Mar 31, 2013
(a) AS 1 Disclosure of accounting policies: The disclosure of accounting policies is made in respect of the reporting entity. The accounts are maintained on accrual basis as a going concern.
(b) AS 2 Valuation of Inventories: Inventories are valued in accordance with the method of valuation prescribed by the Companies (Accounting Standards) Rules, 2006 at weighted average cost or net realizable value whichever is less.
(c) AS 3 Cash Flow Statements: The cash flow statement is prepared under indirect method and the same is annexed.
(d) AS 4 Contingencies and events occurring after balance sheet date: There have been no contingent events that have occurred after the balance sheet date and hence these are not applicable to the enterprise.
(e) AS 5 Net profit or loss for the period, Prior period items and Changes in accounting policies
I. Prior period items: There are no prior period items during the year and hence these are not applicable.
II. Changes in accounting policies: There have not been any changes in accounting policies during the current year.
(f) AS 6 Depreciation Accounting: Depreciation has been provided under the Written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956.
In respect of assets added / assets sold during the year, pro-rata depreciation has been provided at the rates prescribed under Schedule XIV.
(g) AS 9 Revenue Recognition: The income of the Company is derived from sale of Software. Sale of goods is recognized on dispatch of goods to dealers and consumers. Amount recognized as sale is exclusive of Sales tax/ VAT and is net of sales returns. No central excise duty is applicable at present for the products dealt with by the Company.
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
(h) AS 10 Accounting for Fixed Assets: All the fixed assets are valued at cost including expenditure incurred in bringing them to usable condition less depreciation.
(i) AS 11 Accounting for effect of changes in foreign exchange rates: Not applicable as there was no foreign exchange transactions during the year.
(j) AS 12 Accounting for government grants: Not applicable, the Company has not received any grant.
(k) AS 13 Accounting for Investments: Not applicable, there was no investment.
(1) AS 14 Accounting for Amalgamations: Not applicable, there was no amalgamation during the year.
(m) AS 15 Accounting for Employee benefits
a) From the current year provident fund schemes and the Employees state insurance schemes are applicable to the employees, company made proper provision for the same and accounted in the books of accounts.
b) Gratuity and Encashment of leave benefits to employees are accounted for on payment basis as none of the employees are eligible for the same at present.
(n) AS 16 Borrowing Costs: The borrowing costs have been treated in accordance with Accounting Standard on borrowing costs issued by the Companies (Accounting Standard) Rules, 2006.
(o) AS 17 Segment Reporting: The Company operates in only one segment, hence the Accounting Standard on segment reporting is not applicable.
(p) AS 18 Related party disclosures: Disclosure in accordance with Accounting Standard-18 Related Party transaction during the year:
During the year no related party transactions are entered into. (Previous Year: NIL)
(q) AS 20 Earnings Per Share
In the financial year company calculated Earnings per share and Diluted Earnings per share in accordance with Accounting Standard on borrowing costs issued by the Companies (Accounting Standard) Rules, 2006
(r) AS 22 Accounting for Taxes on Income
a. Provision for Income Tax is considered as per the provisions contained in the Income Tax Act, 1961 and the Rules made there under and at the rates applicable for the current financial year.
b. Provision for Deferred Tax is considered as per the provisions contained in the Income Tax Act, 1961 and the Rules made there under and at the rates applicable for the current financial year.
(s) AS 26 Intangible Assets
Cost incurred on preparation of the software is capitalized and amortized on a straight-line basis over a period of ten years, being the estimated useful life.
Goodwill arising from acquisition of business is amortized on a straight-line basis over a period of ten years, being the estimated useful life.
(t) AS 29 Provisions, Contingent Liabilities and Contingent Assets
There was no Contingent Liabilities during the year.