Home  »  Company  »  Lee Nee Software  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Lee & Nee Softwares (Exports) Ltd. Company

Mar 31, 2015

1) SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The financial statements have been prepared to comply in all material respects with the accounting standards notified under Section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014 issued by the Ministry of Corporate Affairs. The financial statements have been prepared under the historical cost convention on a going concern basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

a) Method of Accounting :

The Company follows the mercantile system of accounting and generally the accrual concept in preparing the accounts except dividend, Audit Fee which is recorded on cash basis.

b) Use of Estimates :

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statements and notes thereto. Differences between actual results and estimates are recognised in the period in which they materialise.

c) Revenue/Expenses recognition :

Revenue and Expenses are recognized only when accrued and their collection and payment is reasonably certain. Software development income has been accounted for contractually though the payments are received progressively. Software Development Expenses and/or copyright fees are accounted for on satisfactory completion.

d) Fixed Assets :

All Fixed Assets are valued at cost inclusive of expenses incurred to put them in use less accumulated depreciation and impairments if any.

e) Depreciation :

Depreciation is provided for based on the useful lives of assets as stated in Schedule II of Companies Act 2013. However, assets value upto Rs 5,000 are fully depreciated in the year of acquisition.

f) Investments:

Non-Current Investments are stated at Cost. However, provision for diminution, if any, in the value of each Non-Current Investment is made to recognize a decline other than temporary nature in the value of the investment.

g) Foreign Currency Transaction :

Transaction in foreign currency are normally recorded at prevailing exchange rate, at the time of the transaction. The resultant gain or loss on realization of foreign currency is recognized in Statement of Profit & Loss as exchange fluctuation.

h) Provisions, Contingent liabilities and Contingent assets:

Provisions are recognized in respect of obligation where, based on the evidence available, their existence at the Balance Sheet date is considered probable.

Contingent liabilities are disclosed by way of Notes to Accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable.

Contingent assets are neither recognized nor disclosed in the Financial Statements.

i) Employee Benefit:

Defined Contribution plans :

Company's contributions to Provident Fund and Employee State Insurance are charged to Statement of Profit & Loss of the year when the contributions to the respective Funds are due. The Company has no obligations other than the contributions payable to the respective Funds.

j) Earnings Per share:

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

k) Cash and Cash Equivalents:

Cash and cash equivalents as indicated in the Cash Flow Statement comprise cash at bank and on hand and short term investments with an original maturity of less than three months.


Mar 31, 2014

The financial statement has been prepared under historical cost convention and as going concern concept and in accordance with the Generally Accepted Accounting Principles in India, the applicable mandatory accounting standards notified by the Companies(Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 1956

a) Method of Accounting :

The Company follows the mercantile system of accounting and generally the accrual concepl in preparing the accounts except dividend, Audit Fee, Trade Licence which is recorded on cash basis

b) Revenue/Expenses recognition :

Revenue and Expenses are recognized only when accrued and their collection and payment is reasonably certain Software development income has been accounted for contractually though the payments are received progressively. Software Development Expenses and/or copyright fees are accounted for on satisfactory completion

c) Fixed Assets;

All Fixed Assets are valued at cost inclusive of expenses incurred to put them in use less accumulated depredation and impairments if any.

dj Inypstmori'E:

Non-Current Investments are stated aLCosl Provision for diminution, if any, in the value of each Non-Current Investment is made to recognize a decline olher than that of a temporary nature

e) Depreciation:

Depreciation on all Fixed Assets has been provided on written down value method at the rates specified in schedule XIV to Ihe Companies Act, 1956 on prorata basis

f) Valuation of Inventories :

Softwares Packages/p re ducts are valued at cost

g) Foreign Currency Transaction :

Transaction in foreign currency are normally recorded at prevailing exchange rate, at the time of the transaction The resultant gain or loss on realization of foreign currency is recognized in Statement of Profit a Loss as exchange fluctuation






Mar 31, 2012

The financial statement has been prepared under historical cost convention and as going concern concept and in accordance with the provisions of the Companies Act, 1956 and as per the accounting principles as well as guidelines prescribed by the Institute of Chartered Accountants of India.

a) Method of Accounting :

The Company follows the mercantile system of accounting and generally the accrual concept in preparing the accounts except dividend, Audit Fee which is recorded on cash basis.

b) Revenue/Expenses recognition :

Revenue and Expenses are recognized only when accrued and their collection and payment is reasonably certain. Software development income has been accounted for contractually though the payments are received progressively. Software Development Expenses and/or copy right fees are accounted for on satisfactory completion.

c) Fixed Assets :

All Fixed Assets are valued at cost inclusive of expenses incurred to put them in use less accumulated depreciation and impairments if any

d) Investments:

Non-Current Investments are stated at Cost. Provision for diminution, if any, in the value of each Non-Current Investment is made to recognize a decline other than that of a temporary nature. Current Investments are carried individually at lower of cost and fair value and the resultant decline, if any, is charged to revenue.

e) Depreciation :

Depreciation on all Fixed Assets has been provided on written down value method at the rates specified in schedule XIV to the Companies Act, 1956 on prorata basis.

f) Valuation of Inventories :

Softwares Packages/products are valued at cost.

g) Foreign Currency Transaction :

Transaction in foreign currency are normally recorded at prevailing exchange rate, at the time of the transaction. The resultant gain or loss on realization of foreign currency is recognized in Statement of Profit & Loss as exchange fluctuation.

ii) Terms / Rights attached to Equity Shares :

a) The Company has only one class of Equity Shares having par value of Rs 10 each. Each share holder is eligible for one vote per share held.

b) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

iv) The Company, out of the 55774000 equity shares of Rs 10 each, during the financial year 1990-91, 800000 equity shares had called up for Rs. 0.50 paise each aggregating to Rs 400000 only allotted for consideration other than cash.

Pursuant to order of the Honorable Calcutta High Court, during the financial year 1999-2000, 5000000 equity shares of Rs. 10 each on merger of Lensel Finance Ltd.

16704000 equity shares of Rs 10 each fully paid upto three amalgamating companies during the financial year 2000-01.

29080000 equity shares of Rs 10 each fully paid upto five amalgamating companies during the financial year 2007-08.


Mar 31, 2010

The financial statement has been prepared under historical cost convention and as going concern concept and in accordance with the provisions of the Companies Act, 1956 and as per the accounting principles as well as guidelines prescribed by the Institute of Chartered Accountants of India.

a) Method of Accounting :

The Company follows the mercantile system of accounting and generally the accrual concept in preparing the accounts except dividend, Audit Fee which is recorded on cash basis.

b) Revenue/Expenses Recognition :

Revenue and Expenses are recognised only when accrued and their collection and payment is reasonably certain. Software development income has been accounted for contractually though the payments are received progressively. Software Development expenses and/or copy right fees are accounted for on satisfactory completion.

c) Accounting of Software Package Development :

Expenses incurred on development of software packages are shown under work in progress till the package/ product are fully developed.

d) Fixed Assets :

All Fixed Assets are valued at cost inclusive of expenses incurred to put them in use less accumulated depreciation and impairments, if any.

e) Investments :

Investments are stated at cost. The management perceives all the investments in securities as long term save and except mentioned as current investment in the Schedule "4".

f) Depreciation :

Depreciation on all Fixed Assets has been provided on written down value method at the rates specified in schedule XIV to the Companies Act, 1956 on prorata basis.

g) Valuation of Inventories :

Software packages/product and printed materials are valued at cost. Finished goods excluding developed software package arevalued at lower of cost or if any estimated net realisable value. Work-in-progress including the cost of developed software is taken at estimated cost. h) Foreign Currency Transaction :

i) Transactions in Foreign Currency are normally recorded at prevailing exchange rate, at the time of the transaction. The resultant gain or loss on realisation of foreign currency is recognised in Profit & Loss Account as exchange fluctuation.

 
Subscribe now to get personal finance updates in your inbox!