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Accounting Policies of Kaashyap Technologies Ltd. Company

Mar 31, 2011

A) Fundamental Accounting Assumptions

The Financial statements of the Company are prepared under the historical cost convention on going concern basis in accordance with generally accepted accounting principles applicable in India. The said financial statements comply with the relevant provisions of the Companies Act and applicable Accounting Standards issued by ICAI.

b) Method of Accounting

The company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

c) Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affects the reported amount of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results differ from Estimates. Adjustment as a result of difference between actual and estimates are made prospectively in the period in which results are known /dematerialized.

d) Fixed / Intangible Assets and Depreciation

a) Fixed assets are stated at their original cost of acquisition including taxes, freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

b) Fixed assets are retired from active use or held for disposal are stated at lower of their net book value and net realizable value and are shown separately in the financial statements. Any profit or losses arising on disposal are generally recognized in profit and loss account.

c) Goodwill arising on acquisition of the division at foreign country is stated at cost and it is amortized over five years being the useful life of the business undertaken.

d) Depreciation on Fixed Assets is provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956 on monthly pro rata basis.

e) Individual assets costing less than Rs. 5000/- are provided at 100% depreciation in the year of acquisition.

e) Inventory

The company deals with software development business. The company does not carry any inventory of finished good of software except Work-in-progress as on the balance sheet date.

Work-in-progress is valued at the cumulative cost of expenses incurred pertaining to the project

f) Revenue Recognition

The Company derives income from rendering services and the revenue has been recognized as follows:

a) Revenue from Software Education services are recognized in full, on accrual basis, upon registration for the courses.

b) Revenue from Consultancy services are recognized in full, on accrual basis upon completion of services.

g) Investments

All Investments, being long term in nature, are stated at cost.

h) Retirement Benefits

Retirement benefits in the form of provident fund is a defined contribution scheme, is charged to profit and loss account of the year, when the contribution to the respective fund accrues.

Gratuity and Leave Encashment benefits pertaining to Indian operations are charged in the profit and loss account on the basis of actuarial valuation.

i) Borrowing Cost

Borrowing Cost directly attributable to the acquisition or construction of qualifying assets capitalised. Other borrowing costs are recognized as expenses in the period in which they are incurred.

j) Lease

The company has taken office premises on lease under cancellable operating lease agreements that are renewable on periodic basis at the option of lessor and lessee. Payments in the form of rental advances are grouped under loans and advances and monthly rentals are charged to profit and loss account. k) Taxes on Income

Provision for income tax is made on the taxable income for the year at current rates. Tax expense comprises of current tax, fringe benefit tax and deferred tax at the applicable enacted or substantively enacted rates. Current tax represents the amount of income tax payable for the reporting period.

Deferred tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of assets.

k) Interim Financial Reporting

The company has adopted same accounting policies in preparation of interim financial statements as they followed in preparation of annual financial statements.

l) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when there is a present obligation as a result of past vents and it is probable that an outflow of resources will be required to settle the obligations, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet and adjusted to reflect the current best estimates.

Contingent Liability is disclosed for possible obligation which will be confirmed only by future events not wholly within the control of the company (or) Present obligation arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or reliable estimate of the amount of obligation cannot be made.

Contingent asset not recognized in the financial statements since this may result in the recognition of income that may never be realized.


Mar 31, 2010

A) Fundamental Accounting Assumptions

The Financial statements of the Company are prepared under the historical cost convention on going concern basis in accordance with generally accepted accounting principles applicable in India. The said financial statements comply with the relevant provisions of the Companies Act and applicable Accounting Standards issued by ICAI.

b) Method of Accounting

The company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

c) Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affects the reported amount of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results differ from Estimates. Adjustment as a result of difference between actual and estimates are made prospectively in the period in which results are known /dematerialized.

d) Fixed / Intangible Assets and Depreciation

a) Fixed assets are stated at their original cost of acquisition including taxes, freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

b) Fixed assets are retired from active use or held for disposal are stated at lower of their net book value and net realizable value and are shown separately in the financial statements. Any profit or losses arising on disposal are generally recognised in profit and loss account.

c) Goodwill arising on acquisition of the division at foreign country is stated at cost and it is amortised over five years being the useful life of the business undertaken.

d) Depreciation on Fixed Assets is provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956 on monthly pro rata basis.

e) Individual assets costing less than Rs. 5000/- are provided at 100% depreciation in the year of acquisition.

e) Inventory

The company deals with software development business. The company does not carry any inventory of finished good of software except Work-in-progress as on the balance sheet date.

Work-in-progress is valued at the cumulative cost of expenses incurred pertaining to the project

f) Revenue Recognition

The Company derives income from rendering services and the revenue has been recognised as follows:

a) Revenue from Software Education services are recognised in full, on accrual basis, upon registration for the courses.

b) Revenue from Consultancy services are recognised in full, on accrual basis upon completion of services.

g) Investments

All Investments, being long term in nature, are stated at cost.

h) Retirement Benefits

Retirement benefits in the form of provident fund is a defined contribution scheme, is charged to profit and loss account of the year, when the contribution to the respective fund accrues.

Gratuity and Leave Encashment benefits pertaining to Indian operations are charged in the profit and loss account on the basis of actuarial valuation.

i) Borrowing Cost

Borrowing Cost directly attributabletothe acquisitionorconstructionofqualifying assets capitalised. Other borrowing costs are recognisedasexpensesinthe period inwhich they are incurred.

j) Lease

The company has taken office premises on lease under cancellable operating lease agreements that are renewable on periodic basis at the option of lessor and lessee. Payments in the form of rental advances are grouped under loans and advances and monthly rentals are charged to profit and loss account.

k) Taxes on Income

Provision for income tax is made on the taxable income for the year at current rates. Tax expense comprises of current tax, fringe benefit tax and deferred tax at the applicable enacted or substantively enacted rates.

Current tax represents the amount of income tax payable for the reporting period.

Deferred tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of assets.

l) Interim Financial Reporting

The company has adopted same accounting policies in preparation of interim financial statements as they followed in preparation of annual financial statements.

m) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when there is a present obligation as a result of past vents and it is probable that an outflow of resources will be required to settle the obligations, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet and adjusted to reflect the current best estimates.

Contingent Liability is disclosed for possible obligation which will be confirmed only by future events not wholly with in the control of the company (or) Present obligation arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or reliable estimate of the amount of obligation cannot be made.

Contingent asset not recognized in the financial statements since this may result in the recognition of income that may never be realized.

 
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