Mar 31, 2010
The accompanying financial statements have been prepared in compliance
with the requirements of the Companies Act, 1956 and the Generally
Accepted Accounting Principles (GAAP) in India and guidelines issued by
Securities Exchange Board of India. The financial statements, various
estimates and judgments used relating to the financial statements have
been made on a prudent and reasonable basis so that the financial
statements reflect in a true and fair manner the form and substance of
transactions, and reasonably present the companys state of affairs and
loss for the year. These are explained below in detail:
Accounting assumptions:
The accounting have been prepared under historical cost convention, on
the basis of a going concern, with revenues recognized and expenses
accounted on their accrual, including provisions and adjustments for
committed obligations and amount determined as payable or receivable
during the year.
A. Fixed Assets:
i) Fixed assets are stated at historical cost, inclusive of freight,
installation cost, duties, taxes and other identical expenses.
ii) Depreciation is provided on straight- line method at the rates
specified in schedule XIV of the Companies Act, 1956.
B. Inventories:
Stock of equipment is valued at cost or Market value whichever is
lower. Stock of software is valued at cost.
C. Revenue Recognition:
Sale of goods is recognized on the basis of transfer of significant
risks and records of ownership to the buyer and no significant
uncertainty exists regarding the amount of consideration that will be
derived from the sale of goods.
D. Foreign Currency Transactions
i) Gain and losses on foreign currency transactions other than those
relating to Fixed Assets are recognized in the Profit and Loss Account
on realization/payment.
ii) Assets and Liabilities other than those relating to Fixed Assets
are re-stated at the exchange rate prevailing on the Balance Sheet date
and the net gain/loss is recognized in the Profit and Loss Account.
E. Deferred Tax:
Tax expense charged to Profit & Loss Account is after considering
deferred tax impact for the timing difference between accounting income
and tax income.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article