Mar 31, 2014
A) Basis of preparation
The Financial Statements have been prepared in accordance with the
generally accepted accounting principles on accrual basis and comply
with the accounting standards referred to in section 211 (3C) of the
Companies Act, 1956 as adopted consistently by the company. The Company
follows the mercantile system of accounting and recognizes income and
expenditure on accrual basis. The estimates and assumption used in
these financial statements are based upon the management''s evaluations
of the relevant facts and circumstances as of the date of the financial
statements.
b) Revenue recognition
Revenue is recognised on transfer of significant risk and reward that
can be reliably measured and there exists no significant uncertainty in
its ultimate realisation. Revenue from software development is
recognized based on software developed or man-hours spent as per
specific terms of contracts. Income from interest on loans forming
part of other income is recognized on accrual basis.
c) Fixed Assets
Fixed assets are stated at historical cost less accumulated
depreciation. Cost includes all cost incurred to bring the asset to
itsr working condition for its intended use.
d) Depreciation
Depreciation on fixed assets is provided on Straight Line Basis at the
rates prescribed in schedule XIV to the Companies Act, 1956.
e) Taxes on Income
The Company makes necessary provision for Income Tax, taking into
account the allowances and exemptions admissible under the Income Tax
Act, 1961. Deferred Tax resulting from "timing difference" between book
and tax profits is accounted for at the current rate of tax. Deferred
Tax asset is recognised to the extent they are expected to crystallize
in future.
f) Investments
Long-term investments are stated at cost and any decline, other than
temporary, in the value of such investments, is charged to the Profit
and Loss Account. Current investments are stated at lower of cost and
market value.
g) Impairment
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit &
Account in the year in which an asset is identified as impaired. In
case of a change in recoverable value, impairment loss is reversed
immediately. Based on available information there is no impairment of
asset estimated during the year.
h) Miscellaneous Expenditure
Represents preliminary expenses amortized over a period of time. Public
issue expenses are written off over a period of ten years. ROC fees for
filing authorized capital which is not considered as revenue
expenditure and is amortized over the period of five years.
i) Segment Report
Currently the company is engaged in development of software, which as
per Accounting Standard -17 is considered as the only reportable
business.
j) Deferred Tax
In accordance with Accounting Standard 22 (Accounting of Taxes on
Income) issued by the Institute of Chartered Accountants of India ,
Deferred Tax liability/ (Asset) attributed to timing difference
relating to depreciation has been recognized at Rs.12,421/- as on
31.03.2014 (Rs. 9,442 /- as on 31.03.2013) Deferred Tax Asset.
k) Employee Benefits
Short term benefits are charged off to the Profit & loss account in the
year of rendering of services. The number of employees was less than10
during the year under review and hence it is reported that payment of
Contribution/ Benefit Plan are not applicable to this Company.
Mar 31, 2013
A) Basis of preparation of financial statements
The Financial Statements have been prepared in accordance with the
generally accepted accounting principles on accrual basis and comply
with the accounting standards referred to in section 211 (3C) of the
Companies Act, 1956 as adopted consistently by the company. The Company
follows the mercantile system of accounting and recognizes income and
expenditure on accrual basis. The estimates and assumption used in
these financial statements are based upon the management''s evaluations
of the relevant facts and circumstances as of the date of the financial
statements.
b) Revenue recognition
Revenue from software development is recognized based on software
developed or time spent in person hours or person weeks and billed to
customers as per the terms of specific contracts. Revenue from software
development services comprises income from time and materials and fixed
price contracts. Revenue is recognized in accordance with the terms of
the contract with the customer. Revenue with respect to time-and
material contracts is recognized as related services are performed.
Revenue from fixed-price contracts is recognized in accordance with the
percentage of completion method. Income from services is recognized on
accrual basis. Service Income do not include Service Tax which is
treated as a liability. Income from interest on loans forming part of
other income is recognized on accrual basis.
c) Fixed Assets
Fixed assets are stated at historical cost less accumulated
depreciation.
d) Depreciation
Depreciation on fixed assets is provided on Straight Line Basis at the
rates prescribed in schedule XIV to the Companies Act, 1956. The
expenditure incurred towards the acquisition of Assets for Research and
Development have been capitalized and no depreciation has been provided
for. Depreciation is provided on Assets sold up to the point of sale.
Depreciation on Additions to fixed assets are provided on pro rata
basis from the date of purchase up to 31st march 2013
e) Taxes on Income
The Company will make necessary provision for Income Tax, taking into
account the allowances and exemptions under the Income Tax Act,
1961.Deferred Tax resulting from timing difference between book and tax
profits is accounted for under the liability method, at the current
rate of tax, to the extent that the timing differences are expected to
crystallize.
f) Investments
Investments are classified as long-term investments and current
investments. Long-term investments are stated at cost and any decline
other than temporary, in the value of such investments is charged to
the Profit and Loss Account. Current investments are stated at lower
of cost and market value. All Investments are held in the name of the
company. As on date of the Balance Sheet all investments made by the
companies are long term investments only.
g) Impairment
At each balance sheet date, the Company reviews the carrying amounts of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication
exists, the recoverable amount of the assets is estimated in order to
determine the extent of impairment loss. Recoverable amount is the
higher of an asset''s net selling price and value in use. In assessing
value in use, the estimated future cash flows expected from the
continuing use of the asset and from its disposal are discounted to
their present value using a Pre-tax discount rate that reflects the
current market assessments of time value of money and the risks
specific to the asset.
Reversal of impairment loss is recognized immediately as income in the
profit and loss account.
h) Miscellaneous Expenditure represents preliminary expenses amortized
over a period of ten years and public issue expenses to be written off
over a period of ten years. The Filing fees to ROC in authorized
capital which is not considered as revenue expenditure and is amortized
over the period of five years.
i) Currently the company is engaged in development of software, which
as per Accounting Standard  17 is considered as the only reportable
business.
j) Deferred Tax
In accordance with Accounting Standard 22 (Accounting of Taxes on
Income) issued by the Institute of Chartered Accountants of India ,
Deferred Tax liability/ (Asset) attributed to timing difference
relating to depreciation has been recognized at (Rs.9,442/-) as on
31.03.2013 (Rs. 52,019 /- as on 31.03.2012) Deferred Tax Asset.
Depreciation as per Books Rs. 1,03,004
Depreciation as per IT Act Rs. 75,152
Tax on the Timing Difference Rs. 9,442 (Net Deferred Tax)
k) Short Term employee benefits are charged off to the Profit & loss
account in the year of rendering of services. The no. of employees were
less than 50 during the year under review and hence it is reported that
payment of Contribution/ Benefit Plan are not applicable to this
Company.
Mar 31, 2011
A) Basis of preparation of financial statements
The Financial Statements have been prepared in accordance with the
generally accepted accounting principles on accrual basis and comply
with the accounting standards referred to in section 211 (3C) of the
Companies Act, 1956 as adopted consistently by the company. The Company
follows the mercantile system of accounting and recognizes income and
expenditure on accrual basis. The estimates and assumption used in
these financial statements are based upon the management's evaluations
of the relevant facts and circumstances as of the date of the financial
statements.
b) Revenue recognition
Revenue from software development is recognized based on software
developed or time spent in person hours or person weeks and billed to
customers as per the terms of specific contracts.
Revenue from software development services comprises income from time
and materials and fixed price contracts. Revenue is recognized in
accordance with the terms of the contract with the customer. Revenue
with respect to time-and material contracts is recognized as related
services are performed. Revenue from fixed-price contracts is
recognized in accordance with the percentage of completion method.
Income from services is recognized on accrual basis. Service Income do
not include Service Tax which is treated as a liability. Income from
interest on loans forming part of other income is recognized on accrual
basis.
c) Fixed Assets
Fixed assets are stated at historical cost less accumulated
depreciation.
d) Depreciation
Depreciation on fixed assets is provided on Straight Line Basis at the
rates prescribed in schedule XIV to the Companies Act, 1956. The
expenditure incurred towards the acquisition of Assets for Research and
Development have been capitalized and no depreciation has been provided
for. Depreciation is provided on Assets sold up to the point of sale.
Depreciation on Additions to fixed assets are provided on pro rata
basis from the date of purchase up to 31st march.
e) Taxes on Income
The Company will make necessary provision for Income Tax, taking into
account the allowances and exemptions under the Income Tax Act,
1961.Deferred Tax resulting from timing difference between book and tax
profits is accounted for under the liability method, at the current
rate of tax, to the extent that the timing differences are expected to
crystallize.
f) Investments
Investments are classified as long-term investments and current
investments. Long- term investments are stated at cost and any decline
other than temporary, in the value of such investments is charged to
the Profit and Loss Account. Current investments are stated at lower of
cost and market value. All Investments are held in the name of the
company. As on date of the Balance Sheet all investments made by the
companies are long term investments only.
g) Impairment
At each balance sheet date, the Company reviews the carrying amounts of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication
exists, the recoverable amount of the assets is estimated in order to
determine the extent of impairment loss. Recoverable amount is the
higher of an asset's net selling price and value in use. In assessing
value in use, the estimated future cash flows expected from the
continuing use of the asset and from its disposal are discounted to
their present value using a Pre-tax discount rate that reflects the
current market assessments of time value of money and the risks
specific to the asset.
Reversal of impairment loss is recognized immediately as income in the
profit and loss account.
Mar 31, 2010
A) Basis of preparation of financial statements
The Financial Statements have been prepared in accordance with the
generally accepted accounting principles on accrual basis and comply
with the accounting standards referred to in section 211 (3C) of the
Companies Act, 1956 as adopted consistently by the company. The Company
follows the mercantile system of accounting and recognizes income and
expenditure on accrual basis. The estimates and assumption used in
these financial statements are based upon the managements evaluations
of the relevant facts and circumstances as of the date of the financial
statements.
b) Revenue recognition
Revenue from software development is recognized based on software
developed or time spent in person hours or person weeks and billed to
customers as per the terms of specific contracts.
Revenue from software development services comprises income from time
and materials and fixed price contracts. Revenue is recognized in
accordance with the terms of the contract with the customer. Revenue
with respect to time-and material contracts is recognized as related
services are performed. Revenue from fixed-price contracts is
recognized in accordance with the percentage of completion method.
Income from services is recognized on accrual basis. Service Income do
not include Service Tax which is treated as a liability. Income from
interest on loans forming part of other income is recognized on accrual
basis.
c) Fixed Assets
Fixed assets are stated at historical cost less accumulated
depreciation. Capital Work-in- Progress represents Development of
Software unfinished.
d) Depreciation
Depreciation on fixed assets is provided on Straight Line Basis at the
rates prescribed in schedule XIV to the Companies Act, 1956. The
expenditure incurred towards the acquisition of Assets for Research and
Development have been capitalized and no depreciation has been provided
for. Depreciation is provided on Assets sold up to the point of sale.
Depreciation on Additions to fixed assets are provided on pro rata
basis from the date of purchase up to 31st march.
e) Taxes on Income
The Company will make necessary provision for Income Tax, taking into
account the allowances and exemptions under the Income Tax Act,
1961.Deferred Tax resulting from timing difference between book and tax
profits is accounted for under the liability method, at the current
rate of tax, to the extent that the timing differences are expected to
crystallize.
f) Investments
Investments are classified as long-term investments and current
investments. Long-term investments are stated at cost and any decline
other than temporary, in the value of such investments is charged to
the Profit and Loss Account. Current investments are stated at lower of
cost and market value. All Investments are held in the name of the
company. As on date of the Balance Sheet all investments made by the
companies are long term investments only.
g) Impairment
At each balance sheet date, the Company reviews the carrying amounts of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication
exists, the recoverable amount of the assets is estimated in order to
determine the extent of impairment loss. Recoverable amount is the
higher of an assets net selling price and value in use. In assessing
value in use, the estimated future cash flows expected from the
continuing use of the asset and from its disposal are discounted to
their present value using a Pre- tax discount rate that reflects the
current market assessments of time value of money and the risks
specific to the asset.
Reversal of impairment loss is recognized immediately as income in the
profit and loss account.
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