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:
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.
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.