Mar 31, 2015
A) Basis of Preparation of Financial Statements:
i) These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (gAaP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies
Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts)
Rules, 2014.
ii) Accounting policies not specifically referred to otherwise are in
consonance with prudent accounting principles.
iii) All income and expenditure items having material bearing on the
financial statements are recognised on accrual basis.
b) Fixed Assets
All fixed assets are stated at cost of acquisition, less accumulated
depreciation. Cost comprises of purchases and attributable cost.
c) Revenue recognition
Revenue from Software development is recognized based on software
developed and billed to clients as per the terms of specific contracts.
Revenue from the sale of software & hardware products is recognized
when the sale is completed with the passing of title.
d) Depreciation
Depreciation on fixed assets has been provided on straight-line method
based on useful life of asset specified in Schedule II of the Companies
Act, 2013 on pro-rata basis.
e) Inventories:
Inventories are valued at cost on FIFO basis.
f) Products under development :
Products under development represent the development expenditure
incurred on various products being developed by the Company. Once the
development phase is completed and the products are ready for
commercial exploitation, these product development costs will be
amortized over a period of years depending upon the period for which
economic benefits would accrue from these products.
g) Investments:
Long term Investments are stated at cost. The short term investments of
the parent company are valued and carried at cost or fair value
whichever is lower. In case of sale of investments, the gain / loss
brought into the books of account.
h) Foreign Currency Transactions:
Transactions denominated in foreign currencies are normally recorded at
the exchange rate prevailing at the time of the transactions. Monetary
items denominated in foreign currencies at the year-end are restated at
year end rates. Non-monetary foreign currency items are carried at
cost. Any income or expense on account of exchange differences either
on settlement, translation or restatement, is recognised in the profit
and loss account.
i) Retirement Benefits:
* Provident Fund: The periodic contributions to Statutory Provident
Fund are charged to revenue.
* Gratuity: Liability towards gratuity is provided on the basis of
actuarial valuation made by an independent actuary.
j) Earning per Share:
The Company reports its Earnings per Share (EPS) in accordance with
Accounting Standard 20 issued by the Institute of Chartered Accountants
of India.
k) Taxes on Income:
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the company. Deferred tax asset
and liability is recognized for future tax consequences attributable to
the timing differences that result between the profit offered for
income tax and the profit as per the financial statements. Deferred tax
asset & liability are measured as per the tax rates / laws that have
been enacted or substantively enacted by the Balance Sheet date.
l) Cash Flow Statement:
Cash Flow Statement has been prepared under indirect method as per the
Accounting Standard-3 "Cash Flow Statement".
Mar 31, 2014
A) Basis of Preparation of Financial Statements:
i) The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles in India, the applicable Accounting Standards issued by the
Institute of Chartered Accountants of India and relevant presentational
requirements of the Companies Act, 1956.
ii) Accounting policies not specifically referred to otherwise are in
consonance with prudent accounting principles.
iii) All income and expenditure items having material bearing on the
financial statements are recognised on accrual basis.
b) Fixed Assets
All fixed assets are stated at cost of acquisition, less accumulated
depreciation. Cost comprises of purchases and attributable cost.
c) Revenue recognition
Revenue from Software development is recognized based on software
developed and billed to clients as per the terms of specific contracts.
Revenue from the sale of software & hardware products is recognized
when the sale is completed with the passing of title.
d) Depreciation
Depreciation on fixed assets has been provided on straight-line method
at the rates specified in Schedule XIV of the Companies Act, 1956 on
pro-rata basis.
e) Inventories:
Inventories are valued at cost on FIFO basis.
f) Products under development :
Products under development represent the development expenditure
incurred on various products being developed by the Company. Once the
development phase is completed and the products are ready for
commercial exploitation, these product development costs will be
amortized over a period of years depending upon the period for which
economic benefits would accrue from these products.
g) Investments:
Long term Investments are stated at cost. The short term investments of
the parent company are valued and carried at cost or fair value
whichever is lower. In case of sale of investments, the gain / loss
brought into the books of account.
h) Foreign Currency Transactions:
Transactions denominated in foreign currencies are normally recorded at
the exchange rate prevailing at the time of the transactions. Monetary
items denominated in foreign currencies at the year-end are restated at
year end rates. Non-monetary foreign currency items are carried at
cost. Any income or expense on account of exchange difference either on
settlement, translation or restatement, is recognised in the profit and
loss account.
i) Retirement Benefits:
* Provident Fund: The periodic contributions to Statutory Provident
Fund are charged to revenue.
* Gratuity: Liability towards gratuity is provided on the basis of
actuarial valuation made by an independent actuary.
j) Earning per Share:
The Company reports its Earnings per Share (EPS) in accordance with
Accounting Standard 20 issued by the Institute of Chartered Accountants
of India.
k) Taxes on Income:
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the company. Deferred tax asset
and liability is recognized for future tax consequences attributable to
the timing differences that result between the profit offered for
income tax and the profit as per the financial statements. Deferred tax
asset & liability are measured as per the tax rates / laws that have
been enacted or substantively enacted by the Balance Sheet date.
l) Cash Flow Statement:
Cash Flow Statement has been prepared under indirect method as per the
Accounting Standard-3 "Cash Flow Statement".
Mar 31, 2013
A) Basis of Preparation of Financial Statements:
i) The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles in India, the applicable Accounting Standards issued by the
Institute of Chartered Accountants of India and relevant presentational
requirements of the Companies Act, 1956.
ii) Accounting policies not specifically referred to otherwise are in
consonance with prudent accounting principles.
iii) All income and expenditure items having material bearing on the
financial statements are recognised on accrual basis.
b) Fixed Assets
All fixed assets are stated at cost of acquisition, less accumulated
depreciation. Cost comprises of purchases and attributable cost.
c) Revenue recognition
Revenue from Software development is recognized based on software
developed and billed to clients as per the terms of specific contracts.
Revenue from the sale of software & hardware products is recognized
when the sale is completed with the passing of title.
d) Depreciation
Depreciation on fixed assets has been provided on straight-line method
at the rates specified in Schedule XIV of the Companies Act, 1956 on
pro- rata basis.
e) Inventories:
Inventories are valued at cost on FIFO basis.
f) Products under development :
Products under development represent the development expenditure
incurred on various products being developed by the Company. Once the
development phase is completed and the products are ready for
commercial exploitation, these product development costs will be
amortized over a period of years depending upon the period for which
economic benefits would accrue from these products.
g) Investments:
Long term Investments are stated at cost. The short term investments of
the parent company are valued and carried at cost or fair value
whichever is lower. In case of sale of investments, the gain / loss
brought into the books of account.
h) Foreign Currency Transactions:
Transactions denominated in foreign currencies are normally recorded at
the exchange rate prevailing at the time of the transactions. Monetary
items denominated in foreign currencies at the year-end are restated at
year end rates. Non-monetary foreign currency items are carried at
cost. Any income or expense on account of exchange difference either
on settlement, translation or restatement, is recognised in the profit
and loss account.
i) Retirement Benefits:
- Provident Fund: The periodic contributions to Statutory Provident
Fund are charged to revenue.
- Gratuity: Liability towards gratuity is provided on the basis of
actuarial valuation made by an independent actuary.
j) Earning per Share:
The Company reports its Earnings per Share (EPS) in accordance with
Accounting Standard 20 issued by the Institute of Chartered Accountants
of India.
k) Taxes on Income:
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the company. Deferred tax asset
and liability is recognized for future tax consequences attributable to
the timing differences that result between the profit offered for
income tax and the profit as per the financial statements. Deferred tax
asset & liability are measured as per the tax rates / laws that have
been enacted or substantively enacted by the Balance Sheet date.
l) Cash Flow Statement:
Cash Flow Statement has been prepared under indirect method as per the
Accounting Standard-3 "Cash Flow Statement".
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