Investments are capitalized at cost plus expenses. Unquoted and long term Investments are considered at cost.
c) FIXED ASSETS AND DEPRECIATION:
1) Fixed Assets are stated at cost less depreciation
2) Depreciation of Fixed Assets is provided on the straight line method at the rates and manner laid down jn schedule to the Company Act, 1956.
d) MISCELLANEOUS EXPENSES:
i) Preliminary expenses are amortized over a period of 10 years as permissible in the Act.
ii) Share issue expenses are spread over a period of 10 years from the date of commencement of business i.e.01.07.1999 to 31.03.2009 and are charged to Profit and Loss Account.
e) TAXES ON INCOME:
Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax is recognized subject to the consideration of prudence in respect of deferred tax assets, on Timing differences, being the difference between taxable incomes and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.
f) Related party disclosures under accounting standard-18 issued byICAI is not applicable. There is no Related party transaction.