Mar 31, 2010
Accounts have been prepared on Accrual basis.
Revenue Recognition :
The Company follows the completed project method of accounting for contract and Capital work in progress (web Portal). Under this method , the revenue is recognized only when the contract is completed or substantially completed, that is when only minor work is expected other than warranty work. Till such time cost incurred and progress payments if any received are accumulated. When the Capital work in progress expenses relating to web portal is completed, the identifiable cost shall be transferred to web site portal categorized under Fixed Assets and norms stipulated in AS 10 shall be followed.
The Company has entered into Deed of Hypothecation dated 10/12/2009 with Shri.V.Parandhaman, Share holder and Director of the Company for the Secured loan amount lent by him to the company (shown under Secured loan - Loan from Directors as at 31.03.2010 in the Balance sheet) on various dates as Business loan. The Company has agreed (vide deed of hypothecation dated 10/12/2009) to secure the due repayment of the loan with interest thereon and all monies payable there under by creating a charge by way of hypothecation of its book debts, receivables, outstanding moneys, claims and demands arising from and out of the projects undertaken and service rendered by the company both present and in future. The Company has agreed to pay to the lender an interest @ 8% on the outstanding loan amount for the year ended 31.03.2010
Fixed Assets :
Fixed assets are stated at cost less accumulated depreciation